1. The Industrial Revolution

2. Essential Questions How does the free enterprise system work?
What factors caused the Industrial Revolution?
How did the Industrial Revolution change the ways people lived?

3. Important Ideas Economics: Free Enterprise Adam Smith Britain
James Watt
Steamboat
Railroad
Mass Production
Karl Marx
Laissez-faire capitalism
Unification

4. Economics

5. Understanding Economics
Economics: how people meet their needs by making, distributing, and using goods and services
Economists study how people
Work
Earn money
save money
Invest
Use their time, energy and money
Why should we study economics?

6. Three Economic Questions
What should be produced?
People have unlimited wants
The world has limited resources
How do countries meet the needs of people with limited resources?
Every country must answer these 3 questions:
How should it be produced?
Who should get it?

7. Free Enterprise System
Characteristics:
People decide what to make, sell, and buy.
People own property and decide how to use it.
Some people invest in private business seeking a profit (money made)
Some people make the same goods and create competition
In a free enterprise system what is the responsibility of government, if any?

8. Free Enterprise Characteristics: Government interference is limited.
Government sets the rules and settles disputes.
Producers and consumers answer the 3 basic questions, not government.
Give an example of a time when government should interfere in the system.

9. The Law of Supply and Demand
If demand is low, prices will go down
Supply= amount of goods produced
Demand= amount of goods wanted
Supply and demand determine price
If demand is
HIGH,
then the price
goes up
Explain the chart as it relates to supply and demand

10. Adam Smith Scottish professor Wrote The Wealth of Nations in1776 Said:
Division of labor helps production
Supply and demand determine price
Only producers with best goods and prices will stay in business
An “invisible hand” guides individual actions for the common good
Attacked mercantilism
Favored laissez-faire
Adam Smith
The invisible hand theory says that individuals will do what is right for the economy. Do you think this theory works in U.S. free enterprise system?

11. The Industrial Revolution

12. Characteristics of the Industrial Revolution
Economic revolution began in Great Britain
Introduced mass production
Used new sources of energy
Goods were made in factories not in homes (cottage industry)
Steam power and machines were used
Science and technology became closely linked
People moved from rural areas to urban to get jobs
Coalbrookdale by Night, 1801, by Philipp Jakob Loutherbourg the Younger
What technological advancements made the Industrial Revolution possible?

13. Causes of the Industrial Revolution in Britain
Geographical Advantages:
Many harbors and rivers
Plentiful coal
Island protected from invasion
Close European markets
Well-located for trade

14. Causes of the Industrial Revolution in Britain
Transportation and Communication
Well developed coastal trade, canals, and port towns
Excellent postal service
Daily newspapers
Most powerful navy in the world
Why was having a powerful navy helpful to the growth of the Industrial Revolution in Britain?

15. Causes of the Industrial Revolution in Britain
Large Colonial Empire:
Raw materials from all over the world came to Britain
Britain developed advanced financial and commercial skills
Powerful Middle Class:
Promoted free enterprise
Promoted economic improvement
Brought together capital, labor, and new invention
What is the connection between free enterprise and the rise of the Industrial Revolution?

16. Causes of the Industrial Revolution in Britain
Agricultural Improvements:
New scientific methods boosted productivity such as enclosing common lands, rotating crops, and careful animal breeding.
Less people were needed to work on farms.
How did agriculture affect the revolution?

17. Innovations in Textile Manufacturing
Revolution came to textiles first
Spinning Jenny (1764): allowed large quantities of thread to be made quicker and cheaper
Improved Steam Engine (1769) James Watt’s engine did not have to be placed near a water source. Factories could now be built anywhere.
Spinning Jenny
Can you name some inventions from previous time periods that made an impact on the economy of a society?
Steam Engine

18. The Shift from Home (cottage) to Factory
Domestic System: craftsmen worked at making cloth
Industrial Revolution: craftsmen began making cloth in factories
Benefits of factories:
higher rates of production
cheaper prices
higher demand of goods
What might be some of the negative aspects of working in factories?

19. Working Conditions Factories were unsafe and dangerous
Workers worked long hours with little pay
Women and children also worked in factories.
Children often did dangerous jobs
In hard times workers lost their jobs and had no way to support their family
If conditions were so bad, why would people work in the factories?

