Traditional vs Modern EconomyChris Harman, A People’s History of the World, Bookmarks Publications, 2002, pp. 318-325

(Chapter 5: The Industrial Revolution)James Fulsher, Capitalism: A Very Short Introduction, Oxford University Press, 2004, pp. 5-

9/13-18.Anthony Giddens, Sociology, 3rd ed., 1998, pp. 240-263; 270-281 ( Stratification and Clas

Structure)p

GÇ

2

The Emergence of Modern Economy- m.a. 18th cnt. England

England, 18th century:

Why England?

The intellectual atmosphere (1688) Development of trade (trade routes to India and

America, provide of raw materials by the colonies for the manufacturers)

Coal and iron Cheap labor The advantage of ports

3

Industrial Revolution-19th century

the invention of the steam-machine in 1765 by James Watt

Replacement of water, wood or man power!Pumping water

out of minesmill driving

machinery Transportation

(steam boat, steam locomotive)

Iron and steel

4

Industrial Revolution-Factories

Steam machine:New machinesMass production

Factories (Birmingham Notthingham Manchester)Credit and investmentRise of labor class

5

Industrial Revolution-Factories

Factories and restructuring of the works:• Seperation of

work from the home• Increase in the

pace of work• Work

specialization(alienation)• Accidents, noise• Supervision

(surveillence)

6

Factories, Labor and Disciplining the Labor

Problem of time!Habits of the early rural

population vs needs of the factory work

Time is money Clocks(putting cloks

forward in the morning and back in the evening, taking watches of the workers)

Emergence of the idea of leisure time

Human nature!

7

Factories, Labor and Disciplining the Labor

Problem of time!Habits of the early

rural population vs needs of the factory work

Time is money Clocks

Human nature!

Tactics of the BourgeoisieCorporal punishmentFinesThreat of dismissalStreet patrols (drunkness,

cleanliness)Curfew after 22:30Time monitoring (4

minute for pee!)Silent monitors

8

Factories and the Labor

Main industries and the workers-Sweated Labor

Textile: spinnig at factories in the

towns by women and children.

weaving by handloom workers in the rural areas until power looms were massively used in factories

Mining workforce at villages

9

Factories and the Labor

Working conditions

Cheap labor/Low wages

Long hours of work (usually between 6:00 -7:30)

Six working daysChild labor (ages

between 7-16, employing orphans from the asylums)

10

Adam Smith on Capitalism

• Self-interest : social-esteem and respect• Competitive Market:free interplay of demand and supply

and thus the formation of the price• Laissez-faire : let them go!• Invisible hand: the mechanism by which the economic

activities of the profit seeking individuals result in the greatest economic good for the society as a whole. • The division of labor increasing dexterity arising from the repletion of simple

tasks. the saving of the time lost in passing from one task to

another. the invention of specialized machines which is this close d.

of l. is thought to encourage.

11

Crises and Capitalism

1929 and New DealPost 1945 and WelfareCrises of 1970s and neo-liberalism in 1980s.

12

Neo-Liberalism

• creating incentives for foreign investment,• compliance with IMF criteria,• providing workplace flexibility,• prioritizing security of the workplace over security

of the worker, • privatization• decentralization of public administration and

governance

13

K.Marx on capitalism and class

Class: a category of people having a common relation to means of production. P/BSurplus Value:capital is created by purchasing commodities (raw material, machinery, labor) and combining them into a new commodity with an exchange value higher than the sum of the original purchase.Exploitation: the exchange value (wage) of the labor is less than the value it produces for the capitalist/surplus valueAlienation:estrangement of individuals from one another, or from a specific situation or process.

14

M. Weber on Class, Status Groups and Party