problems of industrial revolution: long hours for low pay dangerous, unsanitary working conditions...
TRANSCRIPT
Problems of Industrial Revolution: long hours for low pay
dangerous, unsanitary working conditionsharsh or severe factory disciplineexploitation of child labor lack of adequate housing and unsanitary
living conditionsdisease and frequent epidemics
class tensions
Age of Reform…even more effects of the Ind. Rev.
With all of the short term effects of the Ind. Rev. (both good and bad) there was a series of long term effects that we still deal with today…actually, you can make the argument that these long term effects have caused EVERY MAJOR WAR since the Ind. Rev. (including 9/11)…
ImperialismWorld War I Great Depression 1930’sWorld War IITechnology Age- Nuclear Weapons
Solutions:Laws passed to protect children and women
workersMaximum work hours and working
standards establishedSettlement house movement worked to
improve living conditionsWorkers won the right to collective bargain
and to strikePublic education and prison reforms passed
Reform…to make changes
Thought question...why would people want to make changes after the Industrial Revolution?
Even though in Ind. Rev. modernized Britain, debate arose btw gov’t leaders to stay out of the way of business, while others should play a role in the economy
Age of Reform
Industrialization caused nations and their people to make a lot of money. But how were nations going to handle all of this new found wealth? The answers were found in new political ideas such as…CapitalismSocialismCommunismUtilitarianism
Capitalism
How would you define “capitalism”?What other words come to mind when you
think of the word “capitalism”?Are these associations positive or negative?
Capitalism
An economic system in which the means of production are owned mostly privately.
Capital is invested in the production of goods for profit in a competitive free market.
Etymology• Latin, caput, “head”
• The term “capitalism” was first used in English in 1854• Marxist writers originally popularized the term
“Free Market System”Free = ability for employers to run the
business the way they wantFree = to set prices of productFree = to set wages for workersFree = for employees to work for a company
of their choice Free = for employees to leave for another
company
Adam Smith
A Scottish political economist and moral philosopher (1723-1790).
His Inquiry into the Nature and Causes of the Wealth of Nations (1776) founded the modern discipline of economics and provided the rationale for free trade, capitalism and libertarianism.
Capitalism
Also known as Laissez-Faire Economics- letting owners of industry and business set working conditions without gov’t interference
Adam Smith- wrote “Wealth of Nations”Economic liberty = economic progress
Smith attacked most forms of government interference in the economic process, including tariffs on imported goods.
Government restrictions on trade cause inefficiency and high prices.“Laissez-faire” means “let them do”
Capitalism
Definition of Capitalism- economic system in which money is invested in business with the goal of making profit
Capitalism helped bring along Ind. Rev.
America uses capitalism
Capitalism
Thomas Malthus – argued that population grew faster then food production, so war and death were necessary to eliminate the extra people
Hence “survival of the fittest”
Ricardo and the “Iron Law of Wages”
David Ricardo- argued that a permanent underclass will always be poor
Needed the poor class to insure that wages would remain highAs population
increased, so did the labor supply
This in turn increased competition for jobs and kept wages low
Physiocracy
Smith criticized physiocracy, which taught that wealth originated in land
Smith argued that labor was the major source of wealth and that the division of labor was the key to economic growthUpper, Middle, Lower Classes
As productivity rises, wages will rise.
The Invisible Hand
The free market appears chaotic and unrestrained.
Actually, it is guided by “an invisible hand” to produce the right amount and variety of goods.
If a product shortage occurs, the price rises, establishing a profit margin that provides an incentive for others to enter production.
Self-Interest
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.
We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.
National Wealth
As every individual, therefore, endeavours as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value; every individual necessarily labours to render the annual value of society as great as he can.
Communism
How would you define “communism”?What other words come to mind when you
think of the word “communism”?Are these associations positive or negative?
Communism“The history of all hitherto existing society is the history of class struggles.”
An ideology that seeks to establish a future classless, stateless social organization, based upon common ownership of the means of production and the absence of private property
Karl Marx (1818-1883) was an immensely influential German philosopher, political economist, and socialist revolutionary
He is most famous for his analysis of history in terms of class struggles
Communism
Karl Marx – German who introduced a radical form of Socialism called Marxism
Teamed up with Friedrich Engals
Wrote Communist Manifesto
Communism (cont.)
Communist Manifesto – human societies have always been divided into classes
Believed in revolution The Bougeoisie
(haves/employers/middle/upper class) would be overthrown by the Proletariat (have nots/employees/lower class)
“Communist Manifesto”
“The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries, unite!”
Communism (cont.)
