The Industrial The Industrial RevolutionRevolution

New Ways of ThinkingNew Ways of ThinkingBy Miss RaiaBy Miss Raia

LiberalismLiberalism First major theory in Western thought

to teach the individual is a self-sufficient being, whose freedom and well-being are the sole reasons for the existence of society.

Liberalism in EconomicsLiberalism in Economics Adam Smith in Adam Smith in Wealth of Wealth of

NationsNations (1776): advocated (1776): advocated economic individualismeconomic individualism– laissez-fairelaissez-faire: opposed gov’t : opposed gov’t

intervention in social and intervention in social and economic affairs, even if the economic affairs, even if the need for action seemed great need for action seemed great to social critics and reformers to social critics and reformers – – laissez faire.laissez faire.

– Most productive economy Most productive economy was one that allowed for the was one that allowed for the greatest measure of greatest measure of individual choice—“invisible individual choice—“invisible hand” of the self-regulating hand” of the self-regulating market.market.

– Severely opposed to Severely opposed to mercantilismmercantilism

Thomas MalthusThomas Malthus

Population growth willPopulation growth willoutpace the food outpace the food supply.supply.

War, disease, or famineWar, disease, or faminecould control could control population.population.

The poor should have The poor should have less children.less children.

Food supply will then Food supply will then keep up with keep up with population.population.

David RicardoDavid Ricardo

““Iron Law of Wages.”Iron Law of Wages.”

When wages are high,When wages are high,workers have moreworkers have morechildren.children.

More children create aMore children create alarge labor surplus thatlarge labor surplus thatdepresses wages.depresses wages.

The Utilitarians:Jeremy Bentham & John

Stuart Mill

The Utilitarians:Jeremy Bentham & John

Stuart Mill The goal of society is The goal of society is the greatest good for the greatest the greatest good for the greatest number.number.

preached the idea that the goal of society should be preached the idea that the goal of society should be “the greatest happiness for the greatest number” of its “the greatest happiness for the greatest number” of its citizens. citizens.

Laws or actions should be judged by their “utility” – did Laws or actions should be judged by their “utility” – did they provide more pleasure than pain?they provide more pleasure than pain?

He supported individual freedom – but saw that He supported individual freedom – but saw that government intervention was needed under certain government intervention was needed under certain circumstancescircumstances

John Stuart Mill: John Stuart Mill: On LibertyOn Liberty (1859): classic statement (1859): classic statement on liberty of the individual. on liberty of the individual.

Argued for “absolute freedom of opinion” to be Argued for “absolute freedom of opinion” to be protected from both gov’t censorship and tyranny of the protected from both gov’t censorship and tyranny of the majority.majority.

supported free market but said it favored the strong supported free market but said it favored the strong over the weak.over the weak.

Also believed in individual freedom, but wanted gov’t to Also believed in individual freedom, but wanted gov’t to step in and help the weakstep in and help the weak

Later argued for women’s rights: Later argued for women’s rights: On the Subjection of On the Subjection of WomenWomen (1867) (1867)

SocialismSocialism Definition: Apolitical system where the means of production are Definition: Apolitical system where the means of production are

controlled by the workers and all things are shared evenly. Socialist controlled by the workers and all things are shared evenly. Socialist policies provide for government funding of many basic needs such as policies provide for government funding of many basic needs such as food, shelter, and medical care.food, shelter, and medical care.– Good of society in general – condemned evils of industrial capitalism – which Good of society in general – condemned evils of industrial capitalism – which

believed made a huge gap between the rich and poorbelieved made a huge gap between the rich and poor To end poverty and injustice – socialismTo end poverty and injustice – socialism Under socialism – people as whole rather than private individuals would Under socialism – people as whole rather than private individuals would

own and operate the “means of production” – farms factories railways own and operate the “means of production” – farms factories railways and other large businessesand other large businesses

Goal of socialists - a society that operated for the welfare of the peopleGoal of socialists - a society that operated for the welfare of the people– Desire to reorganize society to establish cooperation and a new sense of Desire to reorganize society to establish cooperation and a new sense of

community.community. Increasing misery of working classes disturbed liberal thinkers (Bentham Increasing misery of working classes disturbed liberal thinkers (Bentham

and Mill), who proposed a modification of and Mill), who proposed a modification of laissez-fairelaissez-faire economics. economics. Liberal practices in politics (republicanism) and economics (capitalism) Liberal practices in politics (republicanism) and economics (capitalism)

seemed to promote selfish individualism and the fragmenting of society.seemed to promote selfish individualism and the fragmenting of society. Not until the 19th century did issue of social justice gain broad Not until the 19th century did issue of social justice gain broad

intellectual base and greater support.intellectual base and greater support.

