By: Sonnier Vander Ploeg Modern World History

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Capitalism Project

• By Sonnier Vander PloegModern World History
• February 11, 2004

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Adam Smith Cause of Industrialization
Back in 1776, Adam Smith, like many others,
looked at societies around him and saw where he
thought change was needed. Looking at England, he
saw how the government interceded with business
affairs and he thought that the business would be
far better off without the government influencing
them. He came to this conclusion by looking
around and seeing that people, and their
individual businesses, are self-seeking. He was
at first perplexed how businesses, such as these,
could be self-seeking and yet the society as a
whole, not just fall apart. Smith soon found,
what he calls as the invisible hand, which
helps to guide and conform the businesses so that
their private interests are led towards what
would be most agreeable to the society as a
whole. These ideas were listened to and
governments started to leave the businesses
alone, which allowed more to start up. This was
the beginning of industrialization.
(continued)
Statue of Adam Smith (Adam)
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(continued) Competition began to spring up
everywhere therefore, people were trying to
think of new inventions and ways to lower cost so
that they could make more money. Smith believed
that monopolies stifled the growth of wealth and
the interests of the consumer were harmed, which
is why he believed in so-highly in competition.
This competition also made the possibility of a
monopoly slim. However, when one did come up,
like John D. Rockefeller and his shares in oil,
the government, according to Smith, was not to
interact. Smith felt that the governments should
leave it be, laissez-faire, and that the
natural self-interest of men would be enough to
prevent any monopolies. This, however, was one of
Smiths mistake, because once a company, or man,
like Rockefeller owned the majority of the
countrys oil, it is near impossible for other
people, no matter how great their self-interest
be, to compete with Rockefeller, simply not
possible. With all the technology being invented,
countries began to leave agriculture behind and
become more machine-heavy. While it did come with
the bonuses of cheaper prices, better quality,
and a lot more jobs, it was not without its
consequences.
An Inquiry unto the Nature and Causes of the
Wealth of Nations Vol. III By Adam Smith (NMM)
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Industrialization
As one can imagine, industrialization changed the
way people were used to living. This change
included many new technologies, which we now take
for granted, and many more jobs for poorer
people. This, however, caused some break-a-way
from traditional ways and values. Instead of the
oldest son staying and working on the farm and
all the other children marrying or finding some
other line of work, most of the children would go
into to the city for better paying jobs. The
farms, now unattended, would be sold by the
landlords to big companies, so that they had
could build more factories, therefore, any
families still working and living off the land
would be forced off because of the landlords
want for more money. This rush to the cities
caused a population boom, and with more jobs and
health insurance increasing, more people were
staying alive and the population soared to a few
billion. However, even with this population burst
that was occurring, many people would not allow
their children to go and work in the factories,
therefore, companies would buy children from
orphanages and work houses (Workhouse) to make
sure there was enough employees. (Continued)
A cartoon showing children drinking coffee like
grown-ups during their break at work.
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Industrialization was also a time were many
companies were and competition were springing up.
With increased competition, new products were
being introduced into society, which were cheaper
and of better quality than before, so even the
poor could afford to have tea and coffee in their
homes. On the other hand, however, starting to
work as soon as physically possible for 15 to 16
hours a day with only an hour break for lunch in
incredibly hot and, at times, very un safe
workplaces was now becoming the lifestyle for
many people. Another thing, which changed for the
worse during this period, was the environment.
With all of the factories springing up over
America, and the world, gallons more of pollution
was being dumped into the air through smoke
stacks. With so many people working and producing
products faster than before, it is not hard to
imagine all of the pollution that started to
appear, and that we can still see today. After,
and also because of the Industrial Revolution,
people stopped specializing in one trade.
Instead, a person who used to be a shoemaker now
is only putting the string on the shoe. This
division of labor helped increase speed and lower
cost for merchandise, making it cheaper and more
readily available for the public. However, you
lost the personal touch of a village shoemaker,
and the shoemaker, and the generations that were
to follow him, would lose the skill of being able
to make a whole shoe.
Children Factory Workers (Child)
