Reforming the industrial World

Philosophers

Adam Smith Laissez-faire Economics

French economic philosophers

Believed that government should not interfere with business and the economy would prosper.

Smith believed economic liberty guaranteed economic progress.

Smith’s Arguments3 Natural Laws of Economics 1. The law of self interest

People work for their own good

2. The law of competition Competition forces people to make a better

product

3. The law of supply and demand Enough goods would be produced at the lowest

possible price to meet demand in a market economy

Smith’s Ideas Supported by British economists Thomas

Malthus and David Ricardo

Formation of laissez-faire capitalism

What is Capitalism?

An economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit

Malthus Argument

Thomas malthus

Wrote An Essay on the Principle of Population

Population has a tendency to increase more quickly than the available food supply.

Without wars, disease and epidemics most people would be poor

Ricardo Argument

David ricardo

Pinciples of Political Economy & Taxation

Poor will continue to be poor

Believed in a market system

Wages would be lower as population increases

Rise of Socialism Jeremy Bentham

took Smith’s ideas and modified it

Utilitarianism Govt. should

promote the greatest good for the greatest number of people.

Govt. was only good if they promoted this goal

John Stuart Mill Led Utilitarianism

movement in 1800’s Workers should not

live deprived lives Favored –

Cooperative system of agriculture

Women’s rights Reform in education

and prison system

Rise of Socialism To offset the problems of industrialization with

a new system (Socialism) Government should plan the economy rather

than focus on the free market system Government controls

Factories Railroads Industry Mines

Karl Marx (1818-1883) German journalist

introduced Marxism Wrote the The

Communist Manifesto Argued that human

have been divided into warring classes

Bourgeoisie Proletariat Enriched the wealthy

& impoverished the poor

Marx on the Future Capitalism would

destroy itself Proletariat would

revolt Seize control of

factories from capitalist

Produce only what society needs

Economic equality for all people

Future Continued The workers would share the profits

After a period of cooperative living and education, the government would go away as a classless society developed

Last phase was called Communism

The Communist Manifesto Produced few very

little results Uprisings began to

occur in Europe After the turn of the

century did the pamphlet create major results

Inspired Lenin, Mao Zedong and Fidel Castro

Labor Unions Unions spoke for all

workers Collective Bargaining Union members

could strike if demands were not met

Led by skilled workers

Unions struggled to form due to govt.

Great Britain Unions Britain saw unions as a threat to social order

and stability Combination Act 1799 outlawed people to join

unions People ignored Act British Parliament revoked the act in 1824 Goals to raise wages and improve working

conditions

United States

Unions were around since the early 1800’s

AFL (American Federation of Labor) is formed 1886

Successful strikes produced gains in members wages and shorter hours

New Types of Reform Laws Parliament begins to investigate child labor

and working conditions Parliament passed the Factory Act 1833 Parliament passed the Mines Act 1842 Parliament passed the Ten Hours Act 1847 In the U.S. organization of the National Child

Labor Committee 1919 U.S. Supreme Court objected to federal

child labor law (state rights) Individual States could regulate working

hours

Abolition of SlaveryEnglandWilliam Wilberforce led

the fight for abolitionUnited StatesSlavery ended at the

end of the Civil WarPuerto Rico ended

1873Cuba ended in 1886Brazil in 1888

Women’s RightsBritain Women served as

inspectors were other women worked

United States Educated women ran

settlement houses Jane Addams

Wanted their own rights

Other Reforms Public Education led by Horace Mann in the

United StatesEducate children to be good citizens and knowledgeable

Prison Reform in 1831 American prisons were seen as brutal conditions New goal to provide prisoners with skills and traits

to be useful in society when released