CH. 9, SEC. 4: REACTIONS AGAINST INDUSTRIAL ABUSES

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• CH. 9, SEC. 4 REACTIONS AGAINST INDUSTRIAL
  ABUSES
• 1) Laissez-faire government policy
• - free market policies
• - minimal to no government regulation of
  business
• - minimal taxation (primarily for defense,
  infrastructure)
• WHY?
• To maximize PROFITS in as free a manner as
  possible
• Corporate leaders tend to favor unobstructed
  free market competition during times of
  growth economic expansion, BUT will also
  lobby for government intervention
  assistance (i.e. bailouts, tax breaks) when
  profits decline in a free market.

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• 2) FAVORS laissez-faire policies
• OWNERS upper class Industrialists, business
  leaders, corporations, capitalists, advocates of
  free market ideology, political libertarians
  WHY?
• Allows businesses to set their own terms of
  production, and maximize profit with less
  spending that would otherwise be required from
  rules regulations prefer less government.
• RESENTS laissez-faire policies
• Working class, some middle class, very few upper
  class
• WORKERS CONSUMERS WHY?
• These groups are either directly exploited by
  industrial conditions, or are morally opposed to
  its abuses (if not directly affected) they view
  the government as having a responsibility to
  actively improve economic social conditions for
  all citizens.

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• 3) Capitalism basic themes
• PRIVATE ownership of property/assets
• Goal is to maximize INDIVIDUAL wealth profit
  (law of self interest)
• The FREE MARKET efficiency progress
• ? law of competition forces better goods
  services
• ? law of supply demand will produce the
  right amount of products at the lowest
  price
• all of this will naturally happen as a result
  of the invisible hand of the market, rendering
  government involvement as unnecessary
• Multiple classes are a natural outcome (upper,
  middle, lower) there will be winners and losers!

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• 4) Capitalist philosophers
• I. ADAM SMITH The Wealth of Nations (1776)
• - Published original ideas of free market
  capitalism (identified in question 3)
• II. THOMAS MALTHUS (1798)
• - World population will increase faster than
  food supply, leading to mass poverty
  misery
• - Population growth will be continually limited
  by starvation, wars, and disease
• Do Malthusian thinkers have a credible
  argument? IF so, what can/should be done in
  response? By whom?
• III. DAVID RICARDO (1817)
• - A permanent underclass is to be expected, as
  ongoing population growth will always
  drive down wages as the supply of labor
  outpaces demand

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• 5) Capitalism - positives and negatives
• () Drives economic growth
• () Creates wealth
• () Motivates creativity in production
  innovation
• () Provides more choice availability of goods
  services, at affordable prices
• COSTS of growth
• (-) exploited workers (low wages, safety)
• (-) environmental damage / habitat destruction
• (-) resource depletion
• (-) Disproportionate wealth (actual wage vs. a
  living wage)
• (-) Can a free market police itself against
  corruption?
• (-) Privatized Basic Needs Poverty PROBLEMS
• (-) Minimizes importance of labor
• (-) Does concentrated economic power replace
  democracy with plutocracy?

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• PRIVATE BUSINESS earns a
• PROFIT
• (or LOSS)
• Solution build the business! (pricing,
  marketing, etc.)
• GOVERNMENT GOAL break even more often, result
  is a
• SURPLUS
• Solution Build a rainy day fund grow gov
  services reduce pay off debt cut
  taxes.
• or DEFICIT
• Solutions CUT spending
• RAISE revenues (raise taxes)
• Stimulate economy (more taxes coming in
  w/o raising them)

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• 6) Utilitarianism basic themes
• - ALL things should be judged upon their
  utility, or USEFULNESS.
• - Government is obligated to promote the
  greatest good for the greatest amount of
  people
• - Individuals should be free to pursue personal
  gain without government interference EXCEPT
  when the common good is harmed
• Utilitarian Philosophers
• I. Jeremy Bentham (see above)
• II. John Stuart Mill
• - Favored more humane conditions for the
  working class
• - Favored government action to promote economic
  fairness
• - Favored a fairer distribution of business
  profits
• - Favored equal rights for women, including
  voting rights
• - Favored more universal education
  opportunities
• III. Robert Owen
• - Utopian working towns (failed!)

