RESPONSES TO RESPONSES TO INDUSTRIALIZATION:INDUSTRIALIZATION:

The “isms”The “isms”

COMMUNISMCOMMUNISMCAPITALISMCAPITALISMCLASSICAL LIBERALISMCLASSICAL LIBERALISM ““SCIENTIFIC SOCIALISM” SCIENTIFIC SOCIALISM”

((MARXISMMARXISM))

Karl MarxKarl MarxAdam SmithAdam Smith Thomas Thomas

MalthusMalthusDavid RicardoDavid Ricardo

Friedrich Friedrich EngelsEngels

DefinitionsCapitalism: An economic system that is controlled by private individuals who invest excess money and profits (capital) into business. The goal is profits. The government follows a laissez-faire system where they don’t intervene in economic affairs.

Socialism: An economic system that is controlled by the workers inside the factories and directed not by owners but by a centralized government planning committee. The goal is to make the people who do the work more powerful than the owners of the factories. You can still make more money based on how productive (or unproductive) you are. The government intervenes a lot.

Communism: Like socialism, but the goal is complete equality of condition. (Instead of equality of opportunity)

Capitalists

Adam Smith

•First describer of the economic system of capitalism that was developing in England in the 1700s.•Described capitalism in his book On the Wealth of Nations•Believed that governments should keep their hands off the economy “Laissez-Faire”•Said people’s pursuit of their own interests would result in the right products being made for the right price (because businesses WANT to be profitable!)

THOMAS THOMAS MALTHUS AND MALTHUS AND POPULATIONPOPULATION

• Said the largest problem facing society was population growth

MALTHUS’S THEORYMALTHUS’S THEORY

Food supply increasesarithmetically

Population increasesgeometrically

STARVATION!

If population was not controlled, people would die

MALTHUS’ CHECKS ON MALTHUS’ CHECKS ON POPULATION GROWTHPOPULATION GROWTH

NEGATIVE CHECKS

• LATE MARRIAGES

• CELIBACY/ RESTRAINT

• CONTRACEPTION

POSITIVE CHECKS

• WAR

• FAMINE

• DISEASE

Growth of population cannot be stopped without “misery or vice”!

• Poor workers will have children if there is food and money to buy the food

RICARDO AND RICARDO AND THE IRON LAW OF THE IRON LAW OF

WAGESWAGES

RICARDO’S CYCLERICARDO’S CYCLEPopulation IncreaseGOOD TIMES

Higher Wages

BAD TIMES

Lower WagesPopulation Decline

THE IRON LAW OF WAGESTHE IRON LAW OF WAGES

IMPLICATIONS OF MALTHUS & IMPLICATIONS OF MALTHUS & RICARDO’S IDEAS?RICARDO’S IDEAS?

• Low wages

• Suffering among workers

• Trying to help poor people would only HURT them long-term: Social Darwinism, or the idea that the “fittest” people should control the world, develops

• What is the inherent problem with Social Darwinism?

““Philosophers have Philosophers have only interpreted the only interpreted the

world in various ways; world in various ways; the point, however, is the point, however, is

to change it.”to change it.”

- Karl Marx- Karl Marx

Karl MarxKarl Marx1818-18831818-1883

Friedrich Friedrich EngelsEngels1820-18951820-1895

Communism:Communism:MARXISMMARXISM

• The ideas of Karl Marx and Fredrich Engles were outlined in their book The Communist Manifesto

History is a series of conflicts between History is a series of conflicts between classes that control “means of classes that control “means of

production” (owners) and those which production” (owners) and those which do not (wage-laborers).do not (wage-laborers).

vs.vs.

Karl Marx said:Karl Marx said:

Society (government, religion, moral Society (government, religion, moral values) are ALL designed to support values) are ALL designed to support

the interests of the dominant the interests of the dominant economic class.economic class.

How does the ruling class keep How does the ruling class keep control?control?

Religion “is the opiate

of the masses.”

COMMUNISM:COMMUNISM:MARXISMMARXISM

Believed that history is movingthrough a series of stages …

FEUDALISMFEUDALISM CAPITALISMCAPITALISMSLAVE SLAVE EMPIRESEMPIRES

Industrialization has created a new Industrialization has created a new conflict between the owners of conflict between the owners of

factories (bourgeoisie) and factory factories (bourgeoisie) and factory workers (proletariat): workers (proletariat):

COMMUNISM: COMMUNISM: MARXISMMARXISM

PROLETARIAPROLETARIATT

vs.vs.CAPITALISMCAPITALISM

Increased suffering among Proletariat Increased suffering among Proletariat would INEVITABLY lead them to revolt would INEVITABLY lead them to revolt against the Bourgeoisie, owners of the against the Bourgeoisie, owners of the “means of production” aka: factories.“means of production” aka: factories.

COMMUNISM: MarxismCOMMUNISM: Marxism

THE THE BOURGEOISIEBOURGEOISIE

THE THE PROLETARIATPROLETARIAT

Uh-Oh

Workers would create a society Workers would create a society without social classes where no one without social classes where no one had any private property and all had any private property and all

needs were met.needs were met.

COMMUNISM: COMMUNISM: MarxismMarxism

From each according From each according to his abilities,to his abilities,

to each accordingto each accordingto his needs.to his needs.

““The proletarians have The proletarians have nothing to lose but their nothing to lose but their

chains. They have a chains. They have a world to win. world to win. WORKING WORKING MEN OF ALL COUNTRIES, MEN OF ALL COUNTRIES,

UNITE!UNITE!””

THE COMMUNIST THE COMMUNIST MANIFESTOMANIFESTO

(1848)(1848)