Industrialism, Capitalism, and Socialism

Effects of Industrialism Word Attack

Positive Effects of the Industrial RevolutionImproved the lives of millions

Making cheap goods widely available

Millions could by good that only kings and nobles had before

Many of us own things today that 16th century kings never dreamed ofHeat pump, Furnace, Refrigerator, Microwave, Car, Telephone, Television

Negative Effects of the Industrial RevolutionCreated great inequalities in wealth

Factory owners and businessmen became wealthy

Worker received low wages or legal protectionLong hours and dangerous

circumstances

Patience Kershaw and Lord AshleyWe must act in Parliament

Parler- to speak, the place where speeches are given

Child laborThousands of children worked in the

mines and factories during the beginning of the Industrial RevolutionNeed

Parents needed every penny of their income to support family

Parents couldn’t find workChild labor was the preferred method

of laborWorked in small cramped quartersBeaten for disobeyingDangerous tasks adults wouldn’t doEasy to replaceOrphanages contributed to the problem

Changes for Everyone

IndustrialistsThe workers weren’t the only ones that

were complainingFactory and mine owners were

complainingLaws protecting workers were not justifiedProblems were exaggeratedGovernment had no right to interfere

Free market—buyer and seller agree on the Free market—buyer and seller agree on the price no-one else.price no-one else.

No one was forcing the people to workThe economy will balance itself

No one could supply more than could be sold at a fair price

No one would demand or consume goods that were too expensive or undesirable

If the government steps in profits are hurtThis will affect the prices of goodsAnd wages to the workers

Nothing would be producedEveryone would be worse offEmployers were doing a good thing by

keeping wages low and by not showing much concern for the worker’s safety

“The Golden Rule”He who has the gold makes the rules

Meanwhile the women and children suffered

Effects of Industrialism Word Attack

Before the Industrial Revolution

Before the Industrial RevolutionIn order to understand the Industrial

Revolution we need to understand what life was like before

1400’sSerfdom was no longer going on in England

Serfs had been replaced by villagersVillagers rented their land and were free to

move where everMany of the villagers were able to have long leases with low rent

Some of the Villagers became prosperous Yeoman--Able to hire other villagers as their

workersSome of them even became landholdersMost were very poor and were luck if they could find work

The life of a VillagerWorked from sunrise to sunsetUsed windmills, water wheels,

oxen, and man powerMost everything depended on what

they were able to grow and the weatherThe extra could be traded at the market

People traded for everything that they needed or wanted

The Seasons

The HarvestGrain would be harvested row by row

On kneesSickle-- short curved blade

StandingScythe—long curved blade mounted on a long

handleDry and bundleThresh or beat them until edible grain was freedWheat and Rye taken to the mill and made into

flourSaved some for the next yearExtra could also be given to animals

The seasons dictated rural lifeMalnutrition was very common

Mal=bad, nutrition. Lack of a good diet.Opens the door for diseaseMeasles, whooping cough, chicken pox

Life before Modern Times

Houses Large room with a low

ceiling and dirt floor Open hole in the middle

Let out smoke from the fireplace

Beds Sacks of straw The whole family slept

together Toilets Hole in ground

Water Rainwater collected in a

barrel Common well Stream or pond

No schools or hospitals Most could not read or

write Church Largest Building in the

town Roads Often muddy ruts

The powerless poorThe poor had no say in the

governmentProtests were put down ruthlesslyReligion promised them a better life

in the world to comeLife was dreary and painfulThings stayed the same until the

17th and 18th centuries

THE INDUSTRIAL REVOLUTION

Toward the Industrial Age

Toward the Industrial AgeMost people worked on the land

struggling to put food on the tableOver the years people became more

efficientNew foods came overseas from the

AmericasTomato, chocolate, tobacco, potato, corn

Oxen, cows and sheep were getting largerMore meat, more wool

Stronger ploughsSeeds had better root systems

New methods of harnessing draft animalsDraft animal-animals used for pulling heavy loads

Agriculture began to make big profits

The Enclosure MovementCroplands were taken over by

gentry landlords and fenced in to keep sheep in.

Small plots of land were lumped together and enclosed.

