Economic Developments and Reactions (1750-1900)

What was the first major economic change during the period from 1750 to 1900?

The slow death of mercantilism.

What economic system replaced mercantilism during the Industrial Revolution?

Free market economies.

Who published 'The Wealth of Nations' and criticized mercantilism?

Adam Smith.

What did Adam Smith argue was the role of government in the economy?

To get out of the economy and let people make their own economic decisions.

What concept did Adam Smith introduce to explain how supply and demand interact?

The invisible hand.

What was the outcome of applying free market policies after 1815?

Increased trade and greater wealth.

What did critics of free market capitalism observe about wealth distribution?

It did not distribute wealth more evenly as Smith suggested.

What social issue arose as a result of capitalist economics during the Industrial Revolution?

The creation of a poor working class that labored under great duress.

Who was a notable critic of free market economics that advocated for government legislation to address social problems?

Jeremy Bentham.

What did Friedrich List argue was necessary for addressing social problems in society?

Government legislation.

What was the main criticism of mercantilism during the Industrial Revolution?

It benefitted only a few members of the elite society.

What was the relationship between industrialization and the shift to free market economies?

Industrialization necessitated a new economic system that was not state-driven.

What did the transition from mercantilism to free market economies signify for economic policy?

A move towards laissez-faire policies.

How did the publication of 'The Wealth of Nations' influence economic thought?

It provided a framework for criticizing mercantilism and advocating for free market principles.

What was the impact of western governments abandoning state regulations on trade after 1815?

It resulted in increased trade and wealth.

What did Adam Smith believe would happen if wealth was distributed more evenly?

Prosperity would know no bounds.

What did the term 'coercive' refer to in the context of mercantilism?

The restrictive and controlling nature of mercantilist policies.

What was the role of consumers in Adam Smith's economic theory?

Consumers would react to the laws of supply and demand.

What did the critics of free market economies highlight about the realities of industrialized nations?

The suffering of the working class and the inadequacy of wealth distribution.

What was the significance of the phrase 'invisible hand' in economic theory?

It describes the self-regulating nature of the marketplace.

What did the slow death of mercantilism indicate about the evolution of economic systems?

It marked a transition towards more liberal economic ideologies.

What did the Industrial Revolution reveal about the effectiveness of free market principles?

That they did not necessarily lead to equitable wealth distribution.

What did the German economist criticize about free market principles?

He rejected them as a trick for British domination over other economies.

What economic development did the German economist's work lead to?

The development of the Zollverein, a customs union that reduced trade barriers among German states while erecting tariffs on imported goods.

What was the primary goal of the Zollverein?

To protect the beginnings of industrial projects in German states.

What economic system became more widely adopted by industrial nations despite criticism?

Free market economics.

What are transnational corporations?

Companies established in one country that also operate large operations in many other countries.

What was the purpose of the Hong Kong and Shanghai Banking Corporation when it was established?

To organize and control the flow of British imperial wealth in the area.

What illegal product did the Hong Kong and Shanghai Banking Corporation help manage wealth from?

Opium.

What was the Unilever Corporation known for manufacturing?

Household goods, most notably soap.

How did Unilever source its raw materials?

From colonial holdings, especially in West Africa and the Belgian Congo.

What financial practice did transnational corporations rely on to fund their operations?

Selling stocks to raise funds.

What is a stock?

A small portion of ownership in a corporation.

Where could people buy stocks of transnational corporations?

On various international stock markets, such as the New York Stock Exchange.

What happens to stockholders when a company profits?

They also profit from their investments.

What was the impact of the proliferation of transnational corporations on global trade?

It led to a more global nature of trade practices.

What role did banking practices play in the growth of transnational corporations?

They provided the necessary funding and financial support for large-scale operations.

What was a significant characteristic of the economic practices during this period?

The establishment of large-scale businesses that operated across multiple countries.

How did the establishment of transnational corporations reflect the global economy?

They demonstrated the interconnectedness of economies and the influence of imperialism.

What was the relationship between transnational corporations and colonial holdings?

