New Ideas and The New Ideas and The Industrial RevolutionIndustrial Revolution
What new ideas grew out What new ideas grew out of the Industrial of the Industrial Revolution?Revolution?
Imagine you are a worker in the early Imagine you are a worker in the early 1900s…1900s…
You are barely able to pay rent, buy food, You are barely able to pay rent, buy food, keep warm with the income you make.keep warm with the income you make.
Work 12-14 hr days, 7 days a weekWork 12-14 hr days, 7 days a week Mistreated at workMistreated at work Whole family must workWhole family must work And you are still living in povertyAnd you are still living in poverty
A Better SocietyA Better Society
Reformers set out to improve the lives of Reformers set out to improve the lives of the disadvantagedthe disadvantaged
Urged government to work for a better Urged government to work for a better societysociety
What was Thomas Malthus theory?
Poverty and famine unavoidable
Population growing faster than food supply
Agricultural Revolution helped to disprove his theories-food supply grew faster than population
What was David Ricardo’s theory?
Wrote-Iron Law of Wages Rapid population growth
would lead to fierce competition for jobs
No government help, poor need to help themselves
Did not happen bc of lower birthrates in western countries
Malthus and RicardoMalthus and Ricardo
People had to work hard, save money, People had to work hard, save money, and have fewer kidsand have fewer kids
Called dismal science because of their Called dismal science because of their gloomy outlookgloomy outlook
What is Utilitarianism? Jeremy Bentham Laws should be judged by
their usefulness Laws should advance
human happiness and reduce human misery
Promoted laws to limit working hours for women and children
Set up commissions investigating factories and mines
Results of BenthamResults of Bentham
Parliament passed the first laws Parliament passed the first laws regulating child employment in factoriesregulating child employment in factories
Also, prohibited woman and children from Also, prohibited woman and children from working in minesworking in mines
18 and under and women could only 18 and under and women could only work 10 hours a day in the textile work 10 hours a day in the textile factoriesfactories
What were the new ideas of Robert Owen?
Cooperation should replace competition Established a “model” town Improved working and living conditions First to promote socialism
Results of OwenResults of Owen
Established a model town in New LanarkEstablished a model town in New Lanark It was a Scottish MillIt was a Scottish Mill Improved living and working conditionsImproved living and working conditions Tried to do in New Harmony, Indiana, but Tried to do in New Harmony, Indiana, but
feuding between the owners and feuding between the owners and residents broke outresidents broke out
What were the ideas of John Stuart Mill?
Redistribution of wealth by taxing income
Voting Rights for all citizens
Equal Rights for Women Also was a Utilitarian and
was a follower of Benthem
Who was William Wilberforce? Evangelical – joined
ideas of Christian faith with making a better society
Member of Parliament
Helped to get a bill passed to end Slavery
Slave Act of 1807
To keep everyone focused and to To keep everyone focused and to encourage participation, we are going to encourage participation, we are going to do a special activity today. do a special activity today.
StudentsStudents who are quiet and listening will who are quiet and listening will be given candy for good behavior.be given candy for good behavior.
StudentsStudents will also receive candy for will also receive candy for answering questionsanswering questions
You may not eat the candy during class You may not eat the candy during class because it may not be yours to keep.because it may not be yours to keep.
What is Economics?
Economics is the study of how societies use scarce resources (land, labor and capital) to produce valuable goods and distribute them among different people for consumption
Never available in sufficient quantities to produce goods and services to satisfy human want
What 3 questions every economy must answer? What should be produced? Production How should the goods be distributed?
Distribution How many goods should be produced?
Consumption
What were the different economic philosophies that grew out of the
Industrial Revolution?
Capitalism/Market Economy
Socialism/Mixed Economy Communism/Command
Economy
What are the three types of economic philosophies from the reading?
What kind of economic system did What kind of economic system did Great Britain have prior to the Great Britain have prior to the Industrial Revolution?Industrial Revolution?
