IDEOLOGIES OF CHANGE

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IDEOLOGIES OF CHANGE
History 103The West and the World
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Focus Questions

• What role did government and trade unions play in
  the industrial development of the Western world?
  Who helped the workers the most?

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SPREAD OF INDUSTRIAL REVOLUTION
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The Emergence of Capitalism in Western Europe

• The source of wealth in feudal societies
• is the land, agriculture.
• In Europe,
• as trade became more endemic,
• as itinerant traders morphed into respected
  merchants, and permanent towns replaced
  occasional fairs,
• trade enabled the acquisition of a more liquid
  form of wealthmoney.
• Early capitalism, also called merchant capitalism
  or mercantilism, challenged the hegemony of the
  landed aristocracy.

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Classical Capitalism

• As capitalism matured,
• the source of wealth shifted to industry
• In classical capitalism,
• instead of adding value by merely moving a
  commodity in time and space,
• value is added in a production process
• in which resources are transformed into products
• goods and servicesostensibly more valuable to
  consumers than the cost of the factors of
  production employed to produce them.The value
  added, when realized, is profit.

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New kind of economy

• Continuous, rapid, self-sustaining economic
  growth came to be seen as fundamental
  characteristic of new economy

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ECONOMIC LIBERALISM

• Adam Smith, The Wealth of Nations, 1776
• Laissez-faire economics
• Hidden hand
• Thomas Malthus (1766-1834), Essay on the
  Principles of Population
• Geometric Growth of Population
• Arithmetic Growth of Food Supply
• David Ricardo (1772-1823), Principles of
  Political Economy
• Iron Law of Wages

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Adam Smith 1723-1790

• The Wealth of Nations, 1776
• Economic Liberalism
• laissez faire
• The Hidden Hand
• Theory of Progress

Role of government limited to national defense,
domestic justice and public works
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The Hidden Hand of the laissez-faire economy
Every individual is continually exerting himself
to find out the most advantageous employment for
whatever capital he can command. It is his own
advantage, indeed, and not that of the society,
which he has in view. But the study of his own
advantage, naturally, or rather necessarily,
leads him to prefer that employment which is most
advantageous to the society. Adam Smith
he intends only his own gain, and he is in
this, as in many other cases, led by an invisible
hand to promote an end which was no part his
intention. Adam Smith
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Thomas Malthus1766-1834
Population, when unchecked, increases in a
geometrical ratio. Subsistence only increases in
an arithmetical ratio. A slight acquaintance
with numbers will show the immensity of the first
power in comparison of the second. Thomas
Malthus
Who is mainly responsible for poverty?
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David Ricardo 172-1823
David Ricardo (1772-1823), Principles of
Political Economy Iron Law of Wages
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Class Consciousness

• Middle Classbourgeoisie
• Working Classproletariat
• Peasant
• Landed Gentryold aristocracy

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Social and political impacts middle,
entrepreneurial and business classes

• Concept of middle class
• New business aristocracy

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Social and political impacts reforms,
regulations and labor organizations

• Cotton factories Regulation Act (1819)
• MP Sadler and the Factory Act (1833)
• Ashley and the Mines Act (1842)
• Unions, 1824
• Grand National Consolidated Trade Unions, 1834

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Socialism

• Utopian Socialism
• Henri de Saint-Simon (1760-1825)
• Charles Fourier (1772-1837)
• Robert Owen (1771-1858)
• Scientific Socialism
• Karl Marx (1818-1883)
• Communist Manifesto (1848)
• Das Kapital
• Friedrich Engels (1820-1895)

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Utilitarianism

• Jeremy Bentham (1748-1832)
• Guide for legislators and reformers
• Pleasure and pain
• Maximize utility

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Utilitarianism (1863)

• The creed which accepts as the foundation of
  morals, Utility, or the Greatest Happiness
  Principle, holds that actions are right in
  proportion as they tend to promote happiness,
  wrong as they tend to produce the reverse of
  happiness. By happiness is intended pleasure, and
  the absence of pain by unhappiness, pain, and
  the privation of pleasure
• Objections and Refinements
• Is this a theory worthy of swine?
• Which are the higher pleasures?
• Why choose higher pleasures if they bring more
  pain?
• But people sink to indolence and selfishness
• Summary
• Happiness, social harmony, sympathy

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• John Stuart Mill 1806-1873
• Harriet Taylor 1807-1858

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On Liberty (1859)