Transnational corporations often sourced raw materials from colonial holdings.

What was the significance of the rise of stock markets for corporations?

It allowed corporations to raise capital by selling shares to investors.

What was the effect of tariffs erected by the Zollverein on British goods?

It protected German industries by making British goods more expensive.

What was the primary function of the Hong Kong and Shanghai Banking Corporation in the context of British imperialism?

To manage and facilitate the financial transactions related to British imperial interests.

What was the historical context for the establishment of transnational corporations?

The rise of global trade practices and the expansion of industrial economies.

What is limited liability in the context of corporations?

Limited liability is a legal structure that protects the financial investment of owners, allowing them to only lose the amount they invested in a corporate venture.

What was a significant effect of industrial capitalism on western industrialized nations by 1900?

By 1900, western industrialized nations were generally richer than they were in 1800, leading to a rising standard of living.

How did industrial capitalism contribute to the growth of the middle class?

Industrial capitalism created a new and growing middle class that was wealthy enough to purchase a wide array of mass-produced consumer goods.

What role did technology play in the production of goods during the industrial era?

Technological advancements made the production of goods more efficient and cheaper, increasing access to everyday items for more people.

How did mechanized farming impact food availability and lifespans in industrialized societies?

Mechanized farming led to abundant harvests, increasing the variety of food available and contributing to longer lifespans for many people.

What were the three major crises experienced by the growing economy defined by industrial capitalism in the 19th century?

The notes do not specify the crises, but they indicate that despite these crises, the overall wealth of industrialized nations increased.

What was the impact of mass production on consumer goods during the industrial era?

Mass production flooded the market with consumer goods, making them more accessible to the growing middle class.

What is the significance of the term 'industrial capitalism'?

Industrial capitalism refers to an economic system characterized by industrial production and the capitalist mode of organizing economic activity.

What is the relationship between industrial capitalism and the standard of living?

Industrial capitalism contributed to a higher standard of living by increasing wealth and access to consumer goods.

What evidence is needed to respond to the learning objective regarding economic systems from 1750 to 1900?

An evidence-based, argumentative thesis that explains the development of economic systems, ideologies, and institutions and their contributions to change during that period.

Why is the expansion of the scope of corporations significant in economic history?

The expansion allowed for the organization of businesses that protected owners' investments, fostering growth in corporate ventures.

What does the term 'mass-produced consumer goods' refer to?

It refers to products manufactured in large quantities, making them widely available and affordable to consumers.

How did the financial risks associated with investing in corporations change with limited liability?

Investors faced reduced financial risks as they could only lose their initial investment rather than facing unlimited liability.

What was the overall trend in wealth for industrialized nations from 1800 to 1900?

The overall trend was an increase in wealth, with nations becoming significantly richer by 1900.

What factors contributed to the increased access to consumer goods during the industrial era?

Factors included technological advancements, mass production, and the growth of the middle class.

How did the development of manufacturing technology impact everyday life?

It improved the efficiency and cost of producing goods, leading to greater availability and improved quality of life.

What is the significance of the middle class in the context of industrial capitalism?

The middle class played a crucial role in driving demand for consumer goods and contributing to economic growth.

What does the term 'abundant harvests' imply about agricultural advancements?

It implies that advancements in farming techniques and mechanization led to significantly increased food production.

How did industrial capitalism affect the variety of goods available to consumers?

It increased the variety of goods available due to mass production and technological advancements.

What is the relationship between industrial capitalism and crises experienced in the 19th century?

While industrial capitalism faced crises, it ultimately led to a more prosperous economy overall.

What does the term 'standard of living' encompass in the context of industrial capitalism?

It encompasses the quality of life and access to goods and services that individuals experience in society.

What were the general sentiments towards the Industrial Revolution from 1750 to 1900?

Not everyone was happy about the Industrial Revolution and the spread of free-market capitalism.

What were the main calls for reform from the working class during the Industrial Revolution?

The calls for reform included political reforms, social reforms, educational reforms, and urban reforms.

What was a significant change in voting rights during the Industrial Revolution?

