Social 30-1 (copy)

Political Spectrum

a way of representing different political positions on an issue by placing them on one or more geometric axes symbolizing differing viewpoints

Left vs Right Origin

Comes from the Estates General of France at the start of the French Revolution; The nobles and monarchists sat to the King’s right. The revolutionaries and Republicans sat to the King’s left. Thus, “right-wing” became associated with supporters of tradition, and “left-wing” became associated with those who wanted change

Traditional Political Spectrum

Order from left to right

Revolutionary, Liberal, Centrist, Conservative, Reactionary

Left vs Right Viewpoint

Left: Wants change/tradition is bad

Right: Wants tradition/change is bad

Political Views can change sides overtime

Political Dimensions

There are multiple dimensions of politics, etc

* Economic freedom vs. economic equality
* Positive freedom (“freedom to…”) vs. negative freedom (“freedom from…”)
* Militancy vs. pacifism
* Aristocracy vs. democracy

Two Axis Political Spectrum

Shows economic freedom vs political freedom

First axis

Anarchism's on the top

Fascism on the bottom

Marxism on the left

Liberalism on the right

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Second Axis

Socialism top left

Liberty top right

authority bottom left

capitalism bottom right

Three axis political system

Shows *economic* freedom, *social* freedom, and *political* freedom

Liberalism

* a political and social philosophy that promotes individual rights, civil liberties, democracy, and free enterprise

Magna Carta

* Latin for great charter
* In 1215 a large number of England nobles rebelled against king john
* The nobles were angry about tax increase
* Powerful land owners forced king to give up power
* Later, this would be seen as the concept of rule of law

Autocracy

* Refers to government by a single person having unlimited power


* Comes from Greek autos (self) and kartia (rule)
* It is precisely this form of government that liberals wanted to change during the French revolution

Values of Autocracy

* Absolutism: complete control of a nation by the leader
* He or she may or may not have advisors but will always have the final say
* Based on divine right of kings: many absolute monarchs claimed their power was derived from God

Constitutional Monarchies

* As Liberals ideas emerged, monarchs were often forced to give up some power to the people
* After Magna Charta, the king of England had to discuss laws with the nobles
* After the Glorious Revolution of 1688 limits were put on the powers of the King
* Parliament took on most political power

Republic

* The goal of many liberals, however, was to give all (just men) an equal say in government
* Liberals looked to ancient Rome, which had no kings but conquered a huge territory
* Thus the Republic
* From Latin res (business) and publica (public)
* An elected government with no king or queen

Values/Principles of Individualism

(or classical liberalism)

Acronym PRICES

* Private Property
* Rule of Law
* Individual rights and freedoms
* Competition
* Economic Freedom
* Self Interest

Private Property

* The ideas that individuals can own land or other resources, and that nobody has the right to take these away
* Contrasted with public property, something owned by everyone
* Also distinct from common property, owned by a group of people together
* Historically in a lot of places, all property belonged to the monarch who could take or give it at will
* This was bad for investment

Rule of Law

* The idea that a nation should be ruled by laws
* As opposed to the older concept that the ruler(s) of a nation should be above the law
* For example, in the US, all elected officials take an oath to uphold the constitution
* In many countries the government has been accused of unfair practices such as fabricating or ignoring evidence, delaying trials without reason and rejecting court rules,

Individual rights and freedoms

* The principle that all people (men) have freedoms and rights that must not be taken away
* Such as…
* Freedom of speech
* freedom of assembly
* Right to a fair trial
* Many countires like Canada have a charter of rights or a constitution

Competition

* The ideas that when people compete against each other, everyone ends up better off
* Historically, governments would promote business by granting a monopoly
* Classical liberals would argue that competition between multiple fur trade companies would be better
* Hudson’s Bay company had a monopoly on the fur trade
* Companies would sell furs for lowest possible price

Economic Freedom

* The idea that you should be able to do what you want with your property
* You can sell, benefit, destroy it, etc.
* Also, the idea that an individual can enter into contracts without government interference
* Includes that the government cant set prices for goods and services
* Its not the governments job to make sure contracts are fair

Self Interest

* The idea that everyone ends up better off when individuals pursue their own interests rather than pursing altruism

Origin of Classical Liberalism

* The protestant reformation : Rooted in humanism
* Opposed the concentration of power in the Catholic Church
* Belief in the rationality of individuals emerged
* Contact with non-christain