Feudalism-based on farming, social rank, Feudalism-based on farming, social rank, trade and barteringtrade and bartering
Mercantilism-Strict government control of Mercantilism-Strict government control of trade and colonies. The colonies served trade and colonies. The colonies served to benefit only the mother countryto benefit only the mother country
But by late 1700s a merchant class starts But by late 1700s a merchant class starts to emerge from the Industrial Revolutionto emerge from the Industrial Revolution
It is this merchant class/middle class that It is this merchant class/middle class that start calling for economic changestart calling for economic change
Who was this Who was this merchant/middle class?merchant/middle class?
Factory OwnersFactory Owners Factory ManagersFactory Managers Railroad OwnersRailroad Owners Mine OwnersMine Owners They saw the Industrial Revolution as a way to They saw the Industrial Revolution as a way to
move up in social class and get richmove up in social class and get rich Could not do this under feudalismCould not do this under feudalism Call for a change in the economic system and Call for a change in the economic system and
began supporting Capitalismbegan supporting Capitalism
How did economic policies change during the Industrial Revolution?
Most nations began with Capitalism/Market Economy
Who introduced Capitalism/Market Economy
Adam Smith
Who was Adam Smith? Who was Adam Smith? What was the title of his book?What was the title of his book? ““Wealth of Nations”Wealth of Nations” Laid the groundwork for a Laid the groundwork for a
Laissez–Faire government in this Laissez–Faire government in this bookbook
Attacked the policy of Attacked the policy of mercantilism-for a nation to mercantilism-for a nation to become as wealthy as possiblebecome as wealthy as possible
Mercantilism did this by strict Mercantilism did this by strict government control of trade and government control of trade and establishment of coloniesestablishment of colonies
What were Smith’s What were Smith’s Ideas?Ideas? Laissez-Faire-No Government Laissez-Faire-No Government
intervention/regulationintervention/regulation Free MarketsFree Markets Free EnterpriseFree Enterprise Individualism-Most Profit Individualism-Most Profit
with least cost (Self-Interest)with least cost (Self-Interest)
What is Laissez Faire?
No taxes or laws by the government that would impact business No regulation of businesses by the government-hands off
What are free markets?
•Supply and demand determine Supply and demand determine what and how much to producewhat and how much to produce
•Too much supply, not enough Too much supply, not enough demand-waste-lowers pricedemand-waste-lowers price
•Too much demand, not enough Too much demand, not enough supply-missed opportunities and supply-missed opportunities and sales-raises pricessales-raises prices
•Competition regulates the price Competition regulates the price of goods-only 1 shoe companyof goods-only 1 shoe company
With what industry did we see the demand exceed the supply?•Textiles
What is free enterprise?
The freedom of private businessThe freedom of private business
to operate completely for to operate completely for profitprofit
with with nono intervention by the intervention by the
government-profit motivegovernment-profit motive
How will society benefit? IndividualismIndividualism
When each person does what is When each person does what is best for him or her everyone best for him or her everyone benefits-How?benefits-How?
Self-interest add up to common Self-interest add up to common goodgood
What is Capitalism/Market
Economy? Economic system characterized by the
following: Free Enterprise - Private ownership of
property (businesses) Laissez Faire - No government intervention Individuals and businesses compete for their
own economic gain-profit motive Supply and demand determine the prices of
goods and services Profit and competition Also known as a Market Economy
ExampleExample
•Example - Two businesses in Solon, Ohio sell shoes. •They compete for customers in order toget profit for the owners. They pay no taxes to the state or federal government. There is no regulation on the quality, production, or cost of the shoes. As they compete for customers they might increase advertisements, lower prices, and create a higher quality shoe in order to get the largest share of the business and increase their own wealth.
•Example - Two businesses in Solon, Ohio sell shoes. •They compete for customers in order toget profit for the owners. They pay no taxes to the state or federal government. There is no regulation on the quality, production, or cost of the shoes. As they compete for customers they might increase advertisements, lower prices, and create a higher quality shoe in order to get the largest share of the business and increase their own wealth.
Think/Pair/ShareThink/Pair/Share
What do you think are some of the What do you think are some of the results that would occur because of results that would occur because of “pure” Capitalism/Market Economy?“pure” Capitalism/Market Economy?
What were the results of Capitalism/Market
Economy? Economic Growth Large gap between the rich and poor-
haves and have nots Extreme Poverty Child labor City Slums Educational Neglect Unsafe and unsanitary working
conditions
How many pieces of candy did you receive?How many pieces of candy did you receive?Did you like this activity today? Why or why Did you like this activity today? Why or why not?not?
