New Ideas in a New Society
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1 Main Idea New Ideas in a New Society The Industrial Revolution inspired new ideas about economics and affected society in many ways. Content Statement 9/Learning Goal Analyze the social, political and economic effects of industrialization on Western Europe and the world.
2 Ch 7-3Vocabulary Laissez-faire Entrepreneur Socialism Communism Standard of living
3 Ch 7-3Vocabulary Laissez-faire: capitalism or market economy; a business system where companies are allowed to conduct business without interference by the government. British ended most regulations by Entrepreneur: a risk taker who starts a business with in the economic system of capitalism. Private ownership of companies. Socialism: a political and economic system in which society usually in the form of the government owns the means of production Communism: economic and political system in which government owns the means of production and controls economic planning; a socialist economic system without social classes. Standard of living: a measure of the quality of life
4 1.Capitalism and Competition Old mercantile system restricted trade to protect their industry. Laissez-faire economics: free market; a.k.a market economy no regulations Adam Smith, market economy companies compete against each other Supply and demand set prices Monopolies do what to price? Thomas Malthus, poverty unavoidable. Used to justify low wages untrue Industrialization succeeded and spread New Ideas about Economics 2.New Roles for Business Leaders Shift in wealth and power from land owners to business owners Entrepreneur Banking and finance become important Andrew Carnegie p.249 Cornelius Vanderbilt, JD Rockefeller Robber Barons vs. Captains of Industry
5 Robber Barons Late 1800 s industrialists, who spend $$$ lavishly Pay corrupt officials to pass laws that support business Squeezing out competition creating monopolies and then enacting unfair rates or prices on consumers Exploits workers by paying low wages Captains of Industry Capitalist leaders helped the country by starting businesses They provide progress, jobs, drive technology Many millions donated to causes They deserve the $$$$ they create "Millionaires are the bees that make the most honey and contribute most to the hive even after they have gorged themselves full."--andrew Carnegie
6 The Industrial 3)Competing Revolution Economic Views/Robert Section Owen 3 Not everyone agreed that laissez-faire capitalism was good. Two who took a different stance were Robert Owen and Karl Marx. 3)Robert Owen- Social Democracy Socialism- Society is combination of individual and government Society owns property Society controls business Some private ownership Set up Model industrial town New Lanark, Scotland. New Harmony IN Good conditions, wages, sick days, Nonprofit stores, free schooling, curfews and bathing requirements Critiques of communism/socialism. Too many requirements? 4)Karl Marx- Communism More radical socialism Predicted collapse of capitalism unfair balance of labor and profit. Workers of the world unite!! Das Kapital Communism Government owns means of production controls economic planning Known as command economy Socialism smaller scale Communism larger scale
7 Effects on Society The rise of new economic ideas was among the countless effects of the Industrial Revolution. The shift away from cottage industries also affected home life and the roles of women in society. 5)Home Life Men and women occupy separate sphere Worlds of work and home separated Women- home Man- work Women-moral guidance at home in middle/lower classes 6)Countries Industry-great power- U.S., England, France Control of other nations economies Example: Britain and India. Britain cloth cheaper because of industry. Indian textile industry couldn t compete. Increase military weapons, tech, strength Increase population growth Increase in wealth Standard of living improved Leisure time Improvements for growing middle class, not working class Changes to many aspects of life: Art 7)Societies Politics Transportation
8 Ch 7-3 Extra-Questions Answer the following questions: Look at and read A View of Andrew Carnegie on page 249. Answer # 1+2 Look at and read The Iron Law of Wages on page 250. Answer #1+2 Look at map Industrialized Europe, 1900 on page 252. Answer # 1+2
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25.4 Reforming the Industrial World. The Industrial Revolution leads to economic, social, and political reforms.
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