Chapter 7 Section 4 New Ways of Thinking

  • Slides: 9
Download presentation
Chapter 7 Section 4: New Ways of Thinking Main Idea: The Industrial Revolution fostered

Chapter 7 Section 4: New Ways of Thinking Main Idea: The Industrial Revolution fostered new ideas about business and economics Learning Targets: • What was laissez-faire economics? • What were the ideas of “scientific socialism, ” introduced by Karl Marx?

Economic philosophies Industrialism = new economies Traditional: capitalism New: Utilitarianism, socialism, communism

Economic philosophies Industrialism = new economies Traditional: capitalism New: Utilitarianism, socialism, communism

Capitalism: Laissez-faire Adam Smith: Wealth of Nations free market helps everyone Produce more goods

Capitalism: Laissez-faire Adam Smith: Wealth of Nations free market helps everyone Produce more goods at lower prices No government help Private businesses

Thomas Malthus on Population Believed population would outpace food supply –People would starve to

Thomas Malthus on Population Believed population would outpace food supply –People would starve to death Only check on population was disease and war

Ricardo on Wages Wrote “Iron Law of Wages” When wages were high, families had

Ricardo on Wages Wrote “Iron Law of Wages” When wages were high, families had more children Problem: caused supply of labor to grow which would lower wages

Utilitarian Believe in government intervention Goal: “greatest happiness for greatest number” Leaders: Bentham and

Utilitarian Believe in government intervention Goal: “greatest happiness for greatest number” Leaders: Bentham and Mill

Socialism would end poverty Public owns means of production – Ex: farms, factories, railroads

Socialism would end poverty Public owns means of production – Ex: farms, factories, railroads Today: France is a Socialist country – Government pays for all education and health care, but people pay very high taxes to cover those expenses

Utopians (socialists) Wanted to build self-sufficient community where all work and property is shared

Utopians (socialists) Wanted to build self-sufficient community where all work and property is shared Robert Owen: factory was a model village

Karl Marx and Friedrich Engels : Marx despised capitalism- create prosperity for a few

Karl Marx and Friedrich Engels : Marx despised capitalism- create prosperity for a few and poverty for the rest. Developed Communism – A form of socialism that sees class struggle between employers and employees as unavoidable Wrote: Communist Manifesto Argued the proletariat (have nots) would overthrow the bourgeoisie (haves) Proletariat would take control of the means of production and set up a classless, communist society

Ways of thinking Systems Thinking Ways of ThinkingWays of thinking Systems Thinking Ways of Thinking
Critical Thinking Design Thinking Critical Thinking Critical ThinkingCritical Thinking Design Thinking Critical Thinking Critical Thinking
Chapter 7 section 4 New ways of thinkingChapter 7 section 4 New ways of thinking
Chapter 7 Section 4 New Ways of ThinkingChapter 7 Section 4 New Ways of Thinking
Chapter 7 Section 4 New Ways of ThinkingChapter 7 Section 4 New Ways of Thinking
Ways of Knowing Ways of knowing Ways ofWays of Knowing Ways of knowing Ways of
Other Ways of Thinking About Interactions Ways ofOther Ways of Thinking About Interactions Ways of
Section 4 New Ways of Thinking Setting theSection 4 New Ways of Thinking Setting the