Section 3The Industrial Revolution

Preview

• Main Idea / Reading Focus

• New Ideas about Economics

• Competing Economic Views

• Effects on Society

• Quick Facts: Effects of Industrialization on Women

• Map: Industrialized Europe

New Ideas in a New Society

Section 3The Industrial Revolution

Preview, continued

• Visual Study Guide / Quick Facts

• Video: The Impact of Industrialization

New Ideas in a New Society

Section 3The Industrial Revolution

Reading Focus

• What new ideas about economics developed during the Industrial Revolution?

• What competing economic ideas arose as a result?

• How did the Industrial Revolution affect society?

Main Idea

1. The Industrial Revolution inspired new ideas about economics and affected society in many ways.

New Ideas in a New Society

Section 3The Industrial Revolution

• Old mercantile system restricted trade

• Laissez-faire economics

• Adam Smith, market economy

• Thomas Malthus, poverty unavoidable

• Industrialization succeeded and spread

Capitalism and Competition

• Shift in wealth and power

• Entrepreneur

• Banking and finance

• Andrew Carnegie, rags to riches

• Robber barons

New Roles for Business Leaders

New Ideas about Economics

Section 3The Industrial Revolution

Summarize

What were some of the new ideas about economics?

Answer(s): mercantilism gave way to capitalism and competition, laissez-faire economics and The Wealth of Nations allowed for increased role of entrepreneur

Section 3The Industrial Revolution

Not everyone agreed that laissez-faire capitalism was good. Two who took a different stance were Robert Owen and Karl Marx.

• More hopeful than Malthus

• Socialism

– Society owns property

– Society controls business

• Model industrial town

• New Harmony

• Social democracy

Robert Owen • More radical socialism

• Predicted collapse of capitalism

• Das Kapital

• Communism

• Government

– owns means of production

– controls economic planning

2. Karl Marx

Competing Economic Views

Section 3The Industrial Revolution

Infer

Why did capitalism provoke strong response from the socialists?

Answer(s): Socialists blamed capitalism for harsh working conditions, polluted cities, and the big gaps between rich and poor.

Section 3The Industrial Revolution

3. 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

• “Separate spheres”• Business world-

without moral controls

• Women-moral guidance at home

Home Life• Industry-great

power• Control of other

nations’ economies• Industrialization of

United States• Period of

immigration to United States

Countries• Increase in wealth• Standard of living

improved• Leisure time• Changes to many

aspects of life:– Art– Politics – Transportation

Societies

Effects on Society

Section 3The Industrial Revolution

Section 3The Industrial Revolution

Section 3The Industrial Revolution

Identify Cause and Effect

What were some of the major effects industrialization had on families and

countries?

Answer(s): families—wealth, leisure time, better educated; countries—increased power, wealth, and living standards; overcrowding of cities, pollution, rapid population growth

Section 3The Industrial Revolution

Section 3The Industrial Revolution

Video

The Impact of Industrialization

Click above to play the video.