REFORMING THE INDUSTRIAL WORLD 25 4 NOTES THE

REFORMING THE INDUSTRIAL WORLD 25. 4 NOTES

THE PHILOSOPHERS OF INDUSTRIALIZATION • In response to the Industrial Revolution, philosophers came up with a few different economic systems • One new concept was Laissez-faire: • economic policy of letting owners of industry and business set working conditions without interference • free market unregulated by the government • means “let do” in French

ADAM SMITH • Wrote The Wealth of Nations (1776): economic liberty=economic progress • He is credited with the idea of free markets/free economy • “Invisible hand” will guide the economy if left alone because people follow their self-interest • 3 natural laws of economics: • the law of self-interest: ppl will work for own good • the law of competition: it helps create better products • the law of supply and demand: goods will be produced at the lowest possible price to meet demand

THE ECONOMICS OF CAPITALISM • Capitalism: economic system where factors of production are privately owned and money is invested to make a profit; helped bring about Industrial Revolution • Thomas Malthus wrote An Essay on the Principle of Population(1798): population increasing faster than food supply=more ppl are destined to be poor and miserable • David Ricardo: Principles of Political economy and Taxation(1817) in market system there will always be a poor class bc too many workers=workers paid cheap bc excess supply

UTILITARIANISM • Jeremy Bentham’s idea: utilitarianism: ppl should judge ideas, institutions, and actions based on their usefulness; gov’t should promote greatest good for greatest number of ppl • John Stuart Mill led the utilitarian movement in 1800 s; wanted to equalize ppl, reforms in legal and prison systems and in education; women’s rights

UTOPIAN IDEAS • Robert Owen was factory owner, shocked at conditions and improved them for his employees by building low rent housing, prohibiting children under 10 from working • Founded New Harmony in US, cooperative community, supposed to be utopia: perfect place; only lasted 3 yrs but inspired other cooperative communities to start

THE RISE OF SOCIALISM • Opposite to laissez-faire, some believed gov’t should intervene to help poor • Def: Economic system where The factors of production(land, labor, capital) are owned by the public and operate for the welfare of all • Grew out of belief in progress, concern for social justice; gov’t should control economy, help end poverty and promote equality; sought to offset ills of industrialization

MARXISM: RADICAL SOCIALISM • German journalist Karl Marx created radical type of socialism: Marxism • Marx along with Engels wrote The Communist Manifesto • Human societies have always been divided into warring classes, bourgeoisie (employers, “haves”) and the proletariat (workers, “have nots”) • predicted overthrow of society by proletariat

THE FUTURE ACCORDING TO MARX • Communism: final phase, complete socialism in which means of production would be owned by ppl • no private property • Capitalism, which caused the IR, would destroy itself bc causes small grp to own all wealth; proletariat would revolt, wrkers share in profits, bring about economic equality, no gov’t=classless society • Marxism inspired revolutions in Russia (Lenin), China (Mao), and Cuba (Castro) • Marx and Engels believed economic forces alone dominated society-time has shown not true

LABOR UNIONS AND REFORM LAWS • Voluntary labor associations: unions • Unions used collective bargaining(negotiations between workers and employers) for better conditions, wages; would strike: refuse to work • Unions in both US and GB-GB outlawed them at first, then “tolerated” them • Reform Laws • Both countries made reforms: Factory Act of 1833: no children under age 9, set limits for 9 -17 yr olds • Parliament also passed 10 hr day; US too

THE REFORM MOVEMENT SPREAD • The Abolition of Slavery • 1833 Britain abolished slavery in its empire • US ended it in 1865, Brazil 1888 -arguments against it for moral and economic reasons • The Fight for Women’s Rights • Ind Rev was mixed blessing-women made more money, but 1/3 of what men made • Women led reform mvments in both countries; 1848 women’s rights started in US • Reforms Spread to Many Areas of Life • Public edu(led by Horace Mann, wanted free public education for all kids) • prison reform