# Reforming the Industrial Revolution pp. 734-740Name:

  1. The Growth of Capitalism
  1. Laissez-faire:
  1. Based in the ideas of French Economic philosophers of the Enlightenment.
  1. Government regulations interfered with wealth production.
  1. Adam Smith: wrote The Wealth of Nations about a free economy (free markets) and the 3 laws of economics.
  1. Law of Self-Interest-
  1. Law of Competition-
  1. Law of Supply and Demand-
  1. Capitalism: An economic theory based on the beliefs laissez-faire economics, Adam Smith and other economists.
  1. Capitalism:
  1. Thomas Malthus-
  1. Laissez-faire thinkers opposed government efforts to help workers such as the minimum wage/improved (regulated) working conditions. They felt such regulations would lower profits and interfere with the production of wealth.
  1. Socialism:
  1. Jeremy Benthem: introduced the idea of Utilitarianism in the late 1700s
  1. Utilitarianism:
  1. Government should promote the greatest good for the greatest number of people.
  1. In general, an individual should be free to pursue his/her own advantage without interference from the state.
  1. John Stuart Mill:
  1. Wanted government policies that would lead to a more equal division in profits.
  2. Wanted
  1. Give
  1. Governments
  1. Socialism:
  1. The government
  2. Government control of factories, mines, railroads and other key industries would end poverty and promote equality.
  3. Public (government) ownership
  1. One way to change
  1. Communism-
  1. The Communist Manifesto:
  1. Human society has always been divided into Haves and Have Nots who are at war.
  2. “Haves”=
  1. “Have Nots”=
  2. The wealthy controlled all the means of production while the poor labored under terrible conditions.
  1. Marx believed that Capitalism would soon destroy itself.
  1. Factories would drive small artisans out of business leaving just a few in control of all the wealth.
  2. The proletariat would revolt
  1. Workers would share
  2. Workers would control
  1. Eventually,
  1. Pure Communism:
  1. No personal property would be needed or allowed- all goods and services would be shared equally.
  2. 1900s-
  1. Pure communism never emerged in these revolutions only dictatorship.
  1. Why didn’t workers revolt worldwide as Marx had expected?
  1. Marx and Engles
  2. Failed to account for the influences of
  1. The gap between the rich and poor widened but not in the way Marx expected because conditions for the poor improved because of the development of unions and government reforms.
  1. Labor Unions and Reform: Working people grew tired of long hours, dangerous working conditions and low wages. By the 1800s, they became more interested in politics and reform.
  1. Unions:
  1. Unions
  2. Collective bargaining:
  1. Unions
  2. Strike:
  3. Skilled workers
  4. Governments in both the US and Britain passed laws outlawing unions.
  5. Workers joined unions anyway and they eventually became legal.
  1. Other Reforms.
  1. Governments began to investigate child labor and working conditions.
  2. Factory Act (England) 1833- made it illegal to hire children under 9 years old. Kids 9-12 couldn’t work more than 8 hours. Kids 13-17 couldn’t work more than 12 hours.
  3. 1842- Mines Act-
  4. Unions eventually joined