Age of Exploration

* Also known as the Age of Discovery
* 15th-17th century
* Europeans explored the globe by ocean in search of trading partners and new goods
* New ocean routes become

Commercial Revolution

* European economic expansion, colonialism and mercantilism
* Nations were looking for new sources of wealth
* New economic theories, practices and service industries such as banking, insurance, investing

Industrial Revolution

* Begins in Britain: Britain had all the right “ingredients” Lots of coal and iron, easy access to ports and shipping, plenty of colonies to buy their goods
* Cottage industry vanished: Production moved to factories
* Associated with change in thinking: People started to believe in human potential
* Government was friendly to business
* Lots of investment capital and cheap labor
* Laissez-Faire Economics

Laissez-Faire Economics

* French for let it be
* Said during the industrial revolution when all the cottage industry workers started loosing money

The Invisible Hand

* The idea that competition and innovation will lead to greatest wealth
* Without the government interference, businesses will give cutsomers the best product at the best price
* Customers will naturally buy the product so the competitiors have to meet or beat that standard

Revolutionary Thoughts

* Classical liberalism developed from the thinkers who beloved in the rights and freedoms of citizens
* Locke, smith, Montesquieu, etc.
* The American and French revolutions were attempts to implement the ideas of liberal thought

American Revolution

* The 13 colonies of America began by protesting their treatment by the British
* Getting little satisfaction they issued the Declaration of Independence which was heavily influenced by Locke
* War ensued
* The 13 Colonies win and become the United States of America

French Revolution

* This was an attempt to transform society
* The French Government was heavily in debt, partially from helping to fund the American War of Independence
* Taxation was also an issue
* The rich did not pay and the common folk were overtaxed

National Assembly

* This governing body issued the Declaration of the Rights of Man and of the Citizen
* It espoused individual freedoms
* Key terms included:
* Freedom and equality
* Liberty, property, security and resistance to oppression

Result of Liberalism

* Liberal ideals spread throughout Europe
* Spread by Napoleon and revolutionaries
* Liberal ideas changed the dynamics of society in the following areas


* Political (France)
* Economic (Britain)
* Social (throughout Europe)

Early development of collectivism

* The earliest human societies were most likely collectivist
* Tribes, communities, and cities developed as a way for people to provide mutual support and protection
* Agriculture encouraged collectivism - food was produced by large numbers of people working together, and stored to benefit the community
* During the Medieval period(circa 476 to the Renaissance), society was ordered in a rigidly hierarchical structure 
* individual worth was low 
* Humanity was part of a collective under God
* Ruled by God and members of His hierarchy. 
* The focus of society was largely on the afterlife, instead of beauty and creativity in the current world

Basic Understanding of Collectivism

* Human interdependence (not gonna make it on your own, you need other people)
* Importance of a collective
* Not the importance of the individual
* It considers the well-being of the community at the expense of the individual (smoking, etc.)
* Indigenous peoples describe their traditional cultures as having a strong sense of collectivism (They don’t hunt for themselves, they hunt to feed the village)

Principles of collectivism

* Economic equality
* Public property
* cooperation
* collective interest
* collective responsibility
* adherence to collective norms

Economic Equality

* People with larger incomes should pay more taxes
* All people should earn equal wages for work of similar value
* There should be guaranteed annual income
* All people should share in the wealth of a country or the world
* People should own the means o production collectivity
* There should be no private property, thus all things should be free
* Different countries adopt different amounts of economic equality

Public Property

* Usually land, capital, industries that are state-own (crown land, national parks, Canada Post, RCMP, CBC, Roads, Library)
* Managed according to the best interest of the group
* The concept of public property id also present to a lesser extent in liberal democracies like Canada
* These properties are maintained with public money raised through taxes

Karl Marx thoughts on private property

* Moved by the problems of the industrial revolution
* Did not believe in gradual change but rather revolution
* Believed workers (proletariat) must replace the ruling class (bourgeoise) through revolution
* The bourgeoise exploited the workers by forcing them to create goods and services with a greater value than the wages received
* Individual differences would still exist but no one could amass enormous wealth while others lived in poverty
* Equal opportunity
* With the existence of surplus goods crime and greed would not exist

