Thomas Malthus saw the effects of the population explosion- crowded slums, unemployment, etc. “Essay on the Principle of Population” – poverty and misery were unavoidable because of the population was increasing faster than food supply

Middle class business leaders embraced a Laissez-faire or “hands off” approach.

Adam Smith – The Wealth of Nations Free market, unregulated exchange of

goods, would help everyone not just rich More goods at lower prices; growing

economy helps everyone; free-enterprise capitalism

Malthus’s writings shaped economic thinking for generations

Predicted population would outpace food supply

Urged families to have fewer children Population boom continued but food

supply grew even faster.

David Ricardo-British economist, like Malthus, did not hold out hope for the working class to escape poverty.

Both opposed government help for the poor and supported a laissez-faire economy

Individuals should be left to oneself to improve life

BY 1800, Jeremy Bentham called for utilitarianism or idea that the goal of society should be “greatest happiness for the greatest number”

Based on utility- did it provide more pleasure than pain?

Government to become involved under certain circumstances

Mill was a follower of Bentham’s ideas Wanted government to step in to

improve hard lives of working people Believed middle class business were

entitled to increase their happiness but prevent them from doing so in a manner that harmed workers

Called for giving the vote to women and workers

The people as a whole rather than private individuals would own and operate the means of production- the farms, factories, railways, other large businesses that produced and distributed goods.

Early socialists were called Utopians after Thomas Mores’ ideal community

Poor but became a successful mill owner

Refused to use child labor Campaigned for laws against child

labor and for labor unions Factory in Scotland was model Built homes for workers Opened a school for children

In the 1840’s, Marx, a German philosopher, condemned ideas of Utopians as unrealistic.

New theory- “Scientific socailism” He and Freidrich Engels wrote a

pamphlet, “The Communist Manifesto” Communism- a form of socialism that

sees class struggle between employers and employees as unavoidable.

“haves” and “have-nots” Class struggle and working class would

win because they controlled production Classless, communist society Wealth and power shared equally Despised capitalism- prosperity for few

and poverty for many

At first, Marxism gained support but his theories would never be practiced exactly as he had hoped

Reforms won over revolution Nationalism won over class warfare For much of the 1900’s, revolutionaries

adapted his ideas but by late in the century every nation would incorporate elements of free market capitalism