IMPACTS AND RESPONSES

TO CLASSICAL LIBERALISM
To what extent did classical liberalism meet the needs of
society?
What impact did classical liberalism have on Western
society?

How did liberalism evolve over

time?
Shift

from classical to modern liberalism occurred because the

emphasis on the individual and looking after ones owns interests
was questioned

Modern liberals sought to create greater equality of opportunity for all

individuals through government intervention

CONDITIONS
CREATED BY
CLASSICAL
LIBERALISM

Late 1700s and 1800s

Europe

and North America experienced an Industrial

Revolution
Scientific and technological changes during this time
resulted in a major shift from skilled workers performing
jobs in their homes to unskilled workers performing jobs in
factories

Industrialization
Introduction

of factories and new machinery changed the

face of society = industrialization
The process whereby a society changes from agricultural
hand-made production to machine-driven mass production
in factories

Machines

made farming more efficient and less labour

intensive = fewer people needed to do farm work

Industrialization and Urbanization

Many

people migrated from rural areas to urban areas in

search of work = huge surplus of workers in the city
Working in the city meant working in factories
There were new rules, new hours, new wages, new ways
of conducting business, and new ways of structuring
society
https://www.youtube.com/watch?v=SrrXUN7S_Ys

Results of Classical Liberal Values

Laissez-faire capitalism
Entrepreneurs emerged and
made decisions about their
own businesses
These nouveau riche
business owners sought to
imitate the upper class = they
built large estate homes, hired
servants, and purchased
expensive furniture to fill their
homes growing uppermiddle class

Results of Classical Liberal Values

Nouveau Riche
Most

of the nouveau riche chose to spend their money on

travel or joined exclusive country clubs
The influential and wealthy could socialize in a private
setting
Government funds were used to create parks in upper and
middle class neighbourhoods

Competition

grew among those in the wealthy society = they

wanted the latest and greatest of everything

Results of Classical Liberal Values

Business

owners were perceived as greedy because they

earned great profits that they did not share with their
workers
Critics called these entrepreneurs robber barons
Represents a greedy entrepreneur who is unwilling to
share his wealth with those that helped him earn it
Robber barons generated their fortune at the expense of
their employees

Results of Classical Liberal Values

Classical

liberals called rich industrialists captains of

industry and thought they had earned their wealth by taking
a chance in business
This term is used by those that believe business men at
this time built the foundations for the economic power of
many countries today
It was believed that those that were successful made the
most of an opportunity, took risks, worked hard, and
achieved success

 What

are some things that contribute to quality of life? Do you

think you have a high quality of life?

How

has capitalism today contributed to different standards of

living around the world?

Results of Classical Liberal Values

Challenges of the Income Gap and Cost of Living
In

the 19th century, capitalists generated vast amounts of

wealth
Some people argued that those with money just got richer,
and those that were already poor became more poor

Results of Classical Liberal Values

For

the majority of workers, their standard of living did not

improve greatly during the Industrial Revolution
Standard of living is based on the amount of goods and
services you can afford to buy

As

the standard of living increased, so did the cost of living

Cost of living is how much money it costs to provide a
person or family with the basic necessities of living: food,
shelter, clothing
However, the average wage of workers did not increase

Results of Classical Liberal Values

Challenges of the Working Class
Classical

liberalism and laissez-faire economics led to many

workers being treated cruelly and inhumanely

Government

intervention was seen as meddling and harmful

to the economy
This meant that business owners were free to run their
businesses in their own self-interest because this was seen
as the best way to benefit the common good

Results of Classical Liberal Values

The results of laissez-faire

capitalism during the
Industrial Revolution led to
pollution, city slums, abuse
of employees,
unreasonably long working
hours, child labour, and
unjust firing practices

Results of Classical Liberal Values

Inside Factories of the 19th-Century
Laissez-faire

capitalism had a negative impact on many

workers
Factories

were unsafe, overcrowded, and noisy with very little

ventilation or light

Dust

and floating practices from cotton and flax caused lung

diseases such as tuberculosis, asthma, and bronchitis

Results of Classical Liberal Values

Working Class
The

rules for employees were vigorous

Late? = beaten or fired
12 to 16 hour days (without lunch)
Bathroom? = not allowed, unless you want a pay deduction
Injured? = fired, you are no longer useful

Results of Classical Liberal Values

Overcrowding
Overcrowding

in the cities led to filthy conditions especially

in working class neighbourhoods
Due to urbanization and move away from agriculture based
economy

Results of Classical Liberal Values

Child Labour
Child

labour increased during this period

Either working for pay or as slaves
Many children from poor families worked in mines, farms,
factories, or as servants in dangerous conditions and long
hours
Children were considered cheap sources of labour and were
favoured over adults because they were small, agile,
obedient, and unlikely to join unions

Practice Question:
What

are some cons to capitalism?

Questions
1.

What are the pros of capitalism?

2.

What is the downside to laissez-faire?

3.

Why is a market economy unstable?

4.

What conditions led to the Industrial Revolution?

5.

Describe what classical liberal values are being supported or questioned when people referred
to successful business owners as robber barons or captains of industry.

6.

What classical liberal values were being questioned during the Industrial Revolution?

7.

To what extent did classical liberalism meet the needs of society?

Extension:
8.

What evidence of classical liberalism still exists today? Consider classical liberalisms focus on
individualism in your example.

Other Resources:
https://www.youtube.com/watch?v=Wrmax07bxyQ
Online

lecture about the Industrial Revolution