1. Industrial Revolution Economics

2. I. Labor Unions
A. groups of workers that united to improve work
conditions, protect wages and ensure fairness
B. What did labor unions accomplish?
1. laws to prevent children from working in
dangerous factories and mines
2. laws limiting the amount of hours a person can
work
3. fair pay and safe work environment
4. if owners wouldn’t listen, then workers could go
on strike
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5. C. Social Darwinism
1. based on Charles Darwin's theory of survival of the fittest
2. Herbert Spencer used it to explain why some people are
rich and some are poor.
3. People in a society must compete for survival - the rich
and educated will naturally become superior and the poor
and uneducated will naturally become inferior
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6. Capitalism
individuals invest their capital ($) in their own private business in order to make a profit
Other names
free enterprise, private enterprise, market economy or laissez-faire economics
Who controls ownership, production and price?
Entrepreneurs – the Industrial Revolution needed these investors to build factories and pay workers (farms, business, factories)
Who determines the demand for the goods?
the people decide what they want
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7. Positives
competition creates fair prices, profits encourage hard work, freedom to make individual choice, gov’t stays out of your business
Negatives
no guarantee for employment, division in classes, no guarantee business will succeed
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8. Would true Capitalist like minimum wage laws or labor unions? Why?
This will lead to the creation of more future cows that can produce even more milk and more cows and you can become a millionaire….OR your first cow dies and you lose everything!
Would true Capitalist like minimum wage laws or labor unions? Why?

9. Socialism
where a country’s farms, factories, businesses and means of production belong to society (workers, common people) but are overseen by the gov’t
Other names
mixed economy
Who controls ownership, production and price?
society or the workers – are supposed to share in all responsibilities and profits
Who determines the demand for the goods?
society decides what is needed for the good of the group, it is about cooperation and not competition
Karl Marx and Fredrick Engels
they believed this would end unemployment and poverty because the gov’t would make sure everyone contributed to its success
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10. Positives
people work together, no unemployment, provide more opportunities, compensation on merit, no poverty, equal distribution of wealth
Negatives
no private ownership/business, little incentive to work hard, people don’t always get to do what jobs they want, limits to your success
Proletariat
“have-nots or workers”
Bourgeoisie
“haves or owners”

11. This is about sharing and having an equal distribution of wealth and an equal distribution of cows!

12. Communism
a country's farms, businesses, and factories are owned and controlled entirely by the government, there is no private business
Other names
command economy
Who controls ownership, production and price?
government control everything
Who determines the demand for the goods?
the gov’t decides what the what the people need and when
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13. Karl Marx
“The Communist Manifesto” book stated capitalists get richer (owners) and the workers get poorer, the workers need overthrow owners and let the gov’t take over to end poverty and abolish class system
Positives
no poverty, no unemployment, no class system, everyone would be equal, gov’t provide food/shelter/work
Negatives
no personal freedom or ownership, everyone being equal doesn’t mean that it is nicer, gov’t controls your life, no incentive to work except that the gov’t will punish you
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14. Communism
It is like Socialism on steroids – where the gov’t forces you to do what they think is your part and they tell you what you need and can or can’t do
Socialism
Gov’t just makes sure everyone is doing their part, you may struggle but it will be a group effort

15. Gov’t takes your cows and then tells you when you will need the milk you have no say – even if you are really really thirsty!

16. Cowkimon

18. You have no freedom of choice
You have no freedom of choice! You must do what the gov’t says or suffer the wrath haha!

19. III. The Spread of the Industrial Revolution
In Britain, who was paying to build all the factories, railroads, canals and machines?

20. Eventually by 1900, three countries had overtaken England in industry - the US, Germany and Japan.
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21. B. How could these countries surpass England?
1. Natural Resources – they had more
natural resources, such as coal, iron, steel
and crops
a. More materials for factories and
plenty of food for workers
2. Government Aid - in Britain, the
government did NOT finance industry.
However, in the US, Germany, and Japan
governments helped finance heavy
industry.
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22. C. Advantages of being an Industrialized country 1. better technology
2. able to make more money
3. increase allies due to trade
4. faster/cheaper transportation
5. develop a stronger military
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