Industrial Revolution:Industrial Revolution: New Ways of Thinking New Ways of Thinking

Adam SmithAdam Smith

Adam Smith

• Enlightenment Idea

• Laissez-faire economics

• Free market economy - unregulated exchange of goods and services

Thomas Malthus

Thomas MalthusThomas Malthus

Wrote about population, helped shape Wrote about population, helped shape economic thinkingeconomic thinking

Population would grow faster than the food Population would grow faster than the food supplysupply

Family planningFamily planning

David Ricardo

David RicardoDavid Ricardo

British economistBritish economist Poor people had too many children,Poor people had too many children, This increase supply of labor, led to lower This increase supply of labor, led to lower

wages and higher unemployment wages and higher unemployment

Jeremy BenthamJeremy Bentham

• Utilitarianism

• Goal of society should be “the greatest happiness for the greatest number.”

• Laws based on Utility - do laws bring more pleasure or pain

SocialismSocialism

Reaction to laissez-faireReaction to laissez-faire People as a whole, rather than private People as a whole, rather than private

individuals would own and operate the individuals would own and operate the “means of production.”“means of production.”

Karl Marx

Karl MarxKarl Marx

German PhilosopherGerman Philosopher 1848 with Freidrich Engels writes The 1848 with Freidrich Engels writes The

Communist ManifestoCommunist Manifesto New form of Socialism - CommunismNew form of Socialism - Communism Communism - class struggle between Communism - class struggle between

employers and employeesemployers and employees

Marxism and The Manifesto

• Economics driving force in history• History of class struggles between the haves and

have nots• Haves - bourgeoisie, owned the means of

production• Have-nots - proletariat, “working class.”• In the end the proletariat would win and a class

less society would be set up