• The region of human liberty
• Inward domain of consciousnessliberty of
  conscience, thought, feeling, opinion, sentiment
  liberty of expression and publication
• Tastes and pursuitseven if others think us
  foolish
• Socialfreedom to unite

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On Liberty (1859)

• The object of this Essay is to assert one very
  simple principle, as entitled to govern
  absolutely the dealings of society with the
  individual in the way of compulsion and control,
  whether the means used be physical force in the
  form of legal penalties, or the moral coercion of
  public opinion. That principle is, that the sole
  end for which mankind are warranted, individually
  or collectively in interfering with the liberty
  of action of any of their number, is
  self-protection. That the only purpose for which
  power can be rightfully exercised over any member
  of a civilized community, against his will, is to
  prevent harm to others. His own good, either
  physical or moral, is not a sufficient warrant.
  Over himself, over his own body and mind, the
  individual is sovereign .

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Liberalism and Human Nature

• Rational agents
• Mental capacityrights are ascribed because of a
  particularly human capacity for rationality
• Property of individuals (not groups)so
  individuals are the basic constituentsontological
  ly prior and sovereign over selfhood
• Best at identifying own interests
• Self-interested, but capable of impartiality
• UtilitarianismHow shall we live?

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The Subjection of Women (1869)

• the principle which regulates the existing social
  relations between the two sexes the legal
  subordination of one sex to the other is wrong
  itself, and now one of the chief hindrances to
  human improvement and that it ought to be
  replaced by a principle of perfect equality
• Marriage is the only actual bondage known to our
  law. There remain no legal slaves, except the
  mistress of every house .

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Conservatism

• Principles of Conservatism
• Obedience to Political Authority
• Organized Religion Central to Social Stability
• Opposed to Revolutionary Change
• Generally Opposed to Civil Liberties
• Community over individual rights
• Tradition as the Guide to Order
• Support for Hereditary Monarchs
• Opposed Representative Governments Nationalist
  Aspirations

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Karl Marx(1818-1883)

• not only anticipated
• the ability
• of capitalism to achieve unprecedented rates of
  economic growth
• but also predicted
• the exacerbation of income inequality
• a larger pie but more disparate slices

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Marx and Alienated Labor (Labour)

• The devaluation of the human world increases in
  direct relation with the increase in value of the
  world of things. Labour does not only create
  goods it also produces itself and the worker as
  a commodity, and in the same proportion as it
  produces goods.

1818-1883
Karl Marx (1818-1883)
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Communism

• Economics as the Foundation
• Mode of Production
• The history of all hitherto existing society is
  the history of class struggle.
• Theory of surplus value.
• Dialectical Materialism
• Mode of Production and material conditions drive
  ideas
• Violent Revolution as inevitable
• Classless Society -- bourgeois state will
  wither away.

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Socialism

• Utopian Socialism
• Henri de Saint-Simon (1760-1825)
• Charles Fourier (1772-1837)
• Robert Owen (1771-1858)
• Scientific Socialism
• Karl Marx (1818-1883)
• Communist Manifesto (1848)
• Das Kapital
• Friedrich Engels (1820-1895)

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Marx and Alienated Labor (Labour)

• 1844
• The devaluation of the human world increases in
  direct relation with the increase in value of the
  world of things. Labour does not only create
  goods it also produces itself and the worker as
  a commodity, and in the same proportion as it
  produces goods.

1818-1883
Karl Marx (1818-1883)
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Communism

• Economics as the Foundation
• Mode of Production
• The history of all hitherto existing society is
  the history of class struggle.
• Theory of surplus value.
• Dialectical Materialism
• Mode of Production and material conditions drive
  ideas
• Violent Revolution as inevitable
• Classless Society -- bourgeois state will
  wither away.

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Political and Economic Liberalism
The Inherent Tension or Heilbroners Two
Realms capitalism is unique in history in
having not one but two centers of authority, one
built around the economic prerogatives of the
business system, the other around the
political prerogatives of the governmental
system.
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Political and Economic Liberalism
The Inherent Tension or Heilbroners Two
Realms there is an inherent pulling apart in a
social order composed of two realms---one built
on the verticality of wealth, the other on the
horizontality of democracy.
Wealth Class
Equality
Democracy
Capitalism
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Conclusions and Consequences New kind of economy

• Continuous, rapid, self-sustaining economic
  growth came to be seen as fundamental
  characteristic of new economy