The cost of producing crops fellBegan to put many villagers out of

workHire themselves out as laborersGo to cities, mines, or American colonies

New ways of Mining and Making Metal Tools

The Steam EngineSteam engines were invented to remove

ground water from mines.By the 1780’s they could do much more

than just pump water.Locomotives, boats, harvest wheat, spin thread, weave cloth, lift heavy hammers to forge iron

The Steam Engine was perfected by James Watt

Inventions and improvements began to spread rapidly

Inventors could become famous and richIndustrial Revolution began slowly with

improvements in growing cropsIt exploded with the melting of iron and

converting water into steam

From Farms to Factories

From Farms to FactoriesAfter the 1500’s began to grow slowlyThe 1700’s were a time of rapid

population growth in EuropeChanges in climateImproved agricultureBetter food productionBetter hygiene

More and more people-less and less jobsMass migration to citiesManchester

A place where fine woolen cloth was woven

Fustian—a blend of cotton or wool and linenDid not shrink and took on bright dyes

A cottage Industry

The Water Frame1769 Richard Arkwright

Used steam to stretch the thread before spinning it

This strengthened the threadJenny + Water Frame = mule

Samuel CromptonIncreased the production of thread by 10 times

New problemProducing enough cotton

The Cotton GinEli Whitney

Cotton was difficult to separate the fibers from the seeds

Led to more slaves being imported to the south

CapitalismCapitalMercantilismTariffsIndustrial CapitalismAdam Smith

A Great Change in Business“Everywhere so much change”The quiet countryside had become a

bustling cityAll of this change is due to capitalism

Capitalism-money or property used to make more money.Money that is used to start businesses

and make them growThe goal of a capitalist is to make

moneyThe best use of money is to make more

money

The Roots of CapitalismAs old as civilization itselfModern capitalism is a few

hundred years oldBegan in the later Middle AgesNorthern Italy, European nations along the Atlantic Ocean and North Sea

Before Capitalism 1500’s to 1700’s

Many European Countries became rich from the conquests of the Americas

Wealth came from enslaving and plundering defenseless nativesOthers became wealthy through

organized piracyOthers bought precious goods and sold

them at a profitEach country had to decide what to do

with the new wealthSome wasted it on wars and whimsSome leaders realized that there was a

better way to increase wealth without going to war all of the time.

Mercantilism

Some clever advisors realized how important it was for a country to control all trade.A country can grow rich and powerful by controlling

trade.If they can force other countries to buy their goods

they could build up a stockpile of silver and goldThe “Golden Rule”

In order to build a stockpile a country must sell more than it imports, or buys from other countries.

Money that was used to build roads, bridges etc. was helpful because it increased a countries ability to keep wealth at home

Mercantilism ContinuedThe best way to keep the silver The best way to keep the silver

and gold at home was to set tariffsand gold at home was to set tariffsTariff- high fees on goods that Tariff- high fees on goods that are produced in a rival country.are produced in a rival country.

Imports would become more Imports would become more expensive than things that were expensive than things that were made locallymade locallyIf imports were purchased the If imports were purchased the

government would benefit from the government would benefit from the sale of goodssale of goods

Encouraged people to buy things Encouraged people to buy things locallylocally

The Need for Colonies In order for the Mercantilism system to

work a country had to have coloniesCheap labor, raw materials, and natural resources

not available in the mother country would bring more wealth

Created another market for the home country’s goodsThe colonies would have to pay taxes

for the privilege of living under the protection of the mother country

The richer the colony the richer the mother country

Colonies ContinuedColonies were prohibited to trade with

other countries and foreign coloniesColonies were not allowed to start their

own industries.Reduces competition

England took things a step furtherOnly ships flying the flag of England could carry

goods to and from the colonies.The colonies had little or no say in how

they were taxed or regulatedThis provoked the American Revolution

Mercantilism againAgriculture and manufacturing at home had

to be highly productive.The government supported new industries

Encouraged banks to make loans for useful purposes

The government also created uniform standards to make commerce easierCurrencyWeight Measures

The end of MercantilismAround the time of the American Revolution

people began to wonder why they supported a king and aristocracy that wasted money on wars and luxuries.

They wanted greater say in governmental policies.

A new type of Capitalism was emergingIndustrial Capitalism

Industrial Capitalists made money by investing in factories, not by trading

They wanted power to match their wealth and needed a spokes personAdam Smith

Capitalism

Adam SmithStudent and supporter of Capitalism

He is remembered as capitalism’s first great champion

1700’s people were applying the power of reason and common sense to whatever interested them

Adam Smith was one of the clearest and most insightful of the thinkers

Education of Adam SmithHis parents made sure that he

received a good educationAttended the university of Glasgow

Known for enlightened teachersStudied at Oxford on a scholarshipTaught at University of Glasgow

Smith was concerned about how society measures justice to individualsThis also effected how they lived,

acquired the things they needed, and how they exchanged services with others.

