Development of Capitalism during the Industrial 产业发展中的资本主义.pptVIP

Development of Capitalism during the Industrial RevolutionCreated by: Erika Arellano Industrial Revolution refers to the greatly increased output of machine made goods Began in England in the 1700’s Why did it begin in England? It had natural resources such as: Water power and coal to fuel the new machines Iron ore to construct machines, tools and buildings Rivers for inland transportation Harbors from which merchant ships set sail /intellect/lecture17a.html Innovation created during Industrial Revolution Spinning Jenny Flying Shuttle Cotton Mills Steam Engine Factories Ideas of Adam Smith Believed in free economy, or free markets Wrote book The Wealth of Nations Economic liberty guaranteed economic progress Three Natural Laws of Economics: Law of Self Interest: People work for their own good Law of Supply and Demand: Enough goods will be produced at the lowest possible price to meet demand in a market economy Law of Competition: Competition forces people to make a better product Thomas Malthus and David Ricardo Smiths ideas influenced Malthus and Ricardo Believed that natural laws governed economic life Opposed government efforts to help poor workers Their ideas formed the foundation of laissez-faire capitalism: /Politics_LaissezFaire.html Capitalism Economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit Replaced feudal empires (i.e. Holy Roman Empire) and monarchies Created markets where buyers and sellers of goods and services agreed on prices Created market types: Competition Monopoly Oligopoly Long distance trade increased dramatically due to innovation in transportation Capitalism continued Individuals and businesses own property and the mean of production. Progress results when individuals follow their own self interest. Businesses follow their own self interest by competing for the consumer’s money. Each business tried to produce goods or services that are better and