Section 4 New Ways of Thinking
Setting the Scene - In Britain, Thomas Malthus
saw the effects of the population explosion—
crowded slums, hungry families, unemployment,
and widespread misery. Malthus believed that
poverty and misery were unavoidable because
the population was increasing faster than the
food supply. Malthus was one of many thinkers
who tried to understand the staggering changes
taking place in the early industrial age. As heirs
to the Enlightenment, these thinkers looked for
natural laws that governed the world of business
and economics.
I. Laissez-Faire Economics
Middle-class business leaders embraced a
laissez-faire, or "hands-off," approach
A. Adam Smith
In The Wealth of Nations, Smith asserted that
a free market would come to help everyone,
not just the rich
B. Thomas Malthus
Malthus predicted that the population would
outgrow the food supply and the poor would
suffer
C. David Ricardo
Economist David Ricardo proposed an “iron
law of wages,” and believed the working class
would never escape poverty
C. David Ricardo
Ricardo and Malthus felt that the poor had too
many children, but opposed any government
help for them
II. The Utilitarians
Jeremy Bentham preached utilitarianism - the
goal of society should be "the greatest
happiness for the greatest number" of citizens
Bentham also is known for an
odd request in his will: he
ordered that his remains be
preserved and kept in a box, to
be displayed on occasion to
friends and followers. This
"auto-icon," dressed in
Bentham's own clothes, is kept
in a special cabinet at University
College London to this day.
II. The Utilitarians
John Stuart Mill called for giving the right to
vote to workers and women and sought
reforms in many areas
III. Socialism
Socialists condemned the evils of capitalism
and believed the people should control the
means of production
III. Socialism
Socialists wanted a world in which society
would operate for the benefit of all members
A. The Utopians
Early socialists built communities where work
was shared and property was commonly
owned
B. Robert Owen
Owen insisted that the environment in which
people lived shaped their character
Owen was convinced that if
he created the right
environment, he could
produce rational, good and
humane people. Owen
argued that people were
naturally good but they
were corrupted by the
harsh way they were
treated.
C. Marxism
Karl Marx and Friedrich Engels wrote The
Communist Manifesto, claiming economics
was the driving force of history
C. Marxism
The entire course of history was "the history of
class struggles” between the "haves” and the
"have-nots”
C. Marxism
The "haves” were the bourgeoisie and owned
the means of production; the "have-nots” were
the proletariat, or working class.
C. Marxism
This class struggle pitted the bourgeoisie
against the proletariat and in the end the
proletariat would triumph
C. Marxism
A classless, communist society would emerge
and wealth and power would be equally
shared
“Workers of the world unite; you have
nothing to lose but your chains.”
“The theory of Communism may be
summed up in one sentence: abolish all
private property”
“The production of too many useful things
results in too many useless people.”
“From each, according to his ability; to
each, according to his need”
“The first requisite for the happiness of
the people is the abolition of religion”