economic impacts of the industrial...

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Economic Impacts of the Industrial Revolution

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Let's first start with some vocab...

Laissez Faire government should intervene as little as possible in the direction of economic affairs.

Capitalism investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations

Free Market prices and wages are determined by unrestricted competition between businesses, without government regulation or fear of monopolies.

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LaissezFaire = Capitalism = Free Market =LaissezFaire = Capitalism = Free Market =

LaissezFaire = Capitalism = Free Market =

LaissezFaire = Capitalism = Free Market LaissezFaire = Capitalism = Free Market =


They are all similar if you see any of these on the regents you think no government intervention!

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Capitalism and the Ind. Rev.Adam Smith Wealth of Nations

Advocated that the Free Market is regulated by an “invisible hand”

Competition and financial incentive keep prices low and encourage growth

Remember the Idea of Laissezfaire: Almost zero gov’t intervention

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LaissezFaire = Capitalism = Free Market LaissezFaire = Capitalism = Free Market =


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Socialism and Communism

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A little more VocabSOCIALISM: the means of

production and distribution are controlled by the people and operated according to equity and fairness rather than market principles

COMMUNISM: all property and wealth is owned in a classless society by all the members of that society

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SocialismSocialism was in response to urbanization, large poor working class, subliving and working conditions

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UtilitarianismUtilitarianismgoal of society to achieve the greatest good for the greatest number of citizens.

People would own the factors of productionFarms, Factories, Railways

Based on Enlightenment idea that all people are good and as a whole can ensure social justice

No rich/no poor = equality, justice, peace

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Karl MarxWrote Communist Manifesto

Economics is the driving force in historyThought that capitalism was evil business owners took advantage of workers/lower class (proletariat) eventually they would get fed up and the proletariat of the world would unite and revolt.

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Communism (con’t)After the Proletariat revolution there would be a classless society

all people would work for the common good.

~Predicted revolution by 1900 never happened

~Working class standard of living increased~People were not united by workclass

loyalty, but by nationalism

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Oh and one more thing...

economic impacts of the industrial...

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