The Wealth of Nations

The Law of Supply and DemandThis law works anytime something is

bought or soldAs if an “invisible hand” adjusts every transaction

The law of supply and demand determines the worth of whatever is being exchanged

Both buyer worked for what they thought was the best deal.Establishing the worth of goods and satisfaction

on if they got a good deal.It is important that no one interferes with

this process

Supply and Demand ContinuedSmith was against anyone taking unfair advantage of in the marketplace

felt that the government should intervene to prevent unfair advantagesSmith believed that it was best for government to do nothing more than it had to do to maintain fairnessThis policy is known as This policy is known as laissez fairelaissez faireHands off—allow the marketplace to Hands off—allow the marketplace to work by itselfwork by itself

Division of LaborWhat if one person did all of the work in

making cars?Long and costly process

Several people working under one roofEach person specializing in a different step in the process

Each person becomes an expert for their part

Workers could produce more product at a lower cost, the product might even be better

The consumer benefitsSo does the capitalist that owns the factory

What should be done with the profit?

Smith felt that the profit should be should be used to make more profit?Buy better toolsExpand the businessInvest in other industries

The sky is the limitSmith marveled at how a healthy market

regulates itself and provides its own growth and improvement

The free market and greater efficiency of production created a higher standard of living for peopleCost of living-things that make people’s lives comfortable

Adam Smith was a great supporter of industrialism and the spread of capitalism

The world has never been the same since.

Living in the Industrial EraCharles DickensBenjamin DisraeliPrime Minister

Living in the Industrial EraDuring the industrial Era the rich

became more rich and the poor stayed in the same placeThe gap between the rich and poor increased

Many stories about harsh factory owners began to emerge

The person that described these conditions best was Charles Dickens

Charles DickensBorn in 1812Lived comfortably until he was 12 years old

Father managed finances poorly and couldn’t pay bills

Charles had to quit school and go to work in a factory

Father, Mother, and younger siblings were sent to debtors prison

Charles was alarmed at the harsh living conditions that he encountered

He spent the rest of his life writing about the hardships of the poor.

Books of DickensDickens was an amazing authorHis stories were funny and sad

Sometimes he exaggerated the things around him

They were always sympathetic to the suffering he experienced as a boy.

Hard TimesMost vivid novel tells the story of rich and pool living in “Coketown”

The poor workers and their children were abused

Patterned after an actual city of the 1850’s

More of Dickens booksOliver Twist

A young man, Oliver is forced to live on the streets among criminals and gangs

The characters were made up, but based on real lifeChristmas Carol

Tiny Tim and his poor family have a merry Christmas after Scrooge learns how important it is to share his wealth

Many of Dickens stories were also made into plays on the stage

The Writing of Dickens prompted social reformers to improve the living and working conditions for the poor

Benjamin Disraeli

Benjamin DisraeliWrote novels as well as Dickens

Not as popular thoughSybil; The Two Nations

Written in 1842Described the gap between the rich and the poor

“Two Nations: between whom there is no communication and no sympathy; who are ignorant of each others habits, thoughts, and feelings, as if they were dwellers in different zones or inhabitants of different planets; who are formed by a different breeding, are fed by different food, are ordered by different manners and are not governed by the same laws”

He worried about how the rich and the poor would get along in a divided nation

He worried that there would be violent conflicts between the rich and poor

Dealing with StressWhat does your family do to deal with

stress.Land Owning Aristocracy

Lots of servants to cook and cleanHire someone to do your financesMuch more leisure time.

HuntingHorseback ridingBreeding horsesTraveling abroadGoing to fancy balls

Successful CapitalistWork hard at managing your affairsTry to invest money to bring more profitMight go into politics, Able to afford

some luxury items

Dealing with stressTHE MIDDLE CLASS

Pursue a hobby or read. Could afford candles and coal to keep rooms lit and warm

Travel by train or take long walks in the country

Take an interest in the history of your town Or be an amateur astronomer

The Working Poor80 percent of the populationHad very little time for amusements and distractions

Some avoided sending their children to school

Consolations Amusements and DistractionsReligion provided a lot of consolation

and comfort for the communityThe charity of the church would help

needy familiesSome of the poor had hobbies

Knitting, crocheting, artDidn’t have a lot of company over to

their apartmentsHang out at the local tavern.

