CH. 25.1 continued

Why England?• Natural Resources

– Water power and coal to fuel machines– Iron ore to construct machines, tools, factories– Rivers from transport– Harbors for merchant ships

• Agricultural Improvements– Food production increases resulting in more food– More food results in better lives and increased

population– Increasing population creates demand for food and cloth

• Beginning of Urbanization– Farmers lose land to enclosure movement– Move to cities and work in factories

• Expanding economy supported industrialization– Investments for inventions– Banking system (loans)– Overseas trade

• Political stability– No wars occur on British soil– Passes laws to help encourage business ventures

• Factors of production– Land, labor, and wealth (capital)

Britain’s Transportation Advantage

• Steam-driven locomotives– Connect harbors with inland cities– Liverpool (port) and Manchester (inland)

• Four effects of railroads– Spurred industrial growth (cheap transport)– Created jobs– Agricultural and fishing industries boosted– Travel made easier – encouraged people to

migrate for work

Industrial Life 25.2

• Effects of industrialization on people– Higher wages– Affordability of some luxuries (heat, clothing…)– Population of cities grow (overcrowding)

• Agglomeration begins: – clustering of people and industrial activity (factories) to take advantage

of labor, technological, and financial services • Industrial cities pop up in areas rich in coal• London most important city

– Became Europe’s larges city– Birmingham and Sheffield (iron)– Leeds and Manchester (textiles)– Liverpool and Manchester (cotton)

Living Conditions• http://www.youtube.co

m/watch?v=4_5bZwNicvY

• England grows rapidly without:– Development plans– Sanitary codes– Building codes– Inadequate housing,

education, and police– No drains, garbage collection

• Cholera swept through slums– Drinking well

• Average life span 17 years (working class)

Working Conditions• Overtime!– Owners keep

machines running as often as possible

• 14 hour days – 6 days a week

• Factories dark– Coal mines most

dangerous• Machines injured

workers– Laissez Faire

Class Tensions• I.R. creates mass wealth

– Most wealth made by owners (middle class)• Middle Class made of:

– Skilled workers, professionals, business people, wealth farmers– Some owners grew wealthier than aristocracy

• Class distinctions create tension– Landowners (former nobles) look down on factory owners

(businessmen)• Dividing lines

– Upper middle class (government employees, doctors, lawyers, and factory managers

– Lower middle class (skilled workers, factory managers)

• Working class see little improvement in life or work– Machines begin replacing them and jobs are lost– Begin destroying machines

Luddites Luddites: social movement of English workers in the early 1800s that

protested - often by destroying textile machines Named after Ned Ludd Machines were taking their jobs Attacked entire factories

In 1819, when workers rallied in Manchester, England soldiers charged the crowd, killing dozens and injuring hundreds.

Because of this, workers were forbidden to organize or bargain for better pay and conditions and strikes were outlawed.

Industrialization Spreads25.3

• U.S. possessed same resources as Britain– Rivers, coal, iron ore, laborers

• War of 1812 (Britain blockades U.S.)– U.S. becomes self-reliant

• Begins in textiles• Samuel Slater (British) emigrates to U.S.– Builds spinning machine (from memory)

• Moses Brown opens first factory in U.S. (Pawtucket , R.I.)• Francis Lowell invents a mechanized system for weaving cloth

– Opens weaving factory in Waltham, Mass.– Massachusetts becomes major industrial area in U.S.

Technological Boom• Causes of technological boom– Natural resources– Burst of inventson (light bulb, telephone– Urban population boom that purchased

manufactured goods– Railroads help expand cities

Rise of Corporations• “The evidence is unmistakably

indicates that you have to spend money to make money.” Srully Blotnick

• Stocks: to raise money, entrepreneurs sold stock – or shares of their company

• Corporations are owned by “stockholders”

• U.S. corporations:– Standard Oil (John Rockefeller– Carnegie Steel Co. (Andrew

Carnegie)– Monopolized industries

Continental Europe Industrializes• French Rev. and Napoleonic wars impede Europe’s

industrialization• Belgium

– I.R. comes to Belgium first– Natural Resources (I and C)– Waterways– Spinning machinery and factories

• Germany follows:– Politically divided in 1800s– Economic isolation and scattered resources

prevent industrialization– Pockets of Ind. Appear– Import British equipment and engineers– Built railroads linking manufacturing cities with

Ruhr Valley (coal-rich)– Develops military power and unifies (late 1800s)

Impact of Industrialization• Shifted world’s balance of power• Increased competition among developed nations • Increased poverty among less-developed nations

– Dependency Theory: based on colonialism• Hypotheses which asserts that low levels of

development in less-developed nations occurs because of their dependence on the advanced nations.

• Developed-nations needed a constant flow of raw materials from less-developed nations

• Britain led the way in overseas colonies for resources– The United States, Russia, Japan followed– Imperialism: policy of extending one country’s rule

over many other lands– Imperialism was born out of industrialization – the

need for resources

Transformation of Society• Industrialization empowered European

nations• Contrast: Asia and Africa still agrarian and now

dependent on colonizers• Daily life and life expectancy altered• Population, health, and wealth eventually rose

in advanced societies• Middle class created– Greater educational opportunities – More educated people = more social reform

Reforming the Industrial World25.4

• Wide gap between rich and poor nations develops• Wide gap between rich and poor of industrialized nations

develops• Business beliefs– Government should stay out of the way

• Reformers’ beliefs– Government needed to improve condition of the poor– Workers demanded rights and protection– Unions should be created

ADAM SMITH• Adam Smith = father of modern economics

• Created the concept of Laissez-Faire Economics (hands off)

• Society would benefit if people were set free from government interference

• LF allows the right to freely compete for customers.

