new economic ideas chris anderson randolph-henry h. s
TRANSCRIPT
![Page 1: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/1.jpg)
New Economic Ideas
Chris AndersonRandolph-Henry H. S.
![Page 2: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/2.jpg)
• After the French Revolution, Europe seemed upside down
• Undergoing a transformation:• From a _________________________ to
____________________________• Middle class (MC) gained lots of wealth• Working class (WC) lived in squalor• Lots of reformers were trying to help the WC
![Page 3: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/3.jpg)
“Hands Off”
• Reformers and owners did not agree• Industrial owners thought they should control
industry without government interference• Believed government involvement would
___________________________• Laissez-Faire economics– Government keeps its “hands off” of industry
![Page 4: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/4.jpg)
![Page 5: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/5.jpg)
Adam Smith
• Scottish professor• 1st to explain capitalism (what is it????) and
laissez-faire economics• Wrote Wealth of Nations (1776)• Justified a change from mercantilism
(government restriction) to a more capitalistic (government free) industry
• **Labor is the main source of wealth, NOT $$
![Page 6: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/6.jpg)
• Supply and Demand: people only buy what they want or need; therefore businesses should produce what people buy
• With no government interference, businesses will compete to produce goods at the most inexpensive price
• “Invisible Hand”: the competition between businesses
![Page 7: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/7.jpg)
Adam Smith
![Page 8: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/8.jpg)
![Page 9: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/9.jpg)
Thomas Malthus
• Had a pessimistic (gloomy) view of the economy
• English economist/preacher• Wrote An Essay on the Principles of
Population• Growing population caused poverty (WHY??)• Population was growing faster than food
supply—ending in disaster• Believed poverty to be unavoidable
![Page 10: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/10.jpg)
Thomas Malthus
![Page 11: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/11.jpg)
Draw the Malthusian Ceiling
![Page 12: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/12.jpg)
David Ricardo
• English banker and economists• “Iron law of wages”: believed that the rising
population led to more workers competing for jobs
• Competition for jobs kept wages low• Poverty unavoidable
![Page 13: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/13.jpg)
![Page 14: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/14.jpg)
Reformers
• Many people criticized laissez-faire economics• Many want to make changes in industry• 1.) William Wilberforce:• British Parliamentary member• Wanted to abolish slavery• Make lives of the WC better
![Page 15: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/15.jpg)
• 2.) Lord Shaftsbury:• Parliamentary member• Wanted to reduce working hours for women and
kids
• Both Wilberforce and Shaftsbury will get Parliament to pass laws regulating working conditions in GB– 1833: laws regulating employment of children in
factories– 1842: law outlawing the use of women/kids in mines– 1847: Ten Hours Act—a 10 hour or less workday for
women/kids in factories
![Page 16: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/16.jpg)
William Wilberforce Lord Shaftsbury
![Page 17: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/17.jpg)
• 3.) Jeremy Bentham:• Utilitarianism—true test of any action or
institution is its usefulness to society• What are some institutions that are useful to
society????
![Page 18: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/18.jpg)
• 4.) John Stuart Mill:• Believed the government should tax people’s
income to redistribute wealth
![Page 19: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/19.jpg)
• 5.) Charles Dickens:• Writer• Used his works to attach industrialization• Do you know any of his works????
![Page 20: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/20.jpg)
Socialism
• Many believed that capitalism caused suffering
• Believe the struggle to make a profit caused misery
• Argue for socialism—workers own, manage, and control production
![Page 21: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/21.jpg)
• Utopian Socialism:• Early socialist idea• Wanted to create a society where everyone
shares everything
![Page 22: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/22.jpg)
• Robert Owen:• First to create a working utopia• Believed competition caused suffering• Cooperation would make life better
![Page 23: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/23.jpg)
Karl Marx
• German philosopher• Saw Utopian socialism as impractical• Degrees in history and philosophy• Forced to flee Prussia to France
![Page 24: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/24.jpg)
• Marx’s Theories:• Based ideas in history, economics, and historical
change• History advanced through conflict, but
economics was the major force• At the base of every social order was
production• Everything in a nation developed around its
economic base• Most important part of the economic base was
the creating of social classes
![Page 25: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/25.jpg)
• _____________________ controlled production (Would they every give it up???)
• Only give up control of production through ________________________
• Conflict between the different classes was inevitable and unavoidable
• Class struggle pushed history forward
![Page 26: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/26.jpg)
• Marx said that Europe had experienced 4 stages of economic life:1.) Primitive
-people only produce what they need-no exploitation-tools develop, surpluses made, exploitation
starts2.) Slave
-struggle between ___________ & ___________3.) Feudal
-struggle between ___________ & ___________4.) Capitalist
-struggle between ___________ & ___________
![Page 27: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/27.jpg)
• Marx believed capitalism to be temporary• Was he correct??????• Believed a major crisis would occur in an
industrialized nation where the government would take control of the Middle Class
• Government would create a society where the people owned everything—no private property, no class distinction, and eventually the government would __________________
![Page 28: New Economic Ideas Chris Anderson Randolph-Henry H. S](https://reader038.vdocuments.net/reader038/viewer/2022102909/56649ea75503460f94baaabc/html5/thumbnails/28.jpg)
• Capitalism did not go away—still exists today• Marx was wrong—lives got better for the
Working Class (no need to rebel)
• Communism developed from Marx’s ideas