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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)