1. New Economic Ideas from the Industrial Revolution Mr. Ornstein Willow Canyon High School Honors World History

2. What is Economics? Study of Scarcity Study of Scarcity The social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems. The social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems.

3. Laissez-Faire Capitalism Market Economy Market Economy Based on Supply, Demand, Competition Based on Supply, Demand, Competition Little to No Government Involvement Little to No Government Involvement Competition and Self Interest Competition and Self Interest

4. Adam Smith Developed Ideas of Capitalism. Developed Ideas of Capitalism. Wealth of Nations Wealth of Nations

5. David Ricardo Believes in Laissez-faire capitalism Believes in Laissez-faire capitalism Worried About Overpopulation Worried About Overpopulation

6. Iron Law of Wages Ricardo Believed that Too Many People Meant Too Many Workers which Mean Salaries and Wages Would Decrease Ricardo Believed that Too Many People Meant Too Many Workers which Mean Salaries and Wages Would Decrease

7. Thomas Malthus Also Believes in Laissez-Faire Also Believes in Laissez-Faire Believes That Overpopulation will decrease resources like food. Believes That Overpopulation will decrease resources like food.

8. Malthus and Ricardo Both Were Worried About Overpopulation Both Were Worried About Overpopulation Both Believed the Government Should Not Help People in Need or Give Welfare Both Believed the Government Should Not Help People in Need or Give Welfare Felt it was natural for population to thin out Felt it was natural for population to thin out

9. Utilitarianism The ethical theory proposed by Jeremy Bentham and James Mill that all action should be directed toward achieving the greatest happiness for the greatest number of people. The ethical theory proposed by Jeremy Bentham and James Mill that all action should be directed toward achieving the greatest happiness for the greatest number of people. Government Should Help Those In Need Government Should Help Those In Need

10. Karl Marx Economic Idea of Communism or Marxism Economic Idea of Communism or Marxism Develops During Industrial Revolution Develops During Industrial Revolution

11. Communism/Marxism World is divided by class: Haves vs. Have Nots World is divided by class: Haves vs. Have Nots Workers of the World Should Unite Workers of the World Should Unite Workers will have worldwide revolution Workers will have worldwide revolution New Government of the workers will share everything equally. New Government of the workers will share everything equally.

12. Social Darwinism Survival of the Fittest Survival of the Fittest Applied to social welfare and business Applied to social welfare and business Only strong businesses will survive, weak ones will go out of business. Only strong businesses will survive, weak ones will go out of business. Related to laissez-faire Related to laissez-faire

13. Results of the Industrial Revolution Growth of Cities Growth of Cities Mass Production Mass Production New and Cheaper Products New and Cheaper Products New Economic Ideas like Communism New Economic Ideas like Communism Rise of Unions Rise of Unions Improved Standard of Living Improved Standard of Living Imperialism Imperialism Rise of the Middle Class Rise of the Middle Class

14. Ticket Out the Door What are the beliefs of Laissez-faire capitalism? What are the beliefs of Laissez-faire capitalism? What are the main beliefs of Marxism? What are the main beliefs of Marxism? What issues concerned both Ricardo and Malthus? What issues concerned both Ricardo and Malthus? What are 3 Results of the IR? What are 3 Results of the IR?