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Social Darwinism
Social Darwinism is the basic idea that those
people who have the right genetics, no matter
what their background or education, will be as
rich or as poor as they are supposed to be.
Receiving their underlying concept, and name,
from a British scientist, Charles Darwin, and his
study on finches and their natural selection.
Social Darwinists took his idea of natural
selection and made it fit people. They saw that
people who were rich, and countries which were
powerful, were that way because of better
genetics. Obviously, those who believed and came
up with this idea were those with a lot of money,
and the countries who were colonizing the rest of
the world. They needed a reason that would keep
the poor and suppressed satisfied with their
position in life without causing revolts.
However, they did not just stop there, Social
Darwinists believed that in order for society to
be everything it could and should be, those not
sufficiently complete to live, they die and it
best they should die. (Spencer) According to
John D. Rockefeller, a man who owned nearly all
the oil in America, The American Beauty rose can
be produced in the splendor and fragrance which
bring cheer to its beholder only by sacrificing
the early buds which grow up around it.
(Rockefeller) (continued)
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(continued)Capitalism also helped lead to Social
Darwinism by creating a huge gap between the rich
and the poor. This was also a period when
imperialism was beginning to spread and as a
cause or a reason for conquering other countries,
imperialists believed in Social Darwinism.
However, like any idea or belief, there are the
faults and cracks in the argument. For example,
many of the men who believe can came up with this
idea inherited their wealth, and it had nothing
to do with what genetics they carried, nor what
work they did, simply what their parents passed
on to them. Also, the degree of education that
richer families can buy for their kids compared
to that of public schools, which families who
have no money had to send their kids to, could
easily account for the wealth difference.
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(Chapter)
(What)
Comics laughing at Social Darwinism
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Karl Marx saw what was coming into existence as a
result of Capitalism and from that predicted what
was going to happen, as all philosophers did.
Marx was especially appalled at child labor and
the huge gap between the rich and the poor. He
saw how there was enough money in the world in
order for everyone to be able to live comfortably
and with enough food in their bellies. Then he
saw how people on one end of the scale had
billions of dollars to spare and were letting
good food go to waste, while others were begging
and dieing of malnutrition. His simple solution
to this gap between classes become smaller, or
even non-existent was to have all the money go
into a common place, so that everyones wages
would be there and then would be equally divided
amongst the community. The problem, as he saw it,
would be gone, however, people who didnt work at
all
Marxism
receive the same amount of money as someone who
went to school and worked as hard as they could.
Personally, this wouldnt seem fair to me, and it
provides no incentive for people to work. I
believe that if people dont think they will be
getting something out of working that will help
benefit them, the wont see the point in working
and just profit off of others work and stay at
home and be lazy bums. The capitalism idea of how
greedy everyone is and how they are interested,
mainly and most people, in pursuing their
self-interests, is a universal truth.
(continued)
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(continued) In his Communist Manifesto, Karl Marx
stated that there would be a revolution and that
capitalism will eventually destroy, however, he
also said that the proletariats, or the working
class, would get fed up with their living
arrangements and how rich the rich people are and
demand a change. Since the proletariats are so
greater in numbers than the bourgeoisie, or
ruling class, Marx assumed they would accomplish
their task and that capitalism would die out.
Marx saw labor as the source of all value because
it made everything possible, therefore, he
concluded that all wealth is due to labor, and
therefore to the labor all wealth is due.
(Nandy) He then saw a classless society, a
utopia, which he gave the name of communism to
show the people would come together and help one
another. Marxists today still believe that his
ideas will one day happen, and as it is, there
are still countries today that practice reformed
communism.
Communist Manifesto (Devon)
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Bibliography

• Adam Smith Collection. Chiba University. 11 Feb
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• Rockefeller, John D. American Industrialist
  (Document C)
• Spencer, Herbert (Document B)
• Terrence, Byres. Greenhaven Press, St. Paul,
  Minn. 1980
• What we, the RPS, find humorous. RPS. 11 Feb 2004
  lthttp//www.rps.net/PICS/Humor/gt
• Workhouse Children. 12 May 2002. 9 Feb. 2004
  lthttp//www.spartacus.schoolnet.co.uk/IRworkhouse.
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The End