In Our Time

In Our Time

Chapter 12

Multiple Choice

Why did early factories hire children?

• they could be paid less than adults

• they were easy to replace

• they did dangerous work that adults refused to do

• all are correct

Multiple Choice

Which statement describes mercantilism?

• to each according to his needs

• a country can grow rich by controlling trade

• the government should not try to control the market

• workers of the world, unite

Multiple Choice

which is not an idea that interested Adam Smith?

• division of labor

• supply and demand

• free markets

• communism

Learning Objectives

• Define the stages of the Industrial Revolution

• Compare the earlier stages of the Industrial Revolution to the current stage

Chapter 12 Vocabulary

• Atomic Energy (n): energy that is created by splitting an atom; also called nuclear energy

• Biotechnology (n) the use of living things, such as cells and bacteria, to make useful products

• "Shares of Stock": a small piece of a company; when investors buy shares (parts) of stock, they own a part of the company

Chapter 12 Vocabulary

• Monopoly (n): complete ownership or control of a resource or industry

• "Welfare System": A series of government programs that help the poor or unemployed people meet their basic needs, such as food and housing

• Social Security (n): a U.S. government program that provides income to people who are retired or disabled

The Ongoing Revolution

• Most historians agree that the Industrial Revolution has at least three phases

• First phase: 1760s-1860s in Great Britain, North America, and Western Europe

• Second phase: 1860s-mid 1900s in America, Great Britain, and Germany

• Third phase: 1970s to now; worldwide

The Ongoing Revolution

• At least three distinct phases of the Industrial Revolution

• First phase: 1760s-1860s in Great Britain, North America, and Western Europe

• Focused on coal and steam power to run textile factories

• Second phase: 1860s-mid 1900s in America, Great Britain, and Germany

• Stronger steel used for skyscrapers, electricity used to power factories and homes, petroleum turned into gasoline, plastics, man-made fabrics

• Third phase: 1970s to now; worldwide

• Also called the Information Age with new methods of communication like satellites, cell phones, and social media

Multiple Choice

How many stages of the Industrial Revolution do historians identify?

• 1

• 2

• 3

• 4

The Role of Capitalism

• Capitalism has driven each phase

• Industrialists need money to open factories; scientists and inventors need money to develop and market their discoveries

• Investors invest in these people if they think it will be profitable

• Capitalism allows people to pursue private wealth while creating things to improve the lives of others

• Nowadays, to be an investor, a person only needs to by stock shares in a publicly traded company

• If a company makes a profit, the shares of stock will increase in value

• If the company doesn't profit, the shares lose value

The Role of Capitalism

• Competition between businesses forces them to offer the cheapest, high-quality products

• Gives consumers more variety of goods at a relatively cheap price

Unsolved Problems

• Capitalism provides a great deal, while also creating new problems while making some old ones worse

• Includes child labor, health hazards, inequality of wealth, business cycles, economic depressions, pollution, overcrowded cities, slums, increased crime, monotonous work, and discouraged workers

• Socialist reformers, like Robert Owen, wanted to help workers live better lives

• Karl Marx felt that only a revolution where the proletariat rose up against the bourgeoisie could solve these problems and create a perfect society

Unsolved Problems

• Communism has not worked out in practice

• "Communist" countries are run by dictators and the workers have very little say

• Socialist utopias, like what Robert Owen tried to create, tend to be short-lived

• Most countries have come to a compromise with a mixture of capitalism and socialism

Compromise Solution

• U.S. is not socialist or communist but it is not pure capitalism either

• Government is much more involved than in a laissez-faire system

• Gov. regulates businesses and banks

• Requires minimum wage and safe workplaces

• Has laws to prevent monopolies, limit pollution, and prevent destruction of the environment

Multiple Choice

The United States today is

• Communist

• Marxist

• Capitalist

• Both Communist and Capitalist

Compromise Solution

• U.S. has a welfare system to help the poor and disadvantaged

• Helps by providing low-cost childcare, low-cost housing, food stamps, and medical care (Medicaid)

• The elderly are protected by Social Security

• Pays a pension to retired people

• Medicare provides health insurance to the elderly

• Unemployment insurance exists

Multiple Choice

Which is a socialist idea that has been adopted by American capitalist society?

• welfare

• Social Security

• biotechnology

• Both welfare and Social Security

Compromise Solution

• The idea is to combine the best aspects of all systems

• How well it works depends on a person's perspective

• Some love it as is, others would prefer less government reforms, others would prefer more government reforms

• Voting is an important part of the democratic process

• Vote for candidates who share your beliefs

• Write to government leaders asking for change (whichever way that may be)