1. The Industrial Revolution
CHAPTER 13
The Industrial Revolution
Section 1: Origins of the Industrial Revolution
Section 2: The Factory System
Section 3: New Methods and Business Organizations
Section 4: Living and Working Conditions
Section 5: Socialism

2. SECTION 4
Living and Working Conditions
13.4 Bell Ringer:
What were the theories of economists and philosophers during the Industrial Revolution? (see next slide for chart)

3. Living and Working Conditions
SECTION 4
Living and Working Conditions
Economist
Theories
Adam Smith
Thomas Malthus
David Ricardo
Jeremy Bentham
John Stuart Mill

4. What is mercantilism? Physiocrats REVIEW! SECTION 4
Living and Working Conditions
What is mercantilism?
REVIEW!
Economic policy in which nations try to increase their wealth by obtaining
large amounts of gold and silver by selling more goods than they bought.
Remember the Philosophes in the Enlightenment? We’re the guys that liked to talk about economics.
-believed that the wealth of nations was derived solely from the land becoming more productive.
As industrialization continued, some thinkers argued that business should be free to grow and change without any sort of government restrictions.
Others, however, wanted workers to be granted the political and economic power needed to shape their own lives.
-agriculture, mining and logging is how new wealth is acquired.
Physiocrats
-advocates of free trade, opposed tariffs, or taxes on trade.

5. Adam Smith SECTION 4 Living and Working Conditions
The Wealth of Nations 1776
Considered the founder of classical economics
laissez faire means “hands off” or “leave things alone”
- The government should not regulate trade or business.
Two natural laws govern all business & economic activity:
1. Law of Supply & Demand
2. Law of Competition

6. Supply and Demand SECTION 4 Living and Working Conditions
If an item is scarce and EVERYONE wants it
the lower the supply + the higher the demand = higher the price
$299
32GB

7. Law of Competition says…
SECTION 4
Living and Working Conditions
Law of Competition says…
As competition becomes fierce, supply increases, and demand decreases. As a result, the price decreases.
However, when prices decrease too much, the demand increases, and the supply decreases. This, in turn, increases the price.

8. Principle of Population
SECTION 4
Living and Working Conditions
Thomas Malthus:
Principle of Population
Economist who believed that population increased more rapidly than the food supply. Without wars and epidemics to kill off the extra people, most were destined to be poor.
His prediction would prove to be false.
(food supply would keep up with population)
Why do we have starvation? – food doesn’t get to the people who need it.

9. David Ricardo“iron law of wages”
SECTION 4
Living and Working Conditions
David Ricardo“iron law of wages”
Supply and demand for labor determines wages …. Increase in wages = Increase in children
Increase in children = Increase in population
Increase in population = Decrease in demand for labor
Decrease in a demand for labor = Decrease in wages
Summary: Working class poverty is inevitable.

10. Reformers ARISE! SECTION 4 Living and Working Conditions
People argued that business could NOT be left entirely alone to do as it pleased.
Humanitarians are people who work to improve the conditions of others - urged reforms.

11. Used his novels to attack greedy employers.
SECTION 4
Living and Working Conditions
Charles Dickens wrote
David Copperfield Oliver Twist
Used his novels to attack greedy employers.
David Copperfield – described his own childhood.

12. Jeremy Bentham –social reformer
SECTION 4
Living and Working Conditions
Jeremy Bentham –social reformer
utilitarianism
Goal of society should be “the greatest happiness for the greatest number of people.”
Bentham's position included arguments in favor of individual and economic freedom, the separation of church and state, freedom of expression, equal rights for women, the end of slavery, the abolition of physical punishment (including that of children), the right to divorce, free trade, usury, and the decriminalization of homosexual acts. He also made two distinct attempts during his life to critique the death penalty.

13. John Stuart Mill SECTION 4 Living and Working Conditions
Government should work for the good of all citizens. Governments should protect working children and improve housing and factory conditions.
The phrase tyranny of the majority, used in discussing systems of democracy and majority rule, is a criticism of the scenario in which decisions made by a majority under that system would place that majority's interests so far above a dissenting individual's interest that that individual would be actively oppressed.

14. Early Reform Laws SECTION 4 Living and Working Conditions
Factory Act of 1833 Established paid inspectors to inspect factories on child labor.
Illegal to hire children under 9.
Children from 9 to 12 could work only 8 hours a day.
Children from 13 to 17 could work only 12 hours a day.
Ten Hours Bill 1847 Limited working hours to 10 per day for women and children.

15. Known as collective bargaining
SECTION 4
Living and Working Conditions
To improve their lives and working conditions,
workers banded together to demand reforms…
Known as collective bargaining
strikes
When a large group of workers refuse to work, until their demands are met.
unions
When workers organize and form associations

16. SECTION 4
Living and Working Conditions

17. Living and Working Conditions
SECTION 4
Living and Working Conditions
Workers’ Associations (unions) were illegal in many countries.
Workers united to fight for higher wages, shorter hours, and better working conditions could be imprisoned!
1870s Parliament passed laws legalizing strikes.