Effects of Industrialization – Patterns of Change and the spread of industrialization

Unit Enduring Understandings2. Changes in technology and exchange during the 18th and 19th centuries led to the

social and economic changes around the world that are still relevant today.5. Technology and industrial advancement can alter existing social and economic

systems.What is the proper role and responsibility between government, capital and labor?

Agenda – 1. Reminder – benchmark #1 for Core 1 due tomorrow – continue

research on your country combination.2. Complete p 11 to understand how industrialization led to the

creation of new ideologies3. Complete p 12 - read actively to understand how industrialization led

to the creation of new ideologies and how the idea of the division of labor was so instrumental in advancing industrialization.

4. Log onto mrksmodernworld – under documents in unit 3, read your assigned philosopher, take notes on his main ideas, discuss with others and compare to Smith’s view of capital, labor and government – how do these works illustrate today’s EU’s?

Industrialization Spreads and Leads to an Age of Reform

Continental Europe At first, war and unrest in Europe delay

the growth of industry (i.e., French Revolution and Napoleonic Wars)

Industrialization would often occur in a given region rather than throughout an entire country, as in Britain’s case

Not all countries had the necessary resources or factors of production

Worldwide Impact The Industrial Revolution widens the

gap between more-developed and less-developed nations

Industrialized countries exploit overseas colonies for resources and markets (basis for imperialism)

Over time, standards of living rise in the industrial nations

An Age of ReformsMain Idea: The Industrial Revolution led to

economic, social, and political reforms.

Differing Philosophies The Industrial Revolution changes the

structure of society, opening up a gap between rich and poor

Government action can now have a larger impact on economic activity of more people than ever before

New philosophies emerge regarding the role of the government in an industrialized society

Differing Philosophies Laissez-faire thinkers (Adam

Smith) support a free market and oppose government regulation These ideas are the basis for

capitalism Other thinkers oppose laissez-

faire policies and favor government efforts to improve people’s lives These form the basis of socialism

Still others do not want to see changes in government – they like the old ways of monarchy and aristocracy These form the traditional

conservatives

Rise of Socialism Reformers sought the

establishment of a new economic system called socialism

In socialism, the factors of production are owned by the public and operate for the welfare of all

Socialists believe the government should actively plan the economy and promote equality between all people

Karl MarxGerman journalist

who introduced the world to a radical type of socialism

Believed that history is controlled by economics and class struggle

The future would lead to communism

Communism Capitalist society would

eventually destroy itself, as the proletariat would revolt

Workers would bring about economic equality for all and a classless society would form with the absence of any government

Private property would cease to exist

Unionization and Reform Workers organize unions

to raise wages and improve conditions

Unions eventually become established and legal

Reform laws are passed in Britain and the United States to limit child labor and set work hours

Reform The abolition movement

helps to end slavery by the end of the 1800s

Free public education for all children

The Economic philosophers1. Adam Smith – The Wealth of Nations

1. Economic liberty guarantees economic progress2. Government needs to stay out of economics because:

1. Buyers will buy2. Sellers will sell3. Each will participate in economics out of their own self-

interest4. Harmony will results

2. Thomas Robert Malthus1. Population grows too fast for food supply2. Epidemics and war are good to control population3. Most people will be poor, but too many people and there will be too many poor.4. There should be little charity, because the poor will become dependent and further drive down wages, making the poor

poorer

The Economic philosophers3. David Ricardo

1. Another capitalist proponent2. Free trade is good for all3. Government intervention will hurt profits andproductivity4. There will always be an underclass, and asPopulation grows, so will wages be driven down, making the poor, poorer.

4. John Stuart Mill1. Leading thinker of Utilitarians2. Wealth and inequality are bad and only gov’t laws and

more equally distribute wealth and help the poor3. Believed that cooperative agriculture and the rights of

women should be promoted4. Workers should be able to elect their management –

called economic democracy

The Economic philosophers

6. Fournier and Saint-Simon1. First major socialists2. Believed that the state should own all of the

means of production so that all can benefit, not just the capitalists.

3. Free-markets exploit the workers for the benefit of the owners

5. Robert Owen1. Factory owner who believed workers need help2. Provided low-rent housing for workers3. Provided school for workers’ children4. Prohibited young children from working in his mills5. Founded a utopian community in the US – failed after

3 years.

The Economic philosophers7. Marx and Engels – the first

Communists1. Capitalism is necessarily exploitive,

making workers angry and poor.2. Capitalism will destroy itself as workers

become more and more angry, they will rise up and throw down the capitalists and spread the wealth to all

3. The end result will be utopian democratic communism where everyone will work for the benefit of everyone – “From each according to his ability, to each according to his need.”

The Economic philosophers and the reformers8. William Wilberforce

1. Slavery and the slave trade are evil and need to be abolished by law

2. Parliament abolishes the slave trade in 1807 and slavery in the entire empire in 1833

9. Jane Addams1. Wanted to help poor and working women so set up Hull House, a

settlement house that provided social welfare help to poor and working women, including food, shelter and child care

10. Horace Mann8. First proponent of public education for all children