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New Ideas in a New Society SECTION 3 New Ideas in a Getting Started 5SETHEInteractive Reader and Study Guide TOFAMILIARIZESTUDENTSWITHTHESECTION New Society CONTENT BEFORE Y OU R EAD Take notes Interactive Reader and Study Guide, on the new Section 3 MAIN I DEA READING F OCUS KEY T ERMS AND P EOPLE ideas of the Industrial Revolution. The Industrial Revolution 1. What new ideas about laissez-faire Name _____________________________ Class _________________ Date __________________ inspired new ideas about economics developed during Adam Smith The Industrial Revolution Section 3 economics and affected the Industrial Revolution? Thomas Malthus New Ideas society in many ways. entrepreneur MAIN IDEA 2. What competing economic The Industrial Revolution inspired new ideas about economics and affected society in many ways. ideas arose as a result? Andrew Carnegie socialism Key Terms and People 3. How did the Industrial laissez-faire the idea that governments should not interfere in business Karl Marx Adam Smith the leading advocate of laissez-faire economics Revolution affect society? Thomas Malthus thinker whose beliefs about poverty were used to justify low wages communism entrepreneur someone who starts a business Andrew Carnegie industrialist who led the expansion of the American steel industry standard of living socialism the theory that society, not individuals, should own all property and industry Karl Marx German thinker who put forth a radical view of socialism communism a system in which the government controls the economy standard of living level of material comfort experienced by a group of people What marvels of industry were grandeur does not consist in one thing, but in the unique Taking Notes all As you read the summary, use the chart below to show results of the displayed in a glass palace? In assemblage of things.” Brontë was impressed by the Industrial Revolution. Add ovals as needed. 1851 the Great Exhibition in London wide range of exhibits, including “great compartments drew residents and visitors to a huge glass and iron build- filled with railway engines and boilers, with mill machin- ing called the Crystal Palace. Inside the marvelous structure ery in full work . .” All these remarkable exhibits showed were nearly 14,000 exhibits, many of which displayed the accomplishments of the Industrial Revolution. People industrial products and processes. English writer Charlotte came from far away to gawk at those achievements. In fact, Brontë was dazzled by the exhibition: “It is a wonderful some 6 million visitors from across Europe and elsewhere place—vast, strange, new, and impossible to describe. Its attended the exhibition. Original content Copyright © by Holt, Rinehart and Winston. Additions and changes to the original content are the responsibility of the instructor. Modern Era Chapter 7 83 Interactive Reader and Study Guide A P ALACE FOR New Ideas about Economics During the late 1700s and early 1800s indus- Academic Vocabulary INDUSTRY trialization was changing not just products and work, but also how people thought about Review with students the high-use academic economics. One change was that mercantilism term in this section. was giving way to capitalism and competition. stance attitude or position (p. 648)250) Capitalism and Competition Under the CRF: Vocabulary Builder: Section 3 old mercantile system, governments restricted trade to protect their own industries from for- Taking Notes eign competition. Then, starting in the late 1700s, some people said that governments new ideas about economics; entrepreneurs should not interfere in business. This idea is built fortunes; new industries developed; called laissez-faire (lehz-ay- FEHR ) economics, lives of women changed; migration of job from a French phrase meaning “free to do.” seekers from countryside to city; cities became crowded and dangerous; pollution of air and water; population grew rapidly; Visitors crowded into the Crystal Palace standard of living in industrialized countries to view the displays. improved; Great Britain, France, and Germany emerged as global leaders; United 248 Dickinsons’ Pictures of Great Exhibition, 1851 States benefited from industrialization Teach the Main Idea At Level go.hrw.com Online Resources Results of the Industrial Revolution KEYWORD: SHL IND 1. Teach !SKSTUDENTSTHE2EADING&OCUS 3. Review !SYOUREVIEWTHESECTION HAVE ACTIVITY: Historic Origins of Socialism and Capitalism QUESTIONSTOTEACHTHISSECTION STUDENTSEXPLAINTHEDIFFERENTPOLITICAL 2. Apply (AVESTUDENTSCREATETWO7EB ANDECONOMICIDEASTHATCAMEOUTOFTHE DIAGRAMSFORTHESECTION ONETHATSHOWS )NDUSTRIAL2EVOLUTION THEKEYPEOPLEANDTHEIRIDEASANDTHE 4. Practice/Homework (AVESTUDENTS OTHERTHATSHOWSTHECOSTSANDBENElTSOF WRITEAONE PAGEESSAYONTHEPOSITIVEAND INDUSTRIALIZATION