New Ideas and Reforms

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New Ideas and Reforms

• Chapter 7.3 Notes

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I. Philosophers of Industrialization

• - Industrialization not only changed products
  and work, but the way people thought about
  economics as well.
• Laissez Faire economic policy of letting owners
  of industry and business set working conditions
  without interference
• Unregulated by the government
• Stemmed from French philosophers
• Should allow Free Trade
• Adam Smith free economy equals economic progress

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B. Malthus

• Foundation of laissez faire
• Capitalism an economic system where money is
  invested in business ventures with the goal of
  making a profit
• Thomas Malthus predictions of population
  passing food supply, poverty and misery would
  never go away
• - Malthus ideas were used to justify low wages
  and laws limiting charity to the poor
• - What are the negative effects of capitalism?

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Entrepreneurs

• Someone who starts a new business, many used
  their capital to finance industry and factories
• Andrew Carnegie, John D. Rockefeller, Cornelius
  Vanderbilt

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II. Rise of Socialism

• Some believed in government interference
• Wealthy should improve conditions, capitalism was
  blamed for poor conditions
• Utilitarianism The theory that government
  actions are useful only if they promote the
  greatest good for the greatest number of people
• Utopian Ideas misery of poor inspired
  cooperative communities
• Socialism factors of production are owned by
  the public and operate for the welfare of all
• Government should actively plan the economy

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B. Marxism

• Radical type of socialism, eventually led to
  communism
• Society is always divided into warring warring
  classes
• Employers vs. Employed
• Middle class vs. working class
• Das Kapital
• Argued for equal distribution of wealth

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E. The Future

• the workers would revolt take over the
  businesses and produce what society needs
• Bring about equality
• Classless society would grow and the government
  would wither away Communism
• All private property ends and everyone owns
  everything

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Unionization and Legislative Reform

• Unions voluntary associations joined by workers
• Used Collective Bargaining and Strikes
• 1833 Britain makes it illegal to hire children
  under 9 yrs old
• 1847 10 hours act
• Still other reforms needed (slavery and womens
  pay)
• Standard of living did improve in industrialized
  countries
• Introduction of leisure activites for the middle
  class