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New Ways of Thinking

New Ways of Thinking

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Step-by-Step WITNESS HISTORY AUDIO SECTION Instruction 4 The Struggle of the and give their view on how Objectives the Industrial affected workers: As you teach this section, keep students Owing to the extensive use of machinery and to focused on the following objectives to help “ division of labor, the work of the proletarians them answer the Section Focus Question has lost all individual character, and, conse- and master core content. 4 quently, all charm for the workman. He 4 becomes [a limb] of the machine, and it is ■ Understand laissez-faire economics only the most simple, most monotonous, and the beliefs of those who supported Workers on and most easily acquired knack, that is it. break, London required of him. . . .” ■ Describe the doctrine of utilitarianism. —From ■ Summarize the theories of . Focus Question What new ideas about economics and society were fostered as a result ■ Explain Marx’s views of the working of the Industrial Revolution? class and the response to . New Ways of Thinking

Objectives Everywhere in Britain, British economist Thomas Malthus saw Prepare to Read • Understand laissez-faire economics and the the effects of the population explosion—crowded slums, hungry fami- beliefs of those who supported it. lies, unemployment, and widespread misery. After careful study, in Build Background Knowledge L3 • Describe the doctrine of utilitarianism. 1798 he published An Essay on the Principle of Population. He con- Ask students to recall the conditions faced • Summarize the theories of socialism. cluded that poverty was unavoidable because the population was by the industrial working class and how • Explain Marx’s views of the working class and increasing faster than the food supply. Malthus wrote: “The power of population is [far] greater than the power of the Earth to produce people like Engels viewed their plight. the response to Marxism. subsistence for man.” Then have them predict what reformers Terms, People, and Places Malthus was one of many thinkers who tried to understand the might propose to improve conditions. Thomas Malthus staggering changes taking place in the early Industrial Age. As Jeremy Bentham Karl Marx heirs to the Enlightenment, these thinkers looked for natural laws Set a Purpose L3 utilitarianism that governed the world of business and economics. ■ WITNESS HISTORY Read the selection socialism aloud or play the audio. Laissez-Faire Economics AUDIO Witness History Audio CD, During the Enlightenment, physiocrats argued that natural laws

The Struggle of the Working Class Reading Skill: Identify Main Ideas Write an should be allowed to operate without interference. As part of this phi- outline like the one here to show the new Ask According to The Communist losophy, they believed that government should not interfere in the economic and social theories. Manifesto, how do owners view free operation of the economy. In the early 1800s, middle-class business leaders embraced this laissez-faire, or “hands-off,” approach. workers? (as part of the machinery) I. Laissez-faire economics How does this affect workers? A. Adam Smith and free enterprise As you have learned, the main proponent of laissez-faire eco- (They are given simple, boring tasks.) 1. nomics was Adam Smith, author of bestseller The Wealth of 2. Nations. Smith asserted that a free market—the unregulated ■ Focus Point out the Section Focus II. Malthus on population A. exchange of goods and services—would come to help everyone, not Question and write it on the board. just the rich. The free market, Smith said, would produce more Tell students to refer to this question goods at lower prices, making them affordable to everyone. A as they read. (Answer appears with growing economy would also encourage capitalists to reinvest Section 4 Assessment answers.) ■ Preview Have students preview the Section Objectives and the list of Terms, People, and Places. Vocabulary Builder ■ Have students read this Use the information below and the following resources to teach the high-use word from this section.

section using the Structured Read Teaching Resources, Unit 2, p. 45; Teaching Resources, Skills Handbook, p. 3 Aloud (TE, p. T20) strategy. As they High-Use Word Definition and Sample Sentence read, have students outline the new economic theories. formulate, p. 263 vt. to devise or develop, as in a theory or plan The coaches formulated a plan to stop the other team’s high-scoring offense. Reading and Note Taking Study Guide, pp. 95–96

