1. New Ways of Thinking
Chapter 9 Section 4

2. Terms, People, and Places
Thomas Malthus
Jeremy Bentham
utilitarianism
socialism
means of production
Robert Owen
Karl Marx
communism
proletariat
social democracy

4. Malthus Says:
“The power of population is [far] greater than the power of the Earth to produce subsistence for man.”

5. Malthus looks at Population
Throughout England, Thomas Malthus saw the effects of the population explosion.
In 1798 he published An Essay on the Principle of Population
He concludes that the population is growing faster than we can sustain a food supply

7. Lassiez Faire Economics: a Redux
Review from Chapter 17:
During the Enlightenment, physiocrats argued that natural laws should be allowed to operate without interference. As part of this philosophy, they believed that government should not interfere in the free operation of the economy. In the early 1800s, middle-class business leaders embraced this laissez-faire, or “hands-off,” approach.

8. Malthus + Lassiez Faire
Malthus was a Lassiez Faire economist.
Here is how he applied his theory of population growth:
Population was growing to outpace our natural resources.
We needed “death checks”
Things like war, disease and famine
Continued growth would cause the poor to suffer, and eventually this suffering would spread.

9. The Solution?
A Modest Proposal (the we should eat babies essay) is an excellent example of Malthusian thought.
Malthus proposed the following solutions:
Stop charitable handouts
Stop vaccinations
Stop medicating…..
LET PEOPLE DIE

10. Did People Believe him?
Actually, Malthus had many followers throughout the early 1800’s
Especially as the factory system made people’s lives worse.

11. Was He Correct?
Actually, since we are all alive, his theory has been proven wrong.
It was also disproved in the late 1800s-early 1900’s
As the population continued to grow, the supply of food continued to grow faster.
As time passed, living conditions got better, and people had began to have fewer children.

12. Some Disagree..

13. How do we Keep from Overpopulating?

14. Another Economist Agrees
In His “Iron Law of Wages” economist David Ricardo argues that those who are living in poverty will stay in poverty.
Several union representatives were calling out for wage increases to raise workers from poverty, but Ricardo believes these increases will do nothing.

15. Why Increases are Doomed
Ricardo’s argument is simple:
Those living in poverty have too many kids, and any increase in wages will only help cover necessities.
Therefore wage increases only help eek out survival, instead of raising you from rags to riches.

16. From Kill Everyone to….
….Save the Masses….

17. Utilitarians for Limited Government
It all begins with Jeremy Bentham
A British philosopher and economist.
He advocated the philosophy of utilitarianism
The goal of society is the “greatest amount” of good or happiness for the “greatest number” of its citizens

18. When is it Used
Bentham believed that all actions or laws should be judged by their “utility”
Does the law/action create more pleasure than pain?
He like earlier enlightenment thinkers valued individual freedoms over everything else since freedom =happiness.
However, the government should be involved in some instances.

19. Was he influential?
Bentham was the primary influence of British economist and philosopher John Stuart Mill.
Mill thought the government should step in to increase the quality of life of the working class.

20. Mill Says
“The only purpose for which power can be rightfully exercised over any member of a civilized community, against his will is to prevent harm to others.”

21. Mill Alters the Definition of Utility
Mill did not believe that you should increase your own happiness at the expense of others.
He believed that business and factory owners had the ability to increase their own happiness.
The government should step in to ensure that they didn’t do it at the expense of their workers.

22. Mill vs Bentham

23. How can the Government offer protection?
The Government can do the following:
Offer voting rights to the working class
Ensure legal reforms to increase workplace reform.
Remove restrictions on Unions

24. A New Economic Mode of Thinking
Socialism
A New Economic Mode of Thinking

25. You Have Two Cows…..

26. Capitalism CAPITALISM: You have two cows. You sell one and buy a bull.
CAPITALISM -- AMERICAN: You have two cows. You sell one of them, and buy a bull. The cow and bull have a great love life; you sell the movie rights to Hollywood. Then you go into real estate.

