1. Traditional vs Modern Economy Chris Harman, A People’s History of the World, Bookmarks Publications, 2002, pp. 318-325 (Chapter 5: The Industrial Revolution) James Fulsher, Capitalism: A Very Short Introduction, Oxford University Press, 2004, pp. 5- 9/13-18. Anthony Giddens, Sociology, 3 rd ed., 1998, pp. 240-263; 270-281 ( Stratification and Clas Structure)p GÇ

2. 2 The Emergence of Modern Economy- m.a. 18th cnt. England England, 18th century: Why England? The intellectual atmosphere (1688) Development of trade (trade routes to India and America, provide of raw materials by the colonies for the manufacturers) Coal and iron Cheap labor The advantage of ports

3. 3 Industrial Revolution-19th century the invention of the steam-machine in 1765 by James Watt Replacement of water, wood or man power! Pumping water out of mines mill driving machinery Transportation (steam boat, steam locomotive) Iron and steel

4. 4 Industrial Revolution-Factories Steam machine: New machines Mass production Factories (Birmingham Notthingham Manchester) Credit and investment Rise of labor class

5. 5 Industrial Revolution-Factories Factories and restructuring of the works: Seperation of work from the home Increase in the pace of work Work specialization (alienation) Accidents, noise Supervision (surveillence)

6. 6 Factories, Labor and Disciplining the Labor Problem of time!  Habits of the early rural population vs needs of the factory work  Time is money  Clocks(putting cloks forward in the morning and back in the evening, taking watches of the workers)  Emergence of the idea of leisure time Human nature!

7. 7 Factories, Labor and Disciplining the Labor Problem of time!  Habits of the early rural population vs needs of the factory work  Time is money  Clocks Human nature! Tactics of the Bourgeoisie  Corporal punishment  Fines  Threat of dismissal  Street patrols (drunkness, cleanliness)  Curfew after 22:30  Time monitoring (4 minute for pee!)  Silent monitors

8. 8 Factories and the Labor Main industries and the workers-Sweated Labor Textile:  spinnig at factories in the towns by women and children.  weaving by handloom workers in the rural areas until power looms were massively used in factories Mining  workforce at villages

9. 9 Factories and the Labor Working conditions  Cheap labor/Low wages  Long hours of work (usually between 6:00 -7:30)  Six working days  Child labor (ages between 7-16, employing orphans from the asylums)

10. 10 Adam Smith on Capitalism Self-interest : social-esteem and respect Competitive Market:free interplay of demand and supply and thus the formation of the price Laissez-faire : let them go! Invisible hand: the mechanism by which the economic activities of the profit seeking individuals result in the greatest economic good for the society as a whole. The division of labor increasing dexterity arising from the repletion of simple tasks. the saving of the time lost in passing from one task to another. the invention of specialized machines which is this close d. of l. is thought to encourage.

11. 11 Crises and Capitalism  1929 and New Deal  Post 1945 and Welfare  Crises of 1970s and neo- liberalism in 1980s.

12. 12 Neo-Liberalism creating incentives for foreign investment, compliance with IMF criteria, providing workplace flexibility, prioritizing security of the workplace over security of the worker, privatization decentralization of public administration and governance

13. 13 K.Marx on capitalism and class Class: a category of people having a common relation to means of production. P/B Surplus Value:capital is created by purchasing commodities (raw material, machinery, labor) and combining them into a new commodity with an exchange value higher than the sum of the original purchase. Exploitation: the exchange value (wage) of the labor is less than the value it produces for the capitalist/surplus value Alienation:estrangement of individuals from one another, or from a specific situation or process.

14. 14 M. Weber on Class, Status Groups and Party