Cooperation

* In early society, was necessary for mere survival
* Cooperation is meant to ensure that the members achieve better results more effectively
* It is the means through which members achieve their goals (roles, quotas, protocols, decision making, etc.)
* Cooperation is not always consensual
* In certain settings, cooperation may be enforced through threat of punishment or sanctions, etc. (military, prison, schools)

Collective Intrest

* A set of interests that a group has in common (labor unions, humans rights groups, social programs, lobby groups)
* the indigenous groups in Canada have a collective interest for their nations
* Not only found in communist systems
* Rather they can be found in democratic societies, where exploitation has occurred and society is trying to right the wrong of democracy

Collective Responsibility

* Holding the whole group responsible for the actions of an individuals within the group
* Makes for group accountability
* Often made in response to deep-rooted social programs that cannot be addressed by targeting the individual
* Collective responsibility can also be used as punitive measure
* Particularly in authoritarian governments
* Insures that citizens obey the government

adherence to collective norms

* Standards or norms are imposed in collective societies as a condition of membership in society
* These norms relate to values, conditions, conduct or appearance
* They are usually binding (trade unions, faith groups, professional groups)
* Censorship can be used tp impose or protect these norms

Karl Marx

* Father of communism
* Author of Das Kapital and The Communist Manifesto

Elements of Ideologies

* What is the nature of humans? ( Are we inherently good? Evil? Neither? Both?)
* What is the role of an individual in society? (Is it to contribute to his/her own well being? contribute to society? sacrifice individual interest for others?)
* What is the role of government in society?

Thomas Hobbes

* Lived in England and sometimes France
* Originally interested in Physics, then into politics
* Was a young man when Shakespeare was running plays
* Lived through English civil war which may have influenced his political views
* Most famous for writing Leviathan
* Imagined what life would be without government; “state of nature”. Thought it would go terrible and be in a state of war.
* “The life of man ( in a state of nature is) solitary, poor, nasty and short - From his book
* Believed that humans are violent and selfish by nature
* If humans want to prosper, humans needed to submit to a strong, central authority
* Subjects of a monarch cant complain about it either, because they made the deal to give up some freedom for the security of civil society

John Locke

* Lived in England
* Trained as physician
* Involved in politics after English Civil War, when the idea of a constitutional monarchy was still in its infancy
* Fled Netherlands for a few years after failed political plot
* “Humans are rational and tolerant but capable of selfishness”
* Agreed with Hobbes that life without civil society would be bad
* Believed Government was an agreement between citizens and their ruler
* Both ruler and the ruled give up certain freedoms in order to gain freedom and security
* Citizens have the right/responsibility to overthrow/oppose a bad government
* Best form of government was a constitutional Republic
* Believed humans have certain inherent, inalienable rights including life, property and religion
* His ideas were very important towards American Revolution
* Book; Two treaties of Government

Jean-Jacques Rousseau

* Lived in Geneva (and other parts of Europe)
* Geneva was a republic with limited suffrage and a citizen militia, which influenced Rousseau’s beliefs
* Lived through he 7yr war, which is now viewed as historians as the “first world war” (even though it wasn’t the official WW1 we know about). Battle on the plains of abraham, etc.
* Though humans weren’t inherently bad. Person in “state of nature” was free of envy, inequality, and unnatural desires. Sometimes inaccurately called “noble savage”
* Believed that restrictions and distractions from society altered people, not necessarily for the better
* Man is born free but everywhere he is in chains
* Idea of social contract
* People need to agree to social contract for society to function
* Individual needs will come into conflict

Charles-Louis de Secondat, Baron de Montesquieu

* Lived from 1689-1755 in France
* Influenced by the glorious revolution in England. Which made England a constitutional monarchy
* Also influenced by the death of Louis XIV and succession of 5-year old Louis XV
* Believed that history was driven by forces, rather than individuals (ex. The roman republic was going to become the roman empire regardless of whether it was caused by men like Caesar and Pompey or other men instead)
* Classified different types of government (Monarchies controlled by honor. Republics controlled by virtue. Despotism controlled by fear.
* Classified different parts of government. Separated the sovereign from the administrative parts of government. Further separated the administrative part onto the the legislative, executive and judicial branches. Believed that these branches functioned most effectively when they kept each other under control.
* “Checks and Balances”
* “There is no greater tyranny than that which is perpetrated under the shield of the law and in the name of justice.”
* Book: *On the Spirit of the Laws*

