Chapter 7 section 4

Chapter 7 section 4 New ways of thinking

Laissez-Faire Economics • Government should not interfere with business of free operation of the economy • Adam Smith- The wealth of Nations – Unregulated trade and exchange of goods and services – Felt that free market would produce more products at less prices – Capitalists would reinvest profits into new areas of growth

Malthus on Population • Predicted that population would outpace the food supply – Only things to keep population in check would be war, dieses and famine – He also felt that the poor would suffer the most and urged them to have fewer children

• He was accurate in the population growth however food supply increased at even greater rates

Ricardo on Wages • Also felt that the poor had to many children • “iron law of wages” – When wages were high people had more children= larger labor force=lesser pay and higher unemployment

The Utilitarian • Fought for the protection of women children and public health • “the greatest happiness for the greatest number” – Jeremy Bentham – Supported individual freedom – Felt government should be a little involved in the economy

• John Stuart Mill – Actions are right if they cause happiness and wrong if they cause pain

• John Stuart Mill – Actions are right if they cause happiness and wrong if they cause pain – He felt that the government should get involved in labor issues when the workers were being exploited – More rights for worker and women

Emergence of Socialism • Focused on the goods of society • Condemned evils of industrial capitalism • People as a whole would run and own the means of productions • Society would operate for the benefit of all members , rather than just the wealthy

The Utopians • The ideal society – All work and property shared by the community – No difference between rich and poor – Impractical dreamers

Robert Owen • Utpian who created his own Utopia • Campaigned for laws that limited child labor and encouraged labor unions • New Lanark Scotland – Model village – Built homes for workers – Treated them with respect – Proved that people would obey even when treated well

Scientific Socialism • Karl Marx – Based on the scientific study of history – Wrote The communist Manifesto with Frederick Engels • Communism- sees the struggle between workers and employees as unavoidable

• Economy was the driving force in history • Have vs have-nots

Connecting past to present • Failures – Marx felt that when the working class rebelled it would set off a world revolution • Actually caused a number of changes in society and the work place

• Revolutions – Russian socialists embraced Marxism – 1917 Russia fell to communism along with many other countries – By 1990 many of these nations have embrace the freemarket capitalism