Industrial Revolution Part II Capitalism: The good, bad and ugly Growth of Cities Labor vs Management Social Changes and Reforms Socialism, Scientists,

ECONOMICS 101

Some Aspects of Capitalism Competition in business Mass production Assembly line practices Make stuff faster, cheaper, more efficiently Does not require skilled labor Corporations Businesses you can by stock in More $ invested, bigger company gets, more $ it earns, which draws in more investors

Competition in business

Mass production

Assembly line practices

Make stuff faster, cheaper, more efficiently

Does not require skilled labor

Corporations

Businesses you can by stock in

More $ invested, bigger company gets, more $ it earns, which draws in more investors

More Capitalism Ideas Law of Supply and demand High demand and Low supply = high prices Low demand and High supply = low prices Law of Competition Most efficient survive Laissez Faire is the accepted policy

Law of Supply and demand

High demand and Low supply = high prices

Low demand and High supply = low prices

Law of Competition

Most efficient survive

Laissez Faire is the accepted policy

More Definitions Monopoly One person or business owns all means of production, distribution and sales No competition Can charge whatever they want Cartels Small groups of businessmen who control the market on certain goods OPEC – (Organization of Petroleum Exporting Companies) is a modern example

Monopoly

One person or business owns all means of production, distribution and sales

No competition

Can charge whatever they want

Cartels

Small groups of businessmen who control the market on certain goods

OPEC – (Organization of Petroleum Exporting Companies) is a modern example

Last Definition – I promise Business Cycles Natural rise and fall of businesses`

Business Cycles

Natural rise and fall of businesses`

Economic Theories Adam Smith – ”The Wealth of Nations” Laissez Faire Capitalism is GOOD for the country. “greed is good” – industrialists should not be restricted from making $. “ A free market will produce more goods at lower prices, making them affordable by everyone”. The basis of Capitalism More $ = more jobs = better economy = stronger country

Adam Smith – ”The Wealth of Nations”

Laissez Faire Capitalism is GOOD for the country.

“greed is good” – industrialists should not be restricted from making $.

“ A free market will produce more goods at lower prices, making them affordable by everyone”. The basis of Capitalism

More $ = more jobs = better economy = stronger country

Economists of the Industrial Revolution – page 510 Adam Smith: advocated laissez- faire economics. No government regulation of business. .

Adam Smith: advocated laissez- faire economics.

No government regulation of business.

.

Economic Theories II Thomas Malthus First proposed the population bomb idea Humans are like a virus. We multiply faster than food rate, leading to cycles of disaster Governments trying to help people will just make this worse David Ricardo Iron Law of Wages Less people = Higher wages more people having kids More people = lower wages people having fewer kids less people the whole process starting all over again

Thomas Malthus

First proposed the population bomb idea

Humans are like a virus. We multiply faster than food rate, leading to cycles of disaster

Governments trying to help people will just make this worse

David Ricardo

Iron Law of Wages

Less people = Higher wages more people having kids More people = lower wages people having fewer kids less people the whole process starting all over again

Urbanization In the mid 1700s, more than half the population of Britain lived and worked on farms. Between 1750 and 1851, displaced farming families moved to the cities to work in the new factories.

In the mid 1700s, more than half the population of Britain lived and worked on farms.

Between 1750 and 1851, displaced farming families moved to the cities to work in the new factories.

Urban Living Conditions Factory owners rushed to build housing Back to back row houses Several families often share very small houses Poor sanitation High disease rates Crime Massive pollution

Factory owners rushed to build housing

Back to back row houses

Several families often share very small houses

Poor sanitation

High disease rates

Crime

Massive pollution

Housing Conditions

Urban Living Conditions Average Age at Death for Different Classes Rutland – agricultural area in central England Truro – tin mining center Other locations – major industrial centers CITY GENTRY (Wealthy) TRADESPEOPLE (Skilled workers) LABORERS (Unskilled workers) Rutland 52 41 38 Truro 40 33 28 Derby 49 38 21 Manchester 38 20 17 Bethnal Green 45 26 16 Liverpool 35 22 15

Working Conditions and Wages Common working day: 12 – 14 hours One short break for lunch Work week: 6 days per week 80 degree heat Workers were beaten if they did not perform well. Hot, polluted factory air. Workers risked losing limbs from the machines. Low wages.

