Aim: Who was Karl Marx?

Do Now:1. What is Capitalism?

2. Who is Adam Smith?

Notes -The industrialization that begins in Great Britain spreads to other parts of the
world.

1. Industrialization in the United States
   • U.S. has natural and labor resources needed to industrialize
   • Samuel Slater, English textile worker, builds textile mill in U.S.
   • Lowell, Massachusetts a mechanized textile center by 1820
   • Manufacturing towns spring up around factories across the country
   • Young single women flock to factory towns, work in textile mills
   • Clothing, shoemaking industries soon mechanize
   
2. Later Expansion of U.S. Industry
   • Industrialization picks up during post-Civil War technology boom
   • Cities like Chicago expand rapidly due to location on railroad lines
   • Small companies merge to form larger, powerful companies
   
3. The Rise of Corporations
   • Stock—limited ownership rights for company, sold to raise money
   • Corporation—company owned by stockholders, share profits not debts
   • Large corporations attempt to control as much business as they can
   
4. Troubles in Continental Europe
   • Revolution and Napoleonic wars disrupted early 19th-century economy
   • Belgium has iron ore, coal, water transportation
   • British workers smuggle in machine plans, start companies (1799)
   
5. Germany Industrializes
   • Political, economic barriers; but industry, railroads boom by mid-century
   
6. Rise of Global Inequality
   • Wealth gap widens; non-industrialized countries fall further behind
   • European nations, U.S., Japan exploit colonies for resources
   • Imperialism spreads due to need for raw materials, markets
   
7. Transformation of Society
   • Europe and U.S. gain economic power
   • African and Asian economies lag, based on agriculture, crafts
   • Rise of middle class strengthens democracy, calls for social reform
   
8. The Philosophers of Industrialization
   Laissez-faire Economics
   • Laissez faire—economic policy of not interfering with businesses
   • Originates with Enlightenment economic philosophers
   • Adam Smith—defender of free markets, author of The Wealth of Nations
   • Believes economic liberty guarantees economic progress
   • Economic natural laws—self-interest, competition, supply and demand
   
   
9. The Economists of Capitalism
   • Thomas Malthus, David Ricardo boost laissez-faire capitalism
   • Capitalism—system of privately owned businesses seeking profits
   • Malthus thinks populations grow faster than food supply
   • Wars, epidemics kill off extra people or misery and poverty result
   • Ricardo envisions a permanent, poor underclass providing cheap labor
   
   
10. The Rise of Socialism
    Utilitarianism
    • Jeremy Bentham’s utilitarianism—judge things by their usefulness
    • John Stuart Mill favors regulation to help workers, spread wealth
    
    
11. Utopian Ideas
    • Robert Owen improves workers’ conditions, rents cheap housing
    • In 1824, Owen founds utopian community, New Harmony, Indiana
    
    
12. Socialism
    • Socialism—factors of production owned by, operated for the people
    • Socialists think government control can end poverty, bring equality
    
    
13. Marxism: Radical Socialism
    Marxism’s Prophets
    • Karl Marx—German journalist proposes a radical socialism, Marxism
    • Friedrich Engels—German whose father owns a Manchester textile mill
    
    
14. The Communist Manifesto
    • Marx and Engels believe society is divided into warring classes
    • Capitalism helps “haves,” the employers known as the bourgeoisie
    • Hurts “have-nots,” the workers known as the proletariat
    • Marx, Engels predict the workers will overthrow the owners
    
    
15. The Future According to Marx
    • Marx believes that capitalism will eventually destroy itself
    • Inequality would cause workers to revolt, seize factories and mills
    • Communism—society where people own, share the means of production
    • Marx’s ideas later take root in Russia, China, Cuba
    • Time has shown that society not controlled by economic forces alone
    
    
16. Unionization
    • Unions—associations formed by laborers to work for change
    • Unions negotiate for better pay, conditions with employers
    • Sometimes they strike—call a work stoppage—to pressure owners
    • Skilled workers are first to form unions
    • Movement in Britain, U.S. must fight for right to form unions
    • Union goals were higher wages, shorter hours, improved conditions
    
    
17. Reform Laws
    • British, U.S. laws passed to stop worst abuses of industrialization
    • 1842 Mines Act in Britain stops women, children working underground
    • In 1847, workday for women, children limited to 10 hours in Britain
    • U.S. ends child labor, sets maximum hours in 1904
    
    
18. The Reform Movement Spreads
    The Abolition of Slavery
    • In 1833, reformers help end slavery in British Empire
    • Slavery ends in U.S. in 1865; ends by 1888 in rest of Americas
    
    
19. The Fight for Women’s Rights
    • Women pursue economic and social rights as early as 1848
    • International Council for Women founded 1888; worldwide membership
    
    
20. Reforms Spread to Many Areas of Life
    • Reformers establish free public schools in Europe in late 1800s
    • Public schools common in U.S. by 1850s; prison reform also sought