How is this activity like Capitalism/Market How is this activity like Capitalism/Market Economy?Economy?
Capitalism/Market Capitalism/Market EconomyEconomy
Motivated by Motivated by profitprofit--candy=profitcandy=profit-more -more motivated, more candymotivated, more candy
IndividualismIndividualism-Nobody was helping you--Nobody was helping you-how many pieces of candy you received how many pieces of candy you received was up to you-acting in your own self was up to you-acting in your own self interest.interest.
Individual people Individual people were rewarded for good were rewarded for good work-received candy for answering work-received candy for answering questions correctly.questions correctly.
Capitalism/Market Capitalism/Market EconomyEconomy
CompetitionCompetition-everyone wanted to have -everyone wanted to have the most candy.the most candy.
Candy was Candy was unequallyunequally distributed-upper, distributed-upper, middle, lower classmiddle, lower class
Free Enterprise/Private ownership Free Enterprise/Private ownership of of candy-it was yourscandy-it was yours
Capitalist SocietyCapitalist Society-Truck driver example-Truck driver example
Does a true Does a true Capitalistic/Market Capitalistic/Market
Economy exist today?Economy exist today? No-Economies of countries today are mixed No-Economies of countries today are mixed
economies.economies. Due to the problems of Industrialization, the US Due to the problems of Industrialization, the US
and Great Britain’s government had to take an and Great Britain’s government had to take an active role in the economy-regulationactive role in the economy-regulation
In what ways does our government regulate In what ways does our government regulate the economy?the economy?
Although the United States economy is based Although the United States economy is based off of Adam Smiths ideas, we are actually a off of Adam Smiths ideas, we are actually a Mixed EconomyMixed Economy
Which of the following is not a characteristic of capitalism/market economy?1. Laissez-faire
2. Private ownership3. Government controls
the means of production
4. Supply and demand determine price and quantity
5. Large gaps between the rich and the poor Table
Which of the following best represents the ideas of Adam Smith?
1. The working class should revolt against the industrialists
2. Competition for jobs will keep wages high and therefore people will become rich
3. If everyone acts in their own interests, all of society will benefit
4. The government should regulate business so everyone has a fair chance.
Table
1. Who was a strong proponent of 1. Who was a strong proponent of Capitalism/Market Economy?Capitalism/Market Economy?
2. What does Laissez-Faire mean?2. What does Laissez-Faire mean?
3. What are the four characteristics of 3. What are the four characteristics of Capitalism/Market Economy? Capitalism/Market Economy?
4. Do you feel that our candy activity from 4. Do you feel that our candy activity from yesterday was fair? Why or why not? yesterday was fair? Why or why not?
5. What happens in a “pure” Capitalist/Market 5. What happens in a “pure” Capitalist/Market Economy?Economy?
BellworkBellwork
Activity todayActivity today Today, every student is going to start class Today, every student is going to start class
with the same amount of candy (1 piece). with the same amount of candy (1 piece). Everyone will get at least 1Everyone will get at least 1
Each student will still get an extra piece of Each student will still get an extra piece of candy for answering a question and good candy for answering a question and good behavior.behavior.
The more candy The more candy the classthe class accumulates, the accumulates, the more you will receive at the end of class.more you will receive at the end of class.
You cannot eat your candy until the end You cannot eat your candy until the end because it may not be yours to keepbecause it may not be yours to keep
Who challenged the ideas of Capitalism (Adam
Smith) and Socialism?
Karl Marx
•Communist Manifesto, 1848
•What is Communism/Command Economy ?
According to Marx, what caused society to
change? Conflict between the “haves and have-nots” Social Classes that come about in a
Laissez-Faire Capitalistic Society
Who were the “Haves and Have-nots during the
IR? Haves:
Capitalists – factory and business owners (bourgeoisie and upper class) Power – control the govt. Money - keep the profits
Have-nots Workers-Proletariat
Low wages, working conditions
What should the Working Class do?
REVOLUTION - Workers should unite and overthrow the capitalist middle class (bourgeoisie) and upper class
“Working men Working men of all countries, of all countries, unite!”unite!”
