1. 7.4 Notes
New Ways of Thinking

2. Thomas Malthus
Observed problems in society: crowded, slums, hunger, unemployment, misery
Published a book called, “An Essay on the Principle of Population”
Poverty is unavoidable because the population is increasing faster than the food supply

3. Thomas Malthus

4. Laissez-Faire Economics
Government should not interfere in the free operation of the economy
Adam Smith- “The Wealth of Nations”
Free market would benefit everyone
Produce more goods at lower prices

5. Malthus Holds Bleak View
He also supported laissez faire economics
He realized that the only check on populations were natural methods
He urged families to have fewer children and discouraged handouts and vaccinations
His view was proven wrong and the food supply did catch up with the population

6. Family size during industrial revolution

7. Ricardo Shares View David Ricardo Shares views of laissez faire
Wrote the book called, “Iron Law of Wages”
Believed that individuals were left to improve their own lives through thrift, hard work, and limiting the size of their families

8. Utilitarian for limited government
Other thinkers wanted to modify laissez faire
Utilitarian- belief that society should be the greatest happiness for the greatest number
Jeremy Bentham
Supported individual freedom
He saw the need for government to become involved in certain circumstances

9. John Stuart Mill Supported Jeremy Bentham
Thought the government to step in and improve the lives of the working class
“The only purpose for which power can be rightfully exercised over any member of a civilized community against his will is to prevent harm to others.”
Today, we have used some of Mill’s thinking in our government

10. Socialist thought emerges
People as a whole instead of private individuals would own and operate means of production
They wanted to end poverty and injustice
They believed that the Industrial Revolution created a gap between rich and poor

11. Utopians Utopians-they were impractical dreamers
They believed that the fighting would disappear if there was no gap between rich and poor
Robert Owen set up a model community in Scotland to put his ideas into practice

12. Karl Marx German philosopher Condemned the ideas of the utopian
He wrote, “The Communist Manifesto”
He creates the concept of communism which is a form of socialism
This would be a classless society where the production of all would be owned by the community

13. Marx

14. Marx Economics is the driving force behind history
He stated the struggle to be between the haves and the have-nots
He thought that the working class would win and set up a classless society
Marx despised capitalism because wealth and power were not equally shared

15. Marxism in the future Countries adopt his ideas
Germany adopted a social democracy-one in which the economy would switch to socialism gradually
Other countries including Russia, and parts of Asia, Latin America, and Africa would turn to Marxism
As time passes, the failures of Marxism would spread and countries switched back