Adam Smith

* Lived from 1723-1790 in Scotland and England
* Saw the vast wealth of France ruined by wars
* Seven Years’ War with England and others
* American Revolutionary War
* Responded to dominant economic theory of the time, *mercantilism* 
* The idea that a nation’s wealth comes from its silver and gold
* Believed that wealth came not from gold, but from labor
* Also thought that social structures were a response to human progress - hunter/gatherers don’t own much, so don’t need many laws, but herders need rules about property and trade
* Thought that people acting in self-interest created wealth and prosperity
* “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”
* “Man is an animal that makes bargains: no other animal does this - no dog exchanges bones with another.”
* Also believed that markets were self-regulating - “the invisible hand”
* “*Laissez-faire*” economics
* But human initiative is a complex force, not a simple one
* Powerful people always had a temptation to subvert the system for their own ends
* Book: *The Wealth of Nations*
* Quotation: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”

John Stuart Mill

* Lived in England from 1806-1873
* His father was an economists, historian and philosopher, and a strict disciplinarian ( Raised J.S Mill by making him find evidence and support all of his ideas and arguments)
* Mill suffered from depression as an adult, which he attributed to his strict intellectual upbringing
* Afterwards, changed his outlook to include a more human dimension in his ideas
* Believed that government is an attempt to balance the individual’s need for freedom with society’s need for stability
* But felt that this often swings too far in favor of society, which represses individual liberty
* Follower of __Utilitarianism__, a moral philosophy that states that whatever provides the most benefit to the most people is the greatest good
* But also was a strong proponent of individual freedoms, believing that rules of society should ONLY exist to prevent people from harming each other
* Was a strong proponent of free speech, opponent of slavery, and one of the earliest voices promoting equal rights for women and men
* Free speech - believed that any speech should be allowed, no matter how unpopular (unless it was directly harmful to others, like yelling “fire!” in a crowded theatre)
* Believed that slavery was a fundamental violation of human freedom
* Argued that women were basically slaves, and that this limited human progress
* Book: *Utilitarianism*, *On Liberty*
* Quotation: “Whatever crushes individuality is despotism, by whatever name it may be called and whether it professes to be enforcing the will of God or the injunctions of men.”

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Free bonus quotation: “Conservatives are not necessarily stupid, but most stupid people are conservatives.”

Hobbes:

Human Nature

Govt in society

Ind. in society

* Humans are bad
* Govt controls and provides security
* Follows the rules

Locke:

Human Nature

Govt in society

Ind. in society

* rational
* conditional freedom
* humans have rights and can oppose bad govt

Rousseau:

Human Nature

Govt in society

Ind. in society

* born good, society makes us bad
* social contract
* participate in social contract

Montesquieu:

Human Nature

Govt in society

Ind. in society

* Reasonable
* Checks and balances
* Participate (Monarchy)

Smith:

Human Nature

Govt in society

Ind. in society

* Bargain
* Don’t interfere with w/ economy
* pursue self interest (don’t sell bread because ppl need bread, bake bread because it can make you money)

Mill:

Human Nature

Govt in society

Ind. in society

* Rational
* Balance freedom and stability
* Pursue and protect freedom

Indigenous Influence on Liberalism in North America

* The great law of peace or the constitution of the Haudenosaunee confederacy =, established equal participation of the people including women in the govt
* Also guaranteed certain rights and freedoms including

Classical Liberalism

* Classical liberalism is an ideology that embraces the principles of (PRICES)

Pre and enlightenment

* The enlightenment was a time period of great political and economic change which was proposed

Context

* At this time Kings ruled by divine right and the economy was organized by the feudal system
* With the ideas of the enlightenment came the breakdown of the feudal economic order, since people became more involved in oversea trade, urbanization grew and a wealthy middle class emerged (industrial revolution)
* At the same time there was a political struggles for a less authoriatrian
* As a result, classical liberalism emerged which wasa political and economic philophy that encourgaged the primary of indicvidual rights and freedoms, the belief that humans are reasonable and can make rational decisons that will benifet both themselves and society as a whole, economic freedom; involvibg the ownership of private property and free markets(markets with the limited government intervention),
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Industrial Revolution in Great Britian