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profits in new ventures. Supporters of this free-enterprise pointed Teach to the successes of the Industrial Age, in which government had played no part. Laissez-Faire Economics/ Malthus Holds Bleak View Also a Utilitarians for Limited laissez-faire economist, Thomas Malthus predicted that population would outpace Government L3 the food supply. The only checks on popu- lation growth, he said, were nature’s Instruct “natural” methods of , disease, and ■ Introduce Direct students’ attention famine. As long as population kept to the image of the large family on this increasing, he went on, the poor would page. Ask Did large families make suffer. He thus urged families to have life easier or harder for working fewer children and discouraged charita- people? (Large families meant more ble handouts and vaccinations. hands to work but also many mouths to During the early 1800s, many people feed.) What kinds of problems came accepted Malthus’s bleak view as the factory system changed people’s life- with overpopulation? (lower wages, styles for the worse. His view was proved wrong, however. Although the unemployment, poverty) population boom did continue, the food supply grew even faster. As the century progressed, living conditions for the slowly ■ Teach On the board, create three col- improved—and then people began having fewer children. By the 1900s, umns, labeled Smith; Malthus and population growth was no longer a problem in the West, but it did continue Ricardo; and Bentham and Mill. Have to afflict many nations elsewhere. students fill in each group of econo- Ricardo Shares View Another influential British laissez-faire econo- mists’ ideas on business and the gov- mist, David Ricardo, dedicated himself to economic studies after reading ernment’s role. Smith’s The Wealth of Nations. Like Malthus, Ricardo did not hold out Population Theory ■ Quick Activity Assign students to hope for the working class to escape poverty. Because of such gloomy pre- Thomas Malthus believed poor families three groups to examine the beliefs of dictions, economics became known as the “dismal science.” In his “Iron should have fewer children to preserve the Smith, Malthus and Ricardo, or Law of Wages,” Ricardo pointed out that wage increases were futile food supply. What were the advantages of families with many children? Bentham and Mill. Then organize a because increases would only cover the cost of necessities. This was quick debate on the strengths and because when wages were high, families often had more children instead weaknesses of each system in terms of of raising the family’s current standard of living. balancing individual freedom and Both Malthus and Ricardo opposed any government help for the poor. public good. In their view, the best cure for poverty was not government relief but the unrestricted “laws of the free market.” They felt that individuals should be left to improve their lot through thrift, hard work, and limiting the Independent Practice size of their families. Biography To help students better Explain the response to laissez-faire economics during understand utilitarianism, have them the nineteenth century. read the biography Jeremy Bentham and complete the worksheet. Teaching Resources, Unit 2, p. 49 Utilitarians For Limited Government Other thinkers sought to modify laissez-faire doctrines to justify some gov- ernment intervention. By 1800, British philosopher and economist Jeremy Monitor Progress Bentham was advocating utilitarianism, or the idea that the goal of soci- As students fill in their outlines, circulate ety should be “the greatest happiness for the greatest number” of its to make sure they understand the differ- citizens. To Bentham, all laws or actions should be judged by their “utility.” ence between laissez-faire economics and In other words, did they provide more pleasure or happiness than pain? utiliarianism. For a completed version of Bentham strongly supported individual freedom, which he believed guaran- the outline, see teed happiness. Still, he saw the need for government to become involved Note Taking Transparencies, 143 under certain circumstances.

History Background

Adam Smith and the Workers After his death in “mental mutilation, deformity, and wretchedness.” in 1790, Adam Smith’s laissez-faire economic theory In his earlier Theory of Moral Sentiments, Smith Answers was used as an argument against reforms. But Smith asserted that mind-numbing work harmed a person’s had been concerned about the welfare of factory ability to make moral judgments, which had adverse Caption Families with many children had more workers. In The Wealth of Nations, he argued that effects on society. He observed that government must money coming in as the children went off to performing one specialized action all day would cause try to prevent this from happening to the working work at a young age. a worker to become “as stupid and ignorant as it is poor. He also argued for public education, a radical Government should not interfere in business

possible for a human creature to become,” resulting idea at the time. because a free market eventually brings greater prosperity to everyone.

