1. Modern World History Chapter 9, Section 4 Reforming the Industrialized World

2. Laissez faire
As industrialization created a wide gap between the rich and the poor, some defended it and others demanded reforms
Laissez faire – economic policy of letting owners of industry and business set working conditions without regulations from govt. to create a free market

3. Capitalism
Adam Smith – Scottish professor who wrote “The Wealth of Nations” that defended laissez faire, saying that it guaranteed economic progress
Laws of self interest, competition , and supply and demand lead to economic growth
Capitalism – economic system in which factors of production are privately owned and money is invested in business ventures to make a profit

4. Increasing Populations
Thomas Malthus – argued that population tends to increase more rapidly than the food supply, and without wars and disease most are destined to be poor and miserable
David Ricardo – believed a permanent underclass will always be poor, and that population growth leads to an abundance of low paid workers

5. Criticisms of Industrialization
Utilitarianism – philosophy that states that people should judge ideas, actions, institutions on the basis of their usefulness
Questioned unregulated capitalism because if was wrong that workers received starvation wages while others profited greatly
Utopian communities – attempts to create perfect societies where the needs of everyone are considered

6. Socialism
Socialism – a new economic system that sought to offset the ill effects of industrialization by having the factors of production owned by the public and operated for the welfare of all
Supporters believed it would end poverty and promote equality

7. Communism
Marx and Engels, two German philosophers, wrote the Communist Manifesto outlining their ideas about how economic forces dominate society
They described two warring classes that emerge throughout history:
Haves (Bourgeoisie) – the employers who control the means for producing goods
Have-Nots (Proletariet) – the workers who perform back-breaking labor under terrible conditions

8. Marx believed that the capitalist society formed during the Industrial Revolution would collapse
Small producers would be driven out
Small number of manufacturers would control all of the wealth
Proletariat would rebel , seize the factories and mills and take control of government, and share future profits
Communism – form of complete socialism in which the means of production (all land, factories, mines, railroads, and businesses) would be owned by the people

9. Workers Fight for Improved Conditions
Factory workers faced long hours, dangerous working conditions, and threat of being laid off
Workers joined voluntary labor associations called unions that tried to address these problems
They attempted collective bargaining negotiations with employers, but often resorted to strikes to try to make gains

10. British Reform Laws Factory Act of 1833 Restricted child labor
Mines Act of 1842
Women and children couldn’t work underground in mines
Ten Hours Act of 1847
Limited work day for women and children to 10 hours a day

11. Reform Movements Women’s rights
Women could earn more in factories than at home, but were paid far less than men
Women’s right groups began to form
Abolition of slavery
Ended in British Empire in 1833, and in US in 1863
Public education
To train a well-educated work force for factories
Prison reform