Name______Block______
25.4Reforming the Industrial World
The Philosophers of Industrialization & their Economic Philosophies
Philosopher / Economic PhilosophyAdam Smith / laissez-faire
Thomas Malthus / laissez-faire capitalism
David Ricardo / laissez-faire capitalism
Jeremy Bentham / utilitarianism
John Stuart Mill / utilitarianism
Robert Owen / utopian socialism
Karl Marx / Marxism/communism
Friedrich Engels / Marxism/communism
Laissez-faire
Term is French in origin— “______.”
Economic policy stemmed from the French economic philosophers of the ______.
The Enlightened Philosophers argued:
against government intervention in the economy and the use of placing heavy tariffs on foreign goods.
that government regulations only interfered with production and wealth.
if government allowed free trade, the economy would prosper
Laissez-faire
Definition of laissez-faire: The idea that the government should not
______with or ______industries and business.
An economic policy of letting owners and business set working condition without interference.
This policy favors a free market unregulated by the government.
What are the advantages/disadvantages of a laissez-faire economy?
Adam Smith
His arguments rested on what he called the Three Natural Laws of Economics:
1. Law of ______— People work for their own ______.
2. Law of ______— Competition forces people to make a better ______.
3. Law of ______— Enough goods would be produced at the lowest possible price to meet the demand in a market economy
Capitalism
Definition of capitalism: an economic system based on ______
______and on the ______of money in business ventures in order to make a profit
These ideas helped bring about the Industrial Revolution and supporters of
capitalism believed its success was due in part by the fact that the ______did not meddle in economics.
The Philosophers of Capitalism
Thomas Malthus
In his essay, An Essay on the Principle of Population (1798), he argued that
______tended to increase more rapidly than the ______
Argued that ______wars, famine, or epidemics to control the population, most people would be poor and would suffer.
David Ricardo
Principles of Political Economy & Taxation (1817) continued:
Few ______+ scarce natural resources = ______
______& resources.
Believed as the population increased, wages would ______
(workers paid less)
Laissez faire thinkers, such as Adam Smith, Thomas Malthus, and David Ricardo all:
Opposed government ______in the ______, which included government efforts to help poor workers.
Believed people should be left to improve their lot through ______,
and limiting the size of their ______.
Argued creating a minimum ______and ______working conditions would:
Upset the free market system
Lower profits
Undermine the production of wealth in society
Socialism
Grew out of the Enlightenment faith in progress, its belief in the goodness of
______and its concern with social justice.
Supporters of socialism believed:
Governments ______intervene in business
Wealthy people or governments had an ______to take action to make peoples lives better (i.e. better wages, working/living conditions, distribute wealth/power equitably)
Condemned the evils of industrial capitalism, which they argued, created the
huge gap between the ______and the ______.
In a society in which would operate for the benefit of all its members, not just for the wealthy.
Socialism
Definition of socialism: an economic system in which the factors of production are
owned by the ______and operate for the welfare of all.
Under ______, people as a whole would own and operate the ______
______--the farms, factories, railways, mines, and other large businesses that produced and distributed goods.
Utilitarianism
A form of socialism
Definition of ______: the theory, proposed by Jeremy Bentham in the late 1700s, that government actions are useful only if they promote the greatest
______for the greatest ______.
Idea that the goal of society should be to bring about the greatest happiness for the greatest number of people.
This theory provided that the government intervene in business and the economy to bring about economic and social equality, fair working conditions, and improved living conditions.
The Philosophers of Utilitarianism
Jeremy Bentham
Modified the ideas of Adam Smith
Introduced utilitarianism in the late 1700s
He strongly supported ______, which he believed guaranteed the greatest happiness.
Believed people should:
Judge ideas, institutions, and actions on the basis of their ______, or
______
Be free to pursue his/her own advantage without interference from the state (government.)
John Stuart Mill
______: argued workers and women should have the right to ______
These groups could then use their political power to win reforms.
Pushed for governmental reforms in the following areas:
the ______including prison systems
______reform
Class system: he wished the government would abolish the great
______between the rich and the poor.
Utopia
Definition of ______: an ______society; an imaginary land described by Sir Thomas More in his book Utopia—hence, an ideal place.
In Greek, utopia means “______.”
In More’s book, greed, corruption, and war had been weeded out. Because there was no greed in Utopia, there was no need for money.
Influenced the political and economic philosophy of utopian socialism
Utopian Socialism
Early socialists were called ______.
Early socialists tried to build self-sufficient communities. In this community:
all work and all property was owned in______.
They believed that no difference between rich & poor = no fighting between people.
Why do you think utopians were referred to as “impractical dreamers?”
Robert Owen
Owen’s vision of ‘Utopia’
Built a factory and a model village in New Lanark, ______.
Built homes for workers, opened a school for children.
Workers were generally treated well, illustrating an employer could offer decent living and working conditions while still running a
______business.
By the 1820s, people visited New Lanark to study Owen’s reforms
The Philosophers of Marxism
Definition of ______: A radical type of socialism introduced by Karl Marx, a German journalist
Karl Marx
A German journalist
Agitated for reform as a young man.
A socialist who despised capitalism, which he argued, created ______for
a ______and ______for many.
Forced to leave his homeland because of his radical ideas.
First lived in Paris and then settled in London, where he met Friedrich Engels.
Along with Engels, they outlined their economic ideas in a 23-page pamphlet called
the ______
Marx & Engels:
The Communist Manifesto
Marx and Engels argued that human societies have always been divided into ____
warring classes:
The middle class, “______” or employers, called the ______
The wealthy controlled the means of producing goods
The working class, “______-______” or employees called the ______
The poor performed backbreaking labor under terrible conditions.
Marx & Engels:
The Communist Manifesto
The Industrial Revolution enriched the ______and impoverished the ______.
Marx and Engels Predicted that the workers would overthrow the owners:
“the proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries unite.”
The Future According to Marx
Marx argued the capitalist system would ______itself in the following ways:
______will drive small artisans out of business
Small number of manufacturers will control the ______, causing a huge ______between classes
The large______will revolt, seize factories & mills from capitalists
The final phase of Marxism is called ______.
Communism
Definition of communism: an economic system in which all means of______
—land, mines, factories, railroads, and businesses—are owned by the ______
private property doesn’t exist, and all goods and services are shared ______.
A form of socialism that sees class struggle between employers and employees as unavoidable.
1900s:
Marxism inspired revolutionaries in ______(Lenin), ______(Mao Zedong), and ______(Fidel Castro).
These leaders adapted Marxism to their own specific situations and beliefs
Labor Unions and Reform Laws
Unionization
______—associations formed by ______to work for change
Unions negotiate for better_____, ______with employers
Sometimes they strike—call a work stoppage—to pressure owners
Skill workers are first to form unions
Union goals were higher wages, shorter hours, improved conditions
Labor Unions and Reform Laws
Reform Laws
British, U.S. laws passed to stop worst abuses of industrialization
1842 ______in Britain stops ______,______working underground
In 1847, workday for women, children limited to _____hours in Britain
U.S. ends child labor, sets maximum hours in 1904
The Reform Movement Spreads
The Abolition of Slavery
In 1833, reformers help end slavery in ______empire
Slavery ends in the U.S. in 1865; ends by 1888 in the rest of the Americas
The Fight for Women’s Rights
Women pursue economic and social rights as early as 1848
______founded in 1888; worldwide membership
The Reform Movement Spreads
Reforms Spread to Many Areas of Life
Reformers establish free ______in Europe in late 1800s
Public schools common in U.S. by the 1850s; ______reform also sought