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Industrial Revolution
Why you live better than a king!
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973
A. Flashback – 1973 (cont.)
A. Flashback – 1973
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
A. Flashback – 1973 (cont.)
B. Definition
The Industrial Revolution was:
the shift from making
goods by hand in homes
and small shops,to making
them by machine in large
factories.
B. Definition (cont.)
Domestic System
B. Definition (cont.)
Factory System
B. Definition (cont.)
The IR began in Great Britain
around 1750 in the textile industry.
By the 1800s, it had spread
throughout Western Europe and
overseas to places like the United
States and Japan.
C. Improvements in Agriculture
Came First!
Improved
methods
for growing
food.
More food
grown by
less
people.
Increased
population.
C. Improvements in Agriculture
Came First! (cont.)
Increased
demand for
goods.
Improvements
in
manufacturing
processes.
D. Pre-requisites to
Industrialization
Why Great
Britain?
D. Pre-requisites to
Industrialization (cont.)
1) Natural Resources
a. Energy
Water
Coal
D. Pre-requisites to
Industrialization (cont.)
1) Natural Resources
b. Steel
Iron Ore
Coal
D. Pre-requisites to
Industrialization (cont.)
1) Natural Resources
c. Raw Materials
Sheep
Cotton
D. Pre-requisites to
Industrialization (cont.)
2) Technology
•
•
“Know-how”
Advanced education system =
research & development (R&D) =
new inventions.
D. Pre-requisites to
Industrialization (cont.)
3) Labor Pool
• Enclosure Movement
D. Pre-requisites to
Industrialization (cont.)
4) Government support for free
enterprise
•
Money economy
Profit Motive!
•
Protection for private property
•
•
Enforcement of contracts
Incentive for entrepreneurs
E. Living Conditions in Early
Cities
Industrialization led to rapid
urbanization.
Example: Population of
Manchester, England:
• 1750 = 16,000
• 1855 = 455,000
E. Living Conditions in Early
Cities (cont.)
Overcrowded housing.
No indoor plumbing.
No electricity.
No sewer systems.
No sanitation systems.
No pollution controls.
F. Working Conditions in Early
Factories
12-16 hour days.
6 days/week.
No minimum wage.
No paid holidays/vacations.
No sick leave.
F. Working Conditions in Early
Factories (cont.)
No unemployment pay.
No child labor laws.
No safety standards.
No worker’s compensation.
No welfare programs.
Importance of Inventions
Did the invention:
a) Improve production process?
b) Improve
transportation/communication?
c) Make life easier/safer/more
convenient/more enjoyable?
G. Should the government
intervene? NO!
One of the big questions of early
industrial society was:
Should the government intervene
in the economy to help out the
working class?
Many people answered this
question with an emphatic NO!
Adam Smith
1723-1790
Scottish
economist
“Individual
ambition
serves the
common
good.”
G. Should the government
intervene? NO! (cont.)
1) Adam Smith (cont.) –
• Wanted a free market with no
government restrictions.
• Factory owners create wealth for the
whole society.
• They should be free to do as they
please with their profits.
G. Should the government
intervene? NO! (cont.)
1) Adam Smith (cont.) –
• Money taken from owners and given to
workers is not money productively spent.
•
If their actions are limited, owners will
be less motivated to build and expand.
• Laissez-Faire economics = “let them do
as they will.”
Thomas Malthus
1766-1834
English
demographer
“The power of
population is
greater than the
power of the earth
to sustain man.”
G. Should the government
intervene? NO! (cont.)
2) Thomas Malthus (cont.) –
• Studied population growth.
• Population multiplies faster than the
food supply.
• Tragedies like malnutrition, disease,
war and natural disasters help keep the
population in check.
G. Should the government
intervene? NO! (cont.)
2) Thomas Malthus (cont.) –
• If the government helped workers,
they’d live longer & have more kids.
• Result would be rapid over-population
and ultimately mass starvation.
• This was called the “Malthusian
Conclusion.”
