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
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
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
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
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
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