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Socialist Thought Bentham’s ideas influenced the British philosopher and economist John Stuart Mill. Although he believed strongly in individual freedom, Emerges L3 Mill wanted the government to step in to improve the hard lives of the working class. “The only purpose for which power can be rightfully exer- Instruct cised over any member of a civilized community, against his will,” Mill ■ Introduce: Key Terms Have students wrote, “is to prevent harm to others.” Therefore, while middle-class busi- find the key term socialism (in blue) ness and factory owners were entitled to increase their own happiness, in the text and explain its meaning. the government should prevent them from doing so in a manner that Point out the word’s root, social, and would harm workers. that it was supposed to lead to social Mill further called for giving the vote to workers and women. These good, a system that was good for all of groups could then use their political power to win reforms. Most middle- society. Ask students to picture a soci- class people rejected Mill’s ideas. Only in the later 1800s were his views ety in which all work is shared and all INFOGRAPHIC property is owned in common. As a class, examine challenges that might arise. ■ Teach Explain that Bentham and Mill wanted to reform laissez-faire econom- The population… is crowded “into one dense mass of cottages. ics, but socialists wanted to abolish …This is an atmosphere loaded capitalism entirely. Ask What are the with the exhalation of a large means of production? (farms, facto- manufacturing city. The poverty and filth of the Industrial Age did not sit well with Robert Owen, a ries, railways, and other large busi- — J.P. Kay ” British social reformer. Like other Utopians, he believed there was a way he could nesses that produce and distribute change society for the better. To prove his point, he set up his cotton mill in New goods) What is the name of the sys- Lanark, Scotland, as a model village. He insisted that the conditions in which people tem in which individuals own the lived shaped their character. Owen reduced working hours, built homes for workers, means of production? (capitalism) started a school for children, and opened a company store where workers could buy Why did socialists think that pri- food and clothes. He showed that an employer could offer decent living and vate ownership of the means of working conditions and still run a profitable business. Between 1815 and 1825, production was bad? (They believed about 20,000 people visited New Lanark to study Owen’s reforms. The complex it would always lead to wealth for the eventually fell into decline but visitors can still wander the village today. rich and injustice for poor workers.) ■ Quick Activity Direct students’ atten- tion to the Infographic on this page. “…[I have never seen] so much order, good govern- Ask them to compare the actions Rob- ment, tranquility, and rational happiness prevail.” ert Owen took to those of other reform- —Visitor to New Lanark ers of the time. Then have students complete the interactivity at Web Code nbp-1941. ᭡ The Industrial Age brought harsh living conditions and poverty as people crowded into cities. Independent Practice Have students write a paragraph compar- Thinking Critically ing ’s Utopia with Robert 1. Make Generalizations Based on Owen’s New Lanark. Paragraphs should the images, how did life for children analyze which aspects of New Lanark at New Lanark differ from those who seem ideal and which do not. lived in industrial cities? 2. Recognize Do you think Monitor Progress Utopianism was an effective solution for the challenges of the Industrial To ensure understanding, have students Age? Why or why not? look at their essays on More’s Utopia and For: Interactive Village Owen’s New Lanark. Ask students to ᭡ Children attended geography classes and Web Code: nbp-1941 explain whether New Lanark was social- dance lessons at the school in New Lanark. ist, capitalist, both, or neither.

Answers Solutions for All Learners L2 Less Proficient Readers L2 English Language Learners Mill believed government should intervene to

prevent harm to its citizens, such as abuse of Guide students in using word relationships to learn key Use the following resources to help students acquire workers. terms. Tell them that the suffix -ism means practice of or basic skills: Thinking Critically belief in. For the key words socialism, utilitarianism, capi- Adapted Reading and Note Taking talism, and communism, have students write a sentence 1. It appears that children at New Lanark attended Study Guide that explains the term using the root and suffix (e.g., classes instead of living in crowded, dirty ■ Adapted Note Taking Study Guide, pp. 95–96 “Communism is the belief in communal ownership of the conditions. ■ Adapted Section Summary, p. 97 means of production”). 2. Students’ answers should include specific reasons.