20. Urbanization Fewer people were needed to work on farms
People moved to the city to work in factories
Cities became crowded and unsanitary
Factories polluted the air
City governments were unable to meet the needs of all of these new citizens
Was the Industrial Revolution good or bad for cities?

21. Changes in Transportation Technology
Steam boat
Steam engine in locomotives in 1820
Railroads made transportation easier but required coal, iron, and steel, stimulating growth in those industries

22. Changes in
European Society

23. Capitalism Characteristics of 19th Century Capitalism
Role of the Entrepreneur: owned the factory, organized managed, and assumed responsibility for the business
Role of the worker: provided labor and received wages
Role of the government: (laissez-faire) did not interfere in relations between workers and business
Since government did not interfere with business, how do you think business treated workers?

24. How is this cartoon similar to the one from the French Revolution?
In the late 1800s the shocking inequalities between the huge fortunes of the nation's "captains of industry" and an ever-growing population of impoverished workers drove Americans to grapple with questions about the rights of workers and employers. This 1883 editorial cartoon mocked the claims that plutocrat businessmen were the protectors of American industries by presenting Cyrus Field, Jay Gould, Cornelius Vanderbilt, and Russell Sage as bloated parasites sitting on bags of "millions," and protective bulwarks resting on the backs industrial workers making only $6 to $11 a week.
Library of Congress
How is this cartoon similar to the one from the French Revolution?
Explain this cartoon

25. Family Life in the Industrial Revolution
Families no longer worked together on farms
Men, women, and children worked in factories
Families spent less time together
Families moved to crowded cities
Cities did not have enough fresh water and had sanitation issues
Diseases like cholera and typhus spread through the cities quickly
Later reforms helped improve sanitation, disease control, public education, and working conditions
What impact did the Industrial Revolution have on families?

26. Louis Pasteur (1822-1895) Believed disease was caused by germs
Showed that sanitary measures could improve health (washing hands and boiling instruments before operations)
Developed vaccines to combat anthrax and rabies
Pioneered the heating of liquids to kill germs

27. Reform Movements Social Reforms:
Banned women and children from working in mines
Limited work day to 10 hours
Improved working conditions
Established work houses for unemployed
Why would Parliament and the monarchy favor these types of social reforms?
Queen Victoria I favored social reforms and tried to help the poor

28. Child Labor

29. Reform Movements Municipal Reforms: Cleaned up cities
Improved drinking water
Introduced sewer systems to help stop the spread of disease
Built street lamps
Increased police forces
Added free public education
How does free public education benefit a society?

30. Reform Movements
Worker’s Unions: Workers formed groups that would strike if working conditions and pay did not improve
Many politicians and owners introduced social reforms to win the favor of unions
How does a threat of a strike affect business owners?
How does a threat of a strike affect workers?

31. Reform Movements
Political Reform: the growing middle class wanted more political power
The Reform Bill of 1832 gave voting rights to much of the middle class and extended representation in Parliament to cities that did not have it
By the late 1800s all adult males could vote
Why is the right to vote (suffrage) important to a society?

32. Karl Marx and the Birth of Communism
Marx wrote two books, the Communist Manifesto with Friedrich Engels and Capital
He believed that workers would rise up against owners because they were underpaid and owners made huge profits
He said workers would create a “Communist” society
In communism everything is owned in common
There is no private property or social classes
Cooperation would replace competition
Karl Marx ( )
Who would make sure that everything worked as it should in a Communist society?

33. Socialism Wanted to improve conditions for workers
Wanted government to step in and pass laws to protect workers
Wanted government to own some businesses
Believed that they could improve worker conditions through political parties
Supported free education, low-cost housing, cheap public transportation, and national health care
How is Socialism different from Communism?

34. 2nd Industrial Revolution
Late 19th Century- Early 20th Century
Based on improvements in chemical, steel, and petroleum industries and introduction of electricity
Thomas Edison
Phonograph
Motion picture
Light bulb
Alexander Graham Bell
Telephone
Marie Curie
Studied radioactivity
Discovered radium

35. The Impact of Industry on Nationalism
Industrialization strengthened the middle class
Middle class demanded unity
Business leaders wanted to unify national markets
Politicians and journalists channeled worker discontent into nationalism
How can business use the idea of Nationalism to their advantage?