Ch_13-section 4

CHAPTER 13

Section 1: Origins of the Industrial Revolution

Section 2: The Factory System

Section 3: New Methods and Business Organizations

Section 4: Living and Working ConditionsSection 5: Socialism

The Industrial Revolution

SECTION 4

13.4 Bell Ringer:What were the theories of economists and philosophers during the Industrial Revolution? (see next slide for chart)

Living and Working Conditions

SECTION 4Living and Working Conditions

Economist Theories

Adam Smith

Thomas Malthus

David Ricardo

Jeremy Bentham

John Stuart Mill


REVIEW! What is mercantilism?

Physiocrats -believed that the wealth of nations was derived solely from the value of land agriculture or land development.

-denied that commerce and manufacturing produce riches.

-advocates of free trade, rejecting the "balance of trade" theory

Remember the Philosophes in the

Enlightenment? We’re the guys that liked to talk

about economics.

Presenter

Presentation Notes

As industrialization continued, some thinkers argued that business should be free to grow and change without any sort of government restrictions. Others, however, wanted workers to be granted the political and economic power needed to shape their own lives.


Adam SmithThe Wealth of Nations 1776

Considered the founder of classical economics

Two natural laws govern all business & economic activity:1. Law of Supply & Demand2. Law of Competition


Supply and DemandIf an item is scarce and EVERYONE wants it . . . .

People will pay a high price for it and profits do what?

$29932GB


CompetitionAs manufacturers compete – they MUST reduce their prices …

BUT if they cut prices too much … what could happen?

Supply would then decrease … and prices would do what?

What’s the lesson here?

You MUST be efficient -

SECTION 4Living and Working ConditionsFree EnterpriseMercantilist laws & regulations hinder natural economic forces.

Competition should be unrestricted by laws, regulations, or government controls.

SECTION 4Living and Working ConditionsOther economists ….

Thomas Malthus David RicardoThe Principle of Population

1798“iron law of wages”

1817


Principle of Population

Despite famines, epidemics, and wars, people still multiply faster than the food supply increases.

Malthus believed that human misery and poverty is inevitable…


“iron law of wages”Supply and demand of labor determine wages ….

When there is a surplus of labor (population growth), wages go down.

When there is a shortage, wages go up.

Working class poverty is inevitable.


These theories supported EMPLOYERS – they want labor as CHEAP as possible ….

But they also didn’t want what? Gov’t interference!

Laissez-faire“Let it be”

“Leave things alone”


From the Middle Ages until well into the 1800s, craft and merchant guilds regulated quality and prices of goods along with working hours and wages.

In the early 1800s, trade became almost completely unregulated …..

Laissez-faire!


Reformers ARISE!

People argued that business could NOT be left entirely alone to do as it pleased.

Humanitarians urged reforms. Ministers preached against the selfish practices of businesses.


Charles DickensDavid Copperfield

Oliver Twist

Many will argue that laws were needed to regulate work hours, wages, and working conditions.


Jeremy Bentham – philosopher and social reformer

utilitarianismthe idea that moral worth of an action is determined solely by its contribution to overall utility: that is, its contribution to happiness or pleasure

Presenter

Presentation Notes

Bentham's position included arguments in favor of individual and economic freedom, the separation of church and state, freedom of expression, equal rights for women, the end of slavery, the abolition of physical punishment (including that of children), the right to divorce, free trade, usury, and the decriminalization of homosexual acts. He also made two distinct attempts during his life to critique the death penalty.


John Stuart Millwas an influential liberal thinker of the 19th century whose works on liberty justified freedom of the individual in opposition to unlimited state control.

On the Subjection of Women 1869

…in 1869 became the first person in Parliament to call for women to be given the right to vote

On Liberty 1859…the individual ought be free to do as he wishes unless he harms others. Individuals are rational enough to make decisions about their good being and choose any religion they want to.

“tyranny of the majority”

Presenter

Presentation Notes

The phrase tyranny of the majority, used in discussing systems of democracy and majority rule, is a criticism of the scenario in which decisions made by a majority under that system would place that majority's interests so far above a dissenting individual's interest that that individual would be actively oppressed.


Early Reform LawsFactory Act of 1802

shortened hours and improved conditions for children in cotton mills

Cotton Factories Regulation Act 1819 Set the minimum working age to 9; maximum working hours to 12 per day

Regulation of Child Labor Law 1833 Established paid inspectors to inspect factories on child labor regulations and enforce the law

Ten Hours Bill 1847 Limited working hours to 10 per day for women and children Factory owners will extend the 10-hour day to all employees

What about WAGES?!?

Did these laws REALLY

make any difference?

SECTION 4Living and Working ConditionsTo improve their lives and working conditions, workers banded together …

collective action

strikes

unions

When a large group of workers refuse to work, until their demands are met.

When workers organized and form associations



Workers’ Associations (unions) were illegal in many countries.

Workers who united to fight for higher wages, shorter hours, and better working conditions could be imprisoned!

1870s Parliament passed laws legalizing strikes.

Collective Bargaining


Labor Disturbances



This 1899 political cartoon, published in The Verdict, represents the growing disparity between the rich and poor classes in America. This disproportion fomented the formation of anti-trust laws in the following decade.


Close your books

Time for QUIZZES!


creation of wealth; manufacturing and agriculture both impor-tant; the law of supply and demand and the law of competition govern all business and economic activity; free enterprise

population increase is the greatest obstacle to human progress; human misery and poverty are inevitable

Economist Theories

working-class poverty is inevitable; supply and demand determine wages (the iron law of wages)

utilitarianism; a good and useful law should lead to “the greatest happiness of the greatest number” of people; people should be educated so they could decide what was good for them; reform of the justice and prison systems

Adam Smith

Thomas Malthus

David Ricardo

Jeremy Bentham

government should work for the good of all its citizens; protection of working children; improvements in housing and factory conditions; full democracy; equality

John Stuart Mill

Education

Ch_13-section 4