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CHAPTER 13
The Industrial Revolution
Section 1:   Origins of the Industrial Revolution
Section 2:   The Factory System
Section 3:   New Methods and Business
             Organizations
Section 4: Living and Working Conditions
Section 5:   Socialism
SECTION 4
Living and Working
Conditions

    13.4 Bell Ringer:
    What were the theories of
    economists and philosophers
    during the Industrial
    Revolution?
    (see next slide for chart)
SECTION 4
Living and Working
Conditions

    Economist      Theories

   Adam Smith

   Thomas
   Malthus

   David Ricardo

   Jeremy
   Bentham


   John Stuart
   Mill
SECTION 4
Living and Working
Conditions

REVIEW! What is mercantilism?
                Remember the
Physiocrats   Philosophes in the
                                        -believed that the wealth of
            Enlightenment? We’re
          the guys that liked to talk   nations was derived solely
              about economics.          from the value of land
                                        agriculture or land
                                        development.
                    -denied that commerce and manufacturing
                    produce riches.
                -advocates of free trade, rejecting the
                "balance of trade" theory
SECTION 4
Living and Working
Conditions

             Adam Smith
                The Wealth of Nations 1776
                Considered the founder of
                classical economics


Two natural laws govern all business & economic activity:
 1. Law of Supply & Demand
 2. Law of Competition
SECTION 4
Living and Working
Conditions
 Supply and Demand
 If an item is scarce and EVERYONE wants it . . . .
    People will pay a high price for it and profits do what?




             $299
             32GB
SECTION 4
Living and Working
Conditions
 Competition
 As manufacturers compete – they MUST reduce their prices …
   BUT if they cut prices too much … what could happen?

      Supply would then decrease … and prices would do what?

 What’s the lesson here?

  You MUST be efficient -
SECTION 4
Living and Working
Conditions
Free Enterprise
Mercantilist laws & regulations hinder natural economic forces.




 Competition should be unrestricted by laws,
 regulations, or government controls.
SECTION 4
Living and Working
Conditions
Other economists ….




    Thomas Malthus              David Ricardo
The Principle of Population   “iron law of wages”
           1798                       1817
SECTION 4
Living and Working
Conditions

Principle of Population

Despite famines, epidemics, and wars, people still multiply
faster than the food supply increases.

 Malthus believed that human misery
 and poverty is inevitable…
SECTION 4
Living and Working
Conditions

 “iron law of wages”
Supply and demand of labor determine wages ….

When there is a surplus of labor (population growth), wages go down.

When there is a shortage, wages go up.

 Working class poverty is inevitable.
SECTION 4
Living and Working
Conditions
These theories supported EMPLOYERS – they want labor as
CHEAP as possible ….
But they also didn’t want what?        Gov’t interference!

                  Laissez-faire
                         “Let it be”
                    “Leave things alone”
SECTION 4
Living and Working
Conditions

From the Middle Ages until well into the 1800s,
craft and merchant guilds regulated quality and
prices of goods along with working hours and
wages.

In the early 1800s, trade became almost
completely unregulated …..


        Laissez-faire!
SECTION 4
Living and Working
Conditions

                Reformers ARISE!
                People argued that business could NOT be
                left entirely alone to do as it pleased.

                Humanitarians urged reforms.
                Ministers preached against the selfish
                practices of businesses.
SECTION 4
Living and Working
Conditions

Charles Dickens
      David Copperfield

         Oliver Twist


Many will argue that laws were needed to
regulate work hours, wages, and working
conditions.
SECTION 4
Living and Working
Conditions
Jeremy Bentham – philosopher and social
reformer

    utilitarianism
the idea that moral worth of an
action is determined solely by its
contribution to overall utility:
that is, its contribution to
happiness or pleasure
SECTION 4
Living and Working
Conditions
John Stuart Mill
  was an influential liberal thinker of the 19th
  century whose works on liberty justified
  freedom of the individual in opposition to
  unlimited state control.
  On Liberty 1859
   …the individual ought be free to do as he wishes unless he harms others. Individuals are rational enough to
   make decisions about their good being and choose any religion they want to.

