CHAPTER 13 Section 1: Origins of the Industrial Revolution Section 2: The Factory System Section 3: New Methods and Business Organizations Section 4: Living and Working Conditions Section 5: Socialism The Industrial Revolution
Dec 31, 2015
CHAPTER 13
Section 1: Origins of the Industrial Revolution
Section 2: The Factory System
Section 3: New Methods and Business Organizations
Section 4: Living and Working Conditions
Section 5: Socialism
The Industrial Revolution
SECTION 4
13.4 Bell Ringer:What were the theories of economists and philosophers during the Industrial Revolution?(see next slide for chart)
Living and Working Conditions
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Economist Theories
Adam Smith
Thomas Malthus
David Ricardo
Jeremy Bentham
John Stuart Mill
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REVIEW!What is mercantilism?
Physiocrats
-believed that the wealth of nations was derived solely from the value of land agriculture or land development.
-denied that commerce and manufacturing produce riches. -advocates of free trade, rejecting the "balance of trade" theory
Remember the Philosophes
in the Enlightenment? We’re the guys that
liked to talk about
economics.
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Adam SmithThe Wealth of Nations 1776
Considered the founder ofclassical economics
Two natural laws govern all business & economic activity:
1. Law of Supply & Demand
2. Law of Competition
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Supply and DemandIf an item is scarce and EVERYONE wants it . . . .
People will pay a high price for it and profits do what?
$299 32GB
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CompetitionAs manufacturers compete – they MUST reduce their prices …
BUT if they cut prices too much … what could happen?
Supply would then decrease … and prices would do what?
What’s the lesson here?
You MUST be efficient -
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Free EnterpriseMercantilist laws & regulations hinder natural economic forces.
Competition should be unrestricted by laws, regulations, or government controls.
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Other economists ….
Thomas Malthus David Ricardo
The Principle of Population1798
“iron law of wages”1817
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Principle of PopulationDespite famines, epidemics, and wars, people still multiplyfaster than the food supply increases.
Malthus believed that human misery and poverty is inevitable…
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“iron law of wages”
Supply and demand of labor determine wages ….
When there is a surplus of labor (population growth), wages go down.
When there is a shortage, wages go up.
Working class poverty is inevitable.
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These theories supported EMPLOYERS – they want labor asCHEAP as possible ….
But they also didn’t want what?Gov’t interference!
Laissez-faire“Let it be”
“Leave things alone”
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From the Middle Ages until well into the 1800s,craft and merchant guilds regulated quality andprices of goods along with working hours andwages.
In the early 1800s, trade became almostcompletely unregulated …..
Laissez-faire!
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Reformers ARISE!
People argued that business could NOT beleft entirely alone to do as it pleased.
Humanitarians are people who work toImprove the conditions of others - urged reforms.Ministers preached against the selfishpractices of businesses.
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Charles Dickens wrote
David Copperfield
Oliver Twist
Used his novels to attack greedy employers.David Copperfield – described his own childhood.
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Jeremy Bentham –social reformer
utilitarianismA law was useful, therefore good, if it led to “the greatest happiness of the greatest number” of people.
People should educate themselves.
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John Stuart Mill
Government should work for the good of all citizens. Governments should protect working children and improve housing and factory conditions.On the Subjection of Women 1869
…support for women’s rights.
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Early Reform LawsFactory Act of 1802
shortened hours and improved conditions for children in cotton mills
Factory Act of 1833Established paid inspectors to inspect factories on child labor
Ten Hours Bill 1847Limited working hours to 10 per day for women and children Factory owners will extend the 10-hour day to all employees
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To improve their lives and working conditions, workers banded together to demand reforms…
Known as collective action
strikes
unions
When a large group of workers refuse to work, until their demands are met.
When workers organize and form associations
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SECTION 4Living and Working Conditions
Workers’ Associations (unions) were illegal in many countries.
Workers who united to fight for higher wages, shorter hours,and better working conditions could be imprisoned!
1870s Parliament passed laws legalizing strikes.