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Progress increased gap between
rich & poor
•Some felt government should
stay out of business & economic
affairs
•Others felt government should
play an active role
•“Wealth of Nations” (1776)
•Promoted Laissez Faire
capitalism economics
(Let do)
•Capitalism- money is invested in
business to make a profit
•Business should operate w/ little or
no govt. interference
•An Essay on the
Principle of population
(1798)
•Population will
increase more rapidly
than food supply
•W/out wars or
epidemics most would
become poor &
miserable
•Principles of Political Economy &
Taxation (1817)
•Permanent underclass would be poor
•Wages would be forced down as
population increased
Smith, Ricardo & Malthus
were all against government
involvement
•Free market capitalism created social
inequality
•Government must take action to
improve people’s lives
•Concentrated on the interests of
society rather than the individual
•Farms & businesses should belong to
all the people not individuals
Government actions are
only useful if they promote
the greatest good for the
greatest amount of people
Promoted by Jeremy
Bentham & John Stuart
Mill
•Sought to create self-
sufficient communities
•All property & work
would be shared
•Since all wealth would
be equal- fighting would
end
Robert Owen
•“The Communist
Manifesto” (1848) by Karl
Marx & Friedrich Engels
•Scientific Socialism
•Ideas would inspire
communist revolutions in
China, Russia, & Cuba
History was a struggle between
wealthy capitalist & working class
•The Haves Vs. The Have Nots
• Capitalist (Bourgeoisie) took
advantage of the Proletariat
(Working Class)
•Proletariat would eventually rise up
& overthrow capitalist society
•A “dictatorship of the Proletariat”
would rule
•Means of production would be
owned by the people
•Wealth would be shared equally
•Eventually government would
wither away & a classless society
would emerge
Marxism lost its appeal in 1800’s
as working conditions improved
•Voluntary associations known as
unions pushed for labor reforms in
the 1800’s
•Spoke for all workers in a
particular trade
•Engaged in collective bargaining
•Negotiations between labor &
management
•If negotiations broke down
members would strike
•First Unions were skilled
workers & benefited the middle class
•At first Unions were outlawed
•Combinations Act of 1799 & 1800
•Viewed as a threat to social order
•After 1825 Unions were tolerated
•Factory Act of 1833-
Minimum age &
maximum hours for
children
•Mines Act of 1842-
Women & children could
not work underground
•Ten Hours Act- limited
the workday for women
& children
•Abolishment of Slavery- 1833
(Britain)
•Morally wrong
•Economic threat
•Women’s rights movements grew
•Free public schooling became
available

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Adam Smith Adam Smith Adam Smith Adam Smith

  • 1. Progress increased gap between rich & poor •Some felt government should stay out of business & economic affairs •Others felt government should play an active role
  • 2. •“Wealth of Nations” (1776) •Promoted Laissez Faire capitalism economics (Let do) •Capitalism- money is invested in business to make a profit •Business should operate w/ little or no govt. interference
  • 3. •An Essay on the Principle of population (1798) •Population will increase more rapidly than food supply •W/out wars or epidemics most would become poor & miserable
  • 4. •Principles of Political Economy & Taxation (1817) •Permanent underclass would be poor •Wages would be forced down as population increased Smith, Ricardo & Malthus were all against government involvement
  • 5. •Free market capitalism created social inequality •Government must take action to improve people’s lives •Concentrated on the interests of society rather than the individual •Farms & businesses should belong to all the people not individuals
  • 6. Government actions are only useful if they promote the greatest good for the greatest amount of people Promoted by Jeremy Bentham & John Stuart Mill
  • 7. •Sought to create self- sufficient communities •All property & work would be shared •Since all wealth would be equal- fighting would end Robert Owen
  • 8.
  • 9. •“The Communist Manifesto” (1848) by Karl Marx & Friedrich Engels •Scientific Socialism •Ideas would inspire communist revolutions in China, Russia, & Cuba
  • 10. History was a struggle between wealthy capitalist & working class •The Haves Vs. The Have Nots • Capitalist (Bourgeoisie) took advantage of the Proletariat (Working Class) •Proletariat would eventually rise up & overthrow capitalist society •A “dictatorship of the Proletariat” would rule
  • 11. •Means of production would be owned by the people •Wealth would be shared equally •Eventually government would wither away & a classless society would emerge Marxism lost its appeal in 1800’s as working conditions improved
  • 12. •Voluntary associations known as unions pushed for labor reforms in the 1800’s •Spoke for all workers in a particular trade •Engaged in collective bargaining •Negotiations between labor & management
  • 13. •If negotiations broke down members would strike •First Unions were skilled workers & benefited the middle class •At first Unions were outlawed •Combinations Act of 1799 & 1800 •Viewed as a threat to social order •After 1825 Unions were tolerated
  • 14. •Factory Act of 1833- Minimum age & maximum hours for children •Mines Act of 1842- Women & children could not work underground •Ten Hours Act- limited the workday for women & children
  • 15. •Abolishment of Slavery- 1833 (Britain) •Morally wrong •Economic threat •Women’s rights movements grew •Free public schooling became available