Industrial Revolution and Industrial Revolution and New Ways of ThinkingNew Ways of Thinking
How to end poverty and the bad How to end poverty and the bad conditions that came with the conditions that came with the
Industrial RevolutionIndustrial Revolution
Adam Smith
• Enlightenment Idea
• Laissez-faire economics
• Free market economy - unregulated exchange of goods and services
Thomas Malthus
Wrote about population, helped shape Wrote about population, helped shape economic thinkingeconomic thinking
Population would grow faster than the food Population would grow faster than the food supplysupply
Family planningFamily planning
David Ricardo
British economistBritish economist Poor people had too many children,Poor people had too many children, This increase supply of labor, led to lower This increase supply of labor, led to lower
wages and higher unemployment wages and higher unemployment
Jeremy BenthamJeremy Bentham
• Utilitarianism
• Goal of society should be “the greatest happiness for the greatest number.”
• Laws based on Utility - do laws bring more pleasure or pain
SocialismSocialism
Reaction to laissez-faireReaction to laissez-faire People as a whole, rather than private People as a whole, rather than private
individuals would own and operate the individuals would own and operate the “means of production.”“means of production.”
Karl Marx
German Philosopher 1848 with Freidrich Engels write The
Communist Manifesto New form of Socialism - Communism Communism - class struggle between
employers and employees
Marxism and The Manifesto
• Economics driving force in history• History of class struggles between the haves and
have nots• Haves - bourgeoisie, owned the means of
production• Have-nots - proletariat, “working class.”• In the end the proletariat would win and a class
less society would be set up