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Reforming the Industrial World

Reforming the Industrial World. Chapter 25 Section 4. Philosophies of Industrialization. Laissez Faire (lehs-ay-FAIR) Economic policy of letting owners of industry to set working conditions without interference of government. Term is French for “let do” Leave business alone!

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Reforming the Industrial World

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  1. Reforming the Industrial World Chapter 25 Section 4

  2. Philosophies of Industrialization • Laissez Faire (lehs-ay-FAIR) • Economic policy of letting owners of industry to set working conditions without interference of government. • Term is French for “let do” • Leave business alone! • From the Enlightenment: Government put’s burden on business and interferes with businesses’ profits

  3. Adam Smith • Wrote “The Wealth of Nations” (1776) • Defended a Free Economy • Liberty guaranteed economic ($) progress • Created 3 Natural Laws of Economics • Law of Self-Interest • Law of Competition • Law of Supply and Demand

  4. Adam Smith • Adam Smith – Father of Capitalism • Capitalism • Economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit ($) • Think of it as an “INVISIBLE HAND GUIDING THE MARKET (ECONOMY)”

  5. Cow Metaphor - Capitalism • You have two cows. You sell one and buy a bull.

  6. Socialism • Founder • Charles Fourier Saint-Simon • Definition • Factors of production are owned by the government • Goal • End poverty and promote equality • Plan your community vs. Freedom of choice

  7. Cow Metaphor - Socialism • You have two cows. You keep one and give one to your neighbor.

  8. Marxism • Founders: • Karl Marx & Frederick Engles • Wrote theory in the book “Communist Manifesto” • Theory: • Have’s – Bourgeoisies (Oppressor) • Have Not’s - Proletariats (Oppressed) • Proletariats will always overthrow the Bourgeoisies and then they become the new bourgeoisies.

  9. Communism • Final Phase of Marxism – Communism • Definition • All factors of production are owned by ALL. • Never seen a “pure” form of communism • Ruled by dictators that run their economy for their own profit. • Countries that are communist today: China, Cuba, North Korea, Vietnam

  10. Cow Metaphor - Communism • You have two cows. The government takes them both and provides you with milk.

  11. Utilitarianism • Founder: • Jeremy Bentham • Definition: • Judge ideas, institutions, & actions based on utility or usefulness • Goal: • Work for policies that lead to more equal division of profits ($)

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