New Ideas and The New Ideas and The Industrial RevolutionIndustrial Revolution

What new ideas grew out What new ideas grew out of the Industrial of the Industrial Revolution?Revolution?

Imagine you are a worker in the early Imagine you are a worker in the early 1900s…1900s…

You are barely able to pay rent, buy food, You are barely able to pay rent, buy food, keep warm with the income you make.keep warm with the income you make.

Work 12-14 hr days, 7 days a weekWork 12-14 hr days, 7 days a week Mistreated at workMistreated at work Whole family must workWhole family must work And you are still living in povertyAnd you are still living in poverty

A Better SocietyA Better Society

Reformers set out to improve the lives of Reformers set out to improve the lives of the disadvantagedthe disadvantaged

Urged government to work for a better Urged government to work for a better societysociety

What was Thomas Malthus theory?

Poverty and famine unavoidable

Population growing faster than food supply

Agricultural Revolution helped to disprove his theories-food supply grew faster than population

What was David Ricardo’s theory?

Wrote-Iron Law of Wages Rapid population growth

would lead to fierce competition for jobs

No government help, poor need to help themselves

Did not happen bc of lower birthrates in western countries

Malthus and RicardoMalthus and Ricardo

People had to work hard, save money, People had to work hard, save money, and have fewer kidsand have fewer kids

Called dismal science because of their Called dismal science because of their gloomy outlookgloomy outlook

What is Utilitarianism? Jeremy Bentham Laws should be judged by

their usefulness Laws should advance

human happiness and reduce human misery

Promoted laws to limit working hours for women and children

Set up commissions investigating factories and mines

Results of BenthamResults of Bentham

Parliament passed the first laws Parliament passed the first laws regulating child employment in factoriesregulating child employment in factories

Also, prohibited woman and children from Also, prohibited woman and children from working in minesworking in mines

18 and under and women could only 18 and under and women could only work 10 hours a day in the textile work 10 hours a day in the textile factoriesfactories

What were the new ideas of Robert Owen?

Cooperation should replace competition Established a “model” town Improved working and living conditions First to promote socialism

Results of OwenResults of Owen

Established a model town in New LanarkEstablished a model town in New Lanark It was a Scottish MillIt was a Scottish Mill Improved living and working conditionsImproved living and working conditions Tried to do in New Harmony, Indiana, but Tried to do in New Harmony, Indiana, but

feuding between the owners and feuding between the owners and residents broke outresidents broke out

What were the ideas of John Stuart Mill?

Redistribution of wealth by taxing income

Voting Rights for all citizens

Equal Rights for Women Also was a Utilitarian and

was a follower of Benthem

Who was William Wilberforce? Evangelical – joined

ideas of Christian faith with making a better society

Member of Parliament

Helped to get a bill passed to end Slavery

Slave Act of 1807

To keep everyone focused and to To keep everyone focused and to encourage participation, we are going to encourage participation, we are going to do a special activity today. do a special activity today.

StudentsStudents who are quiet and listening will who are quiet and listening will be given candy for good behavior.be given candy for good behavior.

StudentsStudents will also receive candy for will also receive candy for answering questionsanswering questions

You may not eat the candy during class You may not eat the candy during class because it may not be yours to keep.because it may not be yours to keep.

What is Economics?

Economics is the study of how societies use scarce resources (land, labor and capital) to produce valuable goods and distribute them among different people for consumption

Never available in sufficient quantities to produce goods and services to satisfy human want

What 3 questions every economy must answer? What should be produced? Production How should the goods be distributed?

Distribution How many goods should be produced?

Consumption

What were the different economic philosophies that grew out of the

Industrial Revolution?

Capitalism/Market Economy

Socialism/Mixed Economy Communism/Command

Economy

What are the three types of economic philosophies from the reading?

What kind of economic system did What kind of economic system did Great Britain have prior to the Great Britain have prior to the Industrial Revolution?Industrial Revolution?

