Agricultural and Industrial Revolutions

Agricultural Revolution

• The Agricultural Revolution was the first major economic change, where humans learned to domesticate plants and animals.
• Domestication led to the creation of surpluses, which supported the growth of permanent settlements, trade networks, and population.

Industrial Revolution

• The Industrial Revolution, starting in the 1800s, brought about the rise of tools like steam engines, manufacturing, and mass production.
• It resulted in increased productivity, improved standards of living, and wider access to goods.
• However, it also resulted in poor working conditions and low wages for factory workers, primarily women and children, leading to economic inequality.
• Nineteenth-century industrialists were known as "robber barons," who profited greatly from the revolution.
• Labor unions emerged in the late nineteenth century to address worker grievances.
• Labor unions organized workers to improve wages and working conditions through collective action, strikes, and negotiations.

Capitalism

• Capitalism is a system where natural resources and means of production are privately owned.
• It emphasizes profit maximization and competition as drivers of efficiency.
• Adam Smith is considered the founder of capitalism.
• Key features include private ownership, competition, and minimal government interference ("laissez-faire").
• Advantages include promoting innovation, economic incentives, and economic freedom.
• Disadvantages include unequal wealth distribution, economic cycles, and potential monopolies.

Socialism

• Karl Marx is credited as the founder of socialism.
• Socialism advocates for government ownership of businesses and property.
• Its goal is to create a classless society where competition is discouraged.
• Advantages include social and economic equality, and potentially improved healthcare.
• Disadvantages include hampered competition, reduced economic incentives, and government control.

Technology and Labor

• Technology has reduced human labor, shifting towards a less manufacturing-based economy.
• Automation and outsourcing have led to job losses, contributing to a decline in union membership.

Labor Market

• The primary labor market includes jobs with high incomes, job security, health insurance, and retirement packages.
• The secondary labor market consists of jobs that offer fewer benefits, such as lower-skilled jobs and lower-level service sector roles.