Unit 2 The Industrial Revolution and Rise of Modern Economic Systems

Robber Barons

Those who became wealthy through unethical business practices and exploiting workers

Captains of Industry

Those that use their wealth to positively impact the country/society

Union

A labor association formed by workers

Collective Bargaining

Negotiation between employers and a group of employees to establish conditions of employment

Strike

Action taken when a fair agreement cannot be reached between workers and employers

Fair Labor Standards Act (FLSA)

1938 law setting minimum working age, hour restrictions, and banning hazardous jobs for minors

Minimum age for non-agricultural jobs (FLSA)

14 years old

Under 16 work restriction (FLSA)

Limited number of hours allowed to work

Under 18 job restriction (FLSA)

Prohibited from working in hazardous occupations

Other Reform Movements

Fought for women’s rights and abolishment of slavery

Slavery abolished in Britain

1838

Slavery abolished in United States

1865

Seed Drill

Invention by Jethro Tull to plant seeds more efficiently

Crop Rotation

Farming method of alternating crops to preserve soil health

Factors of Production

Resources needed to produce goods and services (land, labor, capital)

Early Factories

Located near water sources for power before electricity

Steam Engine

Invention by James Watt using pressurized steam for power

Bessemer Process

Method to mass produce steel

First Train Invented

1804

Samuel Slater

Opened the first large commercial mill in the U.S. (Slater’s Mill, 1793)

Francis Cabot Lowell

Opened a weaving factory in Waltham, Massachusetts

Stock

Shares sold by companies to raise money, representing ownership in the company

Laissez-faire

Economic policy of minimal government interference in business

Invisible Hand

Concept by Adam Smith referring to self-regulating nature of the marketplace

Capitalism

Economic system where production is privately owned

Socialism

Economic system where production is publicly owned; government plans the economy

Communism

Extreme socialism where all industries are collectively owned and private property is seized

Karl Marx

Author of Communist Manifesto; believed history is a struggle between rich and poor

Proletariat

Working class in Marxist theory

Bourgeoisie

Owner class in Marxist theory

Urbanization

Movement of people from countryside to cities due to factory jobs

Pollution & Sanitation Issues

Lack of codes and systems led to poor living conditions in cities

Working Conditions

Long hours, dangerous machines, no PTO, no safety standards

Child Labor

Children worked in dangerous environments like mines

Middle Class Growth

Result of industrialization creating wealth

Upper Middle Class

Government employees, doctors, managers

Lower Middle Class

Toolmakers, skilled workers, printers