Industrial Revolution and
New Ways of Thinking
How to end poverty and the bad
conditions that came with the
Industrial Revolution
Adam Smith
• Enlightenment Idea
• Laissez-faire economics
• Free market economy - unregulated
exchange of goods and services
Thomas Malthus



Wrote about population, helped shape
economic thinking
Population would grow faster than the food
supply
Family planning
David Ricardo
 British economist
 Poor people had too many children,
 This increase supply of labor, led to lower
wages and higher unemployment
Jeremy Bentham
• Utilitarianism
• Goal of society should be “the greatest
happiness for the greatest number.”
• Laws based on Utility - do laws bring more
pleasure or pain
Socialism


Reaction to laissez-faire
People as a whole, rather than private
individuals would own and operate the
“means of production.”
Karl Marx




German Philosopher
1848 with Freidrich Engels write The
Communist Manifesto
New form of Socialism - Communism
Communism - class struggle between
employers and employees
Marxism and The Manifesto
• Economics driving force in history
• History of class struggles between the haves and
have nots
• Haves - bourgeoisie, owned the means of
production
• Have-nots - proletariat, “working class.”
• In the end the proletariat would win and a class
less society would be set up