Attempts to close the gap between the rich and the poor

Economic policy that allows owners of industry and business set the working conditions without interference from government

Means “let the people do as they please”

Founded on idea that government tariffs and regulations hurt production of wealth and slowed the nation’s economy

Wrote Wealth of Nations p.301

Economic liberty means economic progress

3 Natural Laws of Economics

Self interest

Competition

Supply and Demand

Supported capitalism

Economic system where the factors of production are privately owned and money is invested in businesses to make a profit. P 300

Laissez-faire supported by English economists

Thomas Malthus

Population increases faster than food supply

Extra people bound to be poor and miserable

David Ricardo

Wages forced down as population increases

Government involvement should help improve people’s lives

Jeremy Benthan developed Utilitarianism—people should judge ideas,

institutions, and actions on their usefulness. Government should support ideas that help the greatest number of people

John Stuart Mill questioned unregulated capitalism and thought it was wrong that workers led lives on brink of starvation. Wanted Cooperation between agriculture and women’s rights

Other who favored untilitarianism wanted legal and prison reform

Robert Owens Improved working

conditions for his employees

Built homes for workers near his factory in Scotland

Would not let children under 10 from working in his mills

Provided free schooling Founded cooperative

community in US (commune) called New Harmony in Indiana, 1825 p. 302

Factors of production are owned

by the public and operate for the

welfare of all p. 302

Meant to offset bad effects of I-R

Optimistic

Belief in progress

Social Justice

Government should plan economy, run major industries and this would end poverty & help equality p.302

Right to vote should be extended

Karl Marx and Friedrich Engels

Wrote Communist Manifesto 1848

Society divided into “haves” and “have-nots” (bourgeoisie and proletariat) p.302

Conflict between wealthy owners of production and poor workers

Predicted that workers would overthrow the owners

Based on belief that economic forces dominated society

Capitalism would destroy itself

Factories would drive out artisans leaving only owners to control wealth

Proletariat (workers) would revolt, seize factories and produce what society needed

Workers sharing profits would bring equality

Workers would then control the government which would eventually cease to be needed

This final phase is communism : p.303

Means of production (land, mines, railroads, factories and businesses) are owned by the people

Private property would cease to exist

All goods and services shared equally

Communist Manifesto produced few short term results

Widespread revolts in 1848-1849 across Europe put down

In early 1900’s Marxism influences Russia, China, and Cuba

Unionization—workers join a voluntary labor association to get better working conditions, wages, hours. Creates bargaining power.

Through use of strikes (workers refuse to work for owners),

unions improve working conditions and wages of workers. P.304

Efforts to curb abuses of industrialization

Child labor Factory Act of 1833 which outlawed child labor for those

under 10 years old and restricted the work hours for older children.

Ten Hours Act of 1847 limited the workday for both children and women.

Working conditions in factories and mines

Working women

England—William Wilberfore (MP)

Parliament passes bill to end slave trade in British West Indies in 1807

Britain abolishes slavery in 1833

United States

Movement to honor declaration of Independence gained force in early 1800s

US abolishes slavery in 1865 after civil war

Brazil ends slavery 1888 (last country to do so)

Equal pay in industries (women only earned 1/3 of men’s wages)

Formed labor unions in trades they dominated

Safety inspectors

Community centers to help poor

Right to vote

Horace Mann

Free Public Education for all children became available in US (1850s) and in Europe (late 1800s)

Alexis de Toqueville 1831

Wrote about the terrible conditions in American prisons and advocated reform p. 306