                                      “tyranny of the majority”

  On the Subjection of Women 1869
   …in 1869 became the first person in Parliament to call for women to be given the right to vote
SECTION 4
Living and Working
Conditions
                         What
                  Early Reform Laws
  Factory Act of 1802
                                about
      shortened hours and improved conditions for children in cotton mills

                          WAGES?!?
  Cotton Factories Regulation Act 1819

                          Did these
      Set the minimum working age to 9; maximum working hours to 12 per day


      Established paidlaws REALLY regulations and
  Regulation of Child Labor Law 1833
                      inspectors to inspect factories on child labor
      enforce the law

  Ten Hours Bill 1847
                          make any
                       difference?
      Limited working hours to 10 per day for women
      and children
      Factory owners will extend the 10-hour day to all employees
SECTION 4
Living and Working
Conditions
To improve their lives and working conditions, workers banded together …

                     collective action

               When a large group of workers refuse to
 strikes       work, until their demands are met.



 unions         When workers organized and form associations
SECTION 4
Living and Working
Conditions
SECTION 4
Living and Working
Conditions

 Workers’ Associations (unions) were illegal in many countries.

 Workers who united to fight for higher wages, shorter hours,
 and better working conditions could be imprisoned!

  1870s Parliament passed laws legalizing strikes.


 Collective Bargaining
SECTION 4
Living and Working
Conditions


Labor
Disturbances
SECTION 4
Living and Working
Conditions
SECTION 4
Living and Working
Conditions




    This 1899 political cartoon, published in The Verdict, represents the growing disparity between
    the rich and poor classes in America. This disproportion fomented the formation of anti-trust
    laws in the following decade.
SECTION 4
Living and Working
Conditions




  Close your books
   Time for QUIZZES!
SECTION 4
Living and Working
Conditions

    Economist         Theories

   Adam Smith         creation of wealth; manufacturing and agriculture both impor-tant;
                      the law of supply and demand and the law of competition govern all
                      business and economic activity; free enterprise

   Thomas Malthus     population increase is the greatest obstacle to human
                      progress; human misery and poverty are inevitable

   David Ricardo      working-class poverty is inevitable; supply and demand
                      determine wages (the iron law of wages)

   Jeremy Bentham     utilitarianism; a good and useful law should lead to “the
                      greatest happiness of the greatest number” of people; people
                      should be educated so they could decide what was good for
                      them; reform of the justice and prison systems

   John Stuart Mill   government should work for the good of all its citizens;
                      protection of working children; improvements in housing and
                      factory conditions; full democracy; equality