Many western nations began recognizing the right to vote for more people, including the working class.

How did the expansion of voting rights affect political parties?

It led to the rise of mass-based political parties that aimed to represent the interests of the working class.

What was the condition of the working class in factories during the Industrial Revolution?

Factory work was dull, with workers laboring for 12 hours a day and earning just enough to survive.

What was one response of the working class to their difficult conditions?

Working class people began to organize themselves into social societies that provided sickness and social insurance.

What educational reforms were implemented between 1870 and 1914 in Europe?

Many European governments passed compulsory education laws to get boys and girls aged 6-12 into school.

Why was compulsory education important during the Industrial Revolution?

It prepared children for specialized jobs that were becoming more technical due to the second Industrial Revolution.

What issues arose in industrial cities due to rapid growth?

Intense crowding and inadequate infrastructure led to dangerous sanitation conditions.

What measures did governments take to address urban sanitation issues?

Governments passed laws and invested in sanitation infrastructure, such as sewers.

What was a common practice regarding waste disposal in industrial cities?

People would throw waste out of their windows due to poor sanitation infrastructure.

What was the impact of poor sanitation on urban areas during the Industrial Revolution?

Urban areas became smelly and dangerous due to inadequate sanitation and infrastructure.

How did the working class influence political reforms during the Industrial Revolution?

The increase in eligible voters from the working class forced political parties to incorporate social reforms into their platforms.

What were some characteristics of the working class's social life during the Industrial Revolution?

Their social life was hard, leading them to seek organization and support through social societies.

What was the primary focus of educational reforms during the Industrial Revolution?

The focus was on providing compulsory education to prepare children for the workforce.

What was one consequence of the lack of proper infrastructure in industrial cities?

The infrastructure could not keep up with the rapid growth, leading to dangerous living conditions.

What did the term 'mass-based political parties' refer to during this period?

Political parties that aimed to represent the interests of the working class as more people gained the right to vote.

What was the relationship between the Industrial Revolution and the rise of specialized jobs?

The second Industrial Revolution led to more technical and specialized jobs, necessitating better education.

What was one of the major criticisms of the working conditions during the Industrial Revolution?

The working conditions were often described as dull and exhausting, with long hours and low pay.

What role did social societies play for the working class during the Industrial Revolution?

Social societies provided support, such as sickness and social insurance, for workers facing harsh conditions.

How did urban growth during the Industrial Revolution affect sanitation?

Rapid urban growth outpaced sanitation infrastructure, leading to significant public health issues.

What was a common response to the poor sanitation in industrial cities?

Governments implemented sanitation laws and built infrastructure like sewers to manage waste.

What is a labor union?

A collective of workers who join together to protect their own interests.

What was the primary goal of labor unions during the rise of industrialization?

To negotiate for higher wages, limited working hours, and improved working conditions.

How did labor unions increase their bargaining power?

By organizing thousands of workers, which gave them more influence compared to individual workers.

What was the situation of workers before the rise of labor unions?

Workers had limited power to affect change, with most power held by capitalists and factory owners.

By the end of the 19th century, how many workers were involved in British labor unions?

Nearly two million workers.

What political party was formed from the General German Workers Association?

The German Social Democratic Party.

What was the aim of the German Social Democratic Party?

To advocate for reform in Germany and transform the capitalist system into social ownership of the means of production.

Who is considered the chief philosopher reacting to industrialization and capitalism?

Karl Marx.

What did Karl Marx believe about capitalism?

He believed it was an unstable system that created sharp class divisions and could not sustain itself in the long run.

What did Marx predict would happen as a result of class divisions in industrial societies?

A violent revolution of the lower classes against the upper classes, leading to a classless society.

What were some of the injustices that Marx witnessed during his time in Great Britain?

The suffering of the working class due to the capitalist system.

What did the upper class do while the working class suffered, according to Marx?

They engaged in leisure activities, funded by the wealth generated from the working class.

How did labor unions spread geographically?

They spread throughout Europe, into the United States, and to a lesser extent in Asia and Africa.