2. RESPONSES TO INDUSTRIALIZATION: The “isms”

3. COMMUNISM CAPITALISM CLASSICAL LIBERALISM CLASSICAL LIBERALISM “SCIENTIFIC SOCIALISM” (MARXISM) “SCIENTIFIC SOCIALISM” (MARXISM) Karl Marx Adam Smith Thomas Malthus David Ricardo Friedrich Engels Baby Face Capitalists Impressive Bearded Socialists

4. Definitions Capitalism : An economic system that is controlled by private individuals who invest excess money and profits (capital) into business. The goal is profits. The government follows a laissez-faire system where they don’t intervene in economic affairs. Socialism: An economic system that is controlled by the workers inside the factories and directed not by owners but by a centralized government planning committee. The goal is to make the people who do the work more powerful than the owners of the factories. You can still make more money based on how productive (or unproductive) you are. The government intervenes a lot. Communism: Like socialism, but the goal is complete equality of condition. (Instead of equality of opportunity)

5. First describer of the economic system of capitalism that was developing in England in the 1700s. Described capitalism in his book On the Wealth of Nations Believed that governments should keep their hands off the economy “Laissez-Faire” Said people’s pursuit of their own interests would result in the right products being made for the right price (because businesses WANT to be profitable!) Capitalism & Adam Smith

6. THOMAS MALTHUS *Malthus said the largest problem facing society was population growth

7. MALTHUS’S THEORY Food supply increases Population increases much faster STARVATION! **If population was not controlled, people would die

8. MALTHUS’ CHECKS ON POPULATION GROWTH NEGATIVE CHECKS LATE MARRIAGES CELIBACY/ RESTRAINT CONTRACEPTION POSITIVE CHECKS WAR FAMINE DISEASE Growth of population cannot be stopped without “misery or vice”! Poor workers will have children if there is food and money to buy the food

9. RICARDO AND THE IRON LAW OF WAGES

10. RICARDO’S CYCLE Population IncreaseGOOD TIMES Higher Wages BAD TIMES Lower Wages Population Decline THE IRON LAW OF WAGES In order to prevent births and overpopulation, keep workers’ wages low!

11. IMPLICATIONS OF MALTHUS & RICARDO’S IDEAS? Low wages Suffering among workers Trying to help poor people would only HURT them long-term: Social Darwinism, or the idea that the “fittest” people should control the world, develops What is the inherent problem with Social Darwinism?

12. “Philosophers have only interpreted the world in various ways; the point, however, is to change it.” - Karl Marx

13. The ideas of Karl Marx and Fredrich Engles were outlined in their book The Communist Manifesto (1848) Communism:MARXISM

14. History is a series of conflicts between classes that control “means of production” (owners) and those which do not (wage-laborers). vs. Karl Marx said:

15. Society (government, religion, moral values) are ALL designed to support the interests of the dominant economic class. How does the ruling class keep control? Religion “is the opiate of the masses.”

16. COMMUNISM:MARXISM History is progress: society will get better. Believed that history is moving through a series of stages … FEUDALISM CAPITALISM SLAVE EMPIRES

17. Industrialization has created a new conflict between the owners of factories (bourgeoisie) and factory workers (proletariat): COMMUNISM: MARXISM PROLETARIAT vs. CAPITALISM

18. Increased suffering among Proletariat would INEVITABLY lead them to revolt against the Bourgeoisie, owners of the “means of production” aka: factories. COMMUNISM: Marxism

19. THE BOURGEOISIE THE PROLETARIAT Uh-Oh

20. Workers would create a society without social classes where no one had any private property and all needs were met. COMMUNISM: Marxism “The proletarians have nothing to lose but their chains. They their chains. They have a world to win. WORKING MEN OF WORKING MEN OF ALL COUNTRIES, UNITE!”