Feudalism-based on farming, social rank, Feudalism-based on farming, social rank, trade and barteringtrade and bartering

Mercantilism-Strict government control of Mercantilism-Strict government control of trade and colonies. The colonies served trade and colonies. The colonies served to benefit only the mother countryto benefit only the mother country

But by late 1700s a merchant class starts But by late 1700s a merchant class starts to emerge from the Industrial Revolutionto emerge from the Industrial Revolution

It is this merchant class/middle class that It is this merchant class/middle class that start calling for economic changestart calling for economic change

Who was this Who was this merchant/middle class?merchant/middle class?

Factory OwnersFactory Owners Factory ManagersFactory Managers Railroad OwnersRailroad Owners Mine OwnersMine Owners They saw the Industrial Revolution as a way to They saw the Industrial Revolution as a way to

move up in social class and get richmove up in social class and get rich Could not do this under feudalismCould not do this under feudalism Call for a change in the economic system and Call for a change in the economic system and

began supporting Capitalismbegan supporting Capitalism

How did economic policies change during the Industrial Revolution?

Most nations began with Capitalism/Market Economy

Who introduced Capitalism/Market Economy

Adam Smith

Who was Adam Smith? Who was Adam Smith? What was the title of his book?What was the title of his book? ““Wealth of Nations”Wealth of Nations” Laid the groundwork for a Laid the groundwork for a

Laissez–Faire government in this Laissez–Faire government in this bookbook

Attacked the policy of Attacked the policy of mercantilism-for a nation to mercantilism-for a nation to become as wealthy as possiblebecome as wealthy as possible

Mercantilism did this by strict Mercantilism did this by strict government control of trade and government control of trade and establishment of coloniesestablishment of colonies

What were Smith’s What were Smith’s Ideas?Ideas? Laissez-Faire-No Government Laissez-Faire-No Government

intervention/regulationintervention/regulation Free MarketsFree Markets Free EnterpriseFree Enterprise Individualism-Most Profit Individualism-Most Profit

with least cost (Self-Interest)with least cost (Self-Interest)

What is Laissez Faire?

No taxes or laws by the government that would impact business No regulation of businesses by the government-hands off

What are free markets?

•Supply and demand determine Supply and demand determine what and how much to producewhat and how much to produce

•Too much supply, not enough Too much supply, not enough demand-waste-lowers pricedemand-waste-lowers price

•Too much demand, not enough Too much demand, not enough supply-missed opportunities and supply-missed opportunities and sales-raises pricessales-raises prices

•Competition regulates the price Competition regulates the price of goods-only 1 shoe companyof goods-only 1 shoe company

With what industry did we see the demand exceed the supply?•Textiles

What is free enterprise?

The freedom of private businessThe freedom of private business

to operate completely for to operate completely for profitprofit

with with nono intervention by the intervention by the

government-profit motivegovernment-profit motive

How will society benefit? IndividualismIndividualism

When each person does what is When each person does what is best for him or her everyone best for him or her everyone benefits-How?benefits-How?

Self-interest add up to common Self-interest add up to common goodgood

What is Capitalism/Market

Economy? Economic system characterized by the

following: Free Enterprise - Private ownership of

property (businesses) Laissez Faire - No government intervention Individuals and businesses compete for their

own economic gain-profit motive Supply and demand determine the prices of

goods and services Profit and competition Also known as a Market Economy

ExampleExample

•Example - Two businesses in Solon, Ohio sell shoes. •They compete for customers in order toget profit for the owners. They pay no taxes to the state or federal government. There is no regulation on the quality, production, or cost of the shoes. As they compete for customers they might increase advertisements, lower prices, and create a higher quality shoe in order to get the largest share of the business and increase their own wealth.

•Example - Two businesses in Solon, Ohio sell shoes. •They compete for customers in order toget profit for the owners. They pay no taxes to the state or federal government. There is no regulation on the quality, production, or cost of the shoes. As they compete for customers they might increase advertisements, lower prices, and create a higher quality shoe in order to get the largest share of the business and increase their own wealth.

Think/Pair/ShareThink/Pair/Share

What do you think are some of the What do you think are some of the results that would occur because of results that would occur because of “pure” Capitalism/Market Economy?“pure” Capitalism/Market Economy?

What were the results of Capitalism/Market

Economy? Economic Growth Large gap between the rich and poor-

haves and have nots Extreme Poverty Child labor City Slums Educational Neglect Unsafe and unsanitary working

conditions

How many pieces of candy did you receive?How many pieces of candy did you receive?Did you like this activity today? Why or why Did you like this activity today? Why or why not?not?