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Ch_13-section 4

  • 1. CHAPTER 13 The Industrial Revolution Section 1: Origins of the Industrial Revolution Section 2: The Factory System Section 3: New Methods and Business Organizations Section 4: Living and Working Conditions Section 5: Socialism
  • 2. SECTION 4 Living and Working Conditions 13.4 Bell Ringer: What were the theories of economists and philosophers during the Industrial Revolution? (see next slide for chart)
  • 3. SECTION 4 Living and Working Conditions Economist Theories Adam Smith Thomas Malthus David Ricardo Jeremy Bentham John Stuart Mill
  • 4. SECTION 4 Living and Working Conditions REVIEW! What is mercantilism? Remember the Physiocrats Philosophes in the -believed that the wealth of Enlightenment? We’re the guys that liked to talk nations was derived solely about economics. from the value of land agriculture or land development. -denied that commerce and manufacturing produce riches. -advocates of free trade, rejecting the "balance of trade" theory
  • 5. SECTION 4 Living and Working Conditions Adam Smith The Wealth of Nations 1776 Considered the founder of classical economics Two natural laws govern all business & economic activity: 1. Law of Supply & Demand 2. Law of Competition
  • 6. SECTION 4 Living and Working Conditions Supply and Demand If an item is scarce and EVERYONE wants it . . . . People will pay a high price for it and profits do what? $299 32GB
  • 7. SECTION 4 Living and Working Conditions Competition As manufacturers compete – they MUST reduce their prices … BUT if they cut prices too much … what could happen? Supply would then decrease … and prices would do what? What’s the lesson here? You MUST be efficient -
  • 8. SECTION 4 Living and Working Conditions Free Enterprise Mercantilist laws & regulations hinder natural economic forces. Competition should be unrestricted by laws, regulations, or government controls.
  • 9. SECTION 4 Living and Working Conditions Other economists …. Thomas Malthus David Ricardo The Principle of Population “iron law of wages” 1798 1817
  • 10. SECTION 4 Living and Working Conditions Principle of Population Despite famines, epidemics, and wars, people still multiply faster than the food supply increases. Malthus believed that human misery and poverty is inevitable…
  • 11. SECTION 4 Living and Working Conditions “iron law of wages” Supply and demand of labor determine wages …. When there is a surplus of labor (population growth), wages go down. When there is a shortage, wages go up. Working class poverty is inevitable.
  • 12. SECTION 4 Living and Working Conditions These theories supported EMPLOYERS – they want labor as CHEAP as possible …. But they also didn’t want what? Gov’t interference! Laissez-faire “Let it be” “Leave things alone”
  • 13. SECTION 4 Living and Working Conditions From the Middle Ages until well into the 1800s, craft and merchant guilds regulated quality and prices of goods along with working hours and wages. In the early 1800s, trade became almost completely unregulated ….. Laissez-faire!
  • 14. SECTION 4 Living and Working Conditions Reformers ARISE! People argued that business could NOT be left entirely alone to do as it pleased. Humanitarians urged reforms. Ministers preached against the selfish practices of businesses.
  • 15. SECTION 4 Living and Working Conditions Charles Dickens David Copperfield Oliver Twist Many will argue that laws were needed to regulate work hours, wages, and working conditions.
  • 16. SECTION 4 Living and Working Conditions Jeremy Bentham – philosopher and social reformer utilitarianism the idea that moral worth of an action is determined solely by its contribution to overall utility: that is, its contribution to happiness or pleasure
  • 17. SECTION 4 Living and Working Conditions John Stuart Mill was an influential liberal thinker of the 19th century whose works on liberty justified freedom of the individual in opposition to unlimited state control. On Liberty 1859 …the individual ought be free to do as he wishes unless he harms others. Individuals are rational enough to make decisions about their good being and choose any religion they want to. “tyranny of the majority” On the Subjection of Women 1869 …in 1869 became the first person in Parliament to call for women to be given the right to vote
  • 18. SECTION 4 Living and Working Conditions What Early Reform Laws Factory Act of 1802 about shortened hours and improved conditions for children in cotton mills WAGES?!? Cotton Factories Regulation Act 1819 Did these Set the minimum working age to 9; maximum working hours to 12 per day Established paidlaws REALLY regulations and Regulation of Child Labor Law 1833 inspectors to inspect factories on child labor enforce the law Ten Hours Bill 1847 make any difference? Limited working hours to 10 per day for women and children Factory owners will extend the 10-hour day to all employees
  • 19. SECTION 4 Living and Working Conditions To improve their lives and working conditions, workers banded together … collective action When a large group of workers refuse to strikes work, until their demands are met. unions When workers organized and form associations
  • 20. SECTION 4 Living and Working Conditions
  • 21. SECTION 4 Living and Working Conditions Workers’ Associations (unions) were illegal in many countries. Workers who united to fight for higher wages, shorter hours, and better working conditions could be imprisoned! 1870s Parliament passed laws legalizing strikes. Collective Bargaining
  • 22. SECTION 4 Living and Working Conditions Labor Disturbances
  • 23. SECTION 4 Living and Working Conditions
  • 24. SECTION 4 Living and Working Conditions This 1899 political cartoon, published in The Verdict, represents the growing disparity between the rich and poor classes in America. This disproportion fomented the formation of anti-trust laws in the following decade.
  • 25. SECTION 4 Living and Working Conditions Close your books Time for QUIZZES!
  • 26. SECTION 4 Living and Working Conditions Economist Theories Adam Smith creation of wealth; manufacturing and agriculture both impor-tant; the law of supply and demand and the law of competition govern all business and economic activity; free enterprise Thomas Malthus population increase is the greatest obstacle to human progress; human misery and poverty are inevitable David Ricardo working-class poverty is inevitable; supply and demand determine wages (the iron law of wages) Jeremy Bentham utilitarianism; a good and useful law should lead to “the greatest happiness of the greatest number” of people; people should be educated so they could decide what was good for them; reform of the justice and prison systems John Stuart Mill government should work for the good of all its citizens; protection of working children; improvements in housing and factory conditions; full democracy; equality