econoimc systems and labor unions

1. The Age
of
Reform

2. CAPITALISM
Industrialization led to new ways of thinking
about society. Some thought that governments
should leave business owners alone. Their view
was called Laissez Faire
Adam Smith wrote a book in 1776 defending the
idea of a free economy, or free market. His book
was called The Wealth of Nations
Governments should not interfere
with the economy

3. CAPITALISM
Capitalism is an economic system in which
money is invested in business ventures with
the goal of making a profit.
Capitalists believed that the government
should not step into the business world for
any reason, including to make laws that would
create better wages or working conditions.
These policies would only decrease profits

4. CAPITALISM
Negatives
 Only a few grow rich
 No labor laws
 People grew very dissatisfied with working
conditions and the unequal distribution of wealth
Positives
 More competition
 Better goods at better prices
 Entrepreneurial opportunities
 Growth of Middle Class

5. CAPITALISM REVIEW
Come up with 5 words to describe Capitalism.
Who wrote “Wealth of Nations”?
What does Laissez Faire mean?
What is the goal of Capitalism?
List 2 positives of Capitalism
List 2 negatives of capitalism

6. COMMUNISM AND SOCIALISM
Communism/socialism was a
response to the injustices of
capitalisms
Socialism – a government formed
economic system involving factors
of production (i.e. textiles, energy
sources) being owned and operated
by the public and operated for the
welfare of all.

7. Communism- a more extreme
form of socialism, in which the
people own all aspects of
business and share all goods
and services. Ex. Factories,
cotton, railroads……….

8. Karl Marx (and Fredrich Engles)
wrote The Communist Manifesto.
(1848)
Argues the world has always
been divided between the
“haves”, or the middle class and
the “ have-nots” or the lower
/working class
The rich were growing richer and
the poor poorer
“Workingmen of all countries unite”

9. Negatives
Less competition
Inefficient businesses
No price competition
Positives
People for the good of all
Attempted to redistribute wealth

10. COMMUNISM REVIEW
List 3 words to describe communism.
Who wrote the “ Communist Manifesto”
What role does the government play in a communist nation?
List 2 differences between communism and capitalism.
List one positive of communism.
List one negative of communism.

11. LABOR UNIONS
Unions- workers who join together in
voluntary associations
Collective Bargaining-
negotiations between workers and their
employers
Strikes –refusal to work in order to force an employer to meet
certain demands

12. By 1820-1830s laws started to be made to help reform
working conditions in Britain and the US
Factory Act 1833-
9-12- less than 8 hours
13-17- less than 12 hours
1842 Mines Act- women and children
couldn't work underground
1847- Ten Hour Law
1919- Child Labor Law and minimum
wage laws

13. SLAVERY
In the beginning of the Industrial Revolution the Cotton Gin
greatly increased the demand for slave labor
1833 Britain abolished slavery
Moral objection
Economic objection
1865 The US ended slave labor after the Union won the Civil War

14. WOMEN
Women made 1/3 less than
men
Women joined labors to
improve the factories they
worked in
As women began to fight to
end slavery they also began to
fight for suffrage, or the right
to vote

15. REFORMS REVIEW
What is a labor union?
What 2 tactics do labor union’s use to get results?
Which country was first to outlaw slavery?
What is suffrage and who wanted it?