How is this activity like Capitalism/Market How is this activity like Capitalism/Market Economy?Economy?

Capitalism/Market Capitalism/Market EconomyEconomy

Motivated by Motivated by profitprofit--candy=profitcandy=profit-more -more motivated, more candymotivated, more candy

IndividualismIndividualism-Nobody was helping you--Nobody was helping you-how many pieces of candy you received how many pieces of candy you received was up to you-acting in your own self was up to you-acting in your own self interest.interest.

Individual people Individual people were rewarded for good were rewarded for good work-received candy for answering work-received candy for answering questions correctly.questions correctly.

Capitalism/Market Capitalism/Market EconomyEconomy

CompetitionCompetition-everyone wanted to have -everyone wanted to have the most candy.the most candy.

Candy was Candy was unequallyunequally distributed-upper, distributed-upper, middle, lower classmiddle, lower class

Free Enterprise/Private ownership Free Enterprise/Private ownership of of candy-it was yourscandy-it was yours

Capitalist SocietyCapitalist Society-Truck driver example-Truck driver example

Does a true Does a true Capitalistic/Market Capitalistic/Market

Economy exist today?Economy exist today? No-Economies of countries today are mixed No-Economies of countries today are mixed

economies.economies. Due to the problems of Industrialization, the US Due to the problems of Industrialization, the US

and Great Britain’s government had to take an and Great Britain’s government had to take an active role in the economy-regulationactive role in the economy-regulation

In what ways does our government regulate In what ways does our government regulate the economy?the economy?

Although the United States economy is based Although the United States economy is based off of Adam Smiths ideas, we are actually a off of Adam Smiths ideas, we are actually a Mixed EconomyMixed Economy

Which of the following is not a characteristic of capitalism/market economy?1. Laissez-faire

2. Private ownership3. Government controls

the means of production

4. Supply and demand determine price and quantity

5. Large gaps between the rich and the poor Table

Which of the following best represents the ideas of Adam Smith?

1. The working class should revolt against the industrialists

2. Competition for jobs will keep wages high and therefore people will become rich

3. If everyone acts in their own interests, all of society will benefit

4. The government should regulate business so everyone has a fair chance.

Table

1. Who was a strong proponent of 1. Who was a strong proponent of Capitalism/Market Economy?Capitalism/Market Economy?

2. What does Laissez-Faire mean?2. What does Laissez-Faire mean?

3. What are the four characteristics of 3. What are the four characteristics of Capitalism/Market Economy? Capitalism/Market Economy?

4. Do you feel that our candy activity from 4. Do you feel that our candy activity from yesterday was fair? Why or why not? yesterday was fair? Why or why not?

5. What happens in a “pure” Capitalist/Market 5. What happens in a “pure” Capitalist/Market Economy?Economy?

BellworkBellwork

Activity todayActivity today Today, every student is going to start class Today, every student is going to start class

with the same amount of candy (1 piece). with the same amount of candy (1 piece). Everyone will get at least 1Everyone will get at least 1

Each student will still get an extra piece of Each student will still get an extra piece of candy for answering a question and good candy for answering a question and good behavior.behavior.

The more candy The more candy the classthe class accumulates, the accumulates, the more you will receive at the end of class.more you will receive at the end of class.

You cannot eat your candy until the end You cannot eat your candy until the end because it may not be yours to keepbecause it may not be yours to keep

Who challenged the ideas of Capitalism (Adam

Smith) and Socialism?

Karl Marx

•Communist Manifesto, 1848

•What is Communism/Command Economy ?

According to Marx, what caused society to

change? Conflict between the “haves and have-nots” Social Classes that come about in a

Laissez-Faire Capitalistic Society

Who were the “Haves and Have-nots during the

IR? Haves:

Capitalists – factory and business owners (bourgeoisie and upper class) Power – control the govt. Money - keep the profits

Have-nots Workers-Proletariat

Low wages, working conditions

What should the Working Class do?

REVOLUTION - Workers should unite and overthrow the capitalist middle class (bourgeoisie) and upper class

“Working men Working men of all countries, of all countries, unite!”unite!”

