Reforming the Industrial World Section 9 4 The

Reforming the Industrial World Section 9. 4

The Philosophers of Industrialization • Laissez-faire economics – theory that advocates the ability of the economy to function without government interference • Adam Smith – Professor at Glasgow, Scotland who defended the idea of a free economy in The Wealth of Nations – Economic liberty guaranteed economic progress, government should not interfere – Three Natural Laws of Economics: • Law of Self-Interest – people work for their own good • Law of Competition – Competition forces people to make a better product • Law of Supply and Demand – enough goods would be produced at the lowest possible price to meet demand in a market economy

The Philosophers of Industrialization • Economics of Capitalism – an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit – Thomas Malthus • An Essay on the Principle of Population • Argued that population tended to increase more rapidly than the food supply • Without wars and epidemics to kill off extra people, most were destined to be poor and miserable – David Ricardo • Principles of Political Economy and Taxation • Believed the underclass (yes they thought of them that way) would always be poor • Market System: – Many workers + abundant resources = cheap resources and labor – Few workers + little resources = expensive resources and labor • Capitalists opposed efforts to help the poor because it would be gov’t intervention – Were against the minimum wage and better working conditions

The Rise of Socialism • Jeremy Bentham – Utilitarianism – people should judge ideas, institutions, and actions on the basis of their utility, or usefulness – Gov’t should try to promote the greatest good for the greatest number of people • Only way a gov’t policy was useful – Individual should be free to pursue his or her own advantage without interference from the state • John Stuart Mill – Questioned unregulated capitalism – Believed it was wrong that workers lead deprived lives that sometimes bordered on starvation – Wanted to help ordinary working people with policies that would lead to equal division of profits – Favored a cooperative system of agriculture and women’s rights, including the right to vote – Gov’t wanted to do away with great differences of wealth • Pushed for reforms in legal and prison systems and in education

The Rise of Socialism • Utopian Ideals – Robert Owen • New Lanark, Scotland – site of his new factory – Improved working conditions for his employees – Built homes which he rented at low rates – Prohibited children under 10 from working in the mills and providing free schooling • New Harmony, India – Intended to be a utopia – perfect living place – Lasted only three years

The Rise of Socialism • Socialism – factors of production are owned by the public and operate for the welfare of all – Charles Fourier – Henri de Saint-Simon • Saw the dangers of industrialization – Argued the gov’t should plan the economy rather than depend on capitalism – Wanted gov’t to control factories, mines, railroads, and other key industries to end poverty and promote equality

Marxism • More extreme than socialism • The Communist Manifesto – Written by Karl Marx and Friedrich Engels – Argued that societies have always been divided into warring classes • Bourgeoisie – middle class, “haves”, employers, owned the means of production • Proletariat – working class, “have-nots”, workers, owned nothing but their labor – Believed the Industrial Revolution had enriched the wealthy and impoverished the poor • But also believed that you needed to HAVE the revolution BEFORE the proletariat were able to unite against the bourgeoisie – Predicted the workers would overthrow their owners: “The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of the countries, unite. ”

Marxism • The Future According to Marx – Industrial Revolution would destroy itself • Factories would drive small artisans out of business – leaving a small number of manufacturers to control the wealth • Large proletariat would revolt, seize the factories and mils from capitalists • Use those factories to produce only what the society needed • Gov’t will be a “dictatorship of the proletariat” • Leads to a classless society • Ultimately leads pure communism – when the means of production are owned by the people • Believed economic forces alone dominated society – Intervention from gov’ts kept the wealth gap from becoming as extreme as what Marx had predicted, staving off the communist dream

Labor Unions and Reform Laws • Unionization – Unions – voluntary labor associations that were meant to allow working people to become more active in politics • Spoke for all workers of a particular trade • Bargained for better working conditions, more pay • If owners refused, they would strike – refuse to work – Skilled laborers actually lead the movement for unions • Harder for management to replace skilled workers so they had to work with them – Great Britain • Combination Acts of 1799 and 1800 – outlawed unions and strikes because they were a danger to society • Repealed the Acts in 1824 and tolerated unions

Labor Unions and Reform Laws • Reform Laws – Eventually, gov’t were forced to look at the abuses of the revolution – Great Britain • 1820 s and 1830 s – started investigating child labor • Factory Act of 1833 – Illegal to hire children under 9 – Children 9 -12 could not work more than 8 hours – Children 13 -17 could not work more than 12 hours • Mines Act 1842 – Prevented women and children from working underground • Ten Hours Act 1847 – Limited the workday to 10 hours for women and children who worked in factories

The Reform Movement Spreads • Abolition of Slavery – William Wilberforce, lead the fight for abolition – 1807 – Parliament passed a law to end the slave trade in the British West Indies – 1833 – slavery was abolished in the British empire – Motivations for the fight: • Morally wrong to enslave people • Economically dangerous to use slaves • Industrialists preferred cheap labor over slave labor • Fight for Women’s Rights – Women factory workers only made a third of what the men did – What women did to change it: Got involved in reform movements Safety inspectors in factories where other women worked Spread of women’s unions Jane Addams – ran a settlement house that served the poor residents of slum neighborhoods • International Council for Women (ICW – 1888) • • – Pushed for voting rights and other rights for women

The Reform Movement Spreads • Reforms Spread to Many Areas of Life – Prisons and education were on the top of reform lists • Horace Mann (US) – favored free public education for all children – By 1850 s (US) many states had public school systems – Europe followed in the late 1800 s • Alexis de Tocqueville (France) – Wrote about the brutal system in American prisons – This was a big deal to America because it claimed modern status but Tocqueville pointed out major problems with the system • Reformers of prisons wanted to focus on giving the prisoners useful skills for when they were released