1. Chapter 19.4 New Ways of Thinking Individual Rights vs The Good of Society Workers unite!! What is the role of govt?

2. Focus Q: March 9 List 3 positive results of industrialization. List 3 negative results of industrialization.

3. FQ Page 623 “Malthus Holds Bleak View” and “Ricardo Shares View” Summarize both views

4. What you’ll learn….. 1.Businesses support laissez-faire (French: allow to do) policies. 2.To combat anti-worker attitudes: Socialism: workers own means of production and Communism: classless society where govt controls all economic and political life, no private property

5. Why is this important? 1.The idea of “who deserves what” is hotly debated today. 2.Democracy, socialism, and communism are alive (who’s not well?) around the world today. 3.Which is the better philosophy for workers? The wealthy?

6. Making Sense of Great Changes 1.Writers and thinkers were heirs of the Enlightenment and were looking for Natural laws that governed business and economics 2.Thomas Malthus, 1798, The Principle of Population, 3.Adam Smith—laissez-faire 4.David Ricardo—iron law of wages 5.Karl Marx—communism

7. Laissez-Faire Economics 1.Adam Smith—Wealth of Nations, 1776 **Main supporter of Laissez Faire economics— best cure of poverty** 2. Unregulated exchange of goods and services—free market Produce more goods at a lower price Encourage capitalists to reinvest in new businesses Create more jobs 1729-1790

8. Malthus’ Population Theory is Bleak 1.Population growth was the cause of slums, hunger, unemployment, misery 2.Poverty is unavoidable b/c population is increasing faster than food supply 3.***Only checks on population are: war, disease, famine urged families to have fewer kids, discouraged vaccination and charity***

9. Thomas Malthus × Population growth will outpace the food supply. × War, disease, or famine could control population. × The poor should have less children. × Food supply will then keep up with population.

10. Malthus’ Population Theory is Bleak 1.he was wrong—food supply grew faster than population 2.By 1900s, population growth was not a problem in the West—still an issue in other parts of the world. 1766-1834

11. David Ricardo—Iron Law of Wages 1.Not much hope for the working class to escape poverty b/c: **Wage increases only cover cost of necessities, not inc. standard of living** 2.When workers make more money, they have more kids, instead of raising their standard of living Describe his view of human nature

12. David Ricardo × “Iron Law of Wages.” × When wages are high, workers have more children. × More children create a large labor surplus that depresses wages.

13. David Ricardo—Iron Law of Wages 1.Malthus and Ricardo are laissez-faire economists Oppose help for the poor Best cure for poverty is the unrestricted free market 2.People improve themselves through thrift, hard work, smaller families WHAT DO YOU THINK? 1772-1823

14. Socialist Thought Emerges 1.laissez-faire economists strongly support individual rights 2.others focus on the good of society in general 3.Industrial capitalism led to huge gulf btwn rich and poor

15. Socialists think…… 1.**To end poverty and injustice there should be shared ownership of the means of production** Factories, farms, railroads, other large businesses

16. Utopians are Socialists 1.All work is shared, all property commonly owned 2.They think: when there is no rich or poor, conflict will stop btwn people Robert Owen—New Lanark, Scotland New Harmony, Indiana Shakers Why do you think these communities failed?

17. New Lanark, Scotland

18. New Harmony, Indiana

19. Ha ha ha ha ha ha ha ha…….. My doctor took one look at my gut and refused to believe that I work out. So I listed the exercises I do every day: jump to conclusions, climb the walls, drag my heels, push my luck, make mountains out of molehills, bend over backward, run around in circles, put my foot in my mouth, go over the edge, and beat around the bush.

20. Karl Marx Call for Worker Control 1.1848, he and Friedrich Engels write Communist Manifesto 2.Predicted the struggle btwn social classes would lead to a classless society where all means of production would be owned by the community 3.In practice, communism became a system where a small group of elites control economic and political life, no private property

21. Marx collaborated w/ FRIEDRICH ENGELS – Both were German but lived and wrote in England, esp. in the industrial city of Birmingham

22. Karl Marx Call for Worker Control 1.Said economics is the driving force in history 2.There is a history of class struggles btwn the “haves” and the “have-nots” 3.The “haves”—bourgeoisie  Own the means of production and  Control society and its wealth 1818-1883

23. INDUSTRIAL REVOLUTION CONTEXT…

24. Karl Marx Call for Worker Control 1.**The “have-nots”—proletariat—working class** 2.Modern class stuggle: bourgeoisie vs. proletariat  Proletariat would win in the end  Workers would take control of means of production  Set up a classless, communist society 3.end of class struggle, b/c wealth and power would be equally shared

26. Karl Marx Call for Worker Control **Marx despised capitalism b/c it created prosperity for a few and poverty for many**

27. Marxism in the Future 1.Marxism would never be practiced as he imagined 2. the flaw: Marx predicted workers would unite across international borders 3.Instead, NATIONALISM won out over working class loyalty

28. Communist countries today….. 1.Today, few countries remain communist— Cuba, Vietnam, N. Korea, China, Laos 2.Almost all countries have some elements of free-mkt capitalism

29. These are better…….. “Pickup artists” and “garbagemen” should switch names. We need a 12-step group for compulsive talkers. They could call it On Anon Anon. What did the Tin Man say when he got run over by a steamroller? “Curses! Foil again!” At what age do you think it’s appropriate to tell a highway it’s adopted?