Who will own the factories and businesses?

NO PRIVATE OWNERSHIP - All means of production (factories and businesses) will be owned and controlled by society-the people

Who will receive the profits?

EQUAL DISTRIBUTION OF WEALTH - Profits will be equally distributed among the people according to need

“From each From each according to his according to his ability to each ability to each according to his according to his need”need”

Who will have the power?

NO GOVERNMENT - Workers will temporarily control the government (“Dictatorship of the Proletariat”) until all classes cease to exist and

then the government will no longer be needed. It will cease to exist

How will Society Benefit?

Collectivism Society benefits when everyone works

together for the common good-will eventually lead to a Utopian Society where everyone is equal and leading rich, diverse lives.

Who will have the power?Who will have the power?

A society will start off with capitalism-but A society will start off with capitalism-but brutal on peoplebrutal on people

The society will then adapt socialism with The society will then adapt socialism with a fairer distribution of wealtha fairer distribution of wealth

Ultimately, the government will wither Ultimately, the government will wither away and the people will have away and the people will have control/powercontrol/power

Communism/Command Communism/Command EconomyEconomy

Blamed Capitalism for poor conditions in cities/factoriesBlamed Capitalism for poor conditions in cities/factoriesHistory under Capitalism is a class struggle (haves and have History under Capitalism is a class struggle (haves and have nots)nots)Proletariat (working class) must overthrow the upper class and Proletariat (working class) must overthrow the upper class and set up a dictatorship set up a dictatorship Authoritarian rule-government controls everything until society Authoritarian rule-government controls everything until society can be set up on communist principles where the people have the can be set up on communist principles where the people have the power.power.

What is Communism/Command Economy?

An economic philosophy characterized by the following No Free of Enterprise/private ownership of business

– people own factories, businesses, natural resources

Wealth is redistributed among the people in society equally

Ultimately becomes a classless society Collectivism-All work together Government will cease to exist Not working for a profit, no competition

ExampleExample

The former Soviet Union, which began when the Bolsheviks (The Russian political party that supported communism) gained power in 1921 and began to collect the wealth and redistribute the wealth according to need and governmental wants. In addition, the Soviet Union’s government made most of the key decisions including what was produced, who produced it, and how it was produced. Soviet citizens worked not for profit but for the benefit of the Soviet people as a whole and the wishes of the Communist leadership.

Write down how many pieces of candy Write down how many pieces of candy you have.you have.

Let’s collect everyone’s candy and divvy Let’s collect everyone’s candy and divvy it out equally. it out equally.

How many pieces do you have now?How many pieces do you have now? Is this fair? Why or why not?Is this fair? Why or why not?

How was this activity like How was this activity like Communism/Command Communism/Command

Economy?Economy? CollectivelyCollectively working together to get more working together to get more

candycandy Did not have ownership Did not have ownership of your own candyof your own candy Equal distribution Equal distribution of candy=wealthof candy=wealth Classless society-Classless society-no upper, middle, lowerno upper, middle, lower Everyone has the Everyone has the samesame amount of amount of

wealth/candywealth/candy

What do you think about What do you think about this economic system?this economic system?

Is there anything wrong with this system?Is there anything wrong with this system? Students will still be able to receive candy Students will still be able to receive candy

even if the were not acting appropriately even if the were not acting appropriately or answering questions. No incentive to or answering questions. No incentive to work hardwork hard

Truck driver exampleTruck driver example 5000 books-$1.00 a book-26 students-5000 books-$1.00 a book-26 students-

$192.00 each-even if you did nothing$192.00 each-even if you did nothing

In reality, what would be some In reality, what would be some results of Communism/Command results of Communism/Command

Economy?Economy?

People are not motivated to work hardPeople are not motivated to work hard No incentive to get aheadNo incentive to get ahead Communism hard to implement-people are Communism hard to implement-people are

naturally competitivenaturally competitive Can a Utopian Society truly exist?Can a Utopian Society truly exist? Communist countriesCommunist countries today are not truly today are not truly

communist…never made it to a classless society communist…never made it to a classless society with no governmentwith no government

They are a Mixed Economy tooThey are a Mixed Economy too

Today’s ActivityToday’s Activity

To keep everyone focused and to encourage To keep everyone focused and to encourage participation, we are going to do another participation, we are going to do another activity today. activity today.

