1. The Industrial Revolution

2. What is it? ► Major change in the way goods are produced in the late 18 th century through the 19 th century.  Hand production replaced by machine production.

3. Origins ► Where does it begin?  Great Britain ► Why does it begin in Britain?  Natural resources ► Includes large labor supply  Economic prosperity ► Capital (Investment) ► Entrepreneurs  Stable Government ► Protect trade

4. Impact of the Agricultural Revolution ► Helps spur Industrial Revolution (actually works both ways)  Ind. Rev helps Ag. Rev by providing new machinery to help with crops  How does Ag. Rev lead to Ind. Rev? ► New farming methods (Crop Rotation) ► Enclosure movement  forces small farmers out ► Where do they go? -Urban Centers (Cities) -Urban Centers (Cities) Why? Why? -Factories (large buildings where goods are manufactured – mass produced) -Factories (large buildings where goods are manufactured – mass produced) - Leads to Urbanization - Leads to Urbanization -People migrating to city areas in mass numbers

5. Short Term Effects of Urbanization and Industrialization ► Cities become overcrowded, unsanitary, and often dangerous places to live.  Cholera epidemics widespread  Life expectancy extremely low (especially for lower classes) ► Working conditions often difficult for factory workers ► Middle class grows and prospers ► Tension develops between labor and management

6. Short Term Effects Cont. ► Industrialism spreads to nations and areas with the same favorable conditions as Britain (U.S.)  War of 1812 (blockade) contributes to greater economic independence in U.S. ► New Business Techniques  Corporations ► A business owned by stockholders who share in the profits but are not responsible for company’s debt. (Helps fund large operations)

7. Long Term Effects ► Reform  Rise of the labor movement (Unions)  Abolition of slavery  Women’s rights ► Ex... Suffrage movements?  Right to vote  Education (Accessible for more people)

8. Long Term Effects Cont. ► Imperialism  Seizure of a country or territory by a stronger country in order to secure resources  Industrialized nations (Britain, France, U.S. and later Japan, Germany, Russia, and others) establish colonial empires  New Economic Theories

9. Laissez-Faire Capitalism ► Economic system based on private ownership of property  Government stays out of the business sector “let do” ► Adam Smith  Wealth of Nations ► “Invisible Hand” competition/self- interest will guide resources most productive use.

10. Socialism ► Redistribution of wealth by government; government owns or controls the means of production  Still some private ownership of small businesses by individuals on a limited basis

11. Marxism (Communism) ► Final stage of socialism; (Socialism on steroids!!!) elimination of social classes; replace competition with cooperation (Utopia?) ► Karl Marx and Friedrich Engels  History advances through conflict  Economics were the major force of change  “Class struggle” ► Proletariat (Workers) v. Bourgeoisie (Middle Class)

12. Modern Terms ► Market Economy (Laissez-Faire)  Ruled by supply and demand; individuals own property and make decisions that drive the economy ► Command Economy (communism)  Government makes most or all of the economic decisions ► Mixed Economy  Contains elements of both market and command.

13. Examples 1. Jeans produced because people buy them. 2. Jeans are produced because the government decides to produce them to meet the needs and wants of citizens. 3. An individual owns a grocery store; she decides what to stock in the store and pays her workers the lowest wages for which they will work. 4. An individual manages a grocery store for the government; government decides what items will be stocked and sets the wage rate for workers. 5. An individual owns a grocery store; he decides what to stock in the store and pays his workers a minimum wage set by the government.

14. Questions ► What are the disadvantages to an individual in each of the three systems? ► Which one connects best with the Enlightenment? Why? ► Which is best overall? Why?