The Rise of the Industrial “Class” and a New Way

of Thinking

The Rise of the Industrial “Class” and a New Way of Thinking

• Origins came from the concept of “private ownership”.• Adam Smith wrote, “The Wealth of Nations” (1776)

– Individuals should own the means of production and sell their products and services in a free and open market, where the demand for their goods and services would determine their prices and availability. – A free-market system (a.k.a. capitalism), Smith argued, would best meet the needs and desires of individuals and nations as a whole. – When governments remove themselves entirely from regulation, the process is called:

Adam Smith, Wealth of Nations

To him, the "wealth" of a nation wasn't determined by the size of its monarch's

treasure or the amount of gold and silver in its vaults, nor by the spiritual worthiness of

its people in the eyes of the Church. A nation's wealth was to be judged by the total

value of all the goods its people produced for all its people to consume.

While Adam Smith believed that free market capitalism would lead to

better opportunities for everyone, a man named Karl Marx disagreed

entirely.

Karl Marx & Friedrich Engels, The Communist Manifesto

To some people, the Industrial Revolution only seemed to cause greater separation between the classes—while factory owners made good profits, workers sunk into poverty.

Karl Marx and Friedrich Engels, two radical thinkers from Germany, wrote The Communist Manifesto, a 23-page pamphlet that eventually would trigger revolutions around the world.

Capitalism Communism

Founder Adam Smith Karl Marx

Books The Wealth of Nations

The Communist ManifestoDas Kapital

Capitalism Communism

View of Government

Government should not interfere with economy: laissez-faire

Everything is owned by the government

Government closely regulates the economy

View of people:

People become wealthy because they offer a good or service that people want to buy

People should cooperate to achieve success, no competitionEveryone should have an equal share of the wealth/property

How to improve social conditions?

If people work hard enough, they can lift themselves out of poverty

Government ownership of the economy will end hunger, poverty, and slave-like working conditions

Individual Freedoms

People are free to choose their own careersFreedom of religionFreedom is more important than security

Government determines job placementReligion is the “opiate of the masses” and should be done away withSacrifice freedom for security

On the future

Capitalism is the only efficient economic system“It’s not perfect, but it’s the best we can do”

Capitalism will destroy itselfWorkers will eventually rise up in a violent revolution and take powerThe future of the world is communism

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