1. Ch.25.4 The Age of Reforms (old book)
TMHS

2. The Philosophers of Industrialization
Laissez – faire Economics
Laissez faire is an economic policy where there is no regulation (what does that mean?)
Advantages/disadvantages?
Adam Smith’s The Wealth of Nations defended the idea of a free market economy
Believed govt. tariffs stifled economies

3. Capitalism Money invested in businesses with the goal of making profit
Free market economy
Competition (best goods at lowest prices)
Supply and demand
Adam Smith, Thomas Malthus, David Ricardo

4. Positives and Negatives of Capitalism
Positives: competition led to progress
Negatives: unequal distribution led to social problems

5. Utilitarianism Greatest good for the greatest number of people
Jeremy Bentham

6. Rise of Socialism
Utilitarianism
Jeremy Bentham argued that people should judge ideas, institutions, and actions on the basis of their utility (usefulness)
John Stuart Mill led the utilitarian movement in the 1800s
Mill wanted govt. to lessen disparities in wealth

7. Socialism Command economy
Businesses publicly owned (not privately owned) and operate for the welfare of everyone
Government should plan the economy, controlling major industries

8. Socialism and Marxism
Socialists argued that the government should plan the economy
Advocated govt. control of factories, mines, etc.

9. Karl Marx Communism- complete form of socialism
Believed there should be no class system, everyone is equal
Thought capitalism would destroy itself
Command economy

10. Communism All means of production are owned by the people.
Private property does not exist.
All goods and services are to be shared equally.

11. 4. The Communist Manifesto
Karl Marx introduced a radical new socialism called Marxism
He and Friedrich Engels wrote The Communist Manifesto
Class warfare, Bourgeoisie, Proletariat
Predicted workers would overthrow owners

13. Unionization and Legislative Reform
The Union Movement
A union is an association that spoke for all the workers in a particular trade
Negotiations between ownership and labor known as collective bargaining

14. Unions Workers joined together for reform
Workers engaged in collective bargaining
Wanted better working conditions and wages
Workers would strike if demands weren’t met

15. Reform Laws
Factory Act of 1833 – British law that outlawed the hiring of children under the age of 9 (limited hrs. until 18)
The Ten Hours Act of 1847 – Limited women and children’s factory workdays to 10 hrs.