Chapter 25, Section 4

“Reforming The

Industrial World”

I. The Philosophers of Industrialization A. Laissez-Faire Economics

1. economic policy of letting owners of industry and business

set working conditions without interference. 2. free trade = economic prosperity 3. Adam Smith published The Wealth of Nations

a. 3 natural laws of economics 1. self-interest – people work for own

good 2. competition – forces people to make

better products 3. supply and demand – enough goods

would be produced at the lowest possible price

to meet demand in a market economy

Adam Smith

B. The Economists of Capitalism 1. Thomas Malthus and David Ricardo

a. capitalism 1. economic system in which the factors

of production are privately owned and

money invested in business ventures to make

a profit b. An Essay on the Principle of Population

(Malthus) 1. population outpaced food supply 2. w/out war & epidemics to kill off extra

people, most were destined to be poor &

miserable c. Principles of Political Economy and Taxation

(Ricardo) 1. many workers & abundant resources =

cheap labor & resources

d. opposed gov’t efforts to help poor workers e. minimum wage laws & better working

conditions would lower profits & undermine wealth

II. The Rise of Socialism A. utilitarianism

1. introduced by Jeremy Bentham a. gov’t actions are useful only if they promote

the greatest good for the greatest number of

people 2. John Stuart Mill

a. equal division of profits b. cooperative system of agriculture &

women’s rights c. do away with great differences in wealth

3. reforms in legal and prison systems and in education B. Utopian Ideas

1. Robert Owen a. better working conditions for his employees

1. provided low-rent houses & free schooling

2. prohibited children under 10 from mill work

b. founded New Harmony, Indiana 1. intended utopia, or perfect living

place

C. Socialism 1. factors of production are owned by the public &

operate for the welfare of all 2. gov’t control of key industries would end poverty

& promote equality 3. public ownership would help workers, who were at

mercy of employers

III. Marxism: Radical Socialism A. Karl Marx & Friedrich Engels, The Communist Manifesto

1. “haves” a. employers, called the bourgeoisie

2. “have nots” a. workers, called the proletariat

B. The Future According to Marx 1. capitalist system would destroy itself

a. small artisans out of business, small # of manufacturers control b. revolt of proletariat, seize factories & mills,

& produce what they needed c. Workers, sharing profits, would bring about

economic equality for all people d. Workers would control gov’t in a

“dictatorship of the proletariat” e. gov’t would disappear & classless society

develop

2. communism a. complete socialism in which the means of

production would be owned by the people b. no private property c. goods and services shared equally

3. Marxism inspired revolutionaries a. Russia – Vladimir Lenin b. China – Mao Zedong c. Cuba – Fidel Castro

4. Marx & Engels believed that economic forces alone

dominated society a. religion, nationalism, ethnic loyalties, &

desire for democratic reforms also strong influences

on history

IV. Labor Unions and Reform Laws A. Unions

1. an association of workers, formed to bargain for better

working conditions & higher wages B. Unionization

1. collective bargaining a. negotiations between workers & employers b. if demands not met, workers could strike,

or refuse to work

2. skilled workers first to form unions 3. American Federation of Labor (AFL)

a. won higher wages & shorter hours

C. Reform Laws

1. Factory Act of 1833 (Britain) a. Children from ages 9 – 12 couldn’t work +8

hrs/day b. 13 – 17 year olds couldn’t work +12 hrs/day

2. Mines Act, 1842 (Britain) a. women & children couldn’t work underground

3. Ten Hours Act of 1847 (Britain) a. limited workday to 10 hrs. for women & children

4. National Labor Committee, 1904 (U.S.) a. tried to end child labor & set maximum working

hrs. 1. Supreme Court objected 2. individual states were allowed to limit

working hrs.

Child Coal Miners

V. The Reform Movement Spreads A. The Abolition of Slavery

1. Britain a. William Wilberforce

1. member of Parliament who led fight for

abolition b. 1807 – end of slave trade in British West

Indies c. 1833 – Britain abolished slavery

2. United States & the Americas a. 1865 – end of slavery in America b. 1866 – end of slavery in Cuba c. 1873 – end of slavery in Puerto Rico d. 1888 – end of slavery in Brazil

William Wilberforce

B. The Fight for Women’s Rights 1. addressed equal pay & other pressing issues

a. some British women joined unions 2. Jane Addams

a. ran a settlement house, that served the poor

residents of slum neighborhoods 3. those who rallied for abolition of slavery also

fought for own rights 4. International Council for Women, 1888

a. delegates & observers from 27 countries attended

Jane Addams

International Council for Women

C. Reforms Spread to Many Areas of Life 1. Horace Mann (U.S.)

a. favored free public education for all children

b. “If we do not prepare children to become good

citizens … if we do not enrich their minds with

knowledge, then our republic must go down to

destruction.” c. By 1850s, many states began public school

systems 2. prison reform

a. providing prisoners with means to lead useful lives

upon their release Horace Mann

Daily Essential Questions

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

2.Why did workers join together in unions?

3.Reform movements spread to which four areas of society?