Reforming the Industrial World Chapter 9 Section 4

Reforming the Industrial World Chapter 9 Section 4

Main Idea l l The Industrial Revolution led to economic, social and political reforms. Many modern social welfare programs developed during the period of reform.

Introduction l l In industrialized countries there was a wide gap between the rich and the poor. Business leaders wanted the gov’t to stay out of their affairs. Reformers wanted gov’ts to play an active role to improve the conditions for the poor. Workers demanded more rights and protection. l Formed labor unions.

The Philosophers of Industrialization l Laissez-faire – economic policy letting the owners of business set working conditions without interference. l l l Favors a free-market. Literally means “let do”. “Hands-off” approach.

Laissez-Faire Economics l l Philosophers believed that government regulations only interfered with the production of wealth. If government allowed free-trade, economy would prosper.

Adam Smith Defended his idea of a free economy in The Wealth of Nations. Three natural laws of economics: l The law of self-interest – own good l The law of competition – better products l The law of supply and demand l

The Economists of Capitalism l Capitalism – system in which the factors of production are privately owned and money is invested in business ventures to make a profit.

Utilitarianism l l People should judge ideas, institutions, and actions on the basis of their utility, or usefulness. Government should produce the greatest good for the greatest number of people.

Utopian Ideas l l Other reformers wanted to create a utopia, or perfect living place. The “utopias” that were created did not last.

The Rise of Socialism l l l Opposite of laissezfaire. Some philosophers believed government should intervene. Wealthy people’s and government’s duty to take action to help the less fortunate.

Socialism l l Reformers sought to offset the ill effects of industrialization with a new economic system called socialism. Socialism – factors of production are owned by the public and operate for the welfare of all. Grew from an optimistic view of human nature. Argued that government should plan the economy and not depend on the free market to do so.

Marxism: Radical Socialism l l l Karl Marx – German journalist. Introduced the world to a radical type of socialism = Marxism. Marx, paired with Friedrich Engels, wrote The Communist Manifesto.

The Communist Manifesto l l l Argued that human societies have always been divided into warring classes. Bourgeoisie – Middle Class, “haves” or employers Proletariat – “have nots” or workers Wealthy controlled the means of producing the goods. Poor performed difficult labor under horrible conditions.

Marx and Engels l l l Industrial Revolution enriched the wealthy and impoverished the poor. Prediction: Workers would overthrow the owners. “The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries, unite. ”

The Future According to Marx l l l Marx predicted that the workers would revolt. What would happen next? They would create a “dictatorship of the proletariat. ” State or government would wither away. A classless society would develop. This final phase was called pure communism.

Communism l l l Communism – complete form of socialism. All means of production would be owned by the people. Private property would cease to exist.

Labor Unions and Reform Laws l l l Long hours, dirty and dangerous working conditions and the threat of being laid off. By the 1800 s the working class had became more involved in politics. To gain reform, workers joined unions, voluntary labor associations.

Unionization l l l A union spoke for all people in a certain trade. Unions engaged in collective bargaining. l Negotiations between workers and their employers. Bargained for better working conditions and higher pay. If the owners refused… Strike = refusal to work.

Unions l l Unions were thought to be a threat to social order and stability. Combination Acts of 1799 and 1800 – outlawed unions and strikes.

Reform Laws l l Factory Act – 1833 made it illegal to hire children under 9 Children from 9 – 12 could not work more than 8 hrs Ages 13 – 17 could not work more than 12 hours Mines Act – 1842 prevented women and children from working underground