Who will own the factories and businesses?
NO PRIVATE OWNERSHIP - All means of production (factories and businesses) will be owned and controlled by society-the people
Who will receive the profits?
EQUAL DISTRIBUTION OF WEALTH - Profits will be equally distributed among the people according to need
“From each From each according to his according to his ability to each ability to each according to his according to his need”need”
Who will have the power?
NO GOVERNMENT - Workers will temporarily control the government (“Dictatorship of the Proletariat”) until all classes cease to exist and
then the government will no longer be needed. It will cease to exist
How will Society Benefit?
Collectivism Society benefits when everyone works
together for the common good-will eventually lead to a Utopian Society where everyone is equal and leading rich, diverse lives.
Who will have the power?Who will have the power?
A society will start off with capitalism-but A society will start off with capitalism-but brutal on peoplebrutal on people
The society will then adapt socialism with The society will then adapt socialism with a fairer distribution of wealtha fairer distribution of wealth
Ultimately, the government will wither Ultimately, the government will wither away and the people will have away and the people will have control/powercontrol/power
Communism/Command Communism/Command EconomyEconomy
Blamed Capitalism for poor conditions in cities/factoriesBlamed Capitalism for poor conditions in cities/factoriesHistory under Capitalism is a class struggle (haves and have History under Capitalism is a class struggle (haves and have nots)nots)Proletariat (working class) must overthrow the upper class and Proletariat (working class) must overthrow the upper class and set up a dictatorship set up a dictatorship Authoritarian rule-government controls everything until society Authoritarian rule-government controls everything until society can be set up on communist principles where the people have the can be set up on communist principles where the people have the power.power.
What is Communism/Command Economy?
An economic philosophy characterized by the following No Free of Enterprise/private ownership of business
– people own factories, businesses, natural resources
Wealth is redistributed among the people in society equally
Ultimately becomes a classless society Collectivism-All work together Government will cease to exist Not working for a profit, no competition
ExampleExample
The former Soviet Union, which began when the Bolsheviks (The Russian political party that supported communism) gained power in 1921 and began to collect the wealth and redistribute the wealth according to need and governmental wants. In addition, the Soviet Union’s government made most of the key decisions including what was produced, who produced it, and how it was produced. Soviet citizens worked not for profit but for the benefit of the Soviet people as a whole and the wishes of the Communist leadership.
Write down how many pieces of candy Write down how many pieces of candy you have.you have.
Let’s collect everyone’s candy and divvy Let’s collect everyone’s candy and divvy it out equally. it out equally.
How many pieces do you have now?How many pieces do you have now? Is this fair? Why or why not?Is this fair? Why or why not?
How was this activity like How was this activity like Communism/Command Communism/Command
Economy?Economy? CollectivelyCollectively working together to get more working together to get more
candycandy Did not have ownership Did not have ownership of your own candyof your own candy Equal distribution Equal distribution of candy=wealthof candy=wealth Classless society-Classless society-no upper, middle, lowerno upper, middle, lower Everyone has the Everyone has the samesame amount of amount of
wealth/candywealth/candy
What do you think about What do you think about this economic system?this economic system?
Is there anything wrong with this system?Is there anything wrong with this system? Students will still be able to receive candy Students will still be able to receive candy
even if the were not acting appropriately even if the were not acting appropriately or answering questions. No incentive to or answering questions. No incentive to work hardwork hard
Truck driver exampleTruck driver example 5000 books-$1.00 a book-26 students-5000 books-$1.00 a book-26 students-
$192.00 each-even if you did nothing$192.00 each-even if you did nothing
In reality, what would be some In reality, what would be some results of Communism/Command results of Communism/Command
Economy?Economy?
People are not motivated to work hardPeople are not motivated to work hard No incentive to get aheadNo incentive to get ahead Communism hard to implement-people are Communism hard to implement-people are
naturally competitivenaturally competitive Can a Utopian Society truly exist?Can a Utopian Society truly exist? Communist countriesCommunist countries today are not truly today are not truly
communist…never made it to a classless society communist…never made it to a classless society with no governmentwith no government
They are a Mixed Economy tooThey are a Mixed Economy too
Today’s ActivityToday’s Activity
To keep everyone focused and to encourage To keep everyone focused and to encourage participation, we are going to do another participation, we are going to do another activity today. activity today.
