1. The Industrial Revolution Begins
New Ways of Thinking

2. Economic Thoughts
Adam Smith and The Wealth of Nations – Laissez-Faire Economics
The Free Market would
help everyone
More goods at lower
prices
A growing economy
The successes of the
industrial age

3. Economic Thoughts Thomas Malthus
Predicted population would outpace food supply.
War, disease and famine the only checks on population growth
As population increased, poor would continue to suffer
Encouraged families to have fewer kids

4. Thomas Malthus ( )

5. Economic Thoughts David Ricardo – “Iron law of wages”
Higher wages = families have more kids
More kids = more labor supply
Increased labor supply = lower wages and higher unemployment
No hope for working class

6. David Ricardo ( )

7. Economic Thoughts
Malthus’ and Rocardo’s gloomy predictions about life lead economics to being called the “dismal” science.
Both felt that individuals should be left to improve their own lives through thrift, hard work, and smaller families.

8. The Utilitarians Jeremy Bentham (1800) The goal of society should be:
“The greatest happiness for the greatest number.”
All laws or actions should be judged on their “utility.”

9. The Utilitarians John Stuart Mill – Bentham follower
Actions are right if they promote happiness, wrong if they promote pain
Wanted government to improve the lives of workers
Worker’s and women’s suffrage
Social reforms

10. John Stuart Mill ( )

11. Socialism
The people rather than individuals own the means of production
Enlightenment ideas – Goodness of man
Individuals would work for the benefit of all

12. Communism “Scientific Socialism” Karl Marx and Friedrich Engels
Communist Manifesto 1848
Class struggle between owners and workers is inevitable
History is a history of struggles between “haves” and “have nots”
Bourgeoisie v. Proletariat
Despised capitalism
“Workers of the world unite”

13. Karl Marx ( )

14. Freidrich Engels ( )

15. Failures and Successes
Marx wrong about workers
Marxist ideology flawed
Successes
Russians socialists embrace Marxism
Russian revolution