1. Reforming the Industrial World
Chapter 9, Section 4 Notes
11/13/12

2. The Rise of Capitalism Adam Smith- economist wrote Wealth of Nations,
Believed in Laissez-Faire- a “free market” economy, where the government “stay’s out of business”

3. Adam Smith

4. The Rise of Capitalism
Capitalism: an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit

5. Capitalism and Industry
Capitalists/Entrepreneurs thrive on capitalism
Creates unfair distribution of wealth among social classes
Social Darwinism- idea of “survival of the fittest” applied to society. Some people are rich, some are poor and that is how society is meant to function

6. New Economic Philosophies
Many new social critics did not believe in the capitalist system
New philosophies began to emerge
Utilitarianism
Utopian Ideas
Socialism

7. Utilitarianism- The greatest good for the greatest number of people
Utopian Ideas- Factory owners, the wealthy should take care of their employees, provide a better wage/life.
Socialism- factors of production are owned by “the people” (aka the government)

8. Karl Marx

9. Communism= Radical Socialism
Karl Marx wrote The Communist Manifesto in 1848
Communism: a form of complete socialism, all factors of production are owned by the “people”. In a communist society, no social classes exist, all are equal

10. British Workers Gain Rights
The Reform Movement in Britain
British Workers Gain Rights
Factory Act of made it illegal for children under age 9 to work
Mines Act of woman and children could not work underground
Ten Hours Act of limited workday to ten hours for women and children

11. Labor Unions
Workers were able to get their voices gain rights through forming unions, voluntary associations of workers joining together
Unions bargained for better conditions through tactics like strikes, where the whole company would refuse to work until demands were met.

12. Abolition of Slavery
William Wilberforce, member of Parliament, fought to end slave trade in British colonies

13. British Parliament ends slave trade in the West Indies (Caribbean) in 1807
Officially bans the whole practice of slavery in 1833

14. Woman’s Rights Movement
After end of slavery, woman began to question their own lack of rights in society
Woman could make more money in factories than they could weaving at home, but still earned about 1/3 the salary of a man.

15. Radical Socialism = Communism
Karl Marx
Communist Manifesto-1848
Communism: a form of complete socialism, all factors of production are owned by the “people”. In an ideal communist society, no social classes exist, all are equal

16. Capitalism versus Communism
Adam Smith
Karl Marx
Protection of Private Property
Abolition of Private Property
Very Little Government intervention in Business (laissez-faire)
Government run business (protection for the worker)
Low Taxes to promote spending in society
A heavy progressive income tax and abolition of inheritance
It is in human nature to better his condition and the invisible hand drives society
Do away with classes in society by having a proletariat revolution against the bourgeois