New Ideas- Chapter 24:i -

Adam Smith“Father of Capitalism”

• author of Wealth of Nations• advocated a policy of laissez-faire (“leave

them alone”)- let natural forces of supply & demand to operate (no government interference!)- sellers/buyers act in own self-interest- businesses compete to produce goods inexpensively (efficient producers will prosper, expand operations, hire more workers, etc.)

Thomas Malthus

• author of An Essay on the Principle of Population (1798)

• poverty, famine, and misery unavoidable

- population increasing faster than food supply

[Image source: http://www.fordham.edu/halsall/mod/lect/mod15.html]

David Ricardo

• “iron law of wages” – rapid population growth leads to:- fierce competition for jobs- lower wages- higher unemployment

Continual poverty inevitable!

Image source: http://courtneyannemurray.googlepages.com/historyofcapitlism]

The Birth of Economics,“the dismal science”

[Image source: http://graphics8.nytimes.com/images/2007/08/12/business/12view.1901.jpg]

Malthus &Ricardo

• believed in laissez-faire

• thought the poor could help themselves by working hard, saving earnings, and having fewer children

How accurate were the forecasts of Malthus and Ricardo? (Be prepared to explain!)

Evangelicals and Reform

[Image source: http://roger-williams.net/family_history/william_lee/lord_morpeth.jpg]

William Wilberforce got the British Parliament to outlaw the slave trade in 1807, and slavery throughout the empire in 1833.

[Image source: http://i.telegraph.co.uk/telegraph/multimedia/archive/01179/arts-graphics-2007_1179113a.jpg]]

Lord Shaftesbury

promoted laws limiting

working hours for

women and children.

[Image source: http://gerald-massey.org.uk/holyoake/images/lord_shaftesbury.jpg]

Utilitarian Reformers

[Image source: http://files.libertyfund.org/img/907//lf0353-01_1978v1_figure_023.jpg]

British philosopher

Jeremy Bentham believed society should work for

“the greatest happiness forthe greatest number” of

citizens.[Image source: http://faculty.cua.edu/pennington/KrakowLectures/Law508/bentham.jpg]

Laws should be judged by:

• their usefulness;

• whether they advance human happiness; and

• reduced human misery

[Image source:http://www.usefulwork.com/shark/justice.jpg]

Bentham’s follower, John

Stuart Mill,called for the

distribution of wealth more

justly through taxing income.

[Image source:http://www.comnet.ca/~pballan/milljs2.jpg]

[Image source: http://www.willamette.edu/~sbasu/poli212/Mill1_files/image055.png]

[Image source: http://media.photobucket.com/image/socialism/tomasutpen/album3/socialism4.jpg]

Socialism

• the belief that the means of production – capital, land, raw materials, and factories – should be owned and controlled by society, either directly or through governments

Robert Owen, a wealthy Welsh manufacturer,

believed competition caused manyof society’s problems.

[Image source: http://www.chorleyhistorysociety.co.uk/robert_owen.jpg]

Owen believed life would improve if cooperation replaced competition.

New Lanark, Scotland

Owen unsuccessfully attempted to apply his ideas in the United States in 1825.

Prussian philosopher Karl Marx

dismissed the ideas of early socialists as impractical.

[Image source:http://www.communism.co.uk/karl-marx.jpg]

Marx attempted to provide a scientific basis for socialism.

[Image source: http://friedgreenonions.blogspot.com/2009/01/we-will-bury-you-khrushchev-prophesizes.html]

Due to his radical views,

Marx lived most of his life in exile.

[Image source: http://libcom.org/library/critique-of-the-gotha-program-karl-marx]

In 1844, Marx met Friedrich

Engels, scion of a wealthy industrialist,

in Paris.[Image source:

http://forumfilosofia.files.wordpress.com/2007/08/edrich.jpg]

Marx and Engels became lifelong collaborators.

[Image source: http://mikeely.files.wordpress.com/2009/01/marx-engels_at_work_together.jpg]

Marx based his teachings on the

German philosopher Hegel, who thought

that the clash of ideas produced

changes and new ideas (and new

conflicts!).[Image source:

https://eee.uci.edu/programs/humcore/images/Antigone/Georg_Hegel.png]

Hegel’s Triad

[Image source: http://philosophy.blogs.com/mc_philosophy/images/hegel_triad.jpg]

Marx believed history advanced through conflict, and that economics was the major force for change.

[Image source: http://barnsdale.files.wordpress.com/2009/10/class_warfare.jpg]

According to Marx, what emerged was a “class struggle” – the

conflict between those who controlled production and those who did the work –

which propelled history forward.

[Image source: http://www.worldsocialism.org/spgb/nov04/chartists%20storming%20westgate%20preston%201842.png]

Marx’s stages of economic life:

People produce what they need1. Primitive

Advent of tools make surpluses possible (people became exploitable)2. Slavery3. Feudal4. Capitalist

In Marx’s view, history was a struggle between the “haves” and “have-nots”.

[Image source: http://www.marxists.org/archive/marx/works/1852/18th-brumaire/pics/barics2.gif]

[Image source: http://fc03.deviantart.net/fs44/f/2009/064/6/0/Karl_Marx__The_Prophet_by_Latuff2.jpg]

Marx believed the makers of goods – the proletariat – was the true productive class.

[Image source: http://zetetics.us/images/worker.gif]

The bourgeoisie, or middle class, exploited the proletariat by owning the means of production.

[Image source: http://75.24.205.227/guenther-history/westernciv2/Nationalism%20Romanticism%20Realism%20Images.htm]

“Let the ruling classes tremble at a

Communist revolution. The

proletarians have nothing to lose but their chains. They

have a world to win. Working men of all countries, unite!”

[Image source: http://www.popsiclesandgrenades.com/wp-content/uploads/2009/01/manifest-hope-workers-rights-poster.jpg]

The Communist Manifesto (1848)

[Image source: http://z.hubpages.com/u/757096_f260.jpg]

Marx developed his ideas further in the work Das Kapital.

[Image source: http://www.marxists.org/history/etol/writers/swabeck/1959/xx/capital.jpg]

[Image source: http://www.southtexascollege.edu/nilsson/4_GB_Internet_Activities/4_IA_HumanPopGrowth.html]

What is the message of

this political cartoon, and

of the cartoons

that follow?

[Image source: http://www.marxists.org/subject/art/visual_arts/satire/marx/marx1.jpg]