Marx believed that the capitalist system established by the Ind. Rev. would be destroyed when the poor overtook the wealthy
Communism – more complete socialism in which the factors of production are owned by the people, controlled by the gov’t. no private property, all goods and services are
shared equally
Communism
. Bolshevism AtheismMarx’s ideas were
adopted by French revolutionaries who founded the Paris Commune in 1871, the Russian Bolsheviks who overthrew the government in the 1917 October Revolution and the Chinese Communist Party which came to power in 1949
Marx was an atheistHe believed that
religion was “the opiate of the people.”The owners of capital
used religion to keep the peasants and workers subjugated by leading them to think, not of their present misery, of future happiness in heaven
Communism
Communist Paradise DeterminismMarx taught that paradise
would appear on earth, following the destruction of capitalism and the state.Under capitalism, labor is
alienatedIn a communist society,
human beings freely develop their nature in cooperative productionUnder communism, there is
no government and, accordingly, perfect freedom
Marx traced the history of the various modes of production and predicted the collapse of the present one—industrial capitalism—and its replacement by communism, just as capitalism had replaced feudalism
The appearance of communism would represent the end of history
The End Justifies the Means Class StruggleMarx’s moral teaching
was that the leaders of the Communist Party, which he termed “the vanguard of the proletariat,” were free to commit any crime as long as it served the end—the destruction of capitalism and the ushering in of communismThis historical process, he
said, was inevitable
Those who must sell their labor power are “proletarians”
The person who buys the labor power someone who owns the land and technology to produce, is a “capitalist” or “bourgeoisie”
The proletarians inevitably outnumber the capitalists.
ProfitProfit is “theft.”It is the difference between the value of a good
produced by a worker and the wages paid to the worker by the owner
Due to competition among workers for employment, wages will decline, leading to poverty, misery and rebellion
Revolution: The state is “a committee of the bourgeoisie” and laws support the capitalists, the ruling classClass conflict between the proletariat and the capitalists
can only be resolved by violent revolutionA dictatorship of the working class is a temporary
necessity before communism is possibleJustice: The principle of distribution in communism, is
“From each according to ability, to each according to need”
Not everyone agreed that laissez-faire capitalism was good. Two who took a different stance were Robert Owen and Karl
Marx.
• More hopeful than Malthus
• Socialism
– Society owns property
– Society controls business
• Model industrial town
• New Harmony
• Social democracy
Robert Owen
• More radical socialism
• Predicted collapse of capitalism
• Das Kapital
• Communism
• Government
– owns means of production
– controls economic planning
Karl Marx
Competing Economic
Socialism
Other people thought that the government should be involved in economic affairsGov’t should try to
improve its peoples lives
Socialism
Socialists wanted to create a Utopia or idea society Everyone would
share equally in societies abundance
First to establish a utopia was Robert Owen Believed that
competition caused societal problems
Socialism (cont.)
Jeremy Bentham- people should judge ideas, people and situations based on their usefulnessUtilitarianism- gov’t
should try to promote the greatest good for the greatest # of people
Socialism (cont.)
French Reformer Henri St.-Simon wanted to offset the effects of industrialization Socialism – factors of production are owned by
the public and operate for the welfare of allPeople started communities based on Utilitarian
and Socialist ideas (didn’t last…but…) John Stuart Mill – believed it was wrong that
workers should lead deprived livesFavored cooperative system of agriculture and
women's rights Gov’t to diminish debt and have a classless
economy
Socialism (cont.)
Socialists believed that the gov’t should plan the economy rather then relying on a free market
Gov’t should control factories, mines, RR’s
Capitalism vs. Communism
Capitalism-progress results when individuals follow their own self interest
Communism- all great movements in history are the result of an economic struggle
Capitalism vs. Communism
Capitalism- Businesses follow their own self-interest when they compete with one another for consumer’s money
Capitalism vs. Communism
Capitalism- each producer tries to provide goods and services that are better and less expensive than those of competitors
Consumer benefits!
Capitalism vs. Communism
Capitalism- Workers are exploited by employersLabor of workers
creates profit for employers
The rise of new economic ideas was among the countless effects of the Industrial Revolution. The shift away from cottage industries also affected home life and the roles of women in society.
• Worlds of work and home separated
• “Separate spheres”
• Business world-without moral controls
• Women-moral guidance at home
Home Life• Industry-great
power• Control of other
nations’ economies
• Industrialization of United States
• Period of immigration to United States
Countries
• Increase in wealth
• Standard of living improved
• Leisure time• Changes to
many aspects of life:– Art– Politics – Transportation
Societies
Effects on Society
Smurfs and Communism
the Smurfs shared everything The food in the
Smurf village was stored away in those mushrooms the minute it was harvested and then equally distributed to all the Smurfs throughout the year
Smurfs and Communism
There was Handy Smurf, and Painter Smurf, and Brainy Smurf, etc... Each Smurf had his own specific job and was not allowed to try his hand at any other Smurf's assigned task
Each Smurf worked for the common good
Smurfs and Communism
Gargamel wanted the Smurfs for was for his own profit, he was a capitalist!!!
Gargamel was completely indifferent to the ethical consequences of his actions, which would result in the destruction of the unity of the Smurf social order.
Gargamel was greedy and egocentric, creating a dramatic juxtaposition to the Smurfs, who were concerned with the welfare of all their brethren.
New Alternatives to Improve and Industrialized Society
Alternative 1: Capitalists
Alternative 2: Marxists/Socialists
Alternative 3: Social Reformers
Progress occurs when people follow their own self interest
History is a result of class struggles
The excesses of capitalism must be controlled and regulated
There will always be a permanent underclass
Labor produces profits for employer
Workers have the right to bargain with employers for better working conditions, higher pay, and the right to strike
Governments should NOT interfere with the economy
The means of production should be publically owned and operate for the benefits of all
Legislation should protect special classes of workers from unsafe conditions.
A planned economy would eliminate poverty, promote equality, and help protect workers