1. Chapter 7 section 4
New ways of thinking

2. Laissez-Faire Economics
Government should not interfere with business of free operation of the economy
Adam Smith- The wealth of Nations
Unregulated trade and exchange of goods and services
Felt that free market would produce more products at less prices
Capitalists would reinvest profits into new areas of growth

3. Malthus on Population
Predicted that population would outpace the food supply
Only things to keep population in check would be war, dieses and famine
He also felt that the poor would suffer the most and urged them to have fewer children
He was accurate in the population growth however food supply increased at even greater rates

4. Ricardo on Wages Also felt that the poor had to many children
“iron law of wages”
When wages were high people had more children= larger labor force=lesser pay and higher unemployment

5. The Utilitarian
Fought for the protection of women children and public health
“the greatest happiness for the greatest number” – Jeremy Bentham
Supported individual freedom
Felt government should be a little involved in the economy
John Stuart Mill
Actions are right if they cause happiness and wrong if they cause pain

6. John Stuart Mill
Actions are right if they cause happiness and wrong if they cause pain
He felt that the government should get involved in labor issues when the workers were being exploited
More rights for worker and women

7. Emergence of Socialism
Focused on the goods of society
Condemned evils of industrial capitalism
People as a whole would run and own the means of productions
Society would operate for the benefit of all members , rather than just the wealthy

8. The Utopians The ideal society
All work and property shared by the community
No difference between rich and poor
Impractical dreamers

9. Robert Owen Utpian who created his own Utopia
Campaigned for laws that limited child labor and encouraged labor unions
New Lanark Scotland
Model village
Built homes for workers
Treated them with respect
Proved that people would obey even when treated well

10. Scientific Socialism Karl Marx
Based on the scientific study of history
Wrote The communist Manifesto with Frederick Engels
Communism- sees the struggle between workers and employees as unavoidable
Economy was the driving force in history
Have vs have-nots

11. Connecting past to present
Failures
Marx felt that when the working class rebelled it would set off a world revolution
Actually caused a number of changes in society and the work place
Revolutions
Russian socialists embraced Marxism
1917 Russia fell to communism along with many other countries
By 1990 many of these nations have embrace the free-market capitalism