“Economic and Social Effectsof the Industrial Revolution”

I.) New MethodsA. Division of Labor- factory owners divided manufacturing process

between workers & machinesResult: - more produced in shorter time- lowers cost of production- increased profits

B. Interchangeable Parts: parts made by machines which were all alike

Results: - quicker production- easy to create by unskilled labor

C. Mass Production: system of producing large numbers of identical items

D. Assembly Line: all products brought together and assembled at one location from worker to worker

Example: Henry Ford’s production of the automobile

A. Strict rules or face loss of payB. Unsanitary conditionsC. Unsafe conditionsD. 14 hr days & 6 days a weekE. Women and Child paid less

II.) Working Conditions in Factories

III.) Social and Economic Reform

A. Humanitarians: people who work to improve the conditions of others

1. authors use novels to attack social problems resulting from industrialization

Charles Dickens-

Jeremy Bentham-

John Stuart Mill-

B. Reform Laws:

C. Strikes:

B. Unions:

IV.) Economic TheoriesA. Mercantilism: economic theory that the world contains a fixed

amount of wealth. In order to increase wealth, countries must take wealth from another country1. In 1700’s Economists attack this theory2. Believed: natural law should govern economic life

B. Adam Smith: economist who is considered founder of classical economics; wrote The Wealth of Nations (1776)

1. Believed two “natural laws” govern economics:- Law of Supply and Demand- Law of Competition

2. Free Enterprise: economic theory in which there are no laws or regulations limited economic growth

3. Laissez-Faire: belief that government should not meddle in operations of business

D. Socialism: political & economic system in which governments own the means of production and operate them for the benefit of all the people

C. Capitalism: an economic system in which individuals or corporations, rather than governments, control the means of production

E. Communism: economic & political system in which governments own the means of production and control all economic planning1. Karl Marx: German journalist who in 1848 wrote the

Communist Manifesto

F: Thomas Malthus:Who was he?What was his belief?

G: David Ricardo:Who was he?What was his belief?