1. Reforming the Industrial World Section 9.4

2. The Philosophers of Industrialization Laissez-faire economics – ability of economy to function w/o gov’t interference Adam Smith – The Wealth of Nations – free economy – Economic liberty = economic progress, no gov’t

3. Adam Smith con’t – Three Natural Laws of Economics: Law of Self-Interest – people work for own good Law of Competition – Competition forces people to make better product Law of Supply and Demand – enough goods would be produced at the lowest possible price to meet demand in a market

4. The Philosophers of Industrialization Economics of Capitalism – Capitalism – factors of production are privately owned and money is invested in business to make a profit – Opposed helping poor because it’s gov’t intervention Against minimum wage and better working conditions

5. – Thomas Malthus An Essay on the Principle of Population Population increased faster than food supply Needed wars and epidemics to kill off extra people The Philosophers of Industrialization

6. – David Ricardo Principles of Political Economy and Taxation Valued free trade Believed the underclass would always be poor Market System: – Many workers + abundant resources = cheap resources and labor – Few workers + little resources = expensive resources and labor The Philosophers of Industrialization

7. The Rise of Socialism Jeremy Bentham – Utilitarianism – people should judge ideas, institutions, and actions based on utility – Gov’t should promote the greatest good for greatest number of people – Individuals should pursue own advantage

8. John Stuart Mill – Questioned unregulated capitalism – Wrong that workers lead deprived lives – Ordinary working people get equal division of profits – Favored a cooperative system of agriculture and women’s rights The Rise of Socialism

9. Utopian Ideals Robert Owen – New Lanark, Scotland – site of his new factory Improved working conditions Built homes which he rented at low rates Prohibited children under 10 from working in the mills and providing free schooling – New Harmony, India Intended to be a utopia – perfect living place Lasted only three years

10. The Rise of Socialism Socialism – factors of production owned by public and operate for the welfare of all – Charles Fourier – Henri de Saint-Simon Dangers of industrialization -Gov’t should plan the economy -Gov’t controlled key industries to end poverty and promote equality

11. Marxism More extreme than socialism The Communist Manifesto – Karl Marx and Friedrich Engels – Society based on class warfare Bourgeoisie – owned means of production Proletariat – owned nothing but their labor – Industrial Revolution enriched wealthy, impoverished poor Needed revolution BEFORE the proletariat could unite against bourgeoisie

12. Marxism Industrial Revolution would destroy itself – Ultimately leads pure communism – when means of production are owned by the people Economic forces dominated society – Gov’ts kept wealth gap from becoming extreme, avoiding communism

13. Labor Unions and Reform Laws Unions – labor associations to make working people politically active – Bargained for better working conditions, more pay – Strike – refuse to work Skilled labor lead movement Great Britain – Combination Acts of 1799 and 1800 – outlawed unions and strikes because they were a danger to society – Repealed the Acts in 1824

14. Labor Unions and Reform Laws Great Britain – Factory Act of 1833 Illegal to hire children under 9 Children 9-12 only work 8 hrs Children 13-17 only work 12 hrs – Mines Act 1842 Prevented women and children from working underground – Ten Hours Act 1847 10 hr workday for women and children in factories

15. The Reform Movement Spreads Abolition of Slavery – William Wilberforce, lead fight for abolition – 1807 – Parliament passed law to end slave trade in the British West Indies – 1833 – slavery was abolished in the British empire – Motivations: Morally wrong Economically dangerous Industrialists preferred cheap labor

16. Women workers made a third of men Changes: – Reform movements – Safety inspectors where other women worked – Women’s unions – Jane Addams – settlement house that served the poor residents of slum neighborhoods – International Council for Women (ICW – 1888) Pushed for rights Women’s Rights

17. Prison and Education Reform Horace Mann (US) – free public education – 1850s (US) many states had public school systems – Europe followed in the late 1800s Alexis de Tocqueville (France) – Wrote about brutal American prisons – Big deal because US claimed modern status but Tocqueville pointed out major problems Wanted useful skills for when prisoners were released