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• 7) Socialism basic themes
• Ideological response to the ill effects of
  industrialization
• Factors of production (i.e. property, assets) to
  be collectively owned, for the well-being of all
  citizens
• Governments role is to actively manage the
  economy, rather than depend on free market
  capitalism, by assuming public ownership of
  major industries (nationalization, instead of
  privatization).
• Profits to be spent on social programs to end
  poverty and promote equality
• Reasoning Workers CREATE wealth through their
  labor, and are therefore collectively entitled to
  it (rather than owners keeping all of it) no
  labor no production
• Can be democratically promoted via the right to
  vote, OR

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• 8) MARXISM basic themes
• Radical Socialism a violent, global revolt is
  the only way workers can take over the means of
  production (economic fairness cannot be obtained
  via voting or negotiation)
• History is an enduring conflict between the
  haves and have nots
• (the bourgeoisie vs. the proletariat)
• Unless the working class rises up, the rich will
  get richer, the poor will get poorer widening
  wealth gaps

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• 8) MARXISM basic themes (continued)
• Capitalist system is destined to destroy itself
• ? Large producers would eliminate absorb
  small producers (monopolies)
• ? Too few producers would control too much
  wealth
• ? The larger working class would revolt, seize
  control of all production, and achieve
  economic equality (from each according to
  their ability, to each according to their
  need)
• ? Result a dictatorship of the proletariat,
  in which the working class collectively
  controls the government, giving way to

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• 9) COMMUNISM basic themes
• The end stage of Marxist ideology
• The dictatorship of the proletariat enters a
  stage of cooperative living and education,
  after which
• The state (organized government) withers away,
  giving way to
• A classless society
• No nations, no borders, no governments just
  cooperative worker collectives across the world
  producing for the mutual benefit of all

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• 10) Original Marxist publication
• The Communist Manifesto (1848)
• inspired 20th century revolts in
• Russia (1917)
• (Lenin)
• China (1949)
• (Mao Tse-Tung)
• Cuba (1959)
• (Fidel Castro)

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KARL MARX
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• 11) Marxist flaws
• Economic forces alone dominated society always
  true?
• Humans motivated by things OTHER than
• ? Religion (Marx opiate of the masses)
• ? Nationalism (patriotism - loyalty to nation)
• ? Ethnic Identity (other ethnic groups are
  easier targets of violence than owners
  prevents worker cooperation!)
• Many workers focused on democratic political
  reform
• (i.e. union organizing, voting), rather than
  using violence
• Rich got richer, but not all poor got poorer, as
  the middle class slowly grows (although, income
  gaps did widen)
• Popular hope, optimism for SOCIAL MOBILITY,
  rather than risk violent revolt (belief that
  conditions will improve)
• Effects of EMIGRATION... some people left!
• Human greed, corruption (prevents cooperative
  action)

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• 12) LABOR UNIONS Goals (WHAT do they want?)
• - Better wages
• - Shorter hours
• - Safety
• - Job security
• - Generally better working conditions!
• 13) Union methods (HOW do they try to get what
  they want?)
• - Collective Bargaining negotiate with owner
• - Strike withhold labor
• no guarantees of success
• compromise is best outcome

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• 14) WHY were labor unions formed (instead of
  seeking alternative methods of addressing
  worker grievances)?
• - Utilize biggest strength numbers
• - Take direct action (rather than wait for
  gov. action)
• - Had no alternative means of political
  expression (working class lacked voting
  rights)
• 15) Gov responses to unions during early
  industrialization
• Unions lack legal recognition, are outlawed as a
  threat to social order stability (i.e.
  British Combination Acts of 1799 1800), BUT
• This slowly changes during the 1800s, and into
  the 1900s
• - Legal status in UK (Combination Acts repealed
  in 1824)
• - Right to strike (UK, 1875)
• - US lags behind AFL (American Federation of
  Labor) wins some hard-fought gains in 1886
• (but unions not legal until 1935 Wagner Act)

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• Unions will influence the slow pace of government
  reforms in response to the worst abuses of
  industrialism throughout the 1800s 1900s. So,
  how strong are they today?
• 11!

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• Implications of declining union membership for
  society

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• Implications of declining union membership for
  society

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• 16) Slow social reform and progress
• Slavery ? Abolished! (UK 1843 US 1865)
• for moral reasons or economic?
• low wages cheaper than slave labor!
• Child Labor ? Reduced restricted
• (UK 1833 US 1938)
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• Womens rights ? Improves.. especially suffrage
  (voting rights UK 1918 1928 US 1920)
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• Public education ? Expands grows
• UK 1880 (elementary)
• US 1918 (elementary)

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• Can socialism and capitalism achieve a BALANCED
  coexistence?
• Can we SOCIALIZE needs, and CAPITALIZE wants?
• Utilitarianism?