The Industrial RevolutionThe Industrial Revolution

What is it?What is it?

►Major change in the way Major change in the way goods are produced in the goods are produced in the late 18late 18thth century through century through the 19the 19thth century. century. Hand production replaced by Hand production replaced by machine production.machine production.

OriginsOrigins►Where does it begin?Where does it begin?

Great BritainGreat Britain

►Why does it begin in Britain?Why does it begin in Britain? Natural resourcesNatural resources

►Includes large labor supplyIncludes large labor supply

Economic prosperityEconomic prosperity►Capital (Investment)Capital (Investment)►Entrepreneurs Entrepreneurs

Stable GovernmentStable Government►Protect tradeProtect trade

Impact of the Agricultural Impact of the Agricultural RevolutionRevolution

►Helps spur Industrial Revolution (actually works Helps spur Industrial Revolution (actually works both ways)both ways) Ind. Rev helps Ag. Rev by providing new machinery to Ind. Rev helps Ag. Rev by providing new machinery to

help with cropshelp with crops How does Ag. Rev lead to Ind. Rev?How does Ag. Rev lead to Ind. Rev?

►New farming methods (Crop Rotation)New farming methods (Crop Rotation)►Enclosure movementEnclosure movement

forces small farmers out forces small farmers out ►Where do they go?Where do they go? -Urban Centers (Cities)-Urban Centers (Cities) Why?Why? -Factories (large buildings where goods are manufactured – mass -Factories (large buildings where goods are manufactured – mass

produced)produced)

--Leads to UrbanizationLeads to Urbanization

-People migrating to city areas in mass numbers-People migrating to city areas in mass numbers

Short Term Effects of Short Term Effects of Urbanization and Urbanization and IndustrializationIndustrialization►Cities become overcrowded, unsanitary, Cities become overcrowded, unsanitary,

and often dangerous places to live.and often dangerous places to live. Cholera epidemics widespreadCholera epidemics widespread Life expectancy extremely low Life expectancy extremely low

(especially for lower classes)(especially for lower classes)►Working conditions often difficult for Working conditions often difficult for

factory workersfactory workers►Middle class grows and prospersMiddle class grows and prospers►Tension develops between labor and Tension develops between labor and

managementmanagement

Short Term Effects Cont.► Industrialism spreads to nations and Industrialism spreads to nations and

areas with the same favorable conditions areas with the same favorable conditions as Britain (U.S.) as Britain (U.S.) War of 1812 (blockade) contributes to War of 1812 (blockade) contributes to

greater economic independence in U.S.greater economic independence in U.S.

►New Business TechniquesNew Business Techniques Corporations Corporations ►A business owned by stockholders A business owned by stockholders who share in the profits but are not who share in the profits but are not responsible for company’s debt. responsible for company’s debt. (Helps fund large operations)(Helps fund large operations)

Long Term EffectsLong Term Effects►ReformReform

Rise of the labor movement Rise of the labor movement (Unions)(Unions)

Abolition of slaveryAbolition of slaveryWomen’s rightsWomen’s rights►Ex ... Suffrage movements?Ex ... Suffrage movements?

Right to voteRight to voteEducation (Accessible for Education (Accessible for more people)more people)

Long Term Effects Cont.Long Term Effects Cont.►ImperialismImperialism

Seizure of a country or territory Seizure of a country or territory by a stronger country in order to by a stronger country in order to secure resources secure resources

Industrialized nations (Britain, Industrialized nations (Britain, France, U.S. and later Japan, France, U.S. and later Japan, Germany, Russia, and others) Germany, Russia, and others) establish colonial empiresestablish colonial empires

New Economic TheoriesNew Economic Theories

Laissez-Faire CapitalismLaissez-Faire Capitalism►Economic system based on Economic system based on

private ownership of propertyprivate ownership of property Government stays out of the business Government stays out of the business

sector “let do”sector “let do”

►Adam Smith Adam Smith Wealth of NationsWealth of Nations►““Invisible Hand” competition/self-Invisible Hand” competition/self-interest will guide resources most interest will guide resources most productive use.productive use.

SocialismSocialism

►Redistribution of wealth by Redistribution of wealth by government; government owns government; government owns or controls the means of or controls the means of productionproductionStill some private ownership Still some private ownership of small businesses by of small businesses by individuals on a limited basisindividuals on a limited basis

Marxism (Communism)Marxism (Communism)►Final stage of socialism; (Socialism on Final stage of socialism; (Socialism on

steroids!!!) elimination of social steroids!!!) elimination of social classes; replace competition with classes; replace competition with cooperation (Utopia?)cooperation (Utopia?)

►Karl Marx and Friedrich EngelsKarl Marx and Friedrich Engels History advances through conflictHistory advances through conflict Economics were the major force of Economics were the major force of

changechange ““Class struggle”Class struggle”►Proletariat (Workers) v. Proletariat (Workers) v. Bourgeoisie (Middle Class)Bourgeoisie (Middle Class)

Modern TermsModern Terms►Market Economy (Laissez-Faire)Market Economy (Laissez-Faire)

Ruled by supply and demand; Ruled by supply and demand; individuals own property and make individuals own property and make decisions that drive the economydecisions that drive the economy

►Command Economy Command Economy (communism)(communism) Government makes most or all of the Government makes most or all of the

economic decisionseconomic decisions

►Mixed Economy Mixed Economy Contains elements of both market and Contains elements of both market and

command.command.

ExamplesExamples 1.1. Jeans produced because people buy them. Jeans produced because people buy them.

2.2. Jeans are produced because the government Jeans are produced because the government decides to produce them to meet the needs decides to produce them to meet the needs and wants of citizens. and wants of citizens.

3.3. An individual owns a grocery store; she decides An individual owns a grocery store; she decides what to stock in the store and pays her workers what to stock in the store and pays her workers the lowest wages for which they will work. the lowest wages for which they will work.

4.4. An individual manages a grocery store for the An individual manages a grocery store for the government; government decides what items government; government decides what items will be stocked and sets the wage rate for will be stocked and sets the wage rate for workers. workers.

5.5. An individual owns a grocery store; he decides An individual owns a grocery store; he decides what to stock in the store and pays his workers what to stock in the store and pays his workers a minimum wage set by the government. a minimum wage set by the government.

QuestionsQuestions►What are the disadvantages to an What are the disadvantages to an

individual in each of the three individual in each of the three systems?systems?

►Which one connects best with the Which one connects best with the Enlightenment? Why?Enlightenment? Why?

►Which is best overall? Why?Which is best overall? Why?