Unit 5 - Capitalism/Communism and The Effects of the Industrial Revolution 

Capitalism:

  1. Founded by Adam Smith

2. A country should have as many businesses as possible to maximize profit.

3. There should be competition in the markets (competition between businesses.) This causes varying prices and gives consumers more choices.

4. People should work for what they want (competition between people)

5. Open trade (minimal government regulation)

6. People should be able to own their own houses and businesses (private property)

7. The government should stay out of business affairs (laissez-faire)

8. Prices are set based on supply and demand (and also on producers, consumers, and what they are willing to pay)

9. The industrial revolution was the result of capitalism as there were a few wealthy business owners at the top of the social pyramid and workers were at the bottom. Workers could work to move up the pyramid, but it was very difficult to do so.

10. Capitalism is criticized because it increases the rich-poor gap, exploits workers, and increases business greed

Communism:

1. Founded by Karl Marx (The Communist Manifesto)

2. There should not be as many businesses as possible

3. There should not be competing markets because some businesses will succeed more than others and some people can’t afford the merchandise that other people can.

4. People should not have to compete with each other. Thefe should be equality and social classes should not exist

5. Limited trade (government regulates trade)

6. The government should regulate every aspect of business to prevent greed and so that everyone can be equal

7. People should not own their houses and businesses, and instead, the state should own it. People should live in communes.

8. The government sets the prices and distributes goods among the people.

9. Communism was made after Karl Marx saw the horrible things that were happening during the Industrial Revolution. Karl Marx believed that many of these problems would be solved if there were no social classes and if the workers violently overthrew business owners.

  1. Communism is criticized because while it causes the rich-poor gap to go away, it creates a majority of poor people. People have no incentive to work since they can’t own property and can’t move up in their jobs. It is also associated with authoritarian dictatorships.

Positive social impacts of the Industrial Revolution:

1. More women in the workplace

2. More jobs open up

3. Commuter culture

4. Goods are more available to the people

5. Developments in transportation and communication change lives for the better and have a lasting impact.

6. Population increases

Negative social impacts of the Industrial Revolution:

1. Tenement apartment buildings had to be made quicker and people were forced to share facilities. As a result, these buildings became overcrowded and were unsafe.

2. Increased pollution/illnesses

3. Increased crime

4. Increased workplace deaths/accidents/filth

5. Increased alcoholism

6. Long hours and low pay

7. Child labor became more common as children could be paid less and fit into smaller places

Political impacts of the Industrial Revolution:

1. Because of the British control in India, many Indians lost their jobs or had to work for the British.

2. The British Arms Act was created to limit Indian mining and production of firearms in India because of the increased risk of uprisings.

3. The Egyptian textile industry suffered because Indian textile workers, a major consumer, lost their jobs to machinery.

4. Industrial nations sought to increase their markets and customers internationally

5. More products were produced, so prices lowered

The Fight for Better Treatment in the Workplace:

  • As time went on, labor unions began to form. Governments and businesses tried to silence them, but to no avail.
  • They fought for overtime, minimum wage, 5 day weekend and 8 hour workday, breaks, and better conditions
  • After labor unions successfully fought for hours to be cut back, sports and music halls become increasingly popular
  • In 1833, the Sadler Report by Michael Sadler was published which exposed the horrible treatment of children. Soon after, children were banned from mines and couldn’t work until they received their basic education (5-10)
  • The Jungle by Upton Sinclair also gave way for people to start inspecting food factories
  • Eventually, cities became better maintained and housing codes developed

Asian Reactions to The Industrial Revolution:

Ottoman Empire:

  1. They didn’t modernize, but they made reforms to prevent uprisings.
  2. The janissary system was abolished and more control over the tax system was ensured.
  3. There were also educational and other non-secular reforms.
  4. Political leaders called for equal rights for men, and as a result, men got all the jobs and women weren’t able to work.

China:

1. The Emperor called a Hundred Day Movement of Reform where they self-strengthened and modernized.

  1. China became a republic.
  2. China fell prey to the Opium Wars, which led to spheres of influence (European nations economically controlled parts of china)

Japan:

  1. Feudalism was abolished and samurais were relieved of their duties and replaced with modern weapons. Meiji restoration)
  2. A constitutional monarchy is established.