Singing and dancingCard playingGambling

Zoos and amusement ridesSporting events

Crime, punishment and Migration

Living in the Industrial Era Quiz

1. Who wrote the book Hard times?

2. Name another book written by #1

3. Who was the reformer that we learned about yesterday?

4. What title did he have in Great Britain?

5. What does Laissez Faire Mean?

1. Charles Dickens

2. Oliver Twist or Christmas Carol

3. Benjamin Disraeli

4. Prime minister

5. Hands off

Protesting Industrialization

Stopping ProgressIndustrialism left behind winners and losersWinners

Industrialists who had founded the successful factories

Hailed “progress”Losers

Had to endure exhausting working conditionsMany skilled workers were replaced by machinesFelt that “progress” was unfair and wicked

ReligionMany workers believed that something drastic needed to

be done to stop industrialismThey hated the machines with a passionMany of the men had a hard time finding work while their wives and children were able to find work

The LudditesSome of the workers formed secret

societies and tried to stop the revolutionOne of the most active groups was called

the LudditesClaimed that they followed “Ned Ludd”

No record of himThey sent threatening messages to factory ownersDemanding that the machines be scrapped

The Luddites wanted to go back to the “good old days”

1813 Many of the Luddites were put on trial and hung or taken as a prisoner to Australia

Workingmen’s AssociationsSome of the workers organized

themselves into groupsHelped them to maintain dignityForerunner to modern unionsMembership dues

Help cover funeral costsHelp struggling widows and orphansCommunity projects and picnicsSponsor sports teams or marching

bands

StrikesThe associations began to see the

advantage in voicing their concerns about working conditions and pay.Strength in numbers

Owners fired workers that were thought to be an organizer or a troublemaker.Name passed to other owners

The person was never hired againThe workers would demand higher

wages and better working conditionsDemands not met they would go on strike.Strike-to stop working until certain

demands are met

SocialismRobert Owen was an early believer in

SocialismA system of government in which the state controls the economy and runs businesses for the benefit of citizens

most of the wealth should not be in the hands of a privileged groupIt should be evenly divided

Prevent problems from unchecked capitalismCapitalism in its pure form causes great harm

Socialism continuedOwen’s hope was that capitalism could

be reformed peacefullyWealthy employers should voluntarily share their wealth with the workers

Utopian thinkingAn imagined perfect place that doesn’t exist in this world—impractical

Other socialists felt that the rich would only share their wealth if they were forced to.

Some felt that there would have to be a violent revolution.

Protesting Industrialism Quiz1. What group of people

protested industrialism violently

2. What is the name of an imagined perfect place

3. Who was one of the most fair and caring factory owners

4. What system of government controls the businesses?

5. What is it called when workers stop working because their demands are not met?

1.The Luddites2.Utopia or

Utopian3.Robert Owen4.Socialism5.Strike

Looking for a new Economic Order

Looking to a new economic orderGood times

Most people were able to find workMost people earned enough money to buy the things that they need

Bad TimesA lot of people out of workWages went downWorkers could not afford to buy things

Manufacturers had to cut production and lay off workers

The economy would slow downDepression-A period of high

unemployment and poor business

What to do in a depressionLaissez Faire- do nothingAdam Smith- the law of supply and demand

will balance itself eventually things will get better

How?Investors will look for a new way to make a profitNew businesses and manufacturing enterprisesCreates new jobs and puts workers back to

workWorkers start to make money again and spend

it in the economyGood times return and every one is happy

Wages and prices begin to riseoInflation- what happens when prices go up

and money is worth less

The Business Cycle

The Business Cycle

Hoping for a revolution

Stopping the RevolutionMarx and Engels were too optimisticRevolutions peaked and fizzled in 1848

Police and armed forces killed hundreds of workers

1000’s were arrestedMany immigrated to the United States

Marx fled Germany and settled in LondonThe revolution that he and Engels envisioned never happened

Marx published his life’s work in Das Capital

When he died 11 people attended his funeral

Looking for a new Economic Order

1. What is the name of the workers?

2. What is it called when there are less jobs and high unemployment?

3. What is it called when wages go up and the value of a dollar goes down?

4. Who wrote Das Kapital?

5. What is the pamphlet written by #4

1.Proletariat or proletarians

2.Depression3.Inflation4.Karl Marx5.Communist

Manifesto

Karl Marx

Why is Marx important?Karl Marx was born in 1818During the Industrial Revolution Marx

was distressed by the changesEspecially the gap between the rich and the poor

Marx Looked forward to a time when all people were equalNot just human rightsNo economic advantages

