Why did new economic philosophies
come to light during the Industrial
Revolution?
I. Capitalism
• an economic system in which
individuals own and operate
businesses for profit
• A. Adam Smith – (1723- 1790)
The Wealth of Nation
Laissez faire policy. The economy will improve
and correct itself via the invisible hand
B. Thomas Malthus- population grows faster than
food supply
II. Marxism/ Communism
A. Karl Marx- (1818-1883)Marxism- Communist
Manifesto the struggle between the workers
and the bourgeoisie will
lead to a revolution. The
people should own the
means of production for
public work for the general
welfare.
III. Other philosophies
A. Socialism- government should own and
operate production to provide for all people
B. Thomas Malthus- (1766-1834) population
grows faster than food supply
C. Robert Owen- 1771-1858 Utopia meaning no place, an
ideal society where
all people share.
D. Jeremy Bentham-1748-1832
Utilitarianism- people should not
be self interested; greater good
for greater number of people.
E. John Stuart Mill- On Liberty- government
should work to preserve individual liberty