Students who are quiet and listening will be Students who are quiet and listening will be given candy for good behavior.given candy for good behavior.
Students will also receive candy for Students will also receive candy for answering questionsanswering questions
You may not eat the candy during class You may not eat the candy during class because it may not be yours to keep.because it may not be yours to keep.
ProposalProposalI decided to change our I decided to change our
grading policy.grading policy.
1.1. What do you like about What do you like about this policy?this policy?
2.2. What do you dislike?What do you dislike?
3.3. How would this affect How would this affect your behavior as a your behavior as a student?student?
4.4. What problems might What problems might arise in using this arise in using this method?method?
“Students, this six weeks you will receive the class average on your report
card.”
What is Socialism/Mixed Economy?
An economic system characterized by Government controlling
some base industries Not for a profit, but to
provide goods and services at a cheap cost
Health care, prescriptions, telephone service, education, public transportation, etc.
People that work in these industries are paid by the government
Uh OhA socialist!
What is Socialism/Mixed What is Socialism/Mixed EconomyEconomy
Some private ownership of business
Everybody has something Where do they get this money? Taxes More you make, the more you are More you make, the more you are
taxedtaxed
What is Socialism/Mixed Economy?
The tax goes to helping the lesser off to The tax goes to helping the lesser off to make a fairer distribution of wealthmake a fairer distribution of wealth
It also goes toward your health It also goes toward your health insurance, education, prescriptions, etc.insurance, education, prescriptions, etc.
Felt that pure capitalism was too brutal Felt that pure capitalism was too brutal on people because it created the haves on people because it created the haves and have nots.and have nots.
ExampleExample
Individual French citizens own businesses motivated by profit. However, the French government controls the health care industry in order to make it available to all French citizens. The French people pay high taxes to assure health care is provided for little or no costs to individuals. The above example could also be referred to as Socialism, which means government owns and controls certain base industries.
DebriefDebrief
Write down the amount of candy your Write down the amount of candy your have.have.
If you received more than 4 pieces, put If you received more than 4 pieces, put the rest aside to be collected for taxes. the rest aside to be collected for taxes.
We are going to We are going to redistributeredistribute the candy the candy only to the students with very few pieces.only to the students with very few pieces.
How many pieces do you have now?How many pieces do you have now? Do you have more or less than when we Do you have more or less than when we
started?started? Do you think this is fair? Why or Why Do you think this is fair? Why or Why
not?not?
What kind of economic system is this?What kind of economic system is this? Socialism/Mixed EconomySocialism/Mixed Economy
How did our activity today How did our activity today exemplify Socialism/Mixed exemplify Socialism/Mixed
Economy?Economy? Received a piece of candy for answering Received a piece of candy for answering
the question correctly.the question correctly. More than four, had to More than four, had to give back-Taxesgive back-Taxes If you received a small amount, I gave you If you received a small amount, I gave you
more from themore from the taxes taxes I collectedI collected A more A more equal distribution equal distribution of candyof candy Nobody really had a lot, but everybody Nobody really had a lot, but everybody
had something.had something.
65
Capitalism: You have 2 cows. Sell 1 cow and buy a bull.
Explain
Socialism: You have 2 cows. Give one to a neighbor.
Explain
Communism: You have two cows. Your neighbors help take care of them and you share the milk.
Explain
Governmental Philosophies
Which of the following is a characteristic of socialism/market economy?
1. Government controls the major industries (steel, transportation etc.)
2. The elimination of government and social classes
3. Governments do not interfere in economic activity
4. Private individuals control all of the means of production
Which of the following describes
communismcommand economy?
1. Allows for some private ownership
2. Elimination of government and social classes
3. Ideas from Adam Smith
4. Follows the laws of supply and demand
Which of the following economic systems arose from poor living and working conditions during the Industrial Revolution?1. Capitalism
2. Socialism
3. Communism
4. Both 1 and 2
5. Both 2 and 3
6. None of the above
Which of the following describes an idea of Karl Marx?
