Chapter 9 Section 4 Reforming the Industrial World

Chapter 9 Section 4 Reforming the Industrial World Objective: Summarize the economic, social, & political reforms that arose from the Industrial Revolution Vocabulary: Laissez Faire, Adam Smith, Capitalism, Utilitarianism, Socialism, Karl Marx, Communism, Union, & Strike

Setting the Stage • Business leaders believed the government should stay out of business & economic affairs • Reformers, however, felt that governments needed to play an active role to improve conditions for the poor • Workers formed labor unions & began to demand for more rights & protection

The Philosopher of Industrialization • Laissez Faire: economic policy of letting owners of industry & business set working conditions without interference • Laissez Faire economist believed that government regulations only interfered with the production of wealth • Adam Smith believed that economic liberty guaranteed economic progress • Adam Smith’s believed in the 3 natural laws of economics (law of self-interest, law of competition, & law of supply & demand)

Check for Understanding • Give an example of 2 rival businesses that compete for your attention. Sentence Starter: Two rival businesses that compete for my attention are ______ & ______.

The Economists of Capitalism • Capitalism: an economic system in which the factors of production are privately owned & money is invested in business ventures to make profit • Belief that there is a permanent underclass that would always be poor • In a capitalist society they believed that creating minimum wage laws & better working conditions would upset the free market, lower profits, & undermine the production of wealth in society

The Rise of Socialism • Utilitarianism: theory that government actions are useful only if they promote the greatest good for the greatest number of people • They questioned the idea of unregulated capitalism • Utilitarians pushed for reforms in the legal & prison systems as well as in education

Utopian Ideas & Socialism • Robert Owen took an active approach to reforms, he improved working conditions for his employees • He founded a cooperative community called New Harmony in Indiana, hoping it would become a Utopia “perfect living place” • Socialism: factors of production are owned by the public & operated for the welfare of all • Socialist believed that government control of factories, mines, railroad, & other key industries would end poverty & promote equality

Marxism: Radical Socialism • Karl Marx introduced the world to a radical type of socialism called Marxism • Karl Marx & Friedrich Engels wrote the Communist Manifesto • They argued that human societies have always been divided into warring classes (Bourgeoisie vs. Proletariat) • According to Marx & Engels, the Industrial Revolution enriched the wealthy & impoverished the poor

The Future According to Marx • Marx believed the capitalist system would eventually destroy itself • Communism is a form of complete socialism in which the means of production (all land, mines, factories, railroads, & businesses) would be owned by the people • They believed that economic forces alone dominated society however time has shown other factors also influence it

Labor Unions • To press for reforms, workers joined together in voluntary labor associations called Unions • Unions engaged in collective bargaining & negotiations between workers & their employers • If factory owners refused the Union’s demands, they would strike (refuse to work) • Skilled workers had the upper hand in unions because they were harder to replace • The government originally outlawed unions

Reform Laws • Eventually, reformers & unions forced political leaders to look into the abuses caused by industrialization • Parliament began investigation child labor & working conditions in factories & mines • They passed several laws protecting women & children

Check for Understanding • Why did they need to limit the amount of hours children were working? Sentence Starter: They needed to limit the amount of hours children were working because ______.

The Reform Movement Spreads • Parliament finally abolished slavery in the British Empire in 1833 • Some people who were antislavery activists were morally against it but others saw it as an economic threat • Slavery was finally abolished in the United States in 1865

The Fight for Women’s Rights • Women led reform movements to address the pay gap & other pressing social issues • Women began to wonder why their own rights should be denied on the basis of gender • Public education & prison reform also ranked high on reformers’ lists • They fought for free education & providing prisoners with the means to lead to useful lives upon release