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slowly accepted. Today’s democratic governments, however, have absorbed Karl Marx Calls for Worker many ideas from Mill and the other utilitarians. Control/Marxism What did John Stuart Mill see as the proper role of government? in the Future L3 Instruct Socialist Thought Emerges ■ Introduce: Vocabulary Builder Have While the champions of laissez-faire economics praised individual rights, students read the Vocabulary Builder other thinkers focused on the good of society in general. They condemned term and definition. Ask students to the evils of industrial capitalism, which they believed had created a gulf speculate about how the thinkers intro- between rich and poor. To end poverty and injustice, they offered a radical duced in this section formulated their solution—socialism. Under socialism, the people as a whole rather than theories. Ask them what they think Marx private individuals would own and operate the means of production— meant when he said his theory was the farms, factories, railways, and other large businesses that produced based on scientific study of history. and distributed goods. Socialism grew out of the Enlightenment faith in progress and human nature and its concern for social justice. ■ Teach Explain Marx’s ideas. Ask According to Marx, what kind of Are Utopians Dreamers? A number of early socialists established struggle drove history? (the class communities in which all work was shared and all property was owned in struggle) Which two groups were in common. When there was no difference between rich and poor, they said, conflict? (the haves and have-nots) fighting between people would disappear. These early socialists were Who was the proletariat? (the called Utopians. The name implied that they were impractical dreamers. The Utopian Robert Owen set up a model community in New Lanark, working class) How would - Scotland, to put his own ideas into practice. ism come to an end? (The workers would unite and overthrow it.) What Owen Establishes a Utopia A poor Welsh boy, Owen became a suc- would the ideal society look like? cessful mill owner. Unlike most industrialists at the time, he refused to (classless, with wealth and means of use child labor. He campaigned vigorously for laws that limited child production owned in common by all) labor and encouraged the organization of labor unions. Review with students what happened What did early socialists believe? when people tried to put Marxism into practice. Karl Marx Calls for Worker Control ■ Quick Activity Tell students that in the today, people con- In the 1840s, Karl Marx, a German philosopher, condemned the ideas tinue to debate the degree to which of the Utopians as unrealistic idealism. He formulated a new theory, Vocabulary Builder government should intervene to allevi- “scientific socialism,” which he claimed was based on a scientific study formulated—(FAWR myoo layt id) vt. of history. He teamed up with another German socialist, Friedrich devised or developed, as in a theory ate social and economic problems. Use Engels, whose father owned a textile factory in England. or plan the Think-Write-Pair-Share strategy Marx and Engels wrote a pamphlet, The Communist Manifesto, which (TE, p. T23) to have students discuss they published in 1848. “A spectre [ghost] is haunting ,” it began, this issue. “the spectre of communism.” Marx predicted a struggle between social classes that would lead to a where all means of production Independent Practice would be owned by the community. In practice, however, communism Direct students’ attention to the poster on later came to refer to a system in which governments led by a small elite page 264. Ask them which political ideas controlled all economic and political life. the poster expresses. Then have them cre- In The Communist Manifesto, Marx theorized that economics was the ate a poster for one of the political sys- driving force in history. He argued that there was “the history of class struggles” between the “haves” and the “have-nots.” The “haves” had tems they have studied. always owned the means of production and thus controlled society and all its wealth. In industrialized Europe, Marx said, the “haves” were the Monitor Progress . The “have-nots” were the proletariat, or working class. Check Reading and Note Taking Study According to Marx, the modern class struggle pitted the bourgeoisie Guide entries for student understanding. against the proletariat. In the end, he predicted, the proletariat would be

History Background

Robert Owen Although Robert Owen had mixed 1825, Owen left New Lanark and started a small cooper- success, he left many important legacies. He himself left ative agricultural community across the sea in New Har- school at the age of ten to work in the textile industry. mony, Indiana. Although the community failed and When he became a wealthy factory co-owner, he fought depleted his resources, the movement later for reforms in working hours, child labor, and education. revived. There are many today founded on Answer Jeremy Bentham was one of the partners in Owen’s New Owen’s ideas. Owen returned to Britain and helped Lanark community, where education for workers’ children establish the movement, another important Early socialists believed that all property and

included a nursery school, a new idea in Britain. In legacy. all means of production should be owned by the people as a whole.

