Ch 21 sec 3 CHS history MF

entrepreneur

(n.) a person who starts up and takes on the risk of a business-Industrial revolution highlighted their role- financiers, bankers and investors who pooled their money to create large corporations.

Adam Smith

1776-published "Wealth of Nations" which analyzed definition and creation of wealth. supported "laissez-faire economics, competition & capitalism"; Wrote markets free from govt benefited all.

Standard of living

A measure of quality of life based on the amounts and kinds of goods and services a person can buy. The industrial revolution allowed for a higher standard of living for all. Alowed for more leisure time, became more educated, increased interest in the arts, better transportation.

socialism

A political ideology based on strong support for economic and social equality. Robert Owen built a mill complex with good working conditions, no profit stores, free education to children, lived in decent houses, paid sick leave, Rules and regulations on personal lives, bathing requirements. brought idea to US-

Communism

A political system in which he government owns all property and dominates all aspects of life in the country. Karl Marx wanted workers to have control of government. Government would handle all production and controls economic planning. Used by some countries to violate human rights and freedom of choice.

What is the connection between Adam Smith and laissez-faire economics?

Adam smith advocated laisse-faire economics. He wrote that markets free from government interference benifited all. Such an economy system free from government regulation is called a market economy. In a market economy business can compete freely againts each other for trade.

Karl Marx

German, along with Engels declared that capitalism would lead to to more poverty and that the poor would rebel and capitalism would collapse. Argued against capitalism supported communism. He wanted to see a connection between work and pay Back breaking work=great pay, office work=less pay.

laissez-faire

Hands off. No government intervention in business., Idea that government should not interfere or regulate industries and businesses. French for "Free to do". Late 1700's-Capatalism and competition

Thomas Malthus

He claimed that unless population growth was controlled, the number of people would outgrow the food supply. Poverty and misery would never go away, That population was controlled by disease, war, famine and decreased reproduction.His ideas were used to justify low wages, and laws that limited help to the poor.

Captains of industry

Owners and managers of large industrial enterprises who wielded extraordinary political and economic power Rockerfeller, Carnegie,

robber barons

Refers to the industrialists or big business owners who gained huge profits by paying their employees extremely low wages. They also drove their competitors out of business by selling their products cheaper than it cost to produce it. Then when they controlled the market, they hiked prices high above original price.

Andrew Carnegie

Scottish-rags to riches-worked in a mill at 12 to owning his own steel mill. Donated $350 million to charity, gave 2 mill to Scottish universities.

Why did some economist think unrestricted capitalism would help society?

Some Economist believed capitalism would be successful and increase everyone's standard of living.Unrestricted capitlalism would allow businesses to compete with one another.