KEY FIGURES REGARDING THE PHILOSOPHIES OF

INDUSTRIALIZATION

THE CAPITALISTS!

SUPPORTERS ADAM SMITH DAVID RICARDO THOMAS MALTHUS

ADAM SMITH

THE FATHER OF CAPITALISM

“Wealth of Nations” Economic freedom

guarantees economic success = social harmony

The Invisible Hand If we let the economy

go, as if pushed along by an invisible hand, social harmony will result

DAVID RICARDO

“Principles of Political Economy and Taxation” Capitalism and the hope

for profit drive industrialization

There will always be a permanent poor underclass (we might as well use them)

The Iron Law of Wages As population increases,

wages will fall The more workers there are,

the less valuable the become Wages will stay just high

enough to avoid starvation

THOMAS MALTHUS

“Essay on the Principles of Population” There will always be a

permanent poor underclass full of misery

TOO BAD helping them undermines economic growth

Misery and starvation provide an effective check on uncontrolled population growth

THE SOCIALISTS

THE REFORMERS KARL MARX FREDERIK ENGLES JEREMY BENTHAM

KARL MARX

THE FATHER OF COMMUNISM

“The Communist Manifesto” Class distinction

prohibits equality Constant struggle

between the Proletariat and the Bourgeoisie

MARX CONTINUED…

Proletariat the Poor working class Factory workers Underclass Have nots

Bourgeoisie Rich Business Owners Wealthy capitalists Upperclass Haves

Hoped to created a democratic classless society via revolution

Onion theory of Socialism Think of Shrek! Peel away the layers of government until

you get a pure core Leadership of/by the Proletariat

FREDERIK ENGLES

“The Communist Manifesto” Marxs buddy Factory owner Wealthy supporter

of Socialism (reform)

JEREMY BENTHAM Original Utilitarian Stuff (ideas, methods, people,

whatever) is judged on the amount of usefulness it provides If something is very useful,

keep it, it rocks The job of the government is to

maximize UTILITY Governments should create the

greatest good for the greatest amount (of people)

• Lack of government intervention in business does not promote utility, therefore, we need government intervention to insure utility