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triumphant. Workers would then take control of the means of production and set up a classless, . Such a society would mark the Assess and Reteach end of the struggles people had endured throughout history, because wealth and power would be equally shared. Marx despised capitalism. Assess Progress L3 He believed it created prosperity for only a few and poverty for many. He called for an international struggle to bring about its downfall. “Workers ■ Have students complete the Section of all countries,” he urged, “unite!” Assessment. What did Marx predict was the future of the ■ Administer the Section Quiz. proletariat? Teaching Resources, Unit 2, p. 44

■ To further assess student under- Marxism in the Future standing, use At first, Marxism gained popularity with many people around the world. Progress Monitoring Transparencies, 82 Leaders of a number of reform movements adopted the idea that power should be held by workers rather than by business owners. Marx’s ideas, Reteach however, would never be practiced exactly as he imagined. If students need more instruction, have Marxism Briefly Flourishes In the 1860s, German socialists adapted them read the section summary. Marx’s beliefs to form social democracy, a political in which Reading and Note Taking L3 there is a gradual transition from capitalism to socialism instead of a Study Guide, p. 97 sudden violent overthrow of the system. In the late 1800s, Russian socialists embraced Marxism, and the of 1917 set Adapted Reading and up a communist-inspired government. For much of the 1900s, revolu- L1 L2 tionaries around the world would adapt Marxist ideas to their own Note Taking Study Guide, situations and needs. Independence leaders in Asia, Latin America, p. 97 and Africa would turn to Marxism. L2 Spanish Reading and Marxism Loses Appeal As time passed, however, the failures of Note Taking Study Guide, p. 97 Marxist governments would illustrate the flaws in Marx’s arguments. He predicted that workers would unite across national borders to wage class L4 Extend warfare. Instead, nationalism won out over working-class loyalty. In gen- eral, people felt stronger ties to their own countries than to the interna- Viewpoints To help students appreci- Workers of the World tional communist movement. By the end of the twentieth century, few ate different viewpoints about industrial- An 1895 leaflet urges that “Workers of the nations remained with communist governments, while nearly every World Unite,” the slogan of the socialist ization, have them read the selection economy included elements of free-market capitalism. Responses to the Industrial Revolution movement of Marx (above) and Engels. and complete the worksheet. How accurate did Marx’s predictions about social classes prove to be? Teaching Resources, Unit 2, p. 50

Progress Monitoring Online For: Self-quiz with vocabulary practice 4 Web Code: nba-1941 ● Answers Terms, People, and Places Comprehension and Critical Thinking Writing About History 1. For each term, person, or place listed at 3. Identify Points of View What were Quick Write: Write a Thesis Statement The proletariat would overthrow capitalism the beginning of the section, write a the views of laissez-faire economists As in other types of essays, it is important sentence explaining its significance. (a) Adam Smith, (b) Thomas Malthus, to clearly state your thesis, or main idea, through revolution, take control of the means and (c) David Ricardo? when writing an explanatory essay. Write a of production, and create a classless society. 4. Compare Points of View Contrast thesis statement followed by a short para- Marx was wrong about international revolu- 2. Reading Skill: Identify Main Ideas the approaches of utilitarians and graph on one of the theories discussed in Use your completed outline to answer socialists to solving economic this section. tion, and by the 1990s, few communist coun- the Focus Question: What new ideas problems. tries remained. about economics and society were 5. Synthesize Information How might fostered as a result of the Industrial workplace reforms have altered Marx- Revolution? ist predictions of world revolution?

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Ricardo formulated the “Iron Law of ● Writing About History Section 4 Assessment Wages,” which stated that wage increases Responses should include a clear thesis 1. Sentences should reflect an understanding only encouraged larger families. statement about a political theory studied in of each term, person, or place listed at the 4. Utilitarians believed government should this section. The rest of the paragraph beginning of the section. intervene to curb abuses; socialists should support or develop the thesis 2. laissez-faire economics, utilitarianism, wanted to abolish capitalism altogether statement. socialism, and communism (Marxism) and have the people own the means of 3. (a) Adam Smith believed in a free market. production. (b) Thomas Malthus believed population 5. They might have lessened workers’ suffer- For additional assessment, have students growth would lead to famine. (c) David ing and made them less likely to stage access Progress Monitoring Online at . Web Code nba-1941.