Smith’s concepts Declared that a free, unregulated market,

and exchange of goods and services would help everyone – NOT just the rich.

A free market produces more goods at lower prices

Reinvestment of profits boosts economies

Smith’s 3 Natural Laws1. Self-interest: people work for their own

good2. Competition: forces people to make better

products3. Supply and Demand: goods will be

produced at a lower price to meet demand

Thomas Malthus onPopulation

Thomas Malthus’s writings on population helped shape economic thinking

Influenced by Adam Smith Malthus predicted that population would outpace food The only way to slow growth

1) war 2) disease and 3) famine Malthus believed that as long as the population kept increasing,

the poor would suffer (starvation) Malthus urged families to have fewer children. Malthus disputed. Why do some people argue against him?

Population not rising as predicted. Why? Expanded use of contraception Changing role of women Political polices (China’s one child policy) Declining birth rates in industrialized countries Food supply growing because (machines,

irrigation, fertilizer) Larger farms Genetically modified crops (seeds) Improved transportation Food preservation (refrigerated trucks)

David Ricardo• Influenced by Malthus• Believed that a permanent underclass

(poor) would always be poor• Many workers and abundant resources

equal cheap labor and resources• Few workers and few resources equal

expensive labor and resources• Opposed government intervention– Minimum wage laws, and better

working conditions would lower profits

Utilitarianismand rise of Socialism

• Utilitarianism: the idea that the goal of society should be “the greatest happiness for the greatest number.”

• Utilitarians worked for reforms affecting workers and the poor, from child labor to public health.

• Jeremy Bentham preached the idea of Utilitarianism and that all laws or actions should be judged by their ability to provide pleasure rather than pain. "...it is the greatest happiness of the greatest number that is the measure of right and wrong...." Jeremy Bentham.

• Bentham supported individual freedom, which he believed guaranteed happiness.

• Bentham saw the need for government to become involved in individuals’ lives under certain circumstances.

John Stuart Mill John Stuart Mill advanced the theory of

Utilitarianism Actions are right (good) if they promote

happiness and wrong if they cause pain. Mill government should prevent factories owners

from achieving happiness if doing so meant harm to workers.

Mill reexamined the idea of unrestricted markets as being good for all It favored the strong over the weak.

Mill wanted the government to step in and improve the lives of the working class Argued people should be free to engage in

what ever behaviors they wish as long as it does not harm others.

Mill called for giving voting power to workers and women Allowing them to use political power to create

reform. The effect of Mills: Today’s democratic

governments have adopted many ideas from Mill and the other Utilitarians.

Robert Owen Robert Owen: mill owner and Utopian idealist

Refused to use child labor. Encouraged the organization of labor unions.

Established a model industrial community Reformed the way owners ran their businesses by setting up

his operation in Scotland as a model “village.” Owen built worker housing, opened schools for worker

children, Proved making a profit while offering decent living and working

conditions was possible. Sounds great, but what problem or issue do you see with this

model?

Karl Marx

Karl Marx supported the theory of “economic determinism” and despised Capitalism.

Economic Determinism states that all social patterns and institutions were controlled by economic factors.

Argued that economics is the driving force behind history. Ec. Det. formed the basis for Socialism. Marx believed that CLASS STRUGGLE/CONFLICT is at the core

of society. Society is made up of a struggle between the “haves” of society and

the “have-nots” Promoted a classless society. “Haves” or owners of society = “Bourgeoisie” “Have-nots” or workers of society = “Proletariat” Believed workers would overtake owners (capitalists) and create a

classless (communist) society

Socialism and Communism

Socialism is a system in which people as a whole rather than private individuals own all property and all businesses and the means of production.

Socialists condemned the evils of industrial capitalism which they believed created a gulf between rich and poor.

Socialists wanted to develop a world in which society would operate for the benefit of all members, rather than just for the wealth.

Communism is a form of “complete” socialism Private property would cease to exist All goods and services would be shared

equally

Labor Unions and Reform Laws• 1800s people become more active in politics

– Workers join together and create unions (voluntary labor associations)

• Unions speak for all workers in a particular industry– Engage in collective bargaining (negotiations)

between workers and owners• Factory Act of 1833 (Britain) outlawed child labor

under 9 years-old– 9-12 cold not work longer than 8 hours– 13-17 : no more than 12 hours

• Mine Act of 1842 (Britain): women and children could not work underground

• Ten Hours Act of 1847 (Britain): limited workday to 10 hours for women and children factory workers

• 1904 (U.S.) attempts to outlaw child labor– Supreme Court argues the federal child lave

law interferes with states rights (Federalism) and their ability to regulate labor

Reform Spreads• William Wilberforce leads fight (in England) to abolish

slave trade and slavery in British Empire• Britain abolishes slavery in 1833• Jane Addams (U.S.) ran community centers that served

poor– Worked for social reform – She saw many examples of government and

businesses exploiting workers– Focused on the social problems created by the

imbalance of power among the social classes.• Horace Mann: advocates for free public education for all

children