Capitalism and Its Critics

Capitalism and its critics - Lecture

Industrial Revolution:

* Emphasize changes in attitude towards morality, towards what constituted the good, attitude towards property ( fully private ), towards proper role of local and national government.

* Increase in productivity with lots of machinery, England was fully miniaturized (everybody bought what they needed).

* Everybody went to the market, didn't make things at home ( true market economy before industrialization)

* Social pyramid was steeper then anywhere else, very rich was very rich but not separated from very poor by a huge gap, but connected by the middle class.

* A peasant would rarely purchase anything at market and be aristocrats, gap was too great to even imitate a rich.

* Social structure created new demand- new attitudes towards purchasing not only to get what you need but to purchase to get what you wanted.

* Social structure encouraged competitiveness, not only along producers but also creating competition for the consumers.

Example: Pottery-

* First produced very small amount of potteries but by end of 18 century china became industry of national and international of import.

* Josiah Wedgwood- 18th Century leo da vinci. He was a self made man, thirteenth son of very poor potter, but he made a store of pottery. He revolutionized production pottery. He was the moving force in organizing businesses so can build roads and canals by their own investment.

* Cost of travel or sending things over land cost very expensive and cost more and more every 7 months. (doubled)

* Wedgwood found out that every time something really good was produced people would copy and sell on their own.. His strategy was to cash in on his reputation as a maker of the highest quality product.

* Wedgwood thought up aristocracy ideas and used same line, followed fashion and when high society dropped for classical style, he dropped them too.

* Katherine great of Russia asked to produce plates and ect, he got idea and painted aristocracy stately home.

* Wedgwood made tea set out of cream ware (cheap and pretty), for the Queen.

* Was Royal Potter and brand became "Queens Ware."

* English pottery was being exported everywhere (France, China, ect.)

* France couldn't follow enterprise of England, France led field in luxury production because of their social structure. 0-25 35-45

Market Rationality-

* Neglects genuine needs, in 1811 Swiss economist devoted much travel diary to human misery from England machinery created.

* People that had jobs like making things got less money because of new inventions.

* Initially wages was high, but as more people joined the wages dropped

* Machines were eliminating more and more jobs.

* If weavers are poorly paid