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What types of economic systems have societies used to produce and distribute goods and services? Economic Systems When Adam Smith wrote The Wealth of Nations in 1776, traditional Objectives agriculture formed the heart of nearly all world economies. In the ■ Describe the main types of economic 1800s, industry began to dominate, especially in Europe and the United States. Industrialists wanted to control their own businesses. systems in the world today. Using Smith’s laissez-faire ideas, they pushed for free markets and an ■ Understand how major economic sys- end to government interference. The resulting market economy is one tems have changed over time. of the basic economic systems in the modern world. Other systems followed. These systems can be differentiated by those who make the following key economic decisions: (1) What will be produced? (2) How will it be produced? (3) To whom will the product be distributed? Brazilian market economy Build Background Knowledge L3 Market Economy Centrally Mixed Economy Ask What kind of economic system In a market economy, the key economic In a centrally planned economy, the A mixed economy is one that has both does the United States have? (a mar- decisions emerge from the interaction central government, rather than free enterprise and socialist charac- ket economy or capitalism) Then ask of buyers and sellers in a market. A individual producers and consumers teristics. Economic equality, socialists them to compare it to the economic sys- market allows individuals to exchange, in markets, makes the key economic argue, is possible only if the public— or trade, things. The market economy decisions. The centrally planned in the form of the government— tem before the Industrial Revolution. is also called the free market, the free economy is also called a command controls the centers of economic power. enterprise system, or capitalism. One economy, a socialist economy, or Although socialist nations may be Instruct L3 key element of this economic system communism. In a typical communist democracies, socialism requires a high Create three columns on the board and is supply and demand. Producers country, the government sets goals for degree of central planning to achieve make, or supply, only what consumers production and manages nearly all economic equality. In mixed economies, list the three economic systems. Have want, or demand. Another element is aspects of production and distribution. government plays a significant role in students volunteer information they self-interest, where producers and Everything in a command economy is making the key economic decisions. In have learned about each system. Then consumers consider only their own produced according to a rigid plan. modern times, the number of mixed ask the three questions at the bottom of personal gain when making decisions. This discourages new ideas and new economies has grown. Market systems the introductory paragraph: In each A third element is competition. Here, products that could stimulate eco- have benefited from some government of these economic systems, who producers compete for consumers’ nomic growth. The result is often poor intervention, and centrally planned decides the answers to these three money by lowering prices or quality goods, serious shortages, and systems have benefited from some free introducing new products. falling production. enterprise. questions? (traditional and market economies: individuals; command econ- omy: the state; mixed economy: individu- als and the state) Use students’ answers to fill in the chart. Then ask them to name nations or regions that have each Thinking Critically economic system. 1. (a) What legitimate role might government have in what is otherwise a market economy? (b) Why might a Independent Practice centrally planned economy begin Have students fill in encouraging some free enterprise? the Concept Connector worksheet on eco- 2. Connections to Today Locate a nomic systems, which includes addi- newspaper article about China’s tional examples and critical thinking economy. Write a one-paragraph summary of the article and try to questions. relate the content of the article to the A Cuban government poster Reading and Note Taking information about economic systems seeks to inspire productivity. Study Guide, p. 256 described above. Monitor Progress Circulate to make sure that students are filling in their Concept Connector work- History Background sheets accurately.

Social Democracy Ferdinand Lassalle, son of a capitalism was not collapsing and workers’ lives were Jewish merchant, founded what became the first Social not getting worse. Bernstein and others came to believe Democratic Party in Germany in the 1860s. He believed that democracy could be used to bring about socialist that revolution was unnecessary—that if workers could goals. Over the course of the twentieth century, social vote, they would force the state to reform. In the 1890s, democratic parties in most countries came to believe in Thinking Critically in his book Evolutionary Socialism, reforming capitalism rather than abolishing it. They pre- 1. (a) rules to protect workers and consumers agreed, and he used scientific methods to refute Marxist fer democracy to Marx’s “dictatorship of the proletariat.” (b) to encourage new ideas and products theories of revolution. He used statistics to show that 2. Summaries should show a clear understanding of economic systems.

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