Name:________________________
Aim 10: Why did Marx’s predicted revolution not come to pass in Europe
in the 19th century?
I.
Labor Unions Form
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First unions form amongst skilled workers
Early unions, like the Luddites, smashed machines because they feared that machines would
replace workers
Demanded the right to engage in collective bargaining (negotiations between workers and
their employers). Unions wanted to negotiate for better wages, shorter hours, and safer
factories/coal mines
Going on strike (refusing to work) was the only weapon the union had
Eventually unskilled workers also form into unions
1. How did workers respond to their horrible working conditions? What were they demanding?
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2. Did the formation of labor unions support or contradict Marx’s predications regarding Capitalism?
Explain.
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II.
Initial government response to labor unions
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British Parliament passed the Combination Acts of 1799 and 1800 which outlawed unions
and led to the arrest of striking workers
Workers went on strike anyway, riots occurred, and police and the military were used to
arrest workers and labor union leaders
3. How did the British Parliament respond to labor unions at first? Why do you think they responded this
way? Do you think Adam Smith would have been in favor of allowing unions or destroying them?
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III. British Government moves away from Laissez-faire
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British government removes the Combination Acts in 1824
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In 1832 the Sadler Report exposed the abuse of child labor
Factory Act of 1833 limits child labor (9 yrs and older only could work)
1842 Mines Act prevented women and children from working underground
1847 Ten Hours Act limited women and children’s work day to 10 hours
1870 Elementary Education Act establishes the first public schools for children of all
economic backgrounds
By 1875 unions gain the legal right to strike
Unions began winning minimum wages, safer work environments, and eventually medical
protections
The middle class greatly expanded
4. How did the British government modify their Laissez-faire approach to industry?
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5. Why was the First Education Act of 1870 a vital step in promoting social mobility for the Proletariat?
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IV. The development of the mixed economy: Many European countries and the
United States ultimately move towards a mixed economy by the late 19th/early
20th centuries.
Laissez-faire/Free Market
Capitalism
Mixed Economy: Capitalism and
Socialism mixed together
Socialism/Communism
* means of production privately
owned
* people compete for profit
* no government regulation of
business or welfare
* supply and demand determine all
elements of business
* social classes exist (rich, middle,
poor) with varying standards of
living
* means of production are mostly privately
owned and private property/wealth still
exists
* social classes exist
* competition exists between companies but
monopolies are outlawed
* wealth and standard of living is slightly
more equalized through welfare,
unemployment pay, minimum wage, safety
regulations, housing regulations, etc…
* means of production owned
by the workers themselves
(dictatorship of the
proletariat)
* cooperation as a community
replaces competition
* no private property/wealth
* everyone has basically the
same wealth and standard of
living
6. How is a mixed economy a compromise between Laissez-faire capitalism and Marx’s Communism?
Would you classify life in the U.S. as leaning more towards Capitalism or Socialism? Explain.
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