Reforming the Industrial World Section 9.4

The Philosophers of Industrialization Laissez-faire economics – theory that advocates the ability of the economy to function without government interference Adam Smith – Professor at Glasgow, Scotland who defended the idea of a free economy in The Wealth of Nations – Economic liberty guaranteed economic progress, government should not interfere – Three Natural Laws of Economics: Law of Self-Interest – people work for their own good Law of Competition – Competition forces people to make a better product Law of Supply and Demand – enough goods would be produced at the lowest possible price to meet demand in a market economy

The Philosophers of Industrialization Economics of Capitalism – Capitalism – an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit – Thomas Malthus An Essay on the Principle of Population Argued that population tended to increase more rapidly than the food supply Without wars and epidemics to kill off extra people, most were destined to be poor and miserable – David Ricardo Principles of Political Economy and Taxation Believed the underclass (yes they thought of them that way) would always be poor Market System: – Many workers + abundant resources = cheap resources and labor – Few workers + little resources = expensive resources and labor Capitalists opposed efforts to help the poor because it would be gov’t intervention – Were against the minimum wage and better working conditions

The Rise of Socialism Jeremy Bentham – Utilitarianism – people should judge ideas, institutions, and actions on the basis of their utility, or usefulness – Gov’t should try to promote the greatest good for the greatest number of people Only way a gov’t policy was useful – Individual should be free to pursue his or her own advantage without interference from the state John Stuart Mill – Questioned unregulated capitalism – Believed it was wrong that workers lead deprived lives that sometimes bordered on starvation – Wanted to help ordinary working people with policies that would lead to equal division of profits – Favored a cooperative system of agriculture and women’s rights, including the right to vote – Gov’t wanted to do away with great differences of wealth Pushed for reforms in legal and prison systems and in education

The Rise of Socialism Utopian Ideals – Robert Owen New Lanark, Scotland – site of his new factory – Improved working conditions for his employees – Built homes which he rented at low rates – Prohibited children under 10 from working in the mills and providing free schooling New Harmony, India – Intended to be a utopia – perfect living place – Lasted only three years

The Rise of Socialism Socialism – factors of production are owned by the public and operate for the welfare of all – Charles Fourier – Henri de Saint-Simon Saw the dangers of industrialization – Argued the gov’t should plan the economy rather than depend on capitalism – Wanted gov’t to control factories, mines, railroads, and other key industries to end poverty and promote equality

Marxism More extreme than socialism The Communist Manifesto – Written by Karl Marx and Friedrich Engels – Argued that societies have always been divided into warring classes Bourgeoisie – middle class, “haves”, employers, owned the means of production Proletariat – working class, “have-nots”, workers, owned nothing but their labor – Believed the Industrial Revolution had enriched the wealthy and impoverished the poor But also believed that you needed to HAVE the revolution BEFORE the proletariat were able to unite against the bourgeoisie – Predicted the workers would overthrow their owners: “The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of the countries, unite.”

Marxism The Future According to Marx – Industrial Revolution would destroy itself Factories would drive small artisans out of business – leaving a small number of manufacturers to control the wealth Large proletariat would revolt, seize the factories and mils from capitalists Use those factories to produce only what the society needed Gov’t will be a “dictatorship of the proletariat” Leads to a classless society Ultimately leads pure communism – when the means of production are owned by the people Believed economic forces alone dominated society – Intervention from gov’ts kept the wealth gap from becoming as extreme as what Marx had predicted, staving off the communist dream

Labor Unions and Reform Laws Unionization – Unions – voluntary labor associations that were meant to allow working people to become more active in politics Spoke for all workers of a particular trade Bargained for better working conditions, more pay If owners refused, they would strike – refuse to work – Skilled laborers actually lead the movement for unions Harder for management to replace skilled workers so they had to work with them – Great Britain Combination Acts of 1799 and 1800 – outlawed unions and strikes because they were a danger to society Repealed the Acts in 1824 and tolerated unions

Labor Unions and Reform Laws Reform Laws – Eventually, gov’t were forced to look at the abuses of the revolution – Great Britain 1820s and 1830s – started investigating child labor Factory Act of 1833 – Illegal to hire children under 9 – Children 9-12 could not work more than 8 hours – Children could not work more than 12 hours Mines Act 1842 – Prevented women and children from working underground Ten Hours Act 1847 – Limited the workday to 10 hours for women and children who worked in factories

The Reform Movement Spreads Abolition of Slavery – William Wilberforce, lead the fight for abolition – 1807 – Parliament passed a law to end the slave trade in the British West Indies – 1833 – slavery was abolished in the British empire – Motivations for the fight: Morally wrong to enslave people Economically dangerous to use slaves Industrialists preferred cheap labor over slave labor Fight for Women’s Rights – Women factory workers only made a third of what the men did – What women did to change it: Got involved in reform movements Safety inspectors in factories where other women worked Spread of women’s unions Jane Addams – ran a settlement house that served the poor residents of slum neighborhoods International Council for Women (ICW – 1888) – Pushed for voting rights and other rights for women

The Reform Movement Spreads Reforms Spread to Many Areas of Life – Prisons and education were on the top of reform lists Horace Mann (US) – favored free public education for all children – By 1850s (US) many states had public school systems – Europe followed in the late 1800s Alexis de Tocqueville (France) – Wrote about the brutal system in American prisons – This was a big deal to America because it claimed modern status but Tocqueville pointed out major problems with the system Reformers of prisons wanted to focus on giving the prisoners useful skills for when they were released