 A shift beginning in the 18 th century from hand-made goods to man-made and machine made production  Began in England but quickly spread through Europe and to the US

 Agricultural Revolution Enclosures: forced small farmers off land to create large farms  Done to increase production as population increased  Forced small farmers to the cities Crop Rotation: rotation of crops to different fields each season produced higher crop amounts Overall more food gave way to more people creating demand for more of everything faster

 The development of industries for the machine production of goods

 Began in England - mid 1700’s Large population of workers due to Enclosure Abundant Natural Resources  Water power  Coal and iron ore  Rivers for inland trade  Many harbors for international trade Economic Strength  Parliament’s $ support of entrepreneurs Financially successful colonies with abundant resources Political Stability  isolated from European wars  Parliamentary system successful for 100’s of years

 Natural resources Used colonies to provide raw materials  Labor Farmers move to cities; large work force  Capital More $$ in middle class to increase production More modern tools allow mass production  Entreprenuers Upper middle class become industry leaders Emergence of capitalism allows more to get rich

 With greater need to move goods, transportation rapidly improved Better roadways, canals, tunnels, etc. Steam engine  Steam boats  Railroads  Extensive systems become necessity  Factory engines

 Growth of industrial cities Factories for efficient production Urbanization: rapid movement to cities  Poor living conditions Small cities became too big too fast Poor sanitary conditions Insufficient housing, education, security Air and water pollution

Tenements

 Poor Working conditions 14 hour days, 6 days/week, poor pay Workers had to keep up with machines Child Labor

 Rise of Middle Class Upper Middle Class: Factory owners and merchants grew wealthy and influential in politics Lower Middle Class: factory foremen, skilled tradesmen, supervisors lived comfortably  Poverty stricken working class replaces peasant class  Tension b/w classes builds Aristocracy resents Upper Middle Class  Being pushed out of power Workers resent Upper Middle Class  Gap between classes getting larger

 Industrialization moved through Europe and to the US (West)  More demand for products created more demand for raw materials Motivation for more colonization = IMPERIALISM  Global Inequality Industrialized West vs. all the rest Great economic and military inequalities  Transformation of Society Great economic power of Europe More wealth overall Better opportunities for education and democracy

 ECONOMIC SYSTEM: policies of production, distribution and consumption of goods and services  Business leaders encouraged gap between rich and poor LAISSEZ-FAIRE: “hands-off” economy Promotion of CAPITALISM  Reformers encouraged governments to play a more active role in bettering conditions Emergence of SOCIALISM and COMMUNISM

 Capitalism: economic system in which money is invested in business ventures with goal of making a profit  Who controls property and means of production? Individuals and businesses  Progress comes from following what? Self-interest  Businesses follow self-interest when they do what? By competing for the consumers money  Producers try to provide goods and services that are what? That are better and less expensive than those of their competitors  Consumers do what? Compete to buy the best goods at the lowest prices  The role of government in the economy is to do what? To not interfere because competition creates efficiency in business

 Adam Smith- father of modern capitalism Economic liberty guaranteed economic progress  Malthus Wars and epidemics necessary to reduce excess population- reduce number of poor  Ricardo Permanent underclass always poor Wages forced down as population increase = supply & demand

 Socialism: factors of production are owned by public and operate for the welfare of all  Who controls property and the means of production? The community or the state (government)  Progress comes from what? When a community of producers cooperate for the good of all  The capitalist employers do what? Take advantage of workers  The community or state must do what? Protect workers  Capitalism creates what? The unequal distribution of wealth and material goods  The better system is to do what? To distribute goods according to each person’s need

 Bentham: UTILITARIANSIM: judge ideas, institutions and actions on the basis of their utility or usefulness Government should provide the greatest good for the greatest amount of people  Karl Marx: Believed that economic forces controlled society Wrote the Communist Manifesto (1848) calling for “workers of the world unite” and overthrow the “bourgeoisie” Radical socialism called Marxism Gap between rich and poor too wide and will widen More control over economy will reduce class conflict

 All great movements in history are the result of what? An economic class struggle  The “haves” do what? Take advantage of the “have-nots” (workers)  The Industrial Revolution intensified what? The class struggle  Workers are what? Exploited by employers  The labor of workers creates what? Profit for employers  The capitalist system – along with the state– will eventually do what? Destroy itself, or wither away, as a classless society develops

Factories drive small artisans out of business Small # of manufacturers to control wealth Large PROTELTARIAT would revolt & seize factories

Proletariats would produce what was NEEDED Workers would share profits Creation of economic equality

Workers would control gov’t in “Dictatorship of the Proletariat” Create cooperative living and education The state/government would wither away = classless society

 Marx’s final phase would become…  COMMUNISM - complete form of socialism in which the means of production owned by the people no private property classless society All goods and services shared equally

 Marx’s ideas of communism didn’t have much appeal until 20 th century Lenin’s Russia Mao’s China Ho Chi Minh’s Vietnam Castro’s Cuba Most of Marx’s predictions never occurred proving that society is not just controlled by economic forces but also by religion, nationalism and political forces

 Workers used their #’s and became more active in politics Unions: voluntary worker’s associations  Collective Bargaining  Strikes Reduction of Child Labor Better working conditions and pay  Women’s rights movements in GB and US  Education reform- public schools