1. Section 3 The Industrial Revolution Main Idea The Industrial Revolution inspired new ideas about economics and affected society in many ways. Ch 7.3--New Ideas in a New Society

2. Section 3 The Industrial Revolution Gov’t controlled trade in mercantilism  people wanted laissez-faire policy Adam Smith– proposes market economy (capitalism)  companies compete against each other Individuals own/sell goods for profits Thomas Malthus, capitalism made poverty unavoidable  untrue Industrialization succeeded Capitalism and Competition Shift in wealth and power from land to business owners Entrepreneur Banking and finance become important Andrew Carnegie, Cornelius Vanderbilt, JD Rockefeller Robber Barons vs. Captains of Industry New Roles for Business Leaders New Ideas about Economics

3. Section 3 The Industrial Revolution Robber Barons Late 1800’s industrialists, who spend $$$ lavishly Pays corrupt officials to pass laws that support business Squeezing out competition –creating monopolies and then –enacting unfair rates or prices on consumers Exploits workers by paying low wages Captains of Industry Capitalist leaders helped the country by starting businesses They provide progress, jobs, drive technology Many millions donated to causes They deserve the $$$$ they create "Millionaires are the bees that make the most honey and contribute most to the hive even after they have gorged themselves full."--Andrew Carnegie

4. Section 3 The Industrial Revolution Which system do you prefer? A.Social classes (rich, middle and poor) exist, individuals pay for medical and education with low taxes B. Social classes (rich, middle and poor) exist, free medical, free education, with high taxes C. No social classes, guaranteed employment, free but limited education, free medical, income based on productivity with high taxes

5. Section 3 The Industrial Revolution Not everyone agreed that laissez-faire capitalism was good. Two who took a different stance were Robert Owen and Karl Marx. Socialism - Society is combination of individual and government –Society owns property –Society controls business –Maintain social classes Set up Model industrial town Good conditions, wages, sick days, Nonprofit stores, free schooling, curfews and bathing requirements Robert Owen- Social Democracy More radical socialism Predicted collapse of capitalism  unfair balance of labor and profit Das Kapital  Communism Government –owns means of production –controls economic planning –No social classes– everyone is equal –No private ownership of land or business Karl Marx- Communism Competing Economic Views

6. Section 3 The Industrial Revolution The rise of new economic ideas was among the countless effects of the Industrial Revolution. The shift away from cottage industries also affected home life and the roles of women in society. Worlds of work and home separated Women- home Man- work Women-moral guidance at home in middle/lower classes Home Life Industry-great power- US, England, France Control of other nations’ economies Increase military weapons, tech, strength Increase population growth Countries Increase in wealth Standard of living improved Leisure time Changes to many aspects of life: –Art –Politics –Transportation Societies Industrializations Effects on Society

7. Section 3 The Industrial Revolution

8. Section 3 The Industrial Revolution

9. Section 3 The Industrial Revolution