Sharon Rong Period 1 12/13/11 9-4 (pg.

300) Reforming the Industrial World Main Idea - Economics: The Industrial Revolution led to economic, social, and political reforms. The Philosophers of Industrialization During the Industrialization, the laborers felt that they were not treated fairly, and demanded economic reform in which the government had an active role. However, businesspeople believed in laissez faire, a system where the government does not interfere, and the market would be better off if left to flow without regulation by the government. Adam Smith, Malthus, and Ricardo were some of the Laissez-faire thinkers with Enlightenment ideas that inspired laissez-faire capitalism, a system in which the factors of production are controlled by businesses. Laissez-faire Economics Adam Smith was a professor that wrote a book called The Wealth of Nations, which said that the economy would prosper it it was allowed to work by his three natural laws of economics: People work if they could profit, competition causes people to improve products, and supply and demand would make goods sell at lowest possible price. The government earned wealth by putting heavy tariffs on imported goods from other countries, but laissez-faire philosophers believed that if free trade was allowed, the economy would actually be benefitted. The Economists of Capitalism Three of the most influential laissez-faire economists were Thomas Malthus, author of An Essay on the Principle of Population, David Ricardo, who wrote Principles of Political Economy and Taxation, and Adam Smith, whose 1776 had inspired the other thinkers. They believed in capitalism, a system where the people have control over the factors of production, an idea that spurred the Industrial Revolution. However, they opposed the government helping poor laborers, as it would affect the flow of the economy. The Rise of Socialism There were philosophers that believed in the opposite of laissez-faire thinkers. These theorists believed that if if the government had control over the factors of the economy, there would be equality for workers, and the rest of the population. Ideas such as utilitarianism, where ideas and actions were judged on how useful they would be, and socialism, in which poverty could end and workers were treated fairly, developed. Some of these thinkers included Bentham, Alexis de Tocqueville, John Stuart Mill, and Charles Fourier.

Utilitarianism Jeremy Bentham created the idea of utilitarianism, which was based on Smith's ideas, but was what he believed would be able to benefit the most people. John Stuart Mill supported utilitarianism, and challenged the idea of unregulated capitalism, because he saw the horrible conditions workers faced. Utopian Ideas Robert Owen was a British factory owner that helped improve the living conditions of his laborers, and even founded a community called New Harmony, an attempt at a utopia. His utopia only lasted three years, but inspired many other communities with the same motive. Socialism Charles Fourier and Saint-Simon saw the drawbacks of having a free economy. They believed in socialism, where the government planned the economy. The idea of socialism stated that the industries would be controlled by the government, and the working class would have better treatment, and poverty would be ended. Marxism: Radical Socialism A German journalist, Karl Marx, and Friedrich Engels wrote a pamphlet called The Communist Manifesto, which stated that the bourgeoisie was always against the working class, or proletariat. They said that the rich employers would eventually gain all the wealth, and the laborers would revolt, taking over the economy, in a final phase called pure communism, or complete socialism. These ideas influenced many Communists in the 20th century. The Communist Manifesto Marx and Engels said that employers were gaining profits in the laissez-faire economy, while the workers suffered in terrible conditions. They believed the Industrial Revolution had helped the wealthy and separated the classes further, and that laborers had the right to live equally. The Future According to Marx Marx said that in the future, if capitalism continued, the factories would be taken over by the working class, and profits would become equal for all, in a society with no classes. This phase was called communism, or complete socialism, in which the government took all control but everything would be shared by the people. The communist ideas caused small revolts, but were most influential in the 1900s, in places such as Russia, China, and Cuba, where Marx's ideas were altered to fit the leaders' needs. Labor Unions and Reform Laws Workers demanded better conditions, but were told that they would be laid off. However, they began to join together in associations called unions, and would strike when owners refused to improve their working conditions. The governments reluctantly accepted the unions, and eventually passed laws regulating labor.

Unionization At first, the only effective unions were those of the lower middle class, skilled workers, because it was harder to replace them. They bargained for higher pay and shorter hours, and though at first, labor unions were denied by the government, they were eventually recognized. Though they faced the threat of being fired, the working class continued to join unions. By 1875, unions had to right to strike, and there were over a million workers that had taken part in the unionization, joining together and winning higher wages and better conditions to work in. Reform Laws The United States and British government passed bills that helped working people, and limited the hours of the workday, ended child labor, and set a minimum wage. Some objected the child labor law because they thought it was interfering with the rights of the states, but reform laws were passed, and unions forced new laws to be created. The Reform Movement Spreads Other reforms began to spread, with motives that included the want to further improve work conditions, to the abolition of slavery and women's rights. People also tried to change the treatment of prisoners, education, and other aspects of the society. The Abolition of Slavery William Wilberforce was a Parliament member that fought against slavery because he felt it was morally wrong. Others fought against it as well, because they saw it was a threat to the economy, By the late 1800s, slavery ended in the United States, Spain, and Brazil, and places such as Cuba. The Fight for Women's Rights The Industrial Revolution helped women earn more money, though most women were still treated unequally. Women started unions, and began a movement for women's rights, founding the International Council for Women in 1888. Reforms Spread to Many Areas of Life People began to try to reform other aspects of life, such as education and prison. Horace Mann was an American man that supported public education, and his ideas and those of others led to public school systems, which began in the late 1800s. Alexis de Tocqueville, a French writer, argued that even prisoners should have more liberty, and that they could have more freedom when they were released from jail.