* Great Britain has a large naval and merchant fleets that could be used to trade with other areas of the world and gain resources of distance colonies
* Britain and plentiful supplies of coal and iron, both of which was essential for many new technology
* Britain also had a large investment capital and cheap labor with many inventors creating new technology
* Power was shared between parliament and monarchy, parliament was made up of powerful landowners
* This lead to the enclosure act which privatized from land forcing thousands of small farmers to the cities looking for work
* Britain was heavily influenced by the enlightenment thinkers which favored capitalism

Result of Industrial Revolution

* The development of factory systems
* mechanization of labor
* mass production
* consumption of consumer goods
* expansion of capitalism and free enterprise
* A large gap between the extremely rich and extremely poor
* Slums developed
* Mass starvation
* Child labor and worker abuse
* degradation of the environment

laissez-Faire Economics

* It referred to a reduction of government investment in the economy
* It emerged from the theories of a group of enlightenment philosophers in France and Britain who critiqued the prevailing economics of mercantilism
* The idea that the primary goal of the economy is to strengthen the power and wealth of the state
* in order to do so high government regulation is necessary
* Individuals should be given the freedom to make their own decisions
* contradicts mercantilism
* individual selfishness and competition will eventually improve society

The French Revolution 1789

* Following the American revolution the French revolution was an attempt to transform society using liberal principles
* Reasons were: social classes, people had no say in government, economic stuff such as unequal taxation, France was involved in expensive wars and the king had an expensive lifestyle while everyone was starving, famines

Liberal Principles in Action

* Had become widespread in western societies by the 19th century
* This was the culmination of

13 colonies

Opposition Groups of Liberalism

* Luddites
* Chartists
* Socialists
* Utopians
* Democratic Socialists
* Fabian Society
* Classical Conservatism
* Marxism

Luddites

* Named after “Ned Ludd”
* a semi-mythical apprentice who supposedly destroyed two mechanical knitting machines in a “fit of rage”
* In early 1800s, automatic weaving machines started to replace skilled weavers with cheaper, unskilled workers
* In protest, groups of skilled tradespeople started breaking mills, looms, and other industrial equipment
* Violence spread rapidly as movement grew
* At one point, there were more British soldiers trying to put down Luddite uprisings than there were fighting against Napoleon
* Later on, “Luddite” came to mean a person who rejects new technology

What about Classical Liberalism did Luddites Oppose? (Think PRICES)

* Rule of Law
* Economic Freedom
* Private Property
* Competition\*

Chartists

* Movement began after Reform Act of 1832, which was an attempt to eliminate corruption in British electoral system
* Reform Act did not extend the vote to the working classes, leading to widespread protest
* Chartists were believers in the “People’s Charter” of 1838, which demanded:


1. A vote for every man 21 and older, not undergoing punishment for a crime.
2. A secret ballot to protect the elector in the exercise of his vote.
3. No property qualification for Members of Parliament.
4. Pay for MPs, so people could participate in government without being rich
5. Constituencies with similar populations, so Parliament doesn’t unfairly represent some people over others
6. Annual Parliamentary elections, to make it too expensive for anyone to bribe/intimidate all of the MPs, all of the time
* Chartists were persecuted, but most of their demands were eventually implemented


* Reform Acts of 1867 and 1884

What about Classical Liberalism did Chartists Oppose? (PRICES)

* Private Property (One of the old rules was that you can’t vote unless you own property. The logic behind this was because it helped to filter out who can vote so that the influence on society was from the people who contributed the most. This system filtered out women, children, poor people, criminals, etc.)

Socialism

* Included a number of separate movements
* Term “socialism” was originally used to contrast with Liberal ideal of “individualism”
* Socialists felt that individualism overlooked the impact that individuals had on each other
* Felt Liberalism had failed to address issues of poverty and social oppression
* Socialists varied widely in their approaches

What about Classical Liberalism did Socialists Oppose? (PRICES)

* Competition
* Self Interest
* Economic freedom
* Private Property (Should be limited)

Utopian Socialists

* Did not use the term “utopian” to refer to themselves - was applied later by Karl Marx
* Name comes from Sir Thomas More’s work, __Utopia__ (Greek for “no place”) about an ideal society
* Included many influential people, but one important one was Robert Owen
* Owen was a mill owner who implemented many “impractical” ideas to improve lives of his workers, such as:
* Shorter working hours
* Schools for children
* Inexpensive housing for workers