True equalityThe two most important things

Money and owning of meansEverything else was determined by money

Class StruggleMarx wanted to know what made human

society so turbulentWealth and property were always distributed unevenly

Haves and have-notsConflict between the two is the class

struggleHaves always used force to keep what they hadHeld property and controlled the means to

produce wealthHave-nots used force to try to capture the haves possessionsDid not have property and were at a

disadvantage

More Class StruggleMarx believed that in each historical period

displayed the class struggleEach time a new economic system would overthrow the old one.

The industrial era had reached the latest phase of a class struggleThe bourgeoisie were becoming more rich and powerful and controlled everythingBourgeoisie- the wealthy upper and middle

classThe have-nots, Proletariats were forced to accept low wages and harsh working conditions in order to survive. They controlled nothing

If the proletariat could join together they would have strength to fight against their enemy, the bourgeoisie

Marx and CapitalismMarx thought that the improvement of

the industrial era were goodThey saved time, and didn’t complain

The machines dominated the workersMarx felt that it should be the opposite

Capitalism is a good way to invest in productivityWhen more is produced more people can benefitHumankind was progressing toward

better living conditions for everyoneHow would the progress happen?

The Answer (according to Marx)Capitalism contains the seeds of it’s

destructionIt would create an unequal distribution of wealthThis would make the class struggle even more

bitterEventually the proletariat would band together and rise up against the bourgeoisie that held them in economic slavery.All private property would be confiscated in the

hands of the revolutionary governmentThe government would protect the interests of

the workersMarx believed that the revolution could only be achieved through a violent revolution

A New Order2 phases

1st phaseThe proletariat would revolt against the

bourgeoisieA socialist government would be establishedThe government would own all factories and

regulate their productionNo one could accumulate wealth and powerThe government would decide all economic

factorsProduction, cost, wages, benefits, working

conditionsThe state would control all services

Transportation, housing, healthcare, media, and entertainment

Everything would be free or inexpensiveEveryone would be equal.

A New Order2nd phase

The new economic order called communism

The socialist state would wither awayEveryone would be equal, everyone

would have what is essential for life.A classless society would emerge

No conflict, violence or envyNo police courts or jails

Finally no need for governmentNo need for war

Marx called communism the perfect form of socialism

In our timeWelfare system

In our timeHistorians would say that the

industrial revolution happened in three different stages

First Stage 1760-1860sGreat Britain, North American and

Western EuropeIncrease of energy available

Production of coal powered steam engines and putting them into factories that produced cloth

Second StageSecond Stage 1860-1980

Britain, America and GermanyAdvances from the 1st stage were still

importantHarder Steel

Guns, skyscrapersElectricity used to power factoriesThe use of GasolinePackaged foodsPlastics and synthetic Fabrics

Stage Three1980-currentCalled the Information Age

Heavy industry moved to Developing Countries

More and more jobs in computers and biotechnology

The Role of CapitalismCapitalism has played an important role

in each of the three stagesAll of the developments in each stage needed money to begin.Capitalists with the hope of making more

money would invest into new ideasOne of the best things about Capitalism is that it allows people to pursue private wealth while creating things that improve the lives of other people.

Capitalism also create competition to be the best and the cheapest goods they can.Otherwise they will be put out of business

Unsolved ProblemsCapitalism has achieved a great dealIt has also created new problems and

made old ones worseChild labor, health hazards, inequality of wealth, business cycles, depressions, overcrowded cities, slums, increased crime, monotonous work, and discouraged workers.

These problems led to the ideas of Socialism and CommunismNeither of them have worked well in practice

A compromise solutionThe US has never had a communist

or socialist governmentNot exactly capitalist as well

A compromise solutionCapitalist

People are allowed to own property, and start their own businesses.

SocialistRegulation of banks and businessesMinimum wage and safety in the

workplacePrevent monopolies, limit pollution,

prevent the destruction of the environment

More things the government does to helpWelfare system

Aid given by government agencies to those in need

Helps provide day carePublic EducationTransportationLow cost housingFood stampsMedical CareSocial SecurityPrevention from the pains of

unemployment

Our Economic SystemCombination of Socialism and

CapitalismThey way that they are governed through the democratic process.

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