1. Industrial Revolution

2. Key Terms Entrepreneurs Tenements Labor Unions Socialism
Concept Focus:
Causes of the Industrial Revolution
Social effects of the Industrial Revolution
New ideas about society & economics

3. Definition Shift from making goods by hand to using machines
Began in England in mid-1700’s
Soon spread to Western Europe & USA
Recently spread to rest of world
From This
To This

4. Why it Happened Agricultural Revolution sparked Industrial Revolution
England had necessary resources
Rivers for transport & power
Coal for power
Iron for construction

5. Why it Happened
Cotton gin & farming technology revolutionized food production
Higher population to feed
New inventions increased productivity in factories
Steamboats and railroads help transport goods

6. Economic Effects Creation of corporations
Businesses that sell stock - shares of ownership
Western Europe & America become richer than other nations
Entrepreneurs: managed & took all financial risks of new business

7. Social Effects Urbanization - growth of cities Growth of middle class
Often crowded, dangerous and unsanitary
Growth of middle class
Construction of turnpike highways to transport goods
Tenements: small, slum apartments near factories, no running water

8. Industrial Reform Movement
Responded to negative aspects of industrialization
Workers formed labor unions
Group of workers who advocate for themselves
Use collective bargaining, strikes
Helped get minimum wage, ban child labor, limit hours

9. “I am” poem of Child Labor

10. Political Effects Political fight over economic policy
Capitalism vs. Socialism/Communism

11. Capitalism
Economic system where factors of production are privately owned
Businesses compete for customers
People invest to get profit
Capitalism was explained in Adam Smith’s book The Wealth of Nations
In it, he said people work for their own good
Competition makes better products

12. Socialism
Economic system where some factors of production owned by government
The government plans economy, provides services
System tries to operate for everyone’s welfare

13. Communism
Economic system where all factors of production owned collectively
The people own the “means of production”(farms, factories, railways, etc) rather than individuals
Articulated by Karl Marx
Wrote The Communist Manifesto
Predicted workers would revolt, produce goods cooperatively, share them equally

14. Industrial Reform Movement
Movement spread, pushed for:
Free public schools
Abolition of slavery
Women's suffrage, equal pay
Show me the money!