Democratic Socialists

* A diverse movement that attempted to “fix” Classical Liberalism by moderating its worst problems
* e.g. poverty, economic disparity
* Supporters believed in democracy and individual freedom
* But also believed that common ownership of some or all enterprises would lead to a more just society 
* Still a powerful movement in modern democracies - broadly includes NDP in Canada, Labour Party in UK, and some factions in the modern US Democratic Party

Fabian Society

* An association founded in 1884
* Intended to bring socialist change slowly and democratically
* Named after ancient Roman general, Quintus Fabius Maximus, who defeated Carthaginians through “Fabian tactics”
* Supported many social justice causes of the time, including:
* Minimum wage
* Universal health care
* Abolishment of hereditary noble titles
* Eugenics
* Public Education
* “I find that socialism is often misunderstood by its least intelligent supports and opponents to mean simply unrestrained indulgence of our natural propensity to heave bricks at a respectable person.”

What principles of classical liberalism does socialists oppose?

* Self interest, competition
* Not that self interest is bad, but it can cause problems if it goes too far

Robert Owen

* Important influence on Utopian Socialism
* Early Industrialist
* Wasn’t opposed to capitalism, wanted to make it better

Classical Conservatism

* Edmund Burke was a contemporary of Adam Smith who viewed the French Revolution from Britain.
* Associated with Classical Conservatism
* Saw the excesses of the French Revolution as an example of the flaws of classical liberalism.
* Believed that established institutions, run by the educated people of society, were necessary to control the irrational passions of the uneducated masses.
* Uninformed people should not have a say in government
* Only those who naturally understood their duties to the country and the people, those with experience and wisdom should run the government.
* Tyranny in any form is unacceptable, whether it be in a monarchy or a less organized structure.
* Burke felt that Rousseau’s concept of the “general will of the people” was misguided as it would allow the mediocre, uneducated and uninterested power to rule.
* Society is an organic whole that should be structured in a hierarchical fashion with those best suited to leadership at the top
* (because people do not have equal abilities)
* Government should be chosen by a limited electorate with special rights, responsibilities, and privileges
* Leaders should be humanitarian
* their role includes the responsibility to care for the welfare of others
* The stability of society is the paramount concern
* to be achieved through law and order
* and the maintenance of the customs and traditions that bind society together.

Edmund Burke

* Important to the origin of classical conservatism
* Influenced by John Locke
* Against unrestrained royal power
* “Tyranny of any form is unacceptable”
* Felt that Rousseau’s concept of the “general will of the people” was misguided as it would allow the mediocre, uneducated and uninterested power to rule.
* Believed that not everyone can do everything. Some people suck at a job and some people don’t. Jobs should only be done by people properly trained

What principles of classical liberalism did classical conservatives oppose?

* Individual rights and freedoms: not everyone should have equal rights, nobody is equal

Marxism

* Marxism is also called *scientific socialism* or *communism* to distinguish itself from other forms of socialism
* Marx’s ideas were based primarily on the theory that history is the story of evolving class warfare
* The only way to overthrow capitalism was by means of a class struggle (revolution)  between the proletariat (workers) and bourgeoisie (owners).
* Value is created by labor
* The bourgeoisie (capitalists) exploit the proletariat (workers) by taking part of the value of their labor
* The rich will get richer and the poor will get poorer until the inevitable revolution
* After the revolution the proletariat will share ownership and the value of their labor fairly

What principles of Classical Liberalism

* Self interest, private property
* Private property: “if I own something then technically I stole it from everyone else because people worked to make it so it is technically theirs too” everything should be shared equally

The Gilded Age

* The Gilded Age lasted from 1870-1900
* The name came from the title of a Mark Twain book
* "Gilded" means covered with gold on the outside, but not really golden on the inside
* The Gilded Age was a period of rapid economic growth but also much social conflict

What Happened during the gilded age?

