1. The industrial revolution

2. THE INDUSTRIAL REVOLUTION
The Industrial Revolution was period, beginning around 1750, in which the means of production of goods shifted from hand tools to complex machines and from human and animal power to steam power. During this period, technology developed rapidly and production increased. The Industrial Revolution brought great changes into people’s lives.

3. THE INDUSTRIAL REVOLUTION
The Industrial Revolution brought about a fundamental change in society by introducing mass production (the large-scale production of goods) and the use of new sources of power to meet human needs. Science became more closely linked to technology, resulting in a stream of constant innovations. Agricultural society changed into a modern industrial society.

4. THE REVOLUTION STARTS IN GREAT BRITAIN
The Industrial revolution began in Great Britain in the 1750’s. It soon spread to the United States and other parts of Europe, and later to the rest of the world. Several factors help explain why the Industrial Revolution first occurred in Great Britain.
FACTORS:
Geographical Advantages
Large Colonial Empire
Transportation and communications
Agricultural Revolution

5. Effects:
Shifted production from making goods by hand at home to mass production in factories.
Applied new sources of power like steam to manufacture of textiles, ships, railways.
Urbanization: people moved from countryside to cities, seeking factory work.
Rise of capitalists and working class as important new groups in society

6. INDUSTRIAL REVOLUTION
There is a drastic change in the way that goods are produced and work is completed. Switch from hand made goods to machine made goods

7. Domestic System (old way)-products made at home, one at a time, individual craftsman of 10 different parts by 10 different people
Vs.
Factory System-industrialization, goods made by machine, outside home, all goods made in one place start to finish.
-machines first powered by water, then steam
-it effects all areas of society-culture, transportation,
communication, etc.

8. Other Terms to know:
-Mass Production: production of large quantities of identical goods.
-Interchangeable Parts: parts are all made alike so that they can be exchanged for one another.
-Division of Labor: workers specialized in only one task-speed up production-allowed for unskilled workers.
-Assembly Line: product moves along a conveyor belt bringing it to workers.

9. Two important British inventions helped trigger the Industrial Revolution –¬one in textiles, and the other in mechanical power. The spinning jenny (1764) spun several threads at once, allowing large quantities of thread to be made quickly and inexpensively.

10. The steam engine (1769) made steam power available for mechanical purposes. The steam engine (James Watt) led to turn to the construction of large factories, the invention of the steamboat, and the development of railroad trains.

11. Effects of the Industrial Revolution
The Industrial Revolution brought about many economic and social changes.

12. Laissez-Faire Economics The mercantilism of the past had called for government regulation to achieve a favorable balance of trade. However, a theory called laissez-fair had emerged during the Enlightenment. According to this theory, businesses should operate with little or no government interference. In his book The Wealth of Nations, Adam Smith promoted laissez-faire ideas. They became the basis of the prevailing economic system during the Industrial Revolution.

13. Smith believed that a free market- the unregulated exchange of goods and services- would eventually help everyone, not just the rich.

14. The Emergence of Industrial Capitalism
A new middle class of capitalists composed of merchants, factory owners, and bankers emerged. These people helped to develop laissez-faire capitalism.
Mercantilism- exporting more goods than the nation imported.

15. CHARACTERISTICS OF CAPITALISM
ROLE OF THE ENTREPRENEUR
The means of production were owned by people know as entrepreneurs. They provided work places (factories), raw materials, mechanical energy, and machinery.
CHARACTERISTICS OF CAPITALISM

16. ROLE OF THE WORKER
Workers provided their labor, for which they received wages. All risks were taken by the business owners, who were rewarded with profits for their risks.

17. CHARACTERISTICS OF CAPITALISM
ROLE OF THE GOVERNMENT
The policy of laissez-fair (French for “let do”) meant that government would not interfere in relations between workers and business owners.

18. What Economic Systems were developed during the Industrial Revolution?
CAPITALISM
FOUNDER
1776 ADAM SMITH “Wealth of Nations”
BASIC PRINCIPLES
1. Laissez-Faire Capitalism: Non Government involvement in the economy
2. Private Ownership (Entrepreneur) Individuals supply the capital to start and own a business.

