Economic Views of the

Industrial Age

Philosophers and economists developed theories on the

proper maintenance, causes, and effects of industrialization.

Adam Smith• “father of modern capitalism” –

described concept in his book The Wealth of Nations

• believed in laissez-faire economics

‐ business/the market should not be regulated by gov’t – the market will regulate itself

‐ will provide all necessary regulations and limits

(French for “free to do”)

Karl Marx

• wrote• believed that capitalism would destroy

itself – industrial– eventually workers would rise up against

their “masters” and revolt –

Karl Marx

• this “workers’ revolution” would create

• communism : all factors of production are owned by the gov’t (which represents the people)

– in essence, everything is to be shared for the mutual benefit of all no ownership = no poverty

– society is classless: no rich, no poor

Thomas Malthus• influenced by Adam Smith• believed population would always grow at a

faster rate than the food supplyp

problems of poverty (disease, famine)

are nature’s way of balancing the population with the food supply• ideas were very pessimistic, affected gov’t’s

desire to alleviate poverty• mostly, has been proven

The Industrial Revolution was a event. When industrialization hit the

West, changes came fast and suddenly. In many cases, there wasn’t time to the of these

sudden changes until after some had been done. Can you think of some consequences of

industrialization?

ANSWER:

As occurred during some of the political revolutions we studied, the West took “ ” during the Industrial Revolution.

But eventually helped some of the damage done and allowed the West to continue to move forward.

Reforms – later in the Industrial Age

We see this “two-steps-forward-one-step-back”nature of industrialization repeated in modern countries that have only recently industrialized.

Eventually, reforms will improve conditions in these countries.

Industrialization in the 20th/21st Centuries

Abolition• At first, dependence on slavery increased

because of machines like invented by .

• Later, though, slavery became obsolete as machines took over more and more labor.

• social and religious movements called for an end to slavery – called the “ ”, activists called “ ”

Abolition• Western Europe & US abolished slavery

around mid/late 1800s– British Empire abolished slavery in– United States fought the Civil War in ;

during the war President Lincoln officially freed the slaves in the Emancipation Proclamation

– Puerto Rico-1873, Cuba-1886, Brazil-

• Some social activists described the treatment of workers as - in some cases worse - than slavery.

New Voting Laws• Western Europe & US passed laws

extending to more of their citizens• – secured a true “gov’t by

the people”• reflected population’s move to cities

– urbanization• cleaned up

Women’s Suffrage• suffrage : • Women of the classes began to

fight for voting rights.• Western Europe & US awarded right

to vote to women in :–Germany - 1918 –US - 1920–Britain – 1928 (1918)–France - 1944

U

• Western Europe & US extended availability of education to more citizens (girls, poorer classes)

• Required children – coupled with laws against child labor

L Laws –

• / standards at work, in products

• laws• regulations• rights of • laws against monopolies

City Planning

• traffic lights/signs – • public transportation • building codes• waste collection / sewage

systems

Charitable Organizations

• didn’t believe Malthus – • women’s groups / church groups• to improve of er classes• to improve of poorer classes• to solve social problems of poorer

classes: lack of education, domestic abuse, alcoholism

Immigration Control

•E– an immigration inspection center set

up in New York Harbor (NYC)– established , in active use until

1934– a for millions of coming

into the US– now a museum featuring the history

of immigration to America