24.1_Notes - 24.1 New Ideas I. Introduction A. The Western...

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24.1 New Ideas I. Introduction A. The Western world did not appear to be turning upside down, as society underwent a transformation. a. In a little over 100 years, the Industrial Revolution converted Europe from rural to urban. B. Industry in short term brought great wealth to a few and imposed hardships on many. a. It provided material benefits to all. b. The social gap created unrest in many societies. II. Capitalist Ideas A. During the Industrial Revolution, European thinkers for the first time studied and explained how capitalism worked. a. Rejecting government control of mercantilism, many supported laissez-faire , allowing business to operate without government interference. b. Laissez-faire, French for “let them alone,” was developed in France during the 1700s by the Physiocrats. . c. They valued land as a primary source of income. They believed fewer taxes and regulations would allow for more produce. Around the 1800s, middle-class owners of railroads, factories, and mines began supporting laissez-faire. d. They believed that freedom from government control meant growing economies. 1. Adam Smith A. Industrial leaders relied on the ideas of Adam Smith , a Scottish economist who set down the workings of a laissez-faire economy. . a. The Wealth of Nations (1776), Smith stated that economy operates alone more efficiently without government interference. In a free market, individuals act on self-interest. b. Businesses compete to produce goods inexpensively, and consumers buy the best goods at low prices. Efficient workers make more money, hire more work, and expand constantly. B.
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24.1_Notes - 24.1 New Ideas I. Introduction A. The Western...

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