Problems of Industrial Revolution: long hours for low pay

dangerous, unsanitary working conditionsharsh or severe factory disciplineexploitation of child labor lack of adequate housing and unsanitary

living conditionsdisease and frequent epidemics

class tensions

Age of Reform…even more effects of the Ind. Rev.

With all of the short term effects of the Ind. Rev. (both good and bad) there was a series of long term effects that we still deal with today…actually, you can make the argument that these long term effects have caused EVERY MAJOR WAR since the Ind. Rev. (including 9/11)…

ImperialismWorld War I Great Depression 1930’sWorld War IITechnology Age- Nuclear Weapons

Solutions:Laws passed to protect children and women

workersMaximum work hours and working

standards establishedSettlement house movement worked to

improve living conditionsWorkers won the right to collective bargain

and to strikePublic education and prison reforms passed

Reform…to make changes

Thought question...why would people want to make changes after the Industrial Revolution?

Even though in Ind. Rev. modernized Britain, debate arose btw gov’t leaders to stay out of the way of business, while others should play a role in the economy

Political/Economic Spectrum

Left Right

Regulated Unregulated

Age of Reform

Industrialization caused nations and their people to make a lot of money. But how were nations going to handle all of this new found wealth? The answers were found in new political ideas such as…CapitalismSocialismCommunismUtilitarianism

Capitalism

How would you define “capitalism”?What other words come to mind when you

think of the word “capitalism”?Are these associations positive or negative?

Capitalism

An economic system in which the means of production are owned mostly privately.

Capital is invested in the production of goods for profit in a competitive free market.

Etymology• Latin, caput, “head”

• The term “capitalism” was first used in English in 1854• Marxist writers originally popularized the term

“Free Market System”Free = ability for employers to run the

business the way they wantFree = to set prices of productFree = to set wages for workersFree = for employees to work for a company

of their choice Free = for employees to leave for another

company

Adam Smith

A Scottish political economist and moral philosopher (1723-1790).

His Inquiry into the Nature and Causes of the Wealth of Nations (1776) founded the modern discipline of economics and provided the rationale for free trade, capitalism and libertarianism.

Capitalism

Also known as Laissez-Faire Economics- letting owners of industry and business set working conditions without gov’t interference

Adam Smith- wrote “Wealth of Nations”Economic liberty = economic progress

Smith attacked most forms of government interference in the economic process, including tariffs on imported goods.

Government restrictions on trade cause inefficiency and high prices.“Laissez-faire” means “let them do”

Capitalism

Definition of Capitalism- economic system in which money is invested in business with the goal of making profit

Capitalism helped bring along Ind. Rev.

America uses capitalism

Capitalism

Thomas Malthus – argued that population grew faster then food production, so war and death were necessary to eliminate the extra people

Hence “survival of the fittest”

Ricardo and the “Iron Law of Wages”

David Ricardo- argued that a permanent underclass will always be poor

Needed the poor class to insure that wages would remain highAs population

increased, so did the labor supply

This in turn increased competition for jobs and kept wages low

Physiocracy

Smith criticized physiocracy, which taught that wealth originated in land

Smith argued that labor was the major source of wealth and that the division of labor was the key to economic growthUpper, Middle, Lower Classes

As productivity rises, wages will rise.

The Invisible Hand

The free market appears chaotic and unrestrained.

Actually, it is guided by “an invisible hand” to produce the right amount and variety of goods.

If a product shortage occurs, the price rises, establishing a profit margin that provides an incentive for others to enter production.

Self-Interest

It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.

We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.

National Wealth

As every individual, therefore, endeavours as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value; every individual necessarily labours to render the annual value of society as great as he can.

Communism

How would you define “communism”?What other words come to mind when you

think of the word “communism”?Are these associations positive or negative?

Communism“The history of all hitherto existing society is the history of class struggles.”

An ideology that seeks to establish a future classless, stateless social organization, based upon common ownership of the means of production and the absence of private property

Karl Marx (1818-1883) was an immensely influential German philosopher, political economist, and socialist revolutionary

He is most famous for his analysis of history in terms of class struggles

Communism

Karl Marx – German who introduced a radical form of Socialism called Marxism

Teamed up with Friedrich Engals

Wrote Communist Manifesto

Communism (cont.)

Communist Manifesto – human societies have always been divided into classes

Believed in revolution The Bougeoisie

(haves/employers/middle/upper class) would be overthrown by the Proletariat (have nots/employees/lower class)

“Communist Manifesto”

“The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries, unite!”

Communism (cont.)

