1. “Economic and Social Effects of the Industrial Revolution”

2. I.) New Methods A.Division of Labor- factory owners divided manufacturing process between workers & machines Result: - more produced in shorter time - lowers cost of production - increased profits B.Interchangeable Parts: parts made by machines which were all alike Results: - quicker production - easy to create by unskilled labor C.Mass Production: system of producing large numbers of identical items D.Assembly Line: all products brought together and assembled at one location from worker to worker Example: Henry Ford’s production of the automobile

4. A. Strict rules or face loss of pay B. Unsanitary conditions C. Unsafe conditions D. 14 hr days & 6 days a week E. Women and Child paid less II.) Working Conditions in Factories

6. III.) Social and Economic Reform A.Humanitarians: people who work to improve the conditions of others 1. authors use novels to attack social problems resulting from industrialization Charles Dickens- Jeremy Bentham- John Stuart Mill-

7. B.Reform Laws: C.Strikes: B.Unions:

8. IV.) Economic Theories A.Mercantilism: economic theory that the world contains a fixed amount of wealth. In order to increase wealth, countries must take wealth from another country 1. In 1700’s Economists attack this theory 2. Believed: natural law should govern economic life

9. B.Adam Smith: economist who is considered founder of classical economics; wrote The Wealth of Nations (1776) 1. Believed two “natural laws” govern economics: - Law of Supply and Demand - Law of Competition 2. Free Enterprise: economic theory in which there are no laws or regulations limited economic growth 3. Laissez-Faire: belief that government should not meddle in operations of business

10. D. Socialism: political & economic system in which governments own the means of production and operate them for the benefit of all the people C. Capitalism: an economic system in which individuals or corporations, rather than governments, control the means of production E. Communism: economic & political system in which governments own the means of production and control all economic planning 1. Karl Marx: German journalist who in 1848 wrote the Communist Manifesto

11. F: Thomas Malthus: Who was he? What was his belief? G: David Ricardo: Who was he? What was his belief?