Section 3 The Industrial Revolution Main Idea The Industrial Revolution inspired new ideas about economics and affected society in many ways. Ch 7.3--New.

Section 3The Industrial Revolution

Main Idea

The Industrial Revolution inspired new ideas about economics and affected society in many ways.

Ch 7.3--New Ideas in a New Society


• Gov’t controlled trade in mercantilism people wanted laissez-faire policy

• Adam Smith– proposes market economy (capitalism) companies compete against each other

• Individuals own/sell goods for profits

• Thomas Malthus, capitalism made poverty unavoidable untrue

• Industrialization succeeded

Capitalism and Competition

• Shift in wealth and power from land to business owners

• Entrepreneur

• Banking and finance become important

• Andrew Carnegie, Cornelius Vanderbilt, JD Rockefeller

• Robber Barons vs. Captains of Industry

New Roles for Business Leaders

New Ideas about Economics


Robber Barons• Late 1800’s industrialists,

who spend $$$ lavishly

• Pays corrupt officials to pass laws that support business

• Squeezing out competition – creating monopolies and then – enacting unfair rates or prices

on consumers

• Exploits workers by paying low wages

Captains of Industry• Capitalist leaders helped the

country by starting businesses

• They provide progress, jobs, drive technology

• Many millions donated to causes

• They deserve the $$$$ they create

• "Millionaires are the bees that make the most honey and contribute most to the hive even after they have gorged themselves full."--Andrew Carnegie


Which system do you prefer?

A. Social classes (rich, middle and poor) exist, individuals pay for medical and education with low taxes

B. Social classes (rich, middle and poor) exist,

free medical, free education, with high taxes

C. No social classes, guaranteed employment,

free but limited education, free medical,

income based on productivity with high taxes


Not everyone agreed that laissez-faire capitalism was good. Two who took a different stance were Robert Owen and Karl Marx.

• Socialism-

• Society is combination of individual and government

– Society owns property

– Society controls business

– Maintain social classes

• Set up Model industrial town

• Good conditions, wages, sick days, Nonprofit stores, free schooling, curfews and bathing requirements

Robert Owen- Social Democracy

• More radical socialism

• Predicted collapse of capitalism unfair balance of labor and profit

• Das Kapital Communism

• Government

– owns means of production

– controls economic planning

– No social classes– everyone is equal

– No private ownership of land or business

Karl Marx- Communism

Competing Economic Views


The rise of new economic ideas was among the countless effects of the Industrial Revolution. The shift away from cottage industries also affected home life and the roles of women in society.

• Worlds of work and home separated

• Women- home• Man- work

• Women-moral guidance at home in middle/lower classes

Home Life• Industry-great power-

US, England, France• Control of other

nations’ economies• Increase military

weapons, tech, strength

• Increase population growth

Countries• Increase in wealth• Standard of living

improved• Leisure time• Changes to many

aspects of life:– Art

– Politics

– Transportation

Societies

Industrializations Effects on Society




Section 3 The Industrial Revolution Main Idea The Industrial Revolution inspired new ideas about economics and affected society in many ways. Ch 7.3--New.

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