New Ways of Thinking Thomas Malthus • 1. Saw effects of population explosion: hunger slums, misery • 2. Wrote the Essay on the Principle of Population • 3. Thought population would outpace food supply • 4. Urged poor to have fewer children • 5. He was wrong-food supply grew even faster • 6. By 1900, population growth no longer a factor in West Laissez-Faire Economics • 1. In 1800s, business leaders embraced Laissez-Faire economics • 2. Adam Smith wrote about it in The Wealth of Nations • 3. Said free market would help everyone-not just the rich • 4. More goods would be produced for less money for everyone. Thomas Malthus David Ricardo • • • • 1. Laissez-Faire economist 2. Wrote Iron Law of Wages 3. Held dismal view, like Malthus 4. Was against wage increases because the poor would have more children • 5. Was against government assistance for the poor. Utilitarians • 1. Utilitarianism-The goal of society should be the greatest happiness for the greatest number. • Jeremy Bentham • John Stuart Mill Jeremy Bentham • 1. Said all laws and actions should be judged by their utility. • 2. Strong supporter of individual freedom, which he believed guaranteed happiness. • 3. He saw the need for government involvement John Stuart Mill • 1. British philosopher and economist-influenced by Bentham • 2. Wanted the government to improve the working class. • 3. Thought government should prevent the business class from increasing their own happiness at the expense of the working class. • 4. Wanted women and workers to be able to vote. • 5. Mill’s ideas have been used by democratic governments today. Socialism • Some thinkers condemned industrial capitalism which they thought had created a huge gulf between the rich and the poor. • Socialism-the people as a whole rather than private individuals own and operate the factors of production. • -Would include farms, factories, railroads and other large businesses. Utopians • Utopians-Early socialists dreamed of a society in which all work and property is shared • Robert Owen• 1. Set up a model community in New Lanark Scotland putting Utopian ideas into practice. • 2. He was a successful mill owner who refused to use child labor. • 3. He campaigned for laws limiting child labor and encouraged unions. Robert Owen Karl Marx • 1. German philosopher-formulated “scientific socialism” • 2. Teamed with Friedrich Engels and wrote The Communist Manifesto • 3. Communism-a form of socialism which would create a classless society where all means of production would be owned by the community. Karl Marx • 4. He argued economics was the driving force in history • 5. Argued there are “haves” and have nots” • 6. The “haves” control society and its wealth • 7. The “haves”-the bourgeoisie. The “have nots –called the proletariat-the working class • 8. Predicted the proletariat would triumph over the bourgeoisie Karl Marx • 9. Workers would set up a classless society • 10. Marx despised Capitalism-he urged workers of all countries to unite. Marxism • At first Marxism gained popularity around the world. • Marxism adapted by Germany in 1860sformed a social democracy-a gradual transition from capitalism to socialism. • Russian Revolution in 1917 set up a communist inspired government. Marxism • Independence leaders in Asia, Africa, and Latin America would turn to Marxism • Marxism lost its appeal when nationalism won out over class unification • People felt stronger ties to their own countries. • By the 20th century, few nations remained with communist governments. Definitions • Means of production-farms, factories, railways, and other large businesses that produce and distribute goods.