Test on the Industrial Revolution, Capitalism, Socialism, Reform

Strike

labors protesting and not doing work

Spinning Jenny

a machine used in the textile industry to weave

Adam Smith

Adam Smith was a professor at the University of Glasgow, Scotland, and is known to be the main prophet of laissez-faire economics. He wrote the book The Wealth of Nations where he defended the free market, unregulated exchange of goods and services. His argument rested on his three natural laws of economics: *the law of self-interest-- people work for their own good * the law of competition- Competition forces people to make a better product * the law of supply and demand- enough goods would be produced at the lowest possible price to meet demand in a market economy

Capitalism

Capitalism is an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit these ideas also helped bring about the industrial revolution.

Communism

Communism is a form of socialism that sees the class struggle between employers and employees as unavoidable. Marx describes communism as a form of complete socialism in which the means of production all land, mines, factories, railroads, and businesses would be owned by the people. Private property would in effect cease to exist. All goods and services would be shared equally. In the Communist Manifesto published in 1848 it produced a few short-term results.

Utilitariansim

English philosopher Jeremy Bennett modified the ideas of Adam Smith in the late 1700s. He introduced the philosophy of utilitarianism. He also wrote his most influential work in the late 1700s and according to his theory, people should judge ideas, institution, actions on the basis of their utility, or usefulness. He argued that the government should try to promote the greatest good for the greatest number of people. A government policy was only useful if it promoted this goal. He supported individual freedom which he believed guaranteed happiness. For in his mind the greatest happiness for the greatest numbers of its citizens should be the goal of society in which is what utilitarianism was centered around.

Laissez Faire

Laissez-Faire refers to the economic policy of letting owners of industries and businesses set working conditions without the interference of the government. These policies favored free market unregulated by the government. The term is French for let do and by extension, let people do as they please. In the early 1800s, middle-class business leaders embrace this Laissez-Faire or hands-off approach. During the enlightenment, physiocrats argued that natural laws should be allowed to operate without interference. As part of this philosophy, it was the belief that the government should not interfere in the free operation of the economy

Dictatorship of the Proletariat

The dictatorship of the Proletariat was when the workers would control the government. After a period of cooperative living and education, the state or government would wither away as classless society developed. This was the future perceived by Karl Marx; he thought this because factories would drive small artisans out of business leaving a small number of manufacturers to control the wealth. The large Proletariat would revolt seize the factories and mills from capitalist and produce what society needed. Workers sharing and profits would bring about economic equality for all the people. Marx predicted that the workers would unite across the national borders to wage class warfare instead nationalism one out over working-class loyalty in general people felt stronger ties to their own country than to international communist movements. Marks also thought that the misery of the Proletariat would touch of a world revolution however in the 1900s the effort of reformers and government change lead to improving conditions for the working class.

Iron law of wages

The iron law of wages was created by David Ricardo who agreed with Malthus that the Poor had too many children. In his iron law wages, he pointed out that when wages were high families had more children but with more children meant a greater supply of labor which led to lower wages and higher unemployment. Ricardo did not hold out hope for the working class to escape poverty because of such predictions economics became known as the dismantle science. Laissez-faire thinkers such a Smith, Malthus, and Ricardo opposed government efforts to help poor workers. They thought the creating minimum wages laws and better working conditions would upset the free market system, lower profits and undermined the production of wealth in society.

Socialism

To end poverty and injustice those who believed Laissez-Faire offered a radical solution which was socialism. Under socialism, the people as a whole would rather than the private individual would own and operate the means of production-the farms, factories, and other large businesses that produced and distributed goods. Socialism grew out of the Enlightenment faith in progress its belief in the basic goodness of human nature in its concern for social justice. Socialist wanted to develop a world in which society would rather operate for the benefit of all other members rather than just for the wealthy. Socialism grew out of an optimistic view of human nature, socialist argued that the government should plan the economy rather than depend on the free market capitalism to do the job. public ownership they believed would help workers who were at the mercy of their employers. Some socialists such as Louis Blanc advocated through extensions of rights to vote.

Karl Marx

Was a German journalist who introduced the world to a radical type of socialism called Marxism. Marx and Frederick Engels, a German whose father owns a textile mill in Manchester, outlined ideas in a 23 page pamphlet called the Communist Manifesto in it they argue that human societies have always been divided into warring classes in their own time these were the middle class "haves" or employers call the bourgeoisie and the "have-nots" or workers called the proletariat. While the wealthy control the means of producing goods, the poor worked in poor labor conditions. The Communist Manifesto was published in 1840 and it was "a spectre is haunting Europe" it began "the specific specter of communism"; which is a form of socialism that sees a class struggle between employers and employees as unavoidable. Marx theorized that economics was the driving force in history the entire course of history argued with the history of class struggles between the haves and the have not's. Marx's despised capitalism he believed in created prosperity for only a few and poverty for many. He called for an internal international struggle to bring about its downfall working man of all countries he urged unite

Tenement

bad living conditions for the working class

Mercantile Capitalism

borrowing money to buy a product to sell to make a profit and paying back the money with intrest

Luddite

early 1800s members of the working class who were frustrated by the labor saving inventions felt that theyw were taking their jobs awat so they would riot and destroy factory machinery

Urbanization

moving from the farms to the city

Factors of Production (CLINTS)

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