1. Reforming the Industrial World
Chapter 9
Section 4

2. Main Idea
The Industrial Revolution led to economic, social and political reforms.
Many modern social welfare programs developed during the period of reform.

3. Introduction
In industrialized countries there was a wide gap between the rich and the poor.
Business leaders wanted the government to stay out of their affairs.
Reformers wanted governments to play an active role to improve the conditions for the poor.
Workers demanded more rights and protection.
Formed labor unions.

4. The Philosophers of Industrialization
Laissez-faire – economic policy of letting the owners of industry and business set working conditions without interference.
Favors a free-market.
Literally means “let do”.
“Hands-off” approach.

5. Laissez-Faire Economics
Philosophers believed that government regulations only interfered with the production of wealth.
If government allowed free-trade, economy would prosper.

6. Adam Smith
Defended his idea of a free economy in The Wealth of Nations.
Three natural laws of economics:
The law of self-interest – own good
The law of competition – better products
The law of supply and demand

7. The Economists of Capitalism
Capitalism – economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit.

8. The Rise of Socialism Opposite of laissez-faire.
Philosophers believed government should intervene.
Wealthy people’s and government’s duty to take action to help the less fortunate.

9. Utilitarianism
People should judge ideas, institutions, and actions on the basis of their utility, or usefulness.
Government should produce the greatest good for the greatest number of people.

10. Utopian Ideas
Other reformers wanted to create a utopia, or perfect living place.
The “utopias” that were created did not last.

11. Socialism
Reformers sought to offset the ill effects of industrialization with a new economic system called socialism.
Socialism – factors of production are owned by the public and operate for the welfare of all.
Grew from an optimistic view of human nature.
Argued that government should plan the economy and not depend on the free market to do so.

12. Socialism (cont.)
Government control of factories, railroads, mines, etc., would end poverty and promote equality.

13. Presidential Election 2008
What message are the editors trying to send?
Do you agree?

14. Marxism: Radical Socialism
Karl Marx – German journalist.
Introduced the world to a radical type of socialism = Marxism.
Marx, paired with Friedrich Engels, wrote The Communist Manifesto.

15. The Communist Manifesto
Argued that human societies have always been divided into warring classes.
Bourgeoisie – Middle Class, “haves” or employers
Proletariat – “have nots” or workers
Wealthy controlled the means of producing the goods.
Poor performed difficult labor under horrible conditions.

16. Marx and Engels
Industrial Revolution enriched the wealthy and impoverished the poor.
Prediction: Workers would overthrow the owners.
“The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries, unite.”

17. The Future According to Marx
Marx predicted that the workers would revolt.
What would happen next?
They would create a “dictatorship of the proletariat.”
State or government would wither away.
A classless society would develop.
This final phase was called pure communism.

18. Communism Communism – complete form of socialism.
All means of production would be owned by the people.
Private property would cease to exist.

19. Effect of CM Revolts sprung up. Were not successful in the long-term.
However, after 1900, there were explosive results.
Marxism inspired Russia’s Lenin, China’s Mao Zedong, and Cuba’s Fidel Castro.
Adapted Marx’s beliefs to their own situations and needs.

20. Labor Unions and Reform Laws
Long hours, dirty and dangerous working conditions and the threat of being laid off.
By the 1800s the working class had became more involved in politics.
To gain reform, workers joined unions, voluntary labor associations.

21. Unionization A union spoke for all people in a certain trade.
Unions engaged in collective bargaining.
Negotiations between workers and their employers.
Bargained for better working conditions and higher pay.
If the owners refused…
Strike = refusal to work.

22. Unions
Unions were thought to be a threat to social order and stability.
Combination Acts of 1799 and 1800 – outlawed unions and strikes.

23. Reform Laws
Factory Act – 1833 made it illegal to hire children under 9
Children from 9 – 12 could not work more than 8 hrs
Ages 13 – 17 could not work more than 12 hours
Mines Act – 1842 prevented women and children from working underground