Competing Philosophies of the Industrial Revolution.
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Transcript of Competing Philosophies of the Industrial Revolution.
• 11/9 Focus: – Business leaders believed that governments should
stay out of business and economic affairs. – Reformers felt that governments needed to play an
active role to improve conditions for the poor.
• Important Terms: – Laissez Faire, Capitalism, Social Darwinism,
• Do Now: – Identify the industry that first became
industrialized.
Competing Philosophies of the
Industrial Revolution
Impact of IndustrialRevolutio
n
Urbanization
Working Conditions
Living Conditions
• Created many new jobs • Factories were unsafe and
dangerous• Workers worked long hours
• Rich lived in nice neighborhoods
• Poor were crowed in slums near factories
• Factory worked attracted people looking for jobs
• Rapid growth of cities
Impact of IndustrialRevolutio
n
Rise of Big Business
Changing social roles
Social Classes
• Change in family life and role of women
• Growth of the Middle class • Upper middle • Lower middle
• Business sold stock or shares of the company
• Led to formation of corporations
New Class Structure
Middle Ages
Commercial
Revolution
Industrial
Revolution
Nobles
Peasants
Nobles
Peasants
Middle Class
Upper Class
Upper Middle
Lower Middle
Working Class Poor
Developed with expansion of trade and growth of cities during high middle ages
Impact of Industrialization on Class Structure
Class Description Standard of living
Upper
Upper Middle
Lower Middle
Working Class Poor
Aristocrats; wealthy industrial and business families
Very wealthy;
Business people; Factory managers; professionals (doctors, lawyers)
High standard of living
office workers; skilled workers; teachers; shop owners
Factory workers; poor farmers
Comfortable standard of living
Harsh living and working conditions in overcrowded cities
Mercantilism
Enlightenment idea of
Laissez Faire
Capitalism
Factors of production privately owned
Economic SystemsMoney
invested in business to
make a profit
Free markets
Europe Pre-Industrial Revolution
Heavy gov’t
regulations and tariffs
Nations try to
achieve favorable balance of trade
Business should operate without gov’t
interference
Lassiez Faire Capitalism
• Supported by Adam Smith –Wrote The Wealth of
Nations (1776)
• Ideas became the basis for the economic system during the Industrial Revolution– Economic system of the
U.S today
Lassiez Faire Capitalism • Smith said there were 3 natural laws of economics
Law of Self
Interest
Law of Competitio
n
Law of Supply
and Demand
People work for their own good
Competition forces people to make a
better product
Goods will be produced at the
lowest possible costs to meet demand
• 11/10 Focus: – Socialists were concerned less on the interests and
rights of the individual and more on the interests of society as a whole.
• Important Terms: – Socialism, Command Economy, Utopia,
Marxism
• Do Now: –Which economic system is Adam Smith
associated with?
Lassiez Faire Capitalism
• Thomas Malthus– Believed population
would grow faster than food supply
–Without war, famine, and epidemics population would keep growing
– Poor would suffer• Not governments job
to help
Social Darwinism • Based on Charles
Darwin’s idea of natural selection – Survival of the fittest
• Belief that successful business people and wealthy were more “fit” to succeed that others
• Stronger nations should weed out weak nations
• Led to increase in Racism and imperialism
Points for Discussion
• Which social class expanded as a result of the Industrial Revolution?
• Which economic system encouraged the growth of industrialization?
Socialism
• Economic system where the factors of production are owned by the public and operate for the good of all people rather than individuals
Socialism
• Believed Capitalism creates large gap between rich and poor
• Felt that business owners took advantage of workers
Socialism
• Supported the idea of a Command Economy– Government makes
decisions about the economy rather than free markets
• Government should control factories and key industries– This would end
poverty and promote equality
Utopian Socialism
• Utopians tried to create self-sufficient communities
• Property and work would be shared
• Robert Owen setup Utopian factory community in Scotland
Marxist Socialism
• Based on the ideas of German Philosopher Karl Marx
• Wrote the Communist Manifesto (1848)–Written with Friedrich
Engels
Marxist Socialism
• Communism– Radical form of
socialism – All means of
production are owned by the government • Land, mines, railroad,
businesses
– Private property does not exist
– all goods and services are shared equally
“From each according to his ability to
each according to his needs”
The Commun
ist Manifest
o
History was a struggle
between the wealthy and working class
Capitalists took advantage of
proletariat to make profits
Proletariat would rise up
and overthrow capitalist system
Take control of the means
of production
Create a classless
communist society
Wealth and power equally shared
Capitalism Socialism
• Individuals and businesses own property and the means of production
• Progress results when individuals follow their own self interest• Businesses compete for consumers money by producing goods that are better and less expensive than competitors• Consumers compete to buy the best goods at lowest prices.
• Shapes the market by affecting what businesses sell• Government should not interfere in the economy because competition creates strong businesses (Free Markets)
• The community or state should own property and the means of production
• Progress when a community cooperates for the good of all
• Believe that capitalist employers take advantage of workers and the government must protect workers
• unequal distribution of wealth and goods in the capitalist system
• System should distribute goods according to each person’s need
• Government regulation of economy to ensure equal distribution of wealth and material goods (Command Economy)