The Industrial Revolution New Ways of Thinking By Miss Raia

Liberalism First major theory in Western thought to teach the individual is a self-sufficient being, whose freedom and well-being are the sole reasons for the existence of society.

Liberalism in Economics Adam Smith in Wealth of Nations (1776): advocated economic individualism laissez-faire: opposed gov’t intervention in social and economic affairs, even if the need for action seemed great to social critics and reformers – laissez faire. Most productive economy was one that allowed for the greatest measure of individual choice—“invisible hand” of the self-regulating market. Severely opposed to mercantilism

Thomas Malthus Population growth will outpace the food supply. War, disease, or famine could control population. The poor should have less children. Food supply will then keep up with population.

David Ricardo “Iron Law of Wages.” When wages are high, workers have more children. More children create a large labor surplus that depresses wages.

The Utilitarians: Jeremy Bentham & John Stuart Mill The goal of society is the greatest good for the greatest number. preached the idea that the goal of society should be “the greatest happiness for the greatest number” of its citizens. Laws or actions should be judged by their “utility” – did they provide more pleasure than pain? He supported individual freedom – but saw that government intervention was needed under certain circumstances John Stuart Mill: On Liberty (1859): classic statement on liberty of the individual. Argued for “absolute freedom of opinion” to be protected from both gov’t censorship and tyranny of the majority. supported free market but said it favored the strong over the weak. Also believed in individual freedom, but wanted gov’t to step in and help the weak Later argued for women’s rights: On the Subjection of Women (1867)

Socialism Definition: Apolitical system where the means of production are controlled by the workers and all things are shared evenly. Socialist policies provide for government funding of many basic needs such as food, shelter, and medical care. Good of society in general – condemned evils of industrial capitalism – which believed made a huge gap between the rich and poor To end poverty and injustice – socialism Under socialism – people as whole rather than private individuals would own and operate the “means of production” – farms factories railways and other large businesses Goal of socialists - a society that operated for the welfare of the people Desire to reorganize society to establish cooperation and a new sense of community. Increasing misery of working classes disturbed liberal thinkers (Bentham and Mill), who proposed a modification of laissez-faire economics. Liberal practices in politics (republicanism) and economics (capitalism) seemed to promote selfish individualism and the fragmenting of society. Not until the 19th century did issue of social justice gain broad intellectual base and greater support.

Early French Socialists Early French Socialists proposed a system of greater economic equality planned by the government (sometimes called Utopian Socialists) Count Henri de Saint-Simon (1760-1825) Industrialization, aided by science, would bring a wondrous new age to Europe which would be capable eliminating poverty of the lower classes. Proper social organization would require the “parasites”—the court, aristocracy, lawyers, churchmen—to give way to the “doers”—leading scientists, engineers, and industrialists. Sought public works projects and establishing investment banks. Every social institution should have as its main goal improved conditions for the poor. Louis Blanc (1811-1882): more practical approach than other early French socialists. Believed that the evils that afflict society to the pressure of competition Demanded the equlaization of wages and the merging og personal interests in the common good Urged workers to fight for universal suffrage and to take control of the state peacefully. Gov’t should set up workshops and factories to guarantee full employment. Greatly influenced the formation of the National Workshops of the Revolution of 1848 in France

Early French Socialists Cont. Pierre Joseph Proudhon (1809-1865) What is Property? (1840) Believed property was profit stolen from the worker, who was the source of all wealth. Often considered an anarchist as he greatly feared the power of the state. Charles Fourier (1772-1837), impact on U.S. Characterized poverty as the principal cause of disorder in society and he proposed to eradicate it by sufficiently high wages and by a “decent minimum” for those who were not able to work. Proposed a planned economy and socialist communities. Described socialist utopia in lavish mathematical detail. Seven utopian communities founded along his ideas; most in the U.S. Early proponent of total emancipation of women.

Christian Socialism began in England around 1848 Believed the evils of industrialism would be ended by following Christian principles. Attempted to bridge the gap between the anti-religious drift of socialism and the need for Christian social justice for workers.

The Socialists: Utopians & Marxists People as a society would operate and own the means of production, not individuals. Their goal was a society that benefited everyone, not just a rich, well-connected few. Tried to build perfect communities [utopias].

Utopian Socialists The Utopians Robert Owen self sufficient communities all property shared no difference b/w rich and poor impractical dreamers Robert Owen successful mill owner refused and campaigned against child labor believed that the conditions people lived in shaped their character Lanark – built a factory there and treated all his employees well to prove that an employer could offer a decent living and working conditions and still run a profitable business

Scientific Socialism or Marxism developed by Karl Marx and Friederich Engels The Communist Manifesto (1830) and Das Kapital (1861): Intended to replace utopian hopes and dreams with a brutal, militant blueprint for socialist working class success. communism – form of socialism that sees class struggle between employer and employee as inevitable. In practice, it is characterized by state control of the economy and restriction of personal freedoms.

Karl Marx: Theory of dialectical materialism The economic interpretation of history: all human history has been determined by economic factors (mainly who controls the means of production and distribution). The class struggle: Since the beginning of time there has been a class struggle between the rich and the poor or the exploiters and the exploited. Theory of Surplus Value: the true value of a product was labor and, since the worker received a small portion of his just labor price, the difference was surplus value, “stolen” from him by the capitalist. Socialism was inevitable: Capitalism contained the seeds of its own destruction (overproduction, unemployment, etc.) Violent revolution: The increasing gap between proletariat and bourgeoisie will be so great that the working classes will rise up in revolution and overthrow the elite bourgeoisie. Will create a “dictatorship of the proletariat.” WORKING MEN OF ALL COUNTRIES, UNITE!” Creation of a classless society: Will result as modern capitalism is dismantled. “From each according to his abilities, to each according to his needs,” will take place. Impact of socialism on European politics became profound by late 19th century

Marx’s Prediction stated that there will come a time where the proletariat will overthrow the bourgeoisie in a violent revolution take control of means of production Dictatorship of the Proletariat will be established to distribute everything equally He will step down and set up a classless society power and wealth equally shared Where will be the first communist revolution? Why is communism not successful?