2. Changing the Industrial World Why did Capitalism cause reform movements?

3. Laissez-Faire Economics/Capitalism Laissez-Faire Economics/Capitalism Laissez-Faire is an economic philosophy that allowed owners to set working conditions without interference from the government Adam Smith defended Laissez-Faire in his book The Wealth of Nations Adam Smith Capitalist Smith argued a free-market, with private ownership & no govt regulation would create competition, causing better products & wages Prices would be regulated by supply & demand Smith’s ideas become known as capitalism Many argue unregulated capitalism will not protect workers & encourages greed Rich Owners Poor workers

4. Utilitarianism Utilitarians founded by Jeremy Bentham, argued people should judge ideas on usefulness, creating greatest good for greatest num. Utilitarians argue Capitalism did not benefit the greatest number of people, so the govt should regulate it 1830s: John Stuart Mill now takes over Utilitarian movement John Stuart Mill Mill writes unregulated capitalism is not creating happiness but harm to the workers To fix the problem, Mill felt the government should create an equal division of profits Mill also favored Women’s rights, education reform & prison reforms Mill writes about happiness & harm principle, gov should promote things that create greatest happiness and regulate harmful things

5. Utopianism British factory owner Robert Owen was shocked by the misery and poverty of the working class Owen built houses near his factory in Scotland and rented them out to his workers for low rates Owen prohibited children under 10 from working in the factories and provided free schooling 1824: Owen traveled to the US and tried to set up a Utopian system in New Harmony, Indiana but it only lasted three years Robert Owen Utopian