New Ways of Thinking

1. New Ways of Thinking Chapter 7 Section 4

2. #1a Thomas Malthus • Writer on population growth, predicted that population would outpace the production of food and masses would starve. History proves him WRONG!

3. #1b Iron Law of Wages • David Ricardo said that when wages were high families had more children, more children meant more workers, higher unemployment and lower wages later. Both Malthus and Ricardo preached small families. Histroy proves them WRONG!

4. #1c John Stuart Mill • follower of Jeremy Bentham and utilitarianism believed actions are right if they produce or promote happiness and wrong if they cause pain. Wanted the government to step in and help the poor. Also called for voting rights for all, so they could have power to help themselves.

5. #1d Utopians • Wanted to build self-sufficient towns where all people worked for the good of the community and all were equal in economic station. [based on the beliefs of Sir Thomas More] Robert Owen did set up a model community but these were few and far between

6. #1e Karl Marx • A German philosopher believed in “scientific socialism”, the scientific study of history, which became the basis for Communism. Along with Friedrich Engels wrote “The Communist Manifesto”, and got masses to follow his screwed up ideas!

7. #2a Utilitarianism • The goal of society should be the greatest happiness for the greatest number of citizens. All laws should be judged for there utility do they cause more pleasure or pain!! All should be equal, laws should not help the rich while hindering the poor.

8. #2b Socialism • People as a whole own and operate the means of production

9. #2c Means of Production • The farms, factories, railways, and other large business that produced and distributed goods

10. #2d Communism • form of socialism that sees the major struggle between the employer and employees as unavoidable, so the government owns and runs everything for the benefit of the citizen

11. #2e Proletariat • The “have-nots” or the working class citizen

12. #3 Describe the views of laissez-faire economists • #3a Adam Smith-- believed that the market was self-regulating and required almost no government involvement

13. #3 Describe the views of laissez-faire economists • #3b Thomas Malthus-- believed that population growth would outstrip the food supply and there would be mass famine

14. #3 Describe the views of laissez-faire economists • #3c David Ricardo-- believed that high wages contributed to population growth, which then led to higher unemployment rates.

15. #4 Contrast the approaches of utilitarians and socialists to solving economic problems • Utilitarians believed in some government interference to help the weak. Utopian socialists proposed the creation of self-sufficient communities in which all work was shared and all property was owned in common.

16. #5 a] Describe Karl Marx’s view of History. • Marx believed that economics was the driving force in history and that history was a continuous struggle between the “haves” and the “have nots”

17. #5 b] How have events challenged that view? • Marx underestimated the powerful influence of national loyalties on the working class. As the standard of living rose, class conflict actually lessened.