* The American Civil War ended in 1865, and huge amounts of money were invested in rebuilding the South - “The Reconstruction”
* Huge economic opportunities in the United States led to influx of immigrants from Europe and tremendous wealth for American industry
* But even though average wages increased, so did economic inequality - while some became immensely wealthy, poverty also worsened

Captains of Industry

* Some late 19th century business leaders amassed tremendous fortunes
* Credited with contributing to society by...
* Creating jobs
* Increasing productivity
* or spending money on philanthropy

Robber Barons

* Often, the same business leaders were called “robber barons”
* After medieval German knights who would charge illegal road tolls
* Enriched themselves without providing benefits to anyone else

Andrew Carnegie

* Born in Scotland in 1835
* Immigrated to USA in 1848
* Started work as a telegrapher for very low pay & worked his way up
* Invested in railroads, oil derricks, and steel mills
* By 1900, was worth nearly $500 million (equivalent to around $15 billion today)
* Robber Baron?
* Member of the South Fork Fishing and Hunting Club, which owned a poorly-maintained dam
* Dam burst in 1889, killing more than 2,000 people in the town below
* Carnegie and his associates used their influence to avoid any lawsuits
* 1892 Homestead Strike
* One of the biggest labour strikes in US history at a steel plant owned by Carnegie
* Carnegie’s business partner brought in private thugs to break the strike, resulting in 10 deaths
* Government sent in military to stop violence
* Captain of Industry?
* Gave over $350 million to various philanthropic projects
* Equivalent to over $10 billion today
* Founded over 3,000 public libraries
* Donated millions to universities
* Built Carnegie Hall in New York City
* Built Peace Palace in the Hague

J.D. Rockefeller

* Born in 1839 to a con artist father and a deeply religious mother
* Usually considered wealthiest American of all time 
* Net worth estimated at $15 billion in 1913
* Equivalent to nearly $450 billion today
* Elon Musk is worth \~$190 billion
* Donald Trump is worth \~$3 billion
* Robber Baron?
* Founded Standard Oil
* Bought out competitors until he controlled 90% of the oil refining in the world by the late 19th century
* Used corporate espionage, price wars, and drawn-out court battles to maintain power and wealth
* In 1913, dozens were killed in Ludlow Massacre
* Colorado National Guard had been called in to break up ongoing strike at Rockefeller’s coal mine
* Captain of Industry?
* Always gave significant portion of his income to charity
* Was an abolitionist who supported the “Underground Railroad”
* Supported black schools and universities, especially in the South
* Founded Rockefeller Foundation, for “promoting the well-being of humanity throughout the world”

J.P. Morgan

* Born to the wealthy Morgan family in Connecticut in 1837
* Made his fortune in banking, steel, and newspapers
* Fortune was worth “only” $80 million at his death in 1913
* Equivalent to nearly $2.4 billion today
* Inspired John D. Rockefeller to say “and to think, he wasn't even a rich man".
* Robber Baron?
* During the Civil War, he bought 5000 rifles from an army arsenal for $3.50 each and then sold them back for $22 each
* Bought out competitors to form monopolies 
* His U.S. Steel company was world’s first billion-dollar company in 1901
* Actively fought attempts to form labor unions
* Captain of Industry?
* Bailed out US government in 1907 financial crisis
* Helped create Federal Reserve Bank
* Founded several of the most powerful companies in US
* Remembered as “world’s greatest banker”

Robert Dunsmuir

* Born in Scotland in 1825
* Immigrated to Canada in 1850 as an indentured coal miner for the Hudson’s Bay Company
* Borrowed money to invest in his own coal mine
* At his death in 1889, was richest man in BC with a net worth of $15 million
* Equivalent to nearly $500 million today
* Robber Baron?
* Refused to increase his workers’ pay while company profits soared
* Elected to the provincial legislature and used his position to fight against labour laws
* Built Craigdarroch Castle, a 25,000 square foot mansion in Victoria

Herbert Holt

* Born in Ireland in 1856
* Emigrated to Canada in 1873 to work as an engineer at the Toronto Water Works
* Helped to build the Canadian Pacific Railway in the 1880s
* Founded the Montreal Gas Company in 1901
* Took over Royal Electric Company to form Montreal Heat, Light & Power Company, an energy monopoly
* Took over many other companies
* Was probably the wealthiest Canadian ever
* Owned assets worth over $3 billion by 1928
* Equivalent to over $50 billion today
* Robber Baron?
* One of the most reviled people in Montreal
* To many French Canadian,s Holt was the ultimate example of *les maudits anglais*
* Enjoyed great wealth while most suffered through the Great Depression
* He said, “If I am rich and powerful, while you are suffering the stranglehold of poverty and the humiliation of social assistance; if I was able, at the peak of the Depression, to make 150% profits each year, it is foolishness on your part, and as for me, it is the fruit of a wise administration.
* During the 1920s, some Montrealers joked that when some of Holt’s blood was used in a transfusion to one of his grandchildren, the youngster froze to death.
* When his death was announced at a baseball game in 1941, the crowd cheered
* Captain of Industry?
* Served as President of the Royal Bank of Canada
* Co-founder of the Ritz-Carlton Montreal
* Chairman of the Federal Plan Commission
* Knighted by King George V in 1915
* Recognized for his contributions to the Canadian economy in the Canadian Business Hall of Fame
* His power company was nationalized by Québec in 1944 as Hydro-Québec