Common working day: 12 – 14 hours

One short break for lunch

Work week: 6 days per week

80 degree heat

Workers were beaten if they did not perform well.

Hot, polluted factory air.

Workers risked losing limbs from the machines.

Low wages.

Child Labor Children shifted from farm work to factory work. 12 – 14 hour days 6 day weeks Lower wages than adults. Began at age 5. Mining work deformed bodies.

Children shifted from farm work to factory work.

12 – 14 hour days

6 day weeks

Lower wages than adults.

Began at age 5.

Mining work deformed bodies.

Child Labor As concerns about the welfare of children rose in mid 1800s, Parliament held investigations into working conditions. New laws and new labor unions improved conditions.

As concerns about the welfare of children rose in mid 1800s, Parliament held investigations into working conditions.

New laws and new labor unions improved conditions.

The price of progress: Massive pollution due to the Industrial Revolution. “ Global Warming?”

Government was initially on the side of business owners WHY? “ Combination Acts” outlaws unions

“ Combination Acts”

outlaws unions

Reformers Jeremy Bentham: utilitarianism – “ greatest happiness for the greatest number.” John Stuart Mill: government should help the poor and give the vote to workers and women. Robert Owen: Built a factory based on the idea that an employer could offer decent living and working conditions and still make a profit.

Jeremy Bentham: utilitarianism –

“ greatest happiness for the greatest number.”

John Stuart Mill:

government should help the poor and give the vote to workers and women.

Robert Owen:

Built a factory based on the idea that an employer could offer decent living and working conditions and still make a profit.

Rise of Unions Working conditions in early – mid 1800s very poor Child labor, low pay, no time off, get hurt get fired etc Jeremy Bentham and John Mill call for better treatment, working conditions, democracy (mid 1800s)

Working conditions in early – mid 1800s very poor

Child labor, low pay, no time off, get hurt get fired etc

Jeremy Bentham and John Mill call for better treatment, working conditions, democracy (mid 1800s)

Unions II Unions of workers allow better bargaining position Use strikes to threaten owners Gain better pay, shorter hours Hmmmm, sounds like Marx might have been right…

Unions of workers allow better bargaining position

Use strikes to threaten owners

Gain better pay, shorter hours

Hmmmm, sounds like Marx might have been right…

Govt Steps in and plays its “wildcard” Factory Act –limits work hours for kids See your book Mines Act – no females in mines Boys must be at least 13 to work mines Combination Acts Repealed Unions now legal.

Govt Steps in and plays its “wildcard”

Factory Act –limits work hours for kids

See your book

Mines Act – no females in mines

Boys must be at least 13 to work mines

Combination Acts Repealed

Unions now legal.

Economic Theories III Socialism “ Tax the Rich to give to the poor.” “ From each according to his ability to each according to his need” Utopian Socialists Co-op type of businesses. Workers own the business Live in worker owned and run towns where everyone works for common good of all – not to make more $.

Socialism

“ Tax the Rich to give to the poor.”

“ From each according to his ability to each according to his need”

Utopian Socialists

Co-op type of businesses.

Workers own the business

Live in worker owned and run towns where everyone works for common good of all – not to make more $.

Marx and Engles Karl Marx & Friedrich Engels “ Communist Manifesto” and “Das Kapital” Life is constant struggle between HAVES (Bourgeoisie) : Upper class, owners, rich and HAVE NOTS (Proletariat): workers, lower class, poor, labor According to Marx, total radical societal transformation is inevitable

Karl Marx & Friedrich Engels

“ Communist Manifesto” and “Das Kapital”

Life is constant struggle between

HAVES (Bourgeoisie) : Upper class, owners, rich

and HAVE NOTS (Proletariat): workers, lower class, poor, labor

According to Marx, total radical societal transformation is inevitable

Marx and Engels II Steps to a perfect world Begin with capitalism Encourages industry, innovation etc But it exploits the many for the benefit of the few Leads to poverty and inequality Workers will continue to be exploited until they finally revolt. (may be violent)

Steps to a perfect world

Begin with capitalism

Encourages industry, innovation etc

But it exploits the many for the benefit of the few

Leads to poverty and inequality

Workers will continue to be exploited until they finally revolt. (may be violent)

Steps to a perfect world cont. 3 Workers take over and set up Socialist govt. Rules with iron hand until people accept the idea of sharing everything 4 Govt eventually withers away as people work for the common good, not for themselves 5 Establishment of a classless society, everyone is equal, all are happy. The Smurf Commune

3 Workers take over and set up Socialist govt.

Rules with iron hand until people accept the idea of sharing everything

4 Govt eventually withers away as people work for the common good, not for themselves

5 Establishment of a classless society, everyone is equal, all are happy.

One little problem…. IT DOESN’T WORK!!!! If there is no incentive to work (I.e. making money) then people WON’T work. This would be a good time to talk about “Animal Farm”

IT DOESN’T WORK!!!!

