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Reforming the Industrial World

Chapter 9 Section 4. Reforming the Industrial World. Main Idea. The Industrial Revolution led to economic, social and political reforms. Many modern social welfare programs developed during the period of reform. Introduction.

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Reforming the Industrial World

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  1. Chapter 9 Section 4 Reforming the Industrial World

  2. Main Idea • The Industrial Revolution led to economic, social and political reforms. • Many modern social welfare programs developed during the period of reform.

  3. Introduction • In industrialized countries there was a wide gap between the rich and the poor. • Business leaders wanted the government to stay out of their affairs. • Reformers wanted governments to play an active role to improve the conditions for the poor. • Workers demanded more rights and protection. • Formed labor unions.

  4. The Philosophers of Industrialization • Laissez-faire – economic policy of letting the owners of industry and business set working conditions without interference. • Favors a free-market. • Literally means “let do”. • “Hands-off” approach.

  5. Laissez-Faire Economics • Philosophers believed that government regulations only interfered with the production of wealth. • If government allowed free-trade, economy would prosper.

  6. Adam Smith • Defended his idea of a free economy in The Wealth of Nations. • Three natural laws of economics: • The law of self-interest – own good • The law of competition – better products • The law of supply and demand

  7. The Economists of Capitalism • Capitalism – economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit.

  8. The Rise of Socialism • Opposite of laissez-faire. • Philosophers believed government should intervene. • Wealthy people’s and government’s duty to take action to help the less fortunate.

  9. Utilitarianism • People should judge ideas, institutions, and actions on the basis of their utility, or usefulness. • Government should produce the greatest good for the greatest number of people.

  10. Socialism • Reformers sought to offset the ill effects of industrialization with a new economic system called socialism. • Socialism – factors of production are owned by the public and operate for the welfare of all. • Grew from an optimistic view of human nature. • Argued that government should plan the economy and not depend on the free market to do so.

  11. Socialism (cont.) • Government control of factories, railroads, mines, etc., would end poverty and promote equality.

  12. Presidential Election 2008 • What message is the editor trying to send? • Do you agree?

  13. Marxism: Radical Socialism • Karl Marx – German journalist. • Introduced the world to a radical type of socialism = Marxism. • Marx, paired with Friedrich Engels, wrote The Communist Manifesto.

  14. The Communist Manifesto • Argued that human societies have always been divided into warring classes. • Bourgeoisie – Middle Class, “haves” or employers • Proletariat – “have nots” or workers • Wealthy controlled the means of producing the goods. • Poor performed difficult labor under horrible conditions.

  15. Marx and Engels • Industrial Revolution enriched the wealthy and impoverished the poor. • Prediction: Workers would overthrow the owners. • “The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries, unite.”

  16. Communism • Communism – complete form of socialism. • All means of production would be owned by the people. • Private property would cease to exist.

  17. Effect of Communism • Revolts sprung up. • Were not successful in the long-term. • However, after 1900, there were explosive results. • Marxism inspired Russia’s Lenin, China’s Mao Zedong, and Cuba’s Fidel Castro. • Adapted Marx’s beliefs to their own situations and needs.

  18. Labor Unions and Reform Laws • Long hours, dirty and dangerous working conditions and the threat of being laid off. • By the 1800s the working class had became more involved in politics. • To gain reform, workers joined unions, voluntary labor associations.

  19. Unionization • A union spoke for all people in a certain trade. • Unions engaged in collective bargaining. • Negotiations between workers and their employers. • Bargained for better working conditions and higher pay. • If the owners refused… • Strike = refusal to work.

  20. Unions • Unions were thought to be a threat to social order and stability. • Combination Acts of 1799 and 1800 – outlawed unions and strikes.

  21. Reform Laws • Factory Act – 1833 made it illegal to hire children under 9 • Children from 9 – 12 could not work more than 8 hrs • Ages 13 – 17 could not work more than 12 hours • Mines Act – 1842 prevented women and children from working underground

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