Study Questions (only copy capitalism side)

Review English 1 st to Industrialize. (why?) Industrialization Spreads (Where does it spread?) Mechanization Eng. Does not want Brain Drain (What is that?) Mill Girl Entrepreneur, Stock, Corporation Big Business Europe Industrializes With problems Impact of Industrialization Balance of Power Imperialism Improved life for industrialized nation’s citizens

California State Standard 10:3:6 Analyze the emergence of capitalism as a dominant economic pattern and the responses to it, including Utopianism, Social Democracy, Socialism, and Communism.

Objectives What are the main concepts of Capitalism? What are the main concepts of socialism and Marxism? What were the reform movements of the 1800s?

Reforming the Industrial World Chapter 9.4

Reforming the Industrial World Background… Main Idea –The Industrial Revolution led to Economic growth Political Social Reforms Why It Matters –Several Economic theories developed during this period. Setting the Stage –Ind. Rev. creates wide gap between rich and poor RICH: want govt. leave business alone POOR: want help from govt. WORKERS: want reasonable hours, more pay, safe work environment

Economic Philosophies Laissez-Faire Economics: –“let people do as they please” Hands Off! –Want free market, no govt. interference Owners set working conditions –No minimum wage –No minimum workday Competition regulates product pricing” –What are some problems with this theory? Who do the people represent?

Capitalism Private Ownership Private Control Private Planning

Adam Smith – (1776) The Wealth of Nations Professor in Scotland 3 laws of Econ. 1.Self-interest: –People work for their own good 2.Competition: –Competition forces better product 3.Supply and Demand: –Enough stuff produced at the lowest price to meet demand ( ) Adam Smith

Capitalism = Private Ownership *Factors of production: 1.Raw materials 2.Factories 3.Products 4.Income 5.Demand ** 1-3, ALL PRIVATELY OWNED** –$$$ invested in businesses to make profit

Socialism Govt. Ownership Govt. Control Govt. Planning

Utopianism –Robert Owen * Created New Harmony in U.S. /Make a Model communities of perfection. –Everyone share everything –No rich, no poor –Lasts only 3 years Inspires the Quakers in Pennsylvania Socialism, Communism are attempts to create a PERFECT community.

Socialism –Factors of production: –All owned by public/govt. No private businesses Shares the products with ALL –**Grows out of optimistic view of human nature** Are all people good? (1886) Walter Crane The vampire bat of capitalism, sucking the life out of the laborer.

Marxism –Karl Marx –Communist Manifesto Society organized into 2 classes (during 1800’s) 1.Bourgeoisie: middle class, the “haves” 2.Proletariat: lower class, the “have-nots” Ind. Rev. made the rich (owners) richer, poor (workers) poorer ( ) Karl Marx

Marxism PLAN * Workers overthrow the rich (Capitalist Class) –Start a government of the people “dictatorship of the proletariat” –Share everything –After period of cooperative living, and EDUCATION, govt. would cease to exist. Only a classless society would remain a.k.a.: COMMUNISIM

Communism –Marxism’s final phase –Total Socialism Everything controlled by the people Everyone is educated No private businesses No government People own and share everything No classes No Religion –**Communist Manifesto inspires Lenin, Mao, and Fidel Castro** Never reach final phase of communism, why? Is this true? By pirating music, are you a communist?

Labor Unions Workers bond together for common goals; –Better pay (Wages) –Better hours –More protection –Better working conditions WORKERS FORMED UNIONS: –Organization that fought for the workers –Used strikes, walkouts to accomplish goals –Worked in both US and GB **Must have a needed skill**

Reform Laws Unions helped to pass laws to help workers in England: –Factory Act 1833 Can’t hire children under 9yrs. old –Mine Act 1842 No women or children in mines –Ten Hours Work Act 1847 (1904) National Labor Committee U.S. –States end child labor Where does modern child labor occur? What nation has the fastest growing economy?

Slave Trade Slavery based on need in agriculture economy –Most slaves worked on large plantations –New inventions lessen the need for slaves Humanitarian forces Countries become more industrialized Slavery outlawed by late 1800’s

Reform Spreads Women’s Rights –Fight for better pay, voting rights, and help for the poor –US women did not get right to vote until 1920 Education –Free education for all, kids out of factories –Prison reforms Help prisoners be productive once released Are women under paid now?

Objective Questions What are the main concepts of Capitalism? What are the main concepts of socialism and Marxism? What were the reform movements of the 1800s?

Workbook Activity Use your notes to fill in the chart: Reforming the Industrial World (page 40)