Early French SocialistsEarly French Socialists Early Early French SocialistsFrench Socialists proposed a system of greater economic proposed a system of greater economic

equality planned by the government (sometimes called equality planned by the government (sometimes called Utopian Utopian SocialistsSocialists))

Count Henri de Saint-SimonCount Henri de Saint-Simon (1760-1825) (1760-1825)

– Industrialization, aided by science, would bring a wondrous new age to Industrialization, aided by science, would bring a wondrous new age to Europe which would be capable eliminating poverty of the lower Europe which would be capable eliminating poverty of the lower classes.classes.

– Proper social organization would require the “parasites”—the court, Proper social organization would require the “parasites”—the court, aristocracy, lawyers, churchmen—to give way to the “doers”—leading aristocracy, lawyers, churchmen—to give way to the “doers”—leading scientists, engineers, and industrialists.scientists, engineers, and industrialists.

– Sought public works projects and establishing investment banks.Sought public works projects and establishing investment banks.– Every social institution should have as its main goal improved Every social institution should have as its main goal improved

conditions for the poor.conditions for the poor. Louis BlancLouis Blanc (1811-1882): more practical approach than other (1811-1882): more practical approach than other

early French socialists.early French socialists.– Believed that the evils that afflict society to the pressure of Believed that the evils that afflict society to the pressure of

competition competition Demanded the equlaization of wages and the merging og personal interests Demanded the equlaization of wages and the merging og personal interests

in the common goodin the common good Urged workers to fight for universal suffrage and to take control of the state Urged workers to fight for universal suffrage and to take control of the state

peacefully.peacefully.– Gov’t should set up workshops and factories to guarantee full Gov’t should set up workshops and factories to guarantee full

employment.employment. Greatly influenced the formation of the National Workshops of the Greatly influenced the formation of the National Workshops of the

Revolution of 1848 in FranceRevolution of 1848 in France

Early French Socialists Cont.Early French Socialists Cont. Pierre Joseph ProudhonPierre Joseph Proudhon (1809-1865) (1809-1865) What is Property?What is Property?

(1840)(1840)– Believed property was profit stolen from the worker, who was Believed property was profit stolen from the worker, who was

the source of all wealth.the source of all wealth.– Often considered an anarchist as he greatly feared the power Often considered an anarchist as he greatly feared the power

of the state.of the state. Charles FourierCharles Fourier (1772-1837), impact on U.S. (1772-1837), impact on U.S.

– Characterized poverty as the principal cause of disorder in Characterized poverty as the principal cause of disorder in society and he proposed to eradicate it by sufficiently high society and he proposed to eradicate it by sufficiently high wages and by a “decent minimum” for those who were not wages and by a “decent minimum” for those who were not able to work.able to work.

– Proposed a planned economy and socialist communities.Proposed a planned economy and socialist communities.– Described socialist utopia in lavish mathematical detail.Described socialist utopia in lavish mathematical detail.– Seven utopian communities founded along his ideas; most in Seven utopian communities founded along his ideas; most in

the U.S.the U.S.– Early proponent of total emancipation of women.Early proponent of total emancipation of women.

Christian SocialismChristian Socialism

began in England around began in England around 18481848

Believed the evils of Believed the evils of industrialism would be ended industrialism would be ended by following Christian by following Christian principles.principles.

Attempted to bridge the gap Attempted to bridge the gap between the anti-religious between the anti-religious drift of socialism and the drift of socialism and the need for Christian social need for Christian social justice for workers.justice for workers.

The Socialists: Utopians & Marxists The Socialists: Utopians & Marxists

People as a society would operate and own People as a society would operate and own thethemeans of production, not individuals.means of production, not individuals.

