Section 3-Industrialization Spreads

Industrial Development in the United States

• During the War of 1812 the British blockade forced the U.S. to develop their own industry

• Luckily the U.S. had the same resources that allowed Britain to industrialize – Fast flowing rivers

– Deposits of coal and iron ore

– Supply of laborers

Industrial Development in the United States

• U.S. industrialization began in the textile industry – Britain wouldn’t let mechanics, tool makers, or

engineers leave the country

• 1813-Francis Cabot Lowell and four other investors opened up a factory that mechanized every stage of cloth manufacturing – Young women began to work in these factories

earning more money and finding independence

Industrial Development in the United States

• Later Industrial Expansion-– The U.S. largely agricultural

until after the Civil War ended in 1865

• Technological Boom-– Light bulb and the telephone

met the demands of a booming population

Industrial Development in the United States

The Rise of Corporations-

• Stock- Certain rights of ownership sold to help entrepreneurs open or expands their business

• Corporation-A business owned by stock holders who share in it’s profits but are not personally responsible for it’s debts

Continental Europe Industrializes

• European businessmen yearned to replicate the “British miracle” of rapidly manufacturing goods

• The Napoleonic Wars had halted trade, interrupted communication and caused inflation in Europe

• Continental Europe’s industrialization began in Belgium

Continental Europe Industrializes

• Germany Industrializes-– Germany was politically divided

– Economic isolation and scattered resources hampered industrialization

– Around 1835 Germany began to copy the Britain by importing British equipment and engineers• They also sent their kids to England

to learn industrial management

Impact of Industrialization

• The Rise of Global Inequality – Global trade was strengthened but

the gap between the industrialized and unindustrialized widened • This led to the increased colonization of

smaller countries for natural resources

– Due to imperialism European economies were based on industry while Asian and African economies were still based on agriculture

Bell WorkTuesday 4/15

Look in your book beginning on page 734 and begin reading to find the answers

• 1.What were Adam Smith’s three natural laws of economics?

• 2. What kind of society did early socialists want?

• 3. Why did workers join together to form unions?

Section 4-Reforming the Industrial World

The Philosophies of Industrialization

• Laissez-faire-An economic policy of letting owners of industry and business set working conditions with out (gov.) interference – French for “let people do as they please”

• Capitalism-An economic system where the factors of production are privately owned and money is invested to make a personal profit

The Philosophies of Industrialization

• Adam Smith-Professor at the University of Glasgow (Scotland) wrote the Wealth of Nations in 1776– His book defended the

idea of a free economy, saying “economic liberty guaranteed economic progress”

The Philosophies of Industrialization

• Adam Smith’s Three Natural Laws of Economics– The Law of Self-Interest

• People work for their own good

– The Law of Competition• Competition forces people to make a

better product

– The Law of Supply and Demand• Maximum amount of goods will be

produced at the lowest possible price to meet the needs of the people

The Rise of Socialism

• Utilitarianism-The theory that people should judge ideas, institutions, and actions on the basis of their utility and usefulness

• Socialism- An economic system where the factors of production are owned by the public and operate for the welfare of all

Marxism: Radical Socialism

• Marxism-Radical form of socialism introduced by Karl Marx in a 23 page packet called “The Communist Manifesto” – Felt the Industrial Revolution

enriched the wealthy and improvised the poor. • He felt the workers would overthrow the

owners

• Marx felt communism was the “complete form of socialism”

Labor Unions and Reform Law

• Unions- Voluntary labor associations in which workers joined together to press for reforms

• Strikes- A collective refusal to work– Workers will usually strike

until their demands for the improvement of working conditions or higher wages is met

Labor Unions and Reform Law

• Laws that Reformed Working Conditions in England – Factory Act of 1833

• Made it illegal to hire kids under 9 to work in the factory – Kids 9-12 couldn’t work more than 8 hours a day – Kids 13-17 couldn’t work more than 12 hours a day

– Mines Act 1842-• Women and children could no longer work underground

in the mines

– Ten Hours Act of 1847-• Limited the work day of women and children in factories

to 10 hours

The Reform Movement Spreads

• The Abolition of Slavery-– The British abolished slavery

in 1833

– The American’s abolished slavery 1865

– Puerto Rico abolished slavery 1873

– Brazil abolished slavery 1888