Chapter 7 section 4

1
Chapter 7 section 4

• New ways of thinking

2
Laissez-Faire Economics

• Government should not interfere with business of
  free operation of the economy
• Adam Smith- The wealth of Nations
• Unregulated trade and exchange of goods and
  services
• Felt that free market would produce more products
  at less prices
• Capitalists would reinvest profits into new areas
  of growth

3
Malthus on Population

• Predicted that population would outpace the food
  supply
• Only things to keep population in check would be
  war, dieses and famine
• He also felt that the poor would suffer the most
  and urged them to have fewer children
• He was accurate in the population growth however
  food supply increased at even greater rates

4
Ricardo on Wages

• Also felt that the poor had to many children
• iron law of wages
• When wages were high people had more children
  larger labor forcelesser pay and higher
  unemployment

5
The Utilitarian

• Fought for the protection of women children and
  public health
• the greatest happiness for the greatest number
  Jeremy Bentham
• Supported individual freedom
• Felt government should be a little involved in
  the economy
• John Stuart Mill
• Actions are right if they cause happiness and
  wrong if they cause pain

6

• John Stuart Mill
• Actions are right if they cause happiness and
  wrong if they cause pain
• He felt that the government should get involved
  in labor issues when the workers were being
  exploited
• More rights for worker and women

7
Emergence of Socialism

• Focused on the goods of society
• Condemned evils of industrial capitalism
• People as a whole would run and own the means of
  productions
• Society would operate for the benefit of all
  members , rather than just the wealthy

8
The Utopians

• The ideal society
• All work and property shared by the community
• No difference between rich and poor
• Impractical dreamers

9
Robert Owen

• Utpian who created his own Utopia
• Campaigned for laws that limited child labor and
  encouraged labor unions
• New Lanark Scotland
• Model village
• Built homes for workers
• Treated them with respect
• Proved that people would obey even when treated
  well

10
Scientific Socialism

• Karl Marx
• Based on the scientific study of history
• Wrote The communist Manifesto with Frederick
  Engels
• Communism- sees the struggle between workers and
  employees as unavoidable
• Economy was the driving force in history
• Have vs have-nots

11
Connecting past to present

• Failures
• Marx felt that when the working class rebelled it
  would set off a world revolution
• Actually caused a number of changes in society
  and the work place

• Revolutions
• Russian socialists embraced Marxism
• 1917 Russia fell to communism along with many
  other countries
• By 1990 many of these nations have embrace the
  free-market capitalism