Marx believed that the capitalist system established by the Ind. Rev. would be destroyed when the poor overtook the wealthy

Communism – more complete socialism in which the factors of production are owned by the people, controlled by the gov’t. no private property, all goods and services are

shared equally

Communism

. Bolshevism AtheismMarx’s ideas were

adopted by French revolutionaries who founded the Paris Commune in 1871, the Russian Bolsheviks who overthrew the government in the 1917 October Revolution and the Chinese Communist Party which came to power in 1949

Marx was an atheistHe believed that

religion was “the opiate of the people.”The owners of capital

used religion to keep the peasants and workers subjugated by leading them to think, not of their present misery, of future happiness in heaven

Communism

Communist Paradise DeterminismMarx taught that paradise

would appear on earth, following the destruction of capitalism and the state.Under capitalism, labor is

alienatedIn a communist society,

human beings freely develop their nature in cooperative productionUnder communism, there is

no government and, accordingly, perfect freedom

Marx traced the history of the various modes of production and predicted the collapse of the present one—industrial capitalism—and its replacement by communism, just as capitalism had replaced feudalism

The appearance of communism would represent the end of history

The End Justifies the Means Class StruggleMarx’s moral teaching

was that the leaders of the Communist Party, which he termed “the vanguard of the proletariat,” were free to commit any crime as long as it served the end—the destruction of capitalism and the ushering in of communismThis historical process, he

said, was inevitable

Those who must sell their labor power are “proletarians”

The person who buys the labor power someone who owns the land and technology to produce, is a “capitalist” or “bourgeoisie”

The proletarians inevitably outnumber the capitalists.

ProfitProfit is “theft.”It is the difference between the value of a good

produced by a worker and the wages paid to the worker by the owner

Due to competition among workers for employment, wages will decline, leading to poverty, misery and rebellion

Revolution: The state is “a committee of the bourgeoisie” and laws support the capitalists, the ruling classClass conflict between the proletariat and the capitalists

can only be resolved by violent revolutionA dictatorship of the working class is a temporary

necessity before communism is possibleJustice: The principle of distribution in communism, is

“From each according to ability, to each according to need”

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

Karl Marx

Competing Economic

Socialism

Other people thought that the government should be involved in economic affairsGov’t should try to

improve its peoples lives

Socialism

Socialists wanted to create a Utopia or idea society Everyone would

share equally in societies abundance

First to establish a utopia was Robert Owen Believed that

competition caused societal problems

Socialism (cont.)

Jeremy Bentham- people should judge ideas, people and situations based on their usefulnessUtilitarianism- gov’t

should try to promote the greatest good for the greatest # of people

Socialism (cont.)

French Reformer Henri St.-Simon wanted to offset the effects of industrialization Socialism – factors of production are owned by

the public and operate for the welfare of allPeople started communities based on Utilitarian

and Socialist ideas (didn’t last…but…) John Stuart Mill – believed it was wrong that

workers should lead deprived livesFavored cooperative system of agriculture and

women's rights Gov’t to diminish debt and have a classless

economy

Socialism (cont.)

Socialists believed that the gov’t should plan the economy rather then relying on a free market

Gov’t should control factories, mines, RR’s

Capitalism vs. Communism

Capitalism-progress results when individuals follow their own self interest

Communism- all great movements in history are the result of an economic struggle

Capitalism vs. Communism

Capitalism- Businesses follow their own self-interest when they compete with one another for consumer’s money

Capitalism vs. Communism

Communism- the “haves” take advantage of the “have-nots”

Capitalism vs. Communism

Capitalism- each producer tries to provide goods and services that are better and less expensive than those of competitors

Consumer benefits!

Capitalism vs. Communism

Capitalism- Workers are exploited by employersLabor of workers

creates profit for employers

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

Smurfs and Communism

the Smurfs shared everything The food in the

Smurf village was stored away in those mushrooms the minute it was harvested and then equally distributed to all the Smurfs throughout the year

Smurfs and Communism

There was Handy Smurf, and Painter Smurf, and Brainy Smurf, etc... Each Smurf had his own specific job and was not allowed to try his hand at any other Smurf's assigned task

Each Smurf worked for the common good

Smurfs and Communism

Karl Marx = Papa Smurf (beards!)

Smurfs and Communism

Gargamel wanted the Smurfs for was for his own profit, he was a capitalist!!!

Gargamel was completely indifferent to the ethical consequences of his actions, which would result in the destruction of the unity of the Smurf social order.

Gargamel was greedy and egocentric, creating a dramatic juxtaposition to the Smurfs, who were concerned with the welfare of all their brethren.

Compare & Contrast

Capitalism Communism

New Alternatives to Improve and Industrialized Society

Alternative 1: Capitalists

Alternative 2: Marxists/Socialists

Alternative 3: Social Reformers

Progress occurs when people follow their own self interest

History is a result of class struggles

The excesses of capitalism must be controlled and regulated

There will always be a permanent underclass

Labor produces profits for employer

Workers have the right to bargain with employers for better working conditions, higher pay, and the right to strike

Governments should NOT interfere with the economy

The means of production should be publically owned and operate for the benefits of all

Legislation should protect special classes of workers from unsafe conditions.

A planned economy would eliminate poverty, promote equality, and help protect workers