RESPONSES TO INDUSTRIALIZATION: The

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RESPONSES TO INDUSTRIALIZATIONThe isms
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COMMUNISM
CAPITALISM CLASSICAL LIBERALISM
SCIENTIFIC SOCIALISM (MARXISM)
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Definitions
Capitalism An economic system that is
controlled by private individuals who invest
excess money and profits (capital) into business.
The goal is profits. The government follows a
laissez-faire system where they dont intervene
in economic affairs. Socialism An economic
system that is controlled by the workers inside
the factories and directed not by owners but by a
centralized government planning committee. The
goal is to make the people who do the work more
powerful than the owners of the factories. You
can still make more money based on how productive
(or unproductive) you are. The government
intervenes a lot. Communism Like socialism, but
the goal is complete equality of condition.
(Instead of equality of opportunity)
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Capitalists
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Adam Smith
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• First describer of the economic system of
  capitalism that was developing in England in the
  1700s.
• Described capitalism in his book On the Wealth of
  Nations
• Believed that governments should keep their hands
  off the economy Laissez-Faire
• Said peoples pursuit of their own interests
  would result in the right products being made for
  the right price (because businesses WANT to be
  profitable!)

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THOMAS MALTHUS AND POPULATION
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MALTHUSS THEORY
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MALTHUS CHECKS ON POPULATION GROWTH
Growth of population cannot be stopped without
misery or vice!
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RICARDO AND THE IRON LAW OF WAGES
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RICARDOS CYCLE
THE IRON LAW OF WAGES
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IMPLICATIONS OF MALTHUS RICARDOS IDEAS?

• Low wages
• Suffering among workers
• Trying to help poor people would only HURT them
  long-term Social Darwinism, or the idea that the
  fittest people should control the world,
  develops

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Philosophers have only interpreted the world in
various ways the point, however, is to change
it. - Karl Marx
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Communism MARXISM
Karl Marx
Friedrich Engels
1820-1895
1818-1883
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Karl Marx said
History is a series of conflicts between classes
that control means of production (owners) and
those which do not (wage-laborers).
vs.
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How does the ruling class keep control?
Society (government, religion, moral values) are
ALL designed to support the interests of the
dominant economic class.
Religion is the opiate of the masses.
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COMMUNISM MARXISM
Believed that history is moving through a series
of stages
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COMMUNISM MARXISM
Industrialization has created a new conflict
between the owners of factories (bourgeoisie) and
factory workers (proletariat)
vs.
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COMMUNISM Marxism
Increased suffering among Proletariat would
INEVITABLY lead them to revolt against the
Bourgeoisie, owners of the means of production
aka factories.
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Uh-Oh
THE PROLETARIAT
THE BOURGEOISIE
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COMMUNISM Marxism
Workers would create a society without social
classes where no one had any private property
and all needs were met.
From each according to his abilities, to each
according to his needs.
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The proletarians have nothing to lose but their
chains. They have a world to win. WORKING MEN
OF ALL COUNTRIES, UNITE!