NEGATIVERESULTSOFTHE)NDUSTRIAL2EVOLUTION Visual-Spatial, Verbal-Linguistic Alternative Assessment Handbook, Rubric 37: Writing Assignments 248 CHAPTER 7 Adam Smith became the leading advocate of PRIMARY SOURCES laissez-faire economics. In 1776 he published The Wealth of Nations , in which he analyzed the A View of Andrew Carnegie definition and creation of wealth. Smith wrote that markets free from government interfer- Andrew Carnegie, who took the steel industry to new heights, ence benefited all. Such an economic system gave away some $350 million to fund various charities. This Reading Focus free from regulation is called a market econ- cartoon from Punch, a satirical British magazine, shows Carn- omy. Also in a market economy, businesses can egie giving $2 million to Scottish universities. The original What new ideas about economics title is “The MacMillion.” compete freely against each other for trade. The developed during the Industrial British government agreed with Smith’s ideas Carnegie’s clothing and ended most regulations by the 1840s. Revolution? laissez-faire economics, is a combination The Wealth of Nations, Smith influenced Thomas Malthus , who was of the traditional increased role concerned about population growth caused by Scottish kilt and of entrepreneur the development of industry. Malthus wrote the American flag. that the population would always grow faster New Ideas about Economics than food production. Therefore, he concluded, poverty and misery would never go away. Pop- Describe 7HATIS The Wealth of ulation growth, Malthus said, was slowed only 1901 29, May NationsABOUTanalyzes wealth and by war, disease, famine, and decreased repro- Punch, how it is created; states that markets duction. Because many people agreed that these problems were unavoidable, Malthus’ free from regulation would benefit all ideas were used to justify low wages and laws The mortarboards, which Make Inferences (OWWERE that limited charity to the poor. are the headgear for In time, Malthus was proved wrong. The college graduates, are -ALTHUSSIDEASUSEDTOJUSTIFYLOW labeled with the names of disasters he predicted did not happen, but the WAGES Poverty would never go away, Scottish universities. population did grow. Still, the ideas of Smith so there was no reason to combat it and Malthus affected attitudes. As Smith pre- with higher wages. dicted, industrialization succeeded and spread. Industrial capitalism emerged as the main eco- Make Generalizations (OWDID nomic pattern in the Western world. INDUSTRIALISTSANDENTREPRENEURSBECOME New Roles for Business Leaders In- EXTREMELYPOWERFUL took away influ- dustrialization also changed the roles that ence of landowners, pooled money to business leaders played in public life. Before create corporations, used tough business the Industrial Revolution, people who owned Skills FOCUS READING LIKE A HISTORIAN practices, acquired enormous wealth land controlled the wealth and power. But by the mid-1800s, the leaders of industry began 1. Analyze What might Carnegie’s clothing have taking away the landowners’ influence. Some meant to people at the time? industrialists became extremely wealthy, and 2. Evaluate How do you think the artist felt about their new wealth bought them political power. Carnegie’s donation? Explain your answer. The Industrial Revolution also highlighted See Skills Handbook , p. H25 Primary Source the role of the entrepreneur , someone who starts a new business. Among the entrepre- h5PONTHESACREDNESSOFPROPERTY neurs were financiers, bankers, and investors few people could imagine. In the late 1800s, CIVILIZATIONITSELFDEPENDSTHERIGHT who pooled their money to create large cor- their stories helped make them famous. OFTHELABORERTOHISHUNDREDDOLLARSIN porations. As demand increased for capital to Andrew Carnegie , who was born in Scotland, THESAVINGSBANK ANDEQUALLYTHELEGAL build factories, banking and finance became was an example of “rags to riches” success. His more important occupations. Some industri- father, a weaver, was driven out of work by the RIGHTOFTHEMILLIONAIRETOHISMILLIONSv alists made fortunes simply by buying and textile mills. The family moved to America, and !NDREW#ARNEGIE h7EALTHv selling companies for a profit. Carnegie started working in a mill at age 12. FROMTHENorth American Review A few industrialists, mainly in the United With hard work, creativity, intelligence, and States, built some of the largest corporate tough business practices, he led the expansion *UNE empires ever seen—and acquired wealth that of the American steel industry. Primary Source THE INDUSTRIAL REVOLUTION 249 h)NASENSE THETHEORYOFTHE #OMMUNISTSMAYBESUMMEDUP INASINGLESENTENCE!BOLITIONOF Below Level Differentiating Instruction PRIVATEPROPERTYv Learners Having Difficulty +ARL-ARXAND&RIEDRICH%NGELS
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