26. INDUSTRIAL REVOLUTION: DAY IV

26 Days. 624 Hours. 37,440 Minutes.

Today, let’s focus on the economics behind the Industrial Revolution.  AKA Capitalism, Classical Liberalism, Marxism, Utopian Socialism, and Anarchism

5.1 Industrialization and Global Capitalism:

This massive change in how things are produced and sold will reshape the way the global economy works.  Say goodbye to your precious Mercantilism and hello to some new ideas:

CAPITALISM: Get rid of that old Mercantilist way of doing things.  Adam Smith pioneered Capitalism in his work Inquiry into the Wealth of Nations (or justWealth of Nations).  Instead of government control of markets, individuals control the means of production and invest to make profits.  They then take those profits and reinvest.  The best products, ideas, services, etc. will succeed as the Invisible Hand pushes the market in the correct direction.  It is also known as Free Market capitalism or Laissez Faire due to the fact that the government does not get directly involved and the market decides on its own. 

CLASSICAL LIBERALISM: This is the movement that Capitalism flourished under.  It is the belief that during the Industrial Revolution, the new economy that emerged required a free market.  It required government to keep it’s hands-off (laissez-faire).  Think of it as the Tea Party Movement… The government needs to get its hands out of my ___________ (money, economy, rights, etc.)

MARXISM: The evil capitalists who control the means of production will grow so large and corrupt under the above that the people will rise up and take the means of production for themselves.  Then, they will share equally in the rewards.  In theory, the government will not even be needed as people will work for the sake of the community.  This sounds nice; but always ends with the deaths of tens of millions (Stalin, Mao).  It has never been fully implemented, but that’s because it’s an economic theory that can only exist in a perfect state/vacuum.

UTOPIAN SOCIALISM: Think of Utopian Socialism as the ideal under the early stages of Marxism.  Wealth is redistributed from rich to poor to provide equal opportunity for all.  This is most closely seen in Scandinavia today.

ANARCHISM: Some people just want to watch the world burn.  Anarchy is a state of no government.  Every man for himself.  It’s Rick, Darryl, and Michonne fending for themselves in a post-Apocalyptic Zombie-hellscape.  Ok.  Everything but the Zombies.

Posted on April 16, 2016 .