Students who are quiet and listening will be Students who are quiet and listening will be given candy for good behavior.given candy for good behavior.

Students will also receive candy for Students will also receive candy for answering questionsanswering questions

You may not eat the candy during class You may not eat the candy during class because it may not be yours to keep.because it may not be yours to keep.

ProposalProposalI decided to change our I decided to change our

grading policy.grading policy.

1.1. What do you like about What do you like about this policy?this policy?

2.2. What do you dislike?What do you dislike?

3.3. How would this affect How would this affect your behavior as a your behavior as a student?student?

4.4. What problems might What problems might arise in using this arise in using this method?method?

“Students, this six weeks you will receive the class average on your report

card.”

What is Socialism/Mixed Economy?

An economic system characterized by Government controlling

some base industries Not for a profit, but to

provide goods and services at a cheap cost

Health care, prescriptions, telephone service, education, public transportation, etc.

People that work in these industries are paid by the government

Uh OhA socialist!

What is Socialism/Mixed What is Socialism/Mixed EconomyEconomy

Some private ownership of business

Everybody has something Where do they get this money? Taxes More you make, the more you are More you make, the more you are

taxedtaxed

What is Socialism/Mixed Economy?

The tax goes to helping the lesser off to The tax goes to helping the lesser off to make a fairer distribution of wealthmake a fairer distribution of wealth

It also goes toward your health It also goes toward your health insurance, education, prescriptions, etc.insurance, education, prescriptions, etc.

Felt that pure capitalism was too brutal Felt that pure capitalism was too brutal on people because it created the haves on people because it created the haves and have nots.and have nots.

ExampleExample

Individual French citizens own businesses motivated by profit. However, the French government controls the health care industry in order to make it available to all French citizens. The French people pay high taxes to assure health care is provided for little or no costs to individuals. The above example could also be referred to as Socialism, which means government owns and controls certain base industries.

DebriefDebrief

Write down the amount of candy your Write down the amount of candy your have.have.

If you received more than 4 pieces, put If you received more than 4 pieces, put the rest aside to be collected for taxes. the rest aside to be collected for taxes.

We are going to We are going to redistributeredistribute the candy the candy only to the students with very few pieces.only to the students with very few pieces.

How many pieces do you have now?How many pieces do you have now? Do you have more or less than when we Do you have more or less than when we

started?started? Do you think this is fair? Why or Why Do you think this is fair? Why or Why

not?not?

What kind of economic system is this?What kind of economic system is this? Socialism/Mixed EconomySocialism/Mixed Economy

How did our activity today How did our activity today exemplify Socialism/Mixed exemplify Socialism/Mixed

Economy?Economy? Received a piece of candy for answering Received a piece of candy for answering

the question correctly.the question correctly. More than four, had to More than four, had to give back-Taxesgive back-Taxes If you received a small amount, I gave you If you received a small amount, I gave you

more from themore from the taxes taxes I collectedI collected A more A more equal distribution equal distribution of candyof candy Nobody really had a lot, but everybody Nobody really had a lot, but everybody

had something.had something.

65

Capitalism: You have 2 cows. Sell 1 cow and buy a bull.

Explain

Socialism: You have 2 cows. Give one to a neighbor.

Explain

Communism: You have two cows. Your neighbors help take care of them and you share the milk.

Explain

Governmental Philosophies

Which of the following is a characteristic of socialism/market economy?

1. Government controls the major industries (steel, transportation etc.)

2. The elimination of government and social classes

3. Governments do not interfere in economic activity

4. Private individuals control all of the means of production

Which of the following describes

communismcommand economy?

1. Allows for some private ownership

2. Elimination of government and social classes

3. Ideas from Adam Smith

4. Follows the laws of supply and demand

Which of the following economic systems arose from poor living and working conditions during the Industrial Revolution?1. Capitalism

2. Socialism

3. Communism

4. Both 1 and 2

5. Both 2 and 3

6. None of the above

Which of the following describes an idea of Karl Marx?

