QUICK WRITEIf you lived like this, who would you be

angry with?

New Socio-Economic (& Political) Ideas of the Industrial Revolution

CAPITALISM v. COMMUNISM

The IR created many social and political probs:• Extreme poverty• Severe Overcrowding• Huge gap between rich and poor

Some blamed the econ. and pol. system = CAPITALIST DEMOCRACY

Some ppl wanted a fairer econ. system = SOCIALISM or COMMUNISM

Capitalist Democracy is…

•Capitalism = individuals own businesses and run the economy work to make profit

•Democracy = individuals have the right to make pol., soc., and econ. choices

•In a CD, individuals can choose to work hardand the gov’t is not responsible for success or failure

•CAP = ALL ABOUT THE INDIVIDUAL PERSON

•Laissez-Faire = idea that the gov’t should stay out business b/c gov’t rules = less profit for business

BENEFITS OF CAPITALIST

DEMOCRACY

•Ppl work for themselves—not for others

•It is all about freedom of choice

•Ppl are not responsible for others who do not

want to work hard •Ppl have rights as individuals

•Working hard means that you can become

more wealthy

•The gov’t stays out of people’s lives and business

Socialism (followed by Comm) is…

•All resources (wealth) of a nation should be shared equally. (no rich, no poor, all equal)

• Job of the gov’t =--make sure ppl are taken care of --lead the Comm revolution and

redistribute the wealth fairly (eventually)

•Gov’t controls economy, politics, society—no private ownership or freedom of choice

•COM = ALL ABOUT THE COMMUNITY OF PPL

BENEFITS OF SOCIALISM

(COMMUNISM)•Ppl work for the

good of the community

•Wealth is shared equally

•Horrible conditions of the IR would

disappear

•The gov’t’s only job is to ensure wealth is

distributed fairly and take care of

people

•The rich can not longer take

advantage of the poor

Ideological Opposition

Comm opposes CD b/c CD: •Resources and power are held by a few ppl ( called Bourgeoisie)•Majority of ppl (called Proletariat) have very little power

CD opposes Comm b/c Comm:•Offers no choices or freedom for ppl•All power is in the hands of the gov’t

Cap—Adam Smith

•Author of Wealth of Nations (1776)

•Believed in laissez faire— said that ppl should have political and economic freedom

•Said gov’t rules on business slowed the economy and ppl could not make as much profit

Cap—David Ricardo

•Author of Principles of Political Economy and Taxation (1817)

•Believed that there would always be poor ppl—the economy needed a source of cheap labor

•Said gov’t should not provide help to poor—there was no point and the poor should take care of themselves

Cap—Thomas Malthus

•Author of Essay on the Principles of Population(1798)

Major Beliefs = •there will always be

poverty and social inequality

•Ppl have the choice to be rich or poor

Soc—Jeremy Bentham

•Believed in utilitarianism = gov’t should work for the good of the greatest number of people

•Gov’t was only useful if it took care of the people

Soc—Robert Owen

•Owned a mill—built houses for workers, had good working conditions for the poor

•Began a utopian community in the US. Believed in the utilitarian ideas of Bentham

Comm—Karl Marx

•Believed in socialism—but even more extreme

•Said that the economy should be in complete control of gov’t and operatefor the benefit of all ppl

•Believed that the capitalist system would be defeated in a revolution of the proletariat (the working poor)