2- Industrialization

Urbanization

building cities and the movement of people to cities

middle class

social class made up of skilled workers, professionals, business people, and wealthy farmers. It emerged during industrialization.

Industrialization

the process of developing industries that use machines to produce goods, leading to rapid economic growth and urban expansion.

4 main effects of industrialization

working conditions, social classes, size of cities, living conditions

stock

small rights of ownership of companies

corporation

a business owned by stockholders who share in its profits

crop rotation

improved method of farming where different crops are grown each year to promote healthy soil

factors of production

resources needed to produce goods and services (such as land, labor, and wealth)

factories

large buildings that housed lots of machines

entrepreneur

a person who organized, manages, and takes on the risks of a business

textiles

fiber-based materials and cloths - the first industry to industrialize

laissez faire

economic policy of letting owners of industry set working conditions without interference.It advocates minimal government intervention in the economy.

Adam Smith

“father of economics” who wanted “free markets”

free markets

the idea that economic liberty provides economic success and the government should not interfere

capitalism

economic system in which the factors of production are privately owned and money is invested in business to make a profit.

Utilitarianism

The idea that the government should promote the greatest good for the greatest amount of people. People should judge their ideas, institutions, and actions on their usefulness.

Jeremy Bentham

introduced the idea of Utilitarianism

Socialism

Economic system where the factors of production are owned by the public and operate for the welfare of all.

Karl Marx

German journalist who introduced a more radical for of Socialism called Marxism.

Communist Manifesto

a political pamphlet written by Marx and Engels that argued that human society is fundamentally divided into classes and they are in conflict

bourgeoisie

employers who own the means of production

proletariat

the working class who labor for the bourgeoisie for wages.

Communism

a form of complete Socialism in which the means of production (land, mines, factories, businesses) are owned by the people. All goods and services are would be shared equally

unions

workers that join in a labor association to negotiate better wage and conditions with their employees

strike

refusal to work as a form of protest to employers

Who wrote the Communist Manifesto?

Karl Marx & Friedrich Engels