If there is no incentive to work (I.e. making money) then people WON’T work.

This would be a good time to talk about “Animal Farm”

New inventions and development of factories Rapidly growing industry in the 1800s Increased production and higher demand for raw materials Growth of worldwide trade Population explosion and a large labor force Exploitation of mineral resources Highly developed banking and investment system Advances in transportation, agriculture, and communication Economic Effects Child labor laws to end abuses Reformers urging equal distribution of wealth (i.e. Karl Marx) Trade unions Social reform movements, such as utilitarianism, utopianism, socialism, and Marxism Reform bills in Parliament Political Effects The Industrial Revolution Long hours worked by children in factories Increase in population of cities Poor city planning Loss of family stability Expansion of middle class Harsh conditions for laborers Workers’ progress vs. laissez-faire economic attitudes Improved standard of living Creation of new jobs Encouragement of technological progress Social Effects

New inventions and development of factories

Rapidly growing industry in the 1800s

Increased production and higher demand for raw materials

Growth of worldwide trade

Population explosion and a large labor force

Exploitation of mineral resources

Highly developed banking and investment system

Advances in transportation, agriculture, and communication

Child labor laws to end abuses

Reformers urging equal distribution of wealth (i.e. Karl Marx)

Trade unions

Social reform movements, such as utilitarianism, utopianism, socialism, and Marxism

Reform bills in Parliament

Long hours worked by children in factories

Increase in population of cities

Poor city planning

Loss of family stability

Expansion of middle class

Harsh conditions for laborers

Workers’ progress vs. laissez-faire economic attitudes

Improved standard of living

Creation of new jobs

Encouragement of technological progress

New Scientific Theories

Darwinism We are descended from apes Natural selection – survival of the fittest Evolution – pass on successful traits to offspring Church not happy Violates creation theory taught for last two thousand years

We are descended from apes

Natural selection – survival of the fittest

Evolution – pass on successful traits to offspring

Church not happy

Violates creation theory taught for last two thousand years

Why did this animal survive? Are the odds in this one’s favor?

Other Science Breakthroughs Darwin leads to questions involving genetics Mendel – traits of parents not always blended Dominant and recessive genes.

Darwin leads to questions involving genetics

Mendel – traits of parents not always blended

Dominant and recessive genes.

Other Science Breakthroughs Edward Jenner Cures smallpox Uses cowpox to cure smallpox First use of vaccination Ironic that we now have to do it again huh? Louis Pasteur Heat liquids to kill germs Discovers Anthrax vaccine and antibodies

Edward Jenner

Cures smallpox

Uses cowpox to cure smallpox

First use of vaccination

Ironic that we now have to do it again huh?

Louis Pasteur

Heat liquids to kill germs

Discovers Anthrax vaccine and antibodies

Other Science Breakthroughs Robert Koch Cures Cholera Cities need proper sewage YEEEUUUKKKK!!!! Ivan Pavlov – experiments on “Conditioned Response” w/ his dog Sigmund Freud Analytical Psychology – studying of dreams and the unconscious mind

Robert Koch

Cures Cholera

Cities need proper sewage

YEEEUUUKKKK!!!!

Ivan Pavlov –

experiments on “Conditioned Response” w/ his dog

Sigmund Freud

Analytical Psychology – studying of dreams and the unconscious mind

Chemistry Mendeleyev Periodic table of elements Look in the science class The Curies Atoms made up of neutrons, protons and electrons Experiment with radioactivity Ideas later lead to X-rays, nuclear power, atomic bombs etc.

Mendeleyev

Periodic table of elements

Look in the science class

The Curies

Atoms made up of neutrons, protons and electrons

Experiment with radioactivity

Ideas later lead to X-rays, nuclear power, atomic bombs etc.