Vertical Integration

* Involves controlling multiple levels of the supply chain to increase efficiency
* Used by Andrew Carnegie:
* Invested in railroads and steel companies
* Used steel companies to build cheaper railroads, and railroads to transport steel
* Modern examples:
* Rogers Communications
* Bell Media
* Apple Inc.

Horizontal Integration

* **Involves controlling multiple companies at the same level of the supply chain**
* **Used by J. D. Rockefeller**
* **Owned Standard Oil**
* **Bought least efficient and least profitable competitors**
* **Eventually owned ~90% of world oil production**
* **Modern examples:**
* **Facebook**
* **Disney**

Social Darwinism

* Darwin’s ideas about evolution had been very influential in science
* Wealthy industrialists applied the theory to human society
* Those who worked hard would be successful
* Suffering of workers was just the cost of doing business 
* William Sumner published a highly influential pamphlet in 1883 entitled "What Social Classes Owe to Each Other"
* Apparently, “nothing”
* Providing assistance to the disadvantaged will lead to a country in which the weak and inferior are encouraged to breed more like them
* American businessman is best competitor
* Taxes and regulations serve as dangers to his survival.

Labor Unions

* As early as 1349, governments had passed laws limiting the right of labourers to demand higher wages
* Those who protested work conditions, such as the Luddites, were often violently oppressed
* Eventually, unions were legalized in Britain,the United States and Canada
* Allowed workers to negotiate collectively with employers regarding work conditions and pay

Fordism

* Named after Henry Ford, founder of the Ford Motor Company
* Three principles:
* Standardization of the product 
* nothing hand-made: everything is made through machines and molds by unskilled workers
* Assembly lines
* Workers are paid higher "living" wages, so they can afford to purchase the products they make

Antitrust Laws

* As companies like Standard Oil started to monopolize markets, people started to grow concerned
* Monopolies could fix prices and make competition difficult or impossible
* *Laissez-faire economics suggested that monopolies would eventually fail*
* Sherman Act of 1890 was an attempt to ban monopolies (called “trusts”)
* Led to 1911 breakup of Standard Oil into 34 companies
* Included Exxon, Mobil, Chevron, and Sunoco

Woman’s Sufferage

* Grew out of temperance and abolitionist movements
* Temperance was attempting to control or ban alcohol
* Abolitionists wanted to abolish slavery
* Many women were involved in one or both movements
* Naturally, started advocating for women’s rights as well
* Most countries eventually granted women most of the rights afforded to men

Early History of the 13 colonies

* The 13 Colonies were founded between 1607 and 1663 along the east coast of North America
* Included:
* New England Colonies:
* Province of Massachusetts Bay
* Province of New Hampshire
* Colony of Rhode Island and Providence Plantations
* Connecticut Colony
* Middle Colonies:
* Province of New York
* Province of New Jersey
* Province of Pennsylvania
* Delaware Colony
* Southern Colonies:
* Province of Maryland
* Colony and Dominion of Virginia
* Province of North Carolina
* Province of South Carolina
* Province of Georgia
* Distant from England - journey by ship could take anywhere from 2 to 5 months
* Political turmoil in England
* English Civil War 1642-1651
* Glorious Revolution 1688-1689
* With no landed aristocracy, colonies each developed democratic forms of government
* New “middle class” - wealthy merchants and educated men - rose to positions of leadership
* Mercantilism - colonies were only allowed to trade within the British Empire

Seeds of Revolution

* Little dissent within colonies until 1760s
* Smuggling was a problem
* Writs of Assistance allowed British to search for contraband without warrants, angering some colonists
* Royal Proclamation of 1763 banned settlement west of the Appalachian Mountains
* Many colonists ignored this; eventually settlement was allowed
* Stamp Act of 1765 taxed printed materials in colonies directly
* Angered many colonists, who felt it was unfair for Parliament to impose a tax when the colonists could not run for office or vote
* “No taxation without representation”