Herbert Spencer
1820-1903
English
philosopher
“A nation which
helps its good-fornothings will
become a goodfor-nothing
nation.”
G. Should the government
intervene? NO! (cont.)
3) Herbert Spencer (cont.) –
• As Charles Darwin said it is in
nature, so should it be with humans.
• “Survival of the fittest” is the law
of nature.
• If the strong survive and the weak
die off, the herd remains strong.
G. Should the government
intervene? NO! (cont.)
3) Herbert Spencer (cont.) –
• Government aid to the workers will
only help unproductive people survive
and breed.
• Why infect the gene pool with the
offspring of the weak?
H. Developed & Underdeveloped
Countries
Countries that industrialized in the
first century of the IR quickly
became the richest and most
powerful in the world.
Those that didn’t, have struggled to
try and catch up.
H. Developed & Underdeveloped
Countries (cont.)
Four measures of the wealth of a
country:
1) % working in agriculture.
2) Per capita GDP.
3) Literacy rate.
4) Life expectancy.
Developed Countries
% in
ag.
Per
capita
GDP
Adult
literacy
rate
Life
exp. in
years
U.K.
1.4%
$35,424
99.0%
80.1
U.S.
0.7%
$48,442
99.0%
79.4
Japan
3.9%
$34,294
99.0%
82.7
Russia
9.8%
$21,248
99.6%
70.3
Developing Countries
% in
ag.
Per
capita
GDP
Adult
literacy
rate
Life
exp. in
years
Mexico
13.7%
$15,270
86.1%
76.2
China
36.7%
$8466
92.2%
74.8
India
52.0%
$3652
74.0%
64.7
Underdeveloped Countries
% in
ag.
Per
capita
GDP
Adult
literacy
rate
Life
exp. in
years
Nigeria
70.0%
$2532
61.3%
46.9
Ethiopia
85.0%
$1116
42.7%
52.9
Afghanistan 78.6%
$1202
28.1%
43.8
H. Developed & Underdeveloped
Countries (cont.)
Percentage of the world’s
population that lives in developed
countries:
15%
H. Developed & Underdeveloped
Countries (cont.)
Percentage that lives in
developing or underdeveloped
countries:
85%
I. Should the government
intervene? YES! (cont.)
• 1) Utilitarians –
• The goal of society should be to
“promote the greatest happiness for
the greatest number.”
• To this end, government should:
1) Provide for universal education.
2) Allow universal suffrage.
I. Should the government
intervene? YES! (cont.)
3) Allow workers to organize into
unions to bargain for shorter
hours and better wages.
4) Pass laws to end the worst
abuses of the factory system
like child labor.
I. Should the government
intervene? YES! (cont.)
• 2) Socialists –
• Workers make the goods that create
the wealth of the society.
• This wealth should be used to
benefit everyone, not just greedy
factory owners.
I. Should the government
intervene? YES! (cont.)
• 2) Socialists (cont.) –
• Factories should be nationalized
(taken over by the government).
• The profits can then be used to
improve the living conditions of the
working class.
I. Should the government
intervene? YES! (cont.)
• 2) Socialists (cont.) –
• The socialist movement was split
into two groups:
a) “evolutionary” socialists.
and
b) “revolutionary” socialists.
I. Should the government
intervene? YES! (cont.)
a) Evolutionary Socialists –
• This group thought socialism would
evolve over time.
• If they formed political parties, and
won elections, then they could take over.
• For this reason, they were called
Democratic Socialists.
I. Should the government
intervene? YES! (cont.)
b) Revolutionary socialists –
•
They thought factory owners
would never give up without a
fight.
•
Workers must arm themselves,
kill the owning class and take
control of the factories by force.
I. Should the government
intervene? YES! (cont.)
b) Revolutionary socialists (cont.) –
• The wealth of the society could then be
equally distributed.
• Once this goal of a “classless society”
was achieved, it would be utopia.
• This group was called “Communists.”
Karl Marx
1818-1883
German
philosopher
• Known as the
“Father of
Communism.”
• The Communist
Manifesto (1848)