1. Laissez-faire2. Bourgeoisie would
revolt against the Proletariat
3. Entrepreneurs would control government
4. Proletariat would revolt against the Bourgeoisie
5. All of the above
In all three of these In all three of these activities, what did the activities, what did the
candy represent?candy represent?
Mixed EconomiesMixed Economies
In your groups come up with three In your groups come up with three examples that make the US a mixed examples that make the US a mixed economyeconomy
24.2 The New Science24.2 The New Science
Charles Darwin came Charles Darwin came up with theory of up with theory of Evolution Evolution
Wrote On the Wrote On the Origins of The Origins of The Species – plants Species – plants and animals adapt and animals adapt to their to their environment. environment.
MendelMendel Gregor Mendel was Gregor Mendel was
curious home plants curious home plants and animals passed and animals passed characteristics to one characteristics to one another.another.
Found that information Found that information is passed through is passed through genesgenes
Eventually becomes Eventually becomes study of geneticsstudy of genetics
Advances in MedicineAdvances in Medicine
Edward Jenner – created first vaccination Edward Jenner – created first vaccination (smallpox ) (smallpox )
Louis Pasteur – discovered bacteria and Louis Pasteur – discovered bacteria and germs, also discovered that bacteria germs, also discovered that bacteria reproduces like other living thingsreproduces like other living things
Surgery – creation of anesthetics and Surgery – creation of anesthetics and chloroform – now safe and painless chloroform – now safe and painless surgery surgery
Physics and Social Physics and Social SciencesSciences
Atomic Theory – all matter is made up of Atomic Theory – all matter is made up of tiny particlestiny particles
John Dalton – proved atomic theory John Dalton – proved atomic theory Creation of x-rays, physics, Creation of x-rays, physics,
electromagnetism electromagnetism Albert Einstein’s theoryAlbert Einstein’s theory Sociology and Psychology Sociology and Psychology
Ivan PavlovIvan Pavlov Sigmund FreudSigmund Freud
24.3 Growth of Industrialization 1900s Populations began to grow – Europe
almost doubled in 100 years Medical advances increased life
expectancy and decreased infant mortality
New methods for producing and preserving foods made better food available
Urbanization – growth of cities
8 in 10 English lived in cities by 1914
Came in search of new opportunities - larger farms needed fewer workers
Movement from Rural to Urban
Lifestyle Improvements
Life improved for many in Europe and North America in the 1800s Sewers, garbage collection, police
and fire protection More leisure time for cultural
activities – newspapers, fine arts, sports
The need for public schools was widely accepted by even the elite.
Improvements in working conditions
Child Labor Laws Passed Safety Regulations Formation of Unions 8 hour work day
Moving Around Rural to Urban Emigration – leaving one’s home country to
settle someplace else Push Factors – reasons to leave
Population growth – no jobs, crowded Government Persecution Famine Discrimination
Immigration – entering a new country or region to settle permanently
Pull Factors – reasons to come Better life Higher Pay Better Working Conditions
NeoclassicalNeoclassical
Lasted from 1750-1850Lasted from 1750-1850 Honored classical art from ancient Rome Honored classical art from ancient Rome
and Greeceand Greece The artwork tends to show traditional The artwork tends to show traditional
timestimes Encouraged order, reason, and disciplineEncouraged order, reason, and discipline
RomanticRomantic
Lasted from 1800s-1850Lasted from 1800s-1850 Believed in the importance of returning to Believed in the importance of returning to
nature.nature. Showed imagination and emotion rather Showed imagination and emotion rather
than intellect and reasonthan intellect and reason
RealistRealist
Lasted 1830s-1900Lasted 1830s-1900 Emphasized showing people as they areEmphasized showing people as they are Depict situations in daily lifeDepict situations in daily life
Joseph M.W. Turner’s Childe Harold’s Pilgrimage –Italy, 1832
ROMANTIC PERIOD
Jacques-Louis David The Death of Socrates 1787
NEOCLASSICAL PERIOD
Kathe Kollwitz The March of the Weavers ,1897
REALIST PERIOD
Jean-Auguste-Dominique The Apotheosis of Homer, 1827
NEOCLASSICAL PERIOD
Edgar Degas Women Ironing,1884
REALIST PERIOD
Eugene Delacroix Liberty Leading the People 1830
ROMANTIC PERIOD
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