Presentation on theme: "Chapter 7 Section 4 New Ways of Thinking"— Presentation transcript:
1 Chapter 7 Section 4 New Ways of Thinking Mr. BellisarioWoodridge High SchoolOctober 10 & 11, 2013
2 Lesson ObjectivesDescribe laissez-faire economics and the beliefs of those who supported it.Summarize the theories of socialism.Explain Karl Marx views of the working class and the response to Marxism.
3 Laissez Faire Economics Physiocrats Believed government should not interfere in the free operation of economyEarly 1800’s middle class business leaders embraced “hands-off”
4 Laissez Faire Economics Adam Smith Wrote, Wealth of Nations (1776)Believed in a free-market economy, no government interventionUnregulated exchange of goods & services – would come to help everyone, not just the richProduce more goods at lower prices, making them affordable to everyoneEncourage capitalists to reinvest profits in new business
5 Laissez Faire Economics Thomas Malthus Population would grow more than food supplyChecks on populationWarDiseaseFamineUrged families to have fewer children
7 Laissez Faire Economics David Ricardo “iron law of wages”When wages are high, families have more kidsThis meant a greater labor forceLed to lower wages & higher unemployment
8 Both Malthus & Ricardo felt… Individuals should improve their lives through:ThriftHard workLimiting family size
9 UtilitariansGoals - of society should be the greatest happiness for greatest number – Jeremy Bentham & John Stuart Mills
10 UtilitariansActions/laws are right if they bring happiness, wrong if they bring painWanted government to help improve lives of working classFactory workersHad right to increase their own happinessGovernment should step in when owners’ happiness hurt workersResponsible for reforms from child labor to public healthBut did not change society greatlyGoal was to end poverty & inequality
11 SocialismPeople, as a whole, would own means of production (factories, farms, natural resources, transportation, etc., needed to produce goods)Condemned (hated) capitalism (individuals own means of production)
12 Utopians Early socialists Built self-sufficient communities Everything owned in commonAll work shared
13 Socialism Robert OwenSelected New Lanark, Scotland as model village & factory, based on cooperationLimited child laborEncouraged labor unionsHomes for workersSchools for childrenStill able to make a profit
14 Communism Introduced by Karl Marx & Frederick Engels Communism – radical form of socialismA German socialist-philosopher & German socialist whose father owned textile factory in EnglandCommunist BelieveA very few wealthy individuals controlled a majority of poorFelt Utopians were unrealistic
15 Karl Marx Wrote Communist Manifesto (1848) Saw class struggle between bourgeoisie (middle class) and proletariat (working class) as unavoidableMarxism:“Haves” (capitalists, bourgeoisie) always owned means of production & controlled society & wealth“Have nots” (poor, working class, proletariat) would take control of means of production & set up a classless communist society by overthrowing the “haves”
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