1. Section 3 The Industrial Revolution Essential Questions What new ideas about economics developed during the Industrial Revolution? What competing economic ideas arose as a result? How did the Industrial Revolution affect society? Main Idea The Industrial Revolution inspired new ideas about economics and affected society in many ways. New Ideas in a New Society

2. Section 3 The Industrial Revolution Old mercantile system restricted trade Laissez-faire economics Adam Smith, market economy Industrialization succeeded and spread Capitalism and Competition Shift in wealth and power Entrepreneur = Banking and finance Andrew Carnegie, rags to riches Robber barons New Roles for Business Leaders New Ideas about Economics

3. Section 3 The Industrial Revolution Summarize What were some of the new ideas about economics? Answer(s): mercantilism gave way to capitalism and competition, laissez-faire economics and The Wealth of Nations allowed for increased role of entrepreneur

4. Section 3 The Industrial Revolution Not everyone agreed that laissez-faire capitalism was good. - Socialism –Society owns property –Society controls business Model industrial town est. New Harmony, Indiana as a model, hoped to be a utopia Robert Owen More radical socialism Predicted collapse of capitalism Communism Government –owns means of production –controls economic planning Karl Marx Competing Economic Views

5. Section 3 The Industrial Revolution Infer Why did capitalism provoke strong response from the socialists? Answer(s): Socialists blamed capitalism for harsh working conditions, polluted cities, and the big gaps between rich and poor.

6. Section 3 The Industrial Revolution The rise of new economic ideas was among the countless effects of the Industrial Revolution. The shift away from cottage industries also affected home life and the roles of women in society. Worlds of work and home separated “Separate spheres” Business world- without moral controls Women-moral guidance at home Home Life Industry = great power Control of other nations’ economies Industrialization of United States Period of immigration to United States Countries Increase in wealth Standard of living improved More leisure time and money Changes to many aspects of life: –Art, Politics, Transportation Societies Effects on Society

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9. Section 3 The Industrial Revolution Identify Cause and Effect What were some of the major effects industrialization had on families and countries? Answer(s): families—wealth, leisure time, better educated; countries—increased power, wealth, and living standards; overcrowding of cities, pollution, rapid population growth