1. Laissez-faire2. Bourgeoisie would

revolt against the Proletariat

3. Entrepreneurs would control government

4. Proletariat would revolt against the Bourgeoisie

5. All of the above

In all three of these In all three of these activities, what did the activities, what did the

candy represent?candy represent?

Mixed EconomiesMixed Economies

In your groups come up with three In your groups come up with three examples that make the US a mixed examples that make the US a mixed economyeconomy

24.2 The New Science24.2 The New Science

Charles Darwin came Charles Darwin came up with theory of up with theory of Evolution Evolution

Wrote On the Wrote On the Origins of The Origins of The Species – plants Species – plants and animals adapt and animals adapt to their to their environment. environment.

MendelMendel Gregor Mendel was Gregor Mendel was

curious home plants curious home plants and animals passed and animals passed characteristics to one characteristics to one another.another.

Found that information Found that information is passed through is passed through genesgenes

Eventually becomes Eventually becomes study of geneticsstudy of genetics

Advances in MedicineAdvances in Medicine

Edward Jenner – created first vaccination Edward Jenner – created first vaccination (smallpox ) (smallpox )

Louis Pasteur – discovered bacteria and Louis Pasteur – discovered bacteria and germs, also discovered that bacteria germs, also discovered that bacteria reproduces like other living thingsreproduces like other living things

Surgery – creation of anesthetics and Surgery – creation of anesthetics and chloroform – now safe and painless chloroform – now safe and painless surgery surgery

Physics and Social Physics and Social SciencesSciences

Atomic Theory – all matter is made up of Atomic Theory – all matter is made up of tiny particlestiny particles

John Dalton – proved atomic theory John Dalton – proved atomic theory Creation of x-rays, physics, Creation of x-rays, physics,

electromagnetism electromagnetism Albert Einstein’s theoryAlbert Einstein’s theory Sociology and Psychology Sociology and Psychology

Ivan PavlovIvan Pavlov Sigmund FreudSigmund Freud

24.3 Growth of Industrialization 1900s Populations began to grow – Europe

almost doubled in 100 years Medical advances increased life

expectancy and decreased infant mortality

New methods for producing and preserving foods made better food available

Urbanization – growth of cities

8 in 10 English lived in cities by 1914

Came in search of new opportunities - larger farms needed fewer workers

Movement from Rural to Urban

Lifestyle Improvements

Life improved for many in Europe and North America in the 1800s Sewers, garbage collection, police

and fire protection More leisure time for cultural

activities – newspapers, fine arts, sports

The need for public schools was widely accepted by even the elite.

Improvements in working conditions

Child Labor Laws Passed Safety Regulations Formation of Unions 8 hour work day

Moving Around Rural to Urban Emigration – leaving one’s home country to

settle someplace else Push Factors – reasons to leave

Population growth – no jobs, crowded Government Persecution Famine Discrimination

Immigration – entering a new country or region to settle permanently

Pull Factors – reasons to come Better life Higher Pay Better Working Conditions

NeoclassicalNeoclassical

Lasted from 1750-1850Lasted from 1750-1850 Honored classical art from ancient Rome Honored classical art from ancient Rome

and Greeceand Greece The artwork tends to show traditional The artwork tends to show traditional

timestimes Encouraged order, reason, and disciplineEncouraged order, reason, and discipline

RomanticRomantic

Lasted from 1800s-1850Lasted from 1800s-1850 Believed in the importance of returning to Believed in the importance of returning to

nature.nature. Showed imagination and emotion rather Showed imagination and emotion rather

than intellect and reasonthan intellect and reason

RealistRealist

Lasted 1830s-1900Lasted 1830s-1900 Emphasized showing people as they areEmphasized showing people as they are Depict situations in daily lifeDepict situations in daily life

Joseph M.W. Turner’s Childe Harold’s Pilgrimage –Italy, 1832

ROMANTIC PERIOD

Jacques-Louis David The Death of Socrates 1787

NEOCLASSICAL PERIOD

Kathe Kollwitz The March of the Weavers ,1897

REALIST PERIOD

Jean-Auguste-Dominique The Apotheosis of Homer, 1827

NEOCLASSICAL PERIOD

Edgar Degas Women Ironing,1884

REALIST PERIOD

Eugene Delacroix Liberty Leading the People 1830

ROMANTIC PERIOD