1. Reformers and Revolutionaries In this lesson, students will be able to identify the following terms
Adam Smith
Capitalism
Business Cycle
Unions
Karl Marx
Proletariat
Communism
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2. Capitalism
As the Industrial Revolution grew the rich investors did not want mercantilism
A new economic system began to develop
Capitalism
Laissez faire/ Market economy
Competition
Private control of means of production
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3. Adam Smith Scottish Economist Wrote “Wealth of Nations”
Mercantilism doesn’t work
Free-enterprise
Greed is good
People who compete will produce the best product at the best price for everyone
Capitalism: An economic system in which the means of production is in the hands of private ownership

4. New Class
Out of the merchant and professional class (Bourgeoisie) comes a new types of wealthy people
Entrepreneur
Industrialists
Andrew Carnegie
This new class controlled the economy
This new class believed in excellence and capitalism
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5. BUT: There were many problems created by
Private enterprise. From child labor to low
wages, many injustices occurred.
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6. By the late 19th century, the misery of
the working classes and the injustices of
capitalism disturbed the consciences of
many of the new middle class.
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7. Responses to Industrialization and Capitalism
Workers organized unions. A union is
an organization of workers that promotes
higher wages and better conditions.
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8. After strikes and struggling for better
conditions, laws began to limit child labor
and ensure shorter working hours.
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9. Utopian Societies
Other people responded with philosophies of Utopian (perfect societies)
Jeremy Bentham
The greatest moral action is one that provides for the greatest number of people
People should live cooperatively with each other
This was called Utilitarianism
Robert Owen
Government should control society to provide for the less fortunate /socialism
Built utopian communities where he controlled everything- failed

10. However, some individuals, like Karl Marx and Friedrich
Engels had revolutionary ideas.
They published
The Communist Manifesto
in 1848.
These ideas became the
basis of Communism or Marxism.
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11. The Class Struggle
Marx believed that society was divided into two classes: the bourgeoisie (owners of capital and factories) and the proletariat (workers). Marx believed that these classes would always be in conflict with one another.
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12. Marx believed the wealthy bourgeoisie
lived off the labor of their workers.
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13. Owners cheated their workers by taking most
of the wealth workers’ produced. The
bourgeoisie profited while workers starved.
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14. Marx believed that the bourgeoisie
would never peacefully give up their
wealth and power. He believed that
only a revolution would change society.
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15. Only a revolution could alter society.
Marx believed that the bourgeoisie
had to be forcefully removed from power.
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16. “Workers of the world unite; you have nothing to lose but your
chains.”
Karl Marx
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17. Dictatorship of the Proletariat
After overthrowing the bourgeoisie, workers would jointly own the land, labor, and capital of the nation. A dictatorship would be necessary to ensure economic equality. However, the dictatorship would eventually “wither away”.
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18. Communism Defined:
means of production in the hands of society NOT individuals- joint control Put the definition above in your own words: How can this be achieved?
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19. Communism the philosophy
Marx felt that the revolution of the proletariat is not possible until all the workers of the world united Marx felt that the proletariat would not unite until people had evolved enough to share Marx felt that the effects of Industrialism were so severe that the revolution of the proletariat would begin soon.

20. Questions for Reflection:
What problems were created by industrialization? Why did workers form unions and what changes did unions promote? Who was Karl Marx and what did he believe? Why were the proletariat exploited? What are the key beliefs of communism?
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