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New Ideas in a New Society

New Ideas in a New Society. New Ideas in a New Society. Main Idea The Industrial Revolution inspired new ideas about economics and affected society in many ways. Reading Focus What new ideas about economics developed during the Industrial Revolution?

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New Ideas in a New Society

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  1. New Ideas in a New Society

  2. New Ideas in a New Society Main Idea The Industrial Revolution inspired new ideas about economics and affected society in many ways. • Reading Focus • What new ideas about economics developed during the Industrial Revolution? • What competing economic ideas arose as a result? • How did the Industrial Revolution affect society?

  3. Key Terms and Names Laissez-faire Adam Smith Thomas Malthus Entrepreneur Andrew Carnegie Socialism Karl Marx Communism Standard of living

  4. Capitalism and Competition New Roles for Business Leaders • Old mercantile system restricted trade • Laissez-faire economics • Adam Smith, market economy • Thomas Malthus, poverty unavoidable • Industrialization succeeded and spread • Shift in wealth and power • Entrepreneur • Banking and finance • Andrew Carnegie, rags to riches • Robber barons New Ideas about Economics

  5. New Ideas about Economics • Laissez-faire economics • From French word meaning “free to do”. • Government should not interfere in business • Adam Smith • The Wealth of Nations • Analyzed the definition and creation of wealth. • “Economic systems free from government interference benefit all.”

  6. Capitalism and Competition • Thomas Malthus • Concerned with population growth caused by industry development. • Believed population would grow faster than food production. • Poverty and misery would never go away.

  7. New Roles for Business Leaders • Entrepreneur • Someone who starts a new business. • Included were financiers, bankers, and investors who pooled their money to create large corporations. • U.S. industrialists built some of the largest corporations in the world • Andrew Carnegie • Born in Scotland and immigrated to the U.S. and grew up extremely poor. • Went to work at age 12 in a mill • Led the Steel Industry • Became “Richest Man in the World” • Donated 90% of his fortune to charity.

  8. Industrialists • Cornelius Vanderbilt • John D. Rockefeller • Andrew Carnegie • JP Morgan • George Pullman

  9. Summarize What were some of the new ideas about economics? Answer(s): mercantilism gave way to capitalism and competition, laissez-faire economics and The Wealth of Nations allowed for increased role of entrepreneur

  10. Robert Owen Karl Marx • More hopeful than Malthus • Socialism • Society owns property • Society controls business • Model industrial town • New Harmony • Social democracy • More radical socialism • Predicted collapse of capitalism • Das Kapital • Communism • Government • owns means of production • controls economic planning Competing Economic Views Not everyone agreed that laissez-faire capitalism was good. Two who took a different stance were Robert Owen and Karl Marx.

  11. Infer Why did capitalism provoke strong response from the socialists? Answer(s): Socialists blamed capitalism for harsh working conditions, polluted cities, and the big gaps between rich and poor.

  12. Home Life Countries Societies • Worlds of work and home separated • “Separate spheres” • Business world-without moral controls • Women-moral guidance at home • Industry-great power • Control of other nations’ economies • Industrialization of United States • Period of immigration to United States • Increase in wealth • Standard of living improved • Leisure time • Changes to many aspects of life: • Art • Politics • Transportation Effects on Society The rise of new economic ideas was among the countless effects of the Industrial Revolution. The shift away from cottage industries also affected home life and the roles of women in society.

  13. Identify Cause and Effect What were some of the major effects industrialization had on families and countries? Answer(s): families—wealth, leisure time, better educated; countries—increased power, wealth, and living standards; overcrowding of cities, pollution, rapid population growth

  14. VideoThe Impact of Industrialization Click above to play the video.

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