1. New Ways of Thinking

2. Thomas Malthus 1. Saw effects of population explosion: hunger slums, misery 2. Wrote the Essay on the Principle of Population 3. Thought population would outpace food supply 4. Urged poor to have fewer children 5. He was wrong-food supply grew even faster 6. By 1900, population growth no longer a factor in West

3. Laissez-Faire Economics 1. In 1800s, business leaders embraced Laissez-Faire economics 2. Adam Smith wrote about it in The Wealth of Nations 3. Said free market would help everyone-not just the rich 4. More goods would be produced for less money for everyone.

4. Thomas Malthus

5. David Ricardo 1. Laissez-Faire economist 2. Wrote Iron Law of Wages 3. Held dismal view, like Malthus 4. Was against wage increases because the poor would have more children 5. Was against government assistance for the poor.

6. Utilitarians 1. Utilitarianism-The goal of society should be the greatest happiness for the greatest number. Jeremy Bentham John Stuart Mill

7. Jeremy Bentham 1. Said all laws and actions should be judged by their utility. 2. Strong supporter of individual freedom, which he believed guaranteed happiness. 3. He saw the need for government involvement

9. John Stuart Mill 1. British philosopher and economist-influenced by Bentham 2. Wanted the government to improve the working class. 3. Thought government should prevent the business class from increasing their own happiness at the expense of the working class. 4. Wanted women and workers to be able to vote. 5. Mill’s ideas have been used by democratic governments today.

10. Socialism Some thinkers condemned industrial capitalism which they thought had created a huge gulf between the rich and the poor. Socialism-the people as a whole rather than private individuals own and operate the factors of production. -Would include farms, factories, railroads and other large businesses.

11. Utopians Utopians-Early socialists dreamed of a society in which all work and property is shared Robert Owen- 1. Set up a model community in New Lanark Scotland putting Utopian ideas into practice. 2. He was a successful mill owner who refused to use child labor. 3. He campaigned for laws limiting child labor and encouraged unions.

12. Robert Owen

13. Karl Marx 1. German philosopher-formulated “scientific socialism” 2. Teamed with Friedrich Engels and wrote The Communist Manifesto 3. Communism-a form of socialism which would create a classless society where all means of production would be owned by the community.

14. Karl Marx 4. He argued economics was the driving force in history 5. Argued there are “haves” and have nots” 6. The “haves” control society and its wealth 7. The “haves”-the bourgeoisie. The “have nots –called the proletariat-the working class 8. Predicted the proletariat would triumph over the bourgeoisie

15. Karl Marx 9. Workers would set up a classless society 10. Marx despised Capitalism-he urged workers of all countries to unite.

16. Marxism At first Marxism gained popularity around the world. Marxism adapted by Germany in 1860s- formed a social democracy-a gradual transition from capitalism to socialism. Russian Revolution in 1917 set up a communist inspired government.

17. Marxism Independence leaders in Asia, Africa, and Latin America would turn to Marxism Marxism lost its appeal when nationalism won out over class unification People felt stronger ties to their own countries. By the 20 th century, few nations remained with communist governments.

18. Definitions Means of production-farms, factories, railways, and other large businesses that produce and distribute goods.