2. Competing Philosophies of the Industrial Revolution

3. Impact of Industrial Revolution Impact of Industrial Revolution Urbanization Working Conditions Living Conditions Created many new jobs Factories were unsafe and dangerous Workers worked long hours Created many new jobs Factories were unsafe and dangerous Workers worked long hours Rich lived in nice neighborhoods Poor were crowed in slums near factories Rich lived in nice neighborhoods Poor were crowed in slums near factories Factory worked attracted people looking for jobs Rapid growth of cities Factory worked attracted people looking for jobs Rapid growth of cities

4. Impact of Industrial Revolution Impact of Industrial Revolution Rise of Big Business Changing social roles Social Classes Change in family life and role of women Growth of the Middle class Upper middle Lower middle Growth of the Middle class Upper middle Lower middle Business sold stock or shares of the company Led to formation of corporations Business sold stock or shares of the company Led to formation of corporations

5. New Class Structure Middle Ages Commercial Revolution Industrial Revolution Nobles Peasants Nobles Peasants Middle Class Upper Class Upper Middle Lower Middle Working Class Poor Developed with expansion of trade and growth of cities during high middle ages

6. Impact of Industrialization on Class Structure ClassDescriptionStandard of living Upper Upper Middle Lower Middle Working Class Poor Aristocrats; wealthy industrial and business families Very wealthy; Business people; Factory managers; professionals (doctors, lawyers) High standard of living office workers; skilled workers; teachers; shop owners Factory workers; poor farmers Comfortable standard of living Harsh living and working conditions in overcrowded cities

7. Mercantilism Enlightenment idea of Laissez Faire Capitalism Factors of production privately owned Economic Systems Money invested in business to make a profit Free markets Europe Pre- Industrial Revolution Heavy gov’t regulations and tariffs Nations try to achieve favorable balance of trade Business should operate without gov’t interference

8. Lassiez Faire Capitalism Supported by Adam Smith – Wrote The Wealth of Nations (1776) Ideas became the basis for the economic system during the Industrial Revolution – Economic system of the U.S today

9. Lassiez Faire Capitalism Smith said there were 3 natural laws of economics Law of Self Interest Law of Competition Law of Supply and Demand People work for their own good Competition forces people to make a better product Goods will be produced at the lowest possible costs to meet demand

11. Lassiez Faire Capitalism Thomas Malthus – Believed population would grow faster than food supply – Without war, famine, and epidemics population would keep growing – Poor would suffer Not governments job to help

12. Social Darwinism Based on Charles Darwin’s idea of natural selection – Survival of the fittest Belief that successful business people and wealthy were more “fit” to succeed that others Stronger nations should weed out weak nations Led to increase in Racism and imperialism

13. Points for Discussion Which social class expanded as a result of the Industrial Revolution? Which economic system encouraged the growth of industrialization?

14. Socialism Economic system where the factors of production are owned by the public and operate for the good of all people rather than individuals

15. Socialism Believed Capitalism creates large gap between rich and poor Felt that business owners took advantage of workers

16. Socialism Supported the idea of a Command Economy – Government makes decisions about the economy rather than free markets Government should control factories and key industries – This would end poverty and promote equality

17. Utopian Socialism Utopians tried to create self- sufficient communities Property and work would be shared Robert Owen setup Utopian factory community in Scotland

18. Marxist Socialism Based on the ideas of German Philosopher Karl Marx Wrote the Communist Manifesto (1848) – Written with Friedrich Engels

19. Marxist Socialism Communism – Radical form of socialism – All means of production are owned by the government Land, mines, railroad, businesses – Private property does not exist – all goods and services are shared equally “From each according to his ability to each according to his needs”

20. The Communist Manifesto History was a struggle between the wealthy and working class Capitalists took advantage of proletariat to make profits Proletariat would rise up and overthrow capitalist system Take control of the means of production Create a classless communist society Wealth and power equally shared

21. Capitalism Socialism Individuals and businesses own property and the means of production Progress results when individuals follow their own self interest Businesses compete for consumers money by producing goods that are better and less expensive than competitors Consumers compete to buy the best goods at lowest prices. Shapes the market by affecting what businesses sell Government should not interfere in the economy because competition creates strong businesses (Free Markets) The community or state should own property and the means of production Progress when a community cooperates for the good of all Believe that capitalist employers take advantage of workers and the government must protect workers unequal distribution of wealth and goods in the capitalist system System should distribute goods according to each person’s need Government regulation of economy to ensure equal distribution of wealth and material goods (Command Economy)