27. Socialism
SOCIALISM: You have two cows. The government takes one of them and gives it to your neighbor.
BUREAUCRATIC: You have two cows. The government takes them and puts them in a barn with everyone else's cows. They are cared for by ex-chicken farmers. You have to take care of the chickens the government took from the chicken farmers. The government gives you as much milk and eggs as the regulations say you should need.
PURE: You have two cows. The government takes them and puts them in a barn with everyone else's cows. You have to take care of all the cows. The government gives you as much milk as you need.

28. Socialism Emerges
Many lassiez faire economists praised individual rights through a system of capital.
Many competing theorists believed that the drive to make money through the capitalist system created most of the problems they were facing.

29. Their Thoughts?
These radical thinkers proposed the system of socialism
The people as a whole rather than private individuals would own and operate the means of production.
Farms, factories, railways and other large businesses that produced and distributed goods.

30. Socialist Dreamers? Many socialists established their own communities.
In these communities, everyone shared all of the work and shared ownership of the property.
In these communities, there was no difference between rich and poor

31. Do these Dreamers get a name?
These early socialists are referred to as Utopians
One who believes in the perfectibility of human society The name suggested that they were impractical dreamers.
One notable Utopian was Robert Owen
He built his own model community in New Lanark, Scotland

32. A Famous Perspective on A Perfect World

33. Robert Owen the Man
Owen was born into poverty, who rose to riches by owning his own mill.
He was different, he refused to use child labor.
He also called for laws to limit Child Labor and encouraged Labor Unions to organize.

34. Class Struggles
And who will Explain it?

35. Karl Marx…..If He Cant do it No One Can…

36. Marx’s Philosophy Karl Marx was a German philosopher
Marx formulated his philosophy in reaction to the Utopians, he thought they were too idealistic.
He created the theory of Scientific socialism
A new way of looking at history scientifically.
He began to formulate his theory with another German socialist by the name of Friedrich Engels.

37. More Cows

38. Communism
COMMUNISM: You have two cows. The government takes both of them and gives you part of the milk.
COMMUNISM: You have two cows. The government takes both cows. The government sells the milk in government stores. You can't afford the milk. You wither away.
COMMUNISM: You have two cows. The state takes both, and gives you a little milk ... once.
COMMUNISM: You have two cows. The government takes both and gives you spoiled milk.

39. Maybe this will Help

40. Communism-For Real
In 1848 Marx and Engles published The Communist Manifesto, where they established their theory of Communism.
A form of socialism that eliminates social classes.
All means of production would belong to the community.

41. The Communist Manifesto
Marx believes that economics is the driving force in history.
What examples can you think of that proves this theory true?
History is really a tale of struggles between the “haves” and the “have-nots”
Haves = bourgeoisie (Upper and Middle Class)
Have-Nots = proletariat (working class)

42. The end goal of Communism?
In the epic battle of bourgeoisie v. proletariat, the proletariat would win.
The proletariat would then build a communist society.
Which would, in turn, end all of the world’s problems
He believed workers from all countries must “unite!”

43. Marxism in the Future. Marxism gained popularity throughout the world.
Many leaders of reform movements believed that power should be held by workers, not business owners.
Marx’s ideas would never be practiced as he had envisioned.

44. Marxism Flourishes
In the 1860’s Germany adopted Marxist beliefs to form a social democracy
A gradual transition from capitalism to socialism, instead a violent overthrow of capitalism
Russians also adopted Marxist beliefs.
This inspired the Russian revolution of 1917
Many other revolutionaries would turn to Marxist ideas as well.

45. Marxism Loses Appeal
As time passes, many Marxist governments fail, thus showing flaws in Marx’s arguments.
He predicted that workers would unite across borders.
However, nationalism would win over the working class’ hearts.
Even through the end of the 20th century, few communist governments remain, but many nations still embrace free-market capitalism.