1. Industrial Revolution Section 4
Chapter 25
Industrial Revolution Section 4

2. Reforming the Industrial World
Laissez-faire- economic policy of letting owners of industry and business set working conditions without interference
Stems from Enlightenment thinkers
Adam Smith 3 natural laws of economics
Law of self-interest
Law of competition
Law of supply/demand
Capitalism- economic system in which the factors of production are privately owned

3. The Rise of Socialism
Utilitarianism- the belief that a morally good action is one that helps the greatest number of people
Government should try to promote the greatest good for the greatest number of people
Judge ideas based on its usefulness
Socialism- the factors of production are owned by the public and operate for the welfare of all
Government control

4. Capitalism vs. Socialism
Individuals and businesses own property and the means of production
Progress results when individuals follow their own self interest
Government should not interfere in the economy because competition creates efficiency in business
Consumers compete to buy the best goods at lowest prices. This competition shapes the market and affects what businesses are able to sell
The community or the state should own the property and means of production
Progress results when a community of producers cooperate for the good of all
An unequal distribution of wealth and material goods is unfair. A better system is to distribute goods according to each person’s needs
Capitalism creates and unequal distribution of wealth and material goods. A better system is to distribute goods according to each person’s needs

5. Marxism Karl Marx: Radical type of Socialism (Marxism)
The Communist Manifesto
Human societies have always been divided into classes
Middle class “haves” and working class “have nots”
Industrial Revolution made the rich, richer and the poor, poorer
“Workingmen of all countries, unite!”
Marx believed workers would eventually control the government as a dictatorship and the state would wither away.
Communism- means of production would be owned by the people. Private property would fail to exist

6. Labor Unions and Reform Laws
Unions- Voluntary Labor Associations
Collective bargaining
Negotiations
Strike- Refuse to work
Factory Act (1833)
Children under 9 could not be hired

7. Reform Movement Spreads
Abolition- Abolish slavery
Britain abolishes slavery in 1833
U.S. abolishes slavery in 1865
Women’s Rights
International Council for Women’s Rights
Pubic Schools
Horace Mann- free public education for all children
By 1850’s many states had public school systems
Late 1800’s Europe began to follow