19. What Economic Systems were developed during the Industrial Revolution?
Means of Production
What to make * How to make * What price to charge
3. Invisible Hand * Law of Supply and Demand
Market and Consumer demand, guide economy.
4. Profit Motive * Self Interest
5. Free Competition: Works for the benefit of consumers
6. Owners and Workers

20. COMMUNISM
FOUNDER
1848 KARL MARX & FRIEDRICH ENGELS “The Communist Manifesto”
BASIC PRINCIPLES
Economic Determinism – All history has been determined by economic conditions.
All through history – Class Struggles between Rich and Poor. In the new industrialized world the two groups are:

21. BASIC PRINCIPLES
A. Bourgeoisie (Haves) – Owners who control Means of Production
What to make * How to make * What price to charge
B. Proletariat (Have nots) – Workers
EXPLOITATION OF WORKER - RICH LIVE OFF THE LABOR OF THE POOR

22. BASIC PRINCIPLES
3. Communist Revolution: Conditions will get so bad that Proletariat (Workers) will Violently revolt against owners (Overthrow Capitalism).
4. Dictatorship of the Proletariat: Workers get economic and political control (Own all means of production).
EVERYONE OWNS EVERYTHING –Only way to correct problems of capitalism. All things owned by the entire society- wealth and power would be equally shared (Classless Society).

23. BASIC PRINCIPLES
5. IDEAL COMMUNISM – All people are equal. No need for government, it will vanish away.

24. Reform Movement
The problems caused by the Industrial Revolution eventually led to important social and political reforms, especially in Great Britain:
Political Reforms
British Reform Bill of gave new voting rights to middle class- Increase representation in Parliament
By end of 1800’s all working class had voting rights.

25. Social Reforms
Unions- ability of workers to band together to fight for better conditions- threatened to strike, collective bargaining, etc.
Factories Regulations Act of The act prohibited children under 9 years old from being employed in textile mills and limited the working hours of children under 18.

26. Socialism concentrated less on the interests and right of individuals and more on the interests of society. Industrial capitalism, the socialists claimed, had created a large gap between rich and poor as well as poor working conditions for workers. Under socialism, farms and businesses would belong to all the people, not to individuals.

27. EFFECTS OF INDUSTRIAL REVOLUTION POSITIVE
POSITIVE
Mass production of good-lower prices
New inventions-easier, time savers
Growth of transportation-cheaper, safer, faster-improved roads, railroads, etc.
Increase in Jobs

28. EFFECTS OF INDUSTRIAL REVOLUTION POSITIVE
POSITIVE
Increased Social Mobility-greater chance of improving status
Growth of Middle Class
Increase role of women in workforce-opens door to, increase of social and political rights-typewriter, sewing machine, telephone
Increase in education-literacy-leads to advance in the industrialized world-increase in education

29. NEGATIVE
Very poor working conditions **before reforms**
-factories unsafe
-long days (14-18 hours)
-no medical insurance, worker’s compensation, etc.
-child labor -beatings, most dangerous jobs
Urbanization-growth of cities-poor conditions-slums-crowded, dirty, disease, etc.

30. NEGATIVE
Pollution-negative environmental effect-use of coal-dirty
Imperialism-strong industrial nations begin to take over and control weaker areas of the world for raw materials and markets- nations compete for control- conflict

31. THE MAIN IDEAS OF COMMUNISM
Communists believe every society is divided into social classes in conflict with each other. In an industrial society, the main classes are the bourgeoisie (those who own the means of production/ Haves) and the proletariat (workers/ Have nots).
CLASS STRUGGLE
THE MAIN IDEAS OF COMMUNISM

32. THE MAIN IDEAS OF COMMUNISM
The rich prosper from the labor of their workers, who live in poverty. Owners cheat the workers by taking most of the wealth they produce, leaving them with the barest minimum needed to survive.
EXPLOITATION OF WOKERS
THE MAIN IDEAS OF COMMUNISM

33. THE MAIN IDEAS OF COMMUNISM
Communists believe the bourgeoisie will never willing give up their power. The plight of workers will become so desperate that they will eventually join together and start a violent revolution to overthrow the bourgeoisie. 
COMMUNIST REVOLUTION
THE MAIN IDEAS OF COMMUNISM

34. THE MAIN IDEAS OF COMMUNISM
Workers will establish a society in which they jointly own the means of production. All citizens will be equal, sharing the fruits of their labor. Class struggles will end. Government will become unnecessary and “wither away.”
DICTATORSHIP OF THE PROLETARIAT
THE MAIN IDEAS OF COMMUNISM

35. Marx believed a workers’ revolution world first occur in the
industrialized countries of Western Europe. However, as reforms were introduced, the conditions of workers improved without a revolution. Contrary to Marx’s predictions, Communism was first established in Russia. Communist ideas exercised a Tremendous influence over much of the world during the 20th century, and will be discussed again in later chapters.