1. Reform Movements during the Industrial Revolution
How did the idea of Capitalism cause reform movements during the Industrial Revolution?

2. Adam Smith Capitalist Laissez-Faire Economics & Capitalism
Laissez-Faire is an economic philosophy that favored letting owners set working conditions without interference from the government
A British economist named Adam Smith defended Laissez-Faire economics in his book The Wealth of Nations
Smith argued that this system encourages competition, which forces businesses to make a better product – widely used during the IR
Smith argued the law of supply & demand will regulate this system & prices
This system known as capitalism gives people the opportunity to work hard & make money
Some argued during the IR that Capitalism doesn’t protect workers & encourages greed
Factory owners were making all of the money
workers very little!
Adam Smith
Capitalist

3. Utilitarianism John Stuart Mill
Because of the growing income gap people began to modify Smith’s Capitalist ideas
Jeremey Bentham argued that people should judge ideas, actions, and institutions on their utility or usefulness for the majority
Government policy should promote the greatest good for the greatest number of people
John Stuart Mill would lead the Utilitarian movement in the 1800s
Mill questioned unregulated capitalism (no govt input)
Mill thought it was wrong that many workers were very poor and sharing none of the profit
Mill wanted government policies that would lead to a more equal division of profits
Mill also wanted reforms for Women’s rights, education & prison system
John Stuart Mill

4. Utopian Ideas Robert Owen Utopian
British factory owner Robert Owen was shocked by the misery and poverty of the working class
Owen built houses near his factory in Scotland and rented them out to his workers for low rates
Owen prohibited children under 10 from working in the factories and provided free schooling
In 1824, Owen traveled to the US and tried to set up a Utopian system in Indiana
New Harmony, Indiana only lasted for three years but did inspire better communities for workers
Robert Owen
Utopian