Industrial Revolution

Key Terms Entrepreneurs Tenements Labor Unions Socialism Concept Focus: Causes of the Industrial Revolution Social effects of the Industrial Revolution New ideas about society & economics

Definition Shift from making goods by hand to using machines Began in England in mid-1700’s Soon spread to Western Europe & USA Recently spread to rest of world From This To This

Why it Happened Agricultural Revolution sparked Industrial Revolution England had necessary resources Rivers for transport & power Coal for power Iron for construction

Why it Happened Cotton gin & farming technology revolutionized food production Higher population to feed New inventions increased productivity in factories Steamboats and railroads help transport goods

Economic Effects Creation of corporations Businesses that sell stock - shares of ownership Western Europe & America become richer than other nations Entrepreneurs: managed & took all financial risks of new business

Social Effects Urbanization - growth of cities Growth of middle class Often crowded, dangerous and unsanitary Growth of middle class Construction of turnpike highways to transport goods Tenements: small, slum apartments near factories, no running water

Industrial Reform Movement Responded to negative aspects of industrialization Workers formed labor unions Group of workers who advocate for themselves Use collective bargaining, strikes Helped get minimum wage, ban child labor, limit hours

“I am” poem of Child Labor

Political Effects Political fight over economic policy Capitalism vs. Socialism/Communism

Capitalism Economic system where factors of production are privately owned Businesses compete for customers People invest to get profit Capitalism was explained in Adam Smith’s book The Wealth of Nations In it, he said people work for their own good Competition makes better products

Socialism Economic system where some factors of production owned by government The government plans economy, provides services System tries to operate for everyone’s welfare

Communism Economic system where all factors of production owned collectively The people own the “means of production”(farms, factories, railways, etc) rather than individuals Articulated by Karl Marx Wrote The Communist Manifesto Predicted workers would revolt, produce goods cooperatively, share them equally

Industrial Reform Movement Movement spread, pushed for: Free public schools Abolition of slavery Women's suffrage, equal pay Show me the money!