Age of Reforms

Chapter 9 Section 4

Laissez Faire

the idea that government should stay out of business; government should pass no laws regulating business

European governments/America used this policy during the 1700’s-1800’s

Laissez Faire Philosophers

Laissez Faire: “Let it be” in French from 18th century Enlightenment philosophers

they argued that government

regulations only get in the way

a nation getting wealthy

● they argued that if government

stayed out of business the economy

would prosper

Adam Smith

Adam Smith 18th century British philosopher

wrote The Wealth of Nations 1776

book argues government should not interfere in business

Capitalism

Capitalism the economic system where money is invested in

businesses with the goal of making a profit

the economic system where individual

citizens can invest in and own businesses

this system is used in America

Thomas Malthus

The Malthusian Scissor

The Malthusian Scissor

1798 Malthus argued that populations increased faster than the food supply

because of this most people were destined to be poor and miserable

The Malthusian Scissor as a result populations would naturally even

themselves out through starvation, unemployment, and desperation (The Malthusian Scissor)

The Malthusian Scissor Malthus argued this would

upset the natural order of business (these problems should sort themselves out)

Most European leaders believed in The Malthusian Scissor: this belief caused them to do nothing to solve social problems

Malthus opposed

government intervention in

Business (minimum wage

laws, better working

conditions)

Rise of Socialism

in contrast to Laissez-Faire philosophers, some theorists argued that government should intervene and help the lower classes!

Socialist Reforms

Utilitarianism Utopianism Socialism Marxism

Utilitarianism introduced by English philosopher Jeremy Bentham late

1700s

Utilitarianism he argued people should judge governments on their

utility, or usefulness

government should try to promote the greatest good for the greatest number of people

Utilitarianism John Stuart Mill

John Stuart Mill

led the Utilitarianism movement in the 1800s

believed it was wrong that workers suffered starvation and dangerous conditions

he favored women’s rights

women’s suffrage

Pushed for reforms in the prison

and education systems

Utopianism

Robert OwenBritish factory owner

improved factory conditions for his employees

Near his cotton mill in Scotland he built houses that he rented to his employees at low rates

prohibited children under 10 from working in his mills and provided free schools

Utopianism

New Harmony, Indiana

New Harmony, Indiana

1824 Robert Owen founded a community New

Harmony, Indiana

he intended it to be a utopia (perfect

living place for all his employees);

New Harmony only lasted 3 years but

it inspired the founding of other

utopian communities later

Socialism founded by French reformer

Charles Fourier

Socialism in socialism the factors of production

(land, wealth, labor) are owned by the public for the welfare of all

grew out of belief in human good,

progress, and social justice

People own the factors of production, the government runs the economy to ensure no abuses

government should promote

equality of all and public

ownership of business: help

workers who were at mercy of greedy owners

Good Morning/Afternoon

12-16-09 Warm-up Describe each of these ism’s in your own

words (One sentence). Utilitarianism, Utopianism, Socialism,

Marxism (Communism)

Karl Marx German journalist He and friend Friedrich

Engels wrote The Communist Manifesto 1848: 23 page pamphlet that argued human societies have always been divided into warring classes (haves vs. have-nots)

Friedrich Engels The Communist Manifesto

The Communist Manifesto Bourgeoisie owners vs. Proletariat workers

wealthy controlled money and

production while poor performed

hard labor under horrible conditions

this situation had to

result in conflict

Future According to Marx Industrial Revolution would eventually destroy itself :

The large Proletariat (working class) would revolt, seize factories, and produce what society needed

Revolt would be

Global: all workers

unite in all countries

workers would share in the profits Governments would

and there would be equality for all disappear: there would be

no need for them

Pure Communism

final phase of the revolution: private property would cease to exist

all land, mines, factories, railroads,

businesses would be owned by the people

all goods and services would be shared equally

social classes would cease to exist

Results of Marxism revolts shook Europe 1848-1849

1900’s Communist revolutions took

place in Russia, China, Vietnam, Cuba,

Korea and other nations in

Eastern Europe

leaders of these new communist nations

adapted Marx’ beliefs to fit their own ideals and needs

Good Morning/Afternoon

12-16-09 Warm-up Compare and contrast the video clip.

One paragraph minimum.

Results of Marxism Marx believed economic forces alone

dominated society

He ignored the power of religion, nationalism, ethnic loyalty, and desire for democracy: He also ignored capitalism’s ability to adapt and change

These are why worldwide Communism

did not happen

Today: China, Cuba, North Vietnam,

North Korea only Communist nations left

The Union Movement

The Union Movement mid-late 1800s labor unions emerged to

protect workers’ rights

a union spoke for all workers

in a particular Industry

British Government banned unions in 1800 desperate workers joined anyway British government unhappily allowed unions in 1825

The Union Movement Collective Bargaining: large

scale negotiations between workers and their employers with union representing the workers (bargaining for better pay and better conditions)

Strike: if factory owners did not meet union’s demands they went on strike, or refused to work

American Federation of Labor 1886 most powerful early American Union Founded by Samuel Gompers In America unions emerged in early 1800s

Reform Laws

Factory Act 1833 Mines Act 1842 Ten Hours Act 1847

Factory Act 1833 Factory Act 1833 : made it illegal to hire children under

9 in Great Britain; kids 9-12 could not work more than 8 hrs./day; kids 13-17 could not work more than 12 hrs./day

Mines Act 1842 Mines Act 1842: prevented women and children from

working in underground mines in Great Britain

Ten Hours Act 1847 Ten Hours Act 1847: limited work day to 10 hrs. for

women and children in factories

Labor reforms were slower to hit America: not until 1920s-1930s did new laws take place in America to protect workers

earned 1/3 as much as men

fought to end slavery in America

and Britain

led reform movements

formed unions in trades

American women started settlement houses to

assist poor immigrants

Women

Reforms Spread to Other Areas of Life prison reform and education reform

1850s most American states set up free public education systems

Western Europe free public education

came in late 1800s