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Origins
• Agricultural Revolution– Before 1600’s:
• 1600’s Enclosure Movement– Fenced off plots or holdings combined later with larger,
more efficient holdings• Effects:– Large land owners added to their holdings– Small-plot holders become tenant farmers– Common lands gone, individuals could do their own
land experiments
• Jethro Tull – invented seed drill to plant seeds in a straight row without all the waste
• Crop rotation – Charles Townsend found out if you plant different crops in the fields, the soils could still rebuild its nutrients
• Iron Plows replaced wooden ones• Plows with replaceable blades• Farm machines replaced laborers• Laborers moved to the cities
Industrial Revolution
• Rapid industrial development• Great Britain had all the factors of production
needed– LAND – natural resources• Coal, iron ore, rivers, harbors
– LABOR – large population– CAPITAL – tools, machinery equipment, inventory,
money
Textile Industry
• Cloth• Higher population, higher demand• Mechanization – automatic machinery
increases production quickly, more effectively• Each invention improved upon the previous
invention to keep up with supply and demand
• Factory system develops– Workers put in a certain number of hours per day
at a fixed rate
• Cloth needs cotton• Eli Whitney invents cotton gin– Takes out seeds from fiber of cotton to produce
more– Increases slave labor
STEAM
• More efficient because not all factories would need to be built buy a river
• Steam more efficient• Iron couldn’t hold heat, steel could but making
steel is expensive– Bessemer Process• Cheaper• Inject air into molten iron to clean impurities
Other Industrialization
• Shoes, clothing, ammunition, furniture, printing, paper-making, lumber, food processing
• Charles Goodyear – – Vulcanization, made rubber less sticky
• Transportation– Stone roadways, canals– Robert Fulton – 1st profitable steamboat across
Hudson River in New York– Travel across Atlantic in 17 days
• Communication– Battery, Alessandro Volta– Samuel Morse – telegraph connected country
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Spread of Industry
• Great Britain – primed and pumped• France – WARS• Germany – lacked strong central government
until around 1870• United States– Strong central government– Rich natural resources– Increasing population/increasing market– Transcontinental Railroad
Factory System
• Employers wanted people to do simple tasks– didn’t want skilled workers? – Women and children work for less pay
Wage System
• Varied based on supply and demand– The less demand, less pay
• Factory work• Parliament passes laws to protect children– By 1915 in United States
• Middle class emerges– Respected– Not nobility– politics
Women’s roles• Come out of the house• Women’s “jobs” emerge– Secretaries– Teachers– Switchboard operators
• Higher education– All female colleges
Section 3--Capitalism
• Capitalism – economic system in which individuals or corporations, rather than governments, control the factors of production– Commercial capitalism – merchants who bought
and sold goods– Industrial capitalism – production and
manufacturing of goods
Division of Labor
• Division of Labor – divided manufacturing process into steps
• Eli Whitney– Invented machines that made parts the same– Interchangeable parts
• Assembly Line– System of producing large numbers of identical items– Different parts made elsewhere then brought
together to produce in a plant/factory
Anderson Toy Company
• Want a job? Need a job? Anderson Toy Company is
• a thriving company in London; it creates paper dolls for the young girls of London to play with. Little experience or education is needed.
• If you are hired, you will be part of a team of dedicated workers.
• Apply for a job.
• Henry Ford – saw great potential in the assembly line
• Corporations – groups formed by businesses and allowed people to buy stock
• 1901 – J.P. Morgan founded U.S. Steel Corporation– One of the first billion dollar corporations
• Monopoly – corporations gained almost complete control of production or sale of a single good or service
• Cartel – several corporations that combined to control every stage of entire industries
• Business cycle – pattern of alternating periods of prosperity and decline
Section 4 – Living & Working Conditions
• Economic Theories– Physiocrats believed natural laws should be left to
govern economic life• Free-Enterprise– Economic forces worked automatically and
naturally• Justified competition unrestricted by laws, regulations,
or government controls
• Laissez-Faire– Buy labor as cheaply as possible– Government does not regulate the operations of
business: HANDS OFF POLICY– French for “let it be” or “leave things alone”
Reformers
• Humanitarians – people who work to improve the conditions of others– Urged reform
• Utilitarianism – argued laws useful and therefore good– Greater happiness for the greatest number of
people– People should be educated– Reform in justice and prison systems
• Reform Laws– Shorter works hours– Improved conditions– Children• Still allowed to work • Shortened number of hours
• Difficult to enforce
Wages?
• Strikes– workers stop working• List of demands
• Unions– Organized worker associations• Collect dues to pay workers when on strike
• Collective Bargaining– Process of negotiation between companies and
workers
Section 5: Socialism
• In Socialism, governments own the means of production and operate for the benefit of all people, rich and poor
• Laissez-faire/capitalism– Some very wealthy– Many remained poor
Some thought not the best form of government
Karl Marx
• Believed capitalist system should be destroyed• Friedrich Engels and Marx published – “The Communist Manifesto” – 1848– Said the working class (Proletariat) would have to seize
power by force against capitalists and revolt– Communism – complete class-less society
• Authoritarian Socialism
• Democratic Socialism – people retain partial control over economic planning through election of government officials