Their goal was a society that benefited Their goal was a society that benefited everyone, not just a rich, well-connected few.everyone, not just a rich, well-connected few.

Tried to build perfect communities [utopias].Tried to build perfect communities [utopias].

Utopian SocialistsUtopian Socialists The UtopiansThe Utopians

– self sufficient communities self sufficient communities – all property shared all property shared – no difference b/w rich and poorno difference b/w rich and poor– impractical dreamersimpractical dreamers

Robert Owen Robert Owen – successful mill ownersuccessful mill owner– refused and campaigned against child laborrefused and campaigned against child labor– believed that the conditions people lived in believed that the conditions people lived in

shaped their charactershaped their character– Lanark – built a factory there and treated all his Lanark – built a factory there and treated all his

employees well to prove that an employer employees well to prove that an employer could offer a decent living and working could offer a decent living and working conditions and still run a profitable businessconditions and still run a profitable business

Scientific SocialismScientific Socialism or or MarxismMarxism

developed by developed by Karl MarxKarl Marx and and Friederich EngelsFriederich Engels

The Communist ManifestoThe Communist Manifesto (1830) and(1830) and Das KapitalDas Kapital (1861): Intended to replace (1861): Intended to replace utopian hopes and dreams utopian hopes and dreams with a brutal, militant with a brutal, militant blueprint for socialist working blueprint for socialist working class success.class success.

communism – form of communism – form of socialism that sees class socialism that sees class struggle between struggle between employer and employee employer and employee as inevitable. In practice, as inevitable. In practice, it is characterized by it is characterized by state control of the state control of the economy and economy and restriction restriction of personal freedoms.of personal freedoms.

Karl Marx: Theory of Karl Marx: Theory of dialectical materialismdialectical materialism

The economic interpretation of historyThe economic interpretation of history: all human history has been : all human history has been determined by economic factors (mainly who controls the means of determined by economic factors (mainly who controls the means of production and distribution).production and distribution).– The class struggle: Since the beginning of time there has been a class The class struggle: Since the beginning of time there has been a class

struggle between the rich and the poor or the exploiters and the exploited.struggle between the rich and the poor or the exploiters and the exploited. Theory of Surplus ValueTheory of Surplus Value: the true value of a product was labor and, since : the true value of a product was labor and, since

the worker received a small portion of his just labor price, the difference the worker received a small portion of his just labor price, the difference was surplus value, “stolen” from him by the capitalist.was surplus value, “stolen” from him by the capitalist.

Socialism was inevitableSocialism was inevitable: Capitalism contained the seeds of its own : Capitalism contained the seeds of its own destruction (overproduction, unemployment, etc.)destruction (overproduction, unemployment, etc.)

Violent revolution:Violent revolution:– The increasing gap between proletariat and bourgeoisie will be so great that The increasing gap between proletariat and bourgeoisie will be so great that

the working classes will rise up in revolution and overthrow the elite the working classes will rise up in revolution and overthrow the elite bourgeoisie.bourgeoisie.

Will create a Will create a “dictatorship of the proletariat.” “dictatorship of the proletariat.” WORKING MEN OF ALL WORKING MEN OF ALL COUNTRIES, UNITE!”COUNTRIES, UNITE!”

Creation of a classless societyCreation of a classless society: Will result as modern capitalism is : Will result as modern capitalism is dismantled.dismantled.

“ “From each according to his abilities, to each according to his needs,” From each according to his abilities, to each according to his needs,” will take place.will take place.

Impact of socialism on European politics became profound by late 19th Impact of socialism on European politics became profound by late 19th centurycentury

Marx’s PredictionMarx’s Prediction stated that there will come a time where the proletariat will stated that there will come a time where the proletariat will

overthrow the bourgeoisie in a violent revolutionoverthrow the bourgeoisie in a violent revolution take control of means of productiontake control of means of production Dictatorship of the Proletariat will be established to distribute Dictatorship of the Proletariat will be established to distribute

everything equallyeverything equally He will step down and set up a classless societyHe will step down and set up a classless society power and wealth equally sharedpower and wealth equally shared

Where will be the first communist revolution?Where will be the first communist revolution?Why is communism not successful?Why is communism not successful?