Background: The 19th c. deals with two revolutions in the early 18th century: 1.        The forces of Nationalism and Liberalism 2.   The Industrial Revolution

 

Responses to Industrialization

 

Liberalism:

(Classical Liberalism) or (Capitalism)

 

·          Adam Smith

·          Thomas Malthus

·          David Ricardo

 

1.    Adam Smith

 

·          Wealth of Nations, 1776

·          Laissez-Faire

·          Economic Self-Interest

·          The “Invisible Hand”

 

2.    Thomas Malthus

 

·          Malthus & Population:

·          2 Assumptions:

·          Population cannot grow w/o subsistence (food!)

·          Population always increases when food is available

·          Food supply increases arithmetically

·          Population increases geometrically

·          Soon you’ll have a gap between population and food = STARVATION

·          Malthus says this does NOT have to happen

 

·          Malthus’ Checks on Population Growth

	Positive Checks ·          War ·          Famine ·          Disease		Negative Checks ·          Late Marriages ·          Celibacy/Restraint ·          Contraception

 

 

 

 

 

 

 

·          Malthus says that the “Positive Checks” will be the only way to really stop population growth

·          Says this is because people will not practice “Negative Checks,” leaving the world no choice

 

·          Malthus’ Cycle

 

Population Increases   Population Declines   Good Times = Good Food Supply   Bad Times = Food Shortage

 

Food Supply can NOT increase at an equal rate to Population

 

3.    Ricardo and the Iron Law of Wages

 

Population Decline   Population Increases   Bad Times = Lower Wages   Good Times = Higher Wages

 

Implications of Malthus’ and Ricardo’s Ideas?

·          Suffering among lower classes is unavoidable

·          Wages tend to naturally remain low (near subsistence levels)

·          Attempts to provide assistance to the poor would only hurt them in the long run

 

Utilitarianism

·          Jeremy Bentham

·          John Stuart Mill

			Law or Policy

 

 

 

 

 

 

·          Seeks the “greatest good for the greatest number of people.”

·          Judges laws/policies based on whether they produce economic and social justice

·          Provided basis for greater government intervention in a free market

 

Socialism

 

Utopian Socialism:

·          Robert Owen

·          Henri Saint Simon

·          Charles Fourier

 

·          Established plans for an ideal, cooperative society

·          Members of each society shared in decision making and the fruits of their labor

 

1.    Fourier’s Odd Vision

·          He said that in his society, there would be

·          6 moons

·          new animals

·          anti-tiger

·          anti-fox

·          anti-whale

·          The seas of the world would turn into lemonade

 

·          This appealed to people who were incredibly dissatisfied with their lives

 

2.    Karl Marx

	“Philosophers have only interpreted the world in various ways; the point, however, is to change  it.” - Karl Marx

 

 

 

 

 

Karl Marx                              (partner)                                 

(1818-1883)

                       

·          History is a series of conflicts between those who control the means of production (the “HAVES”) and those who work in that production (the “HAVE NOTS”)

·          Society’s institutions (govt. laws, religions, philosophy, moral values) are designed to support the interests of the dominate economic class.

·          “Religion is the opium of the masses.” – Marx

 

·          Marxism

·          Dialectical Materialism

·          Belief that historical pogress results from conflict between two opposite forces

 

·          The Victory of Bourgeoisie has set up a new conflict

Vs.

            Proletariat:       Working Class               Bourgeoisie:      Recognizes plight of the

                                                                                                Proletariat, but sees it as

                                                                                                their fault.

 

Labor Theory of Value

	How do factories make money?

 

 

 

	Unpaid Wages

 

The Communist Manifesto (1848): “…Working Men Unite!”   Marx says all of this is INEVITABLE!

Fierce competition will break out between the Proletariats and the Bourgeoisie.  The Proletariats will grow so large, that the Bourgeoisie, over time, will be forced to sell their factories and join the ranks of the Proletariats. They will eventually gain “class consciousness,” overthrow the Bourgeoisie, and create a society with out classes or private property.

Marx: “NO—That’s exploitation!”

Smith: “That’s honest profit!”

Costs of Making Product

Price charged to Consumer

Raw Materials

Machines

Workers’ Wages