Wednesday, December 01, 2010

Honors Business Economics: 2 December 2010

Current Events (none on Quiz/Test days):


Dec. 2 (Bloomberg) -- Robert Eisenbeis, chief monetary economist at Cumberland Advisors, discusses the Federal Reserve's report on users of its $3.3 trillion in emergency programs. Eisenbeis speaks with Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)

Clear your desk except for a pencil. Once everyone is quiet, and no talking during the Test, we can begin. Be sure to put your name on the Test and the Scantron. You may write on both the Test and the Scantron.

If you finish early, you may take out non-class materials; once everyone is finished, put away the non-class materials. Then, I will collect the Scantron first, and then I will collect the Test.

Be sure your name is on both the Scantron and the Test.

If your name is not on the Test it will not be returned.

The Ch. 2 Sec. 3 American Free Enterprise Make-Up Quiz is today.

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Supply and demand game

Vocabulary eFlashcards
Show Business is the Federal Reserve Bank of Boston's learning activity on economics and the entertainment industry. The goal is to provide an additional tool for teaching and learning about basic economic concepts, with some economic history snuck in.


A music video from School House Rock on investing and Wall Street.


Prices and Markets

Chapter 4 Demand

(Supply and) Demand

In-class assignment: in your own words, summarize and explain supply and demand. Draw an individual (each student) sample Supply and Demand Curve as it is described in the video. What is the relationship between prices and quantity demanded? What does it mean in Economics to move towards equilibrium? What is the consumer surplus? What is a producer surplus?

Supply and Demand Screen shot 1

Supply and Demand Screen shot 2, Equilibrium

Supply and Demand Screen shot 3, Consumer Surplus

Supply and Demand Screen shot 4, Producer Surplus

Why It Matters

The Big Idea

Section 1 What is Demand?

ceteris paribus ([key-te-rees pah-ri-boos] other things being equal

Guide to Reading

Section Preview

Content Vocabulary



market economy

demand schedule

demand curve

To get a better picture of demand, economists construct graphs. They try to find out how many people are willing to buy an item at various prices, and then plot that information on a graph like this.
You should note a couple of things about demand curves: 1) price is always plotted along the vertical axis and quantity is always plotted on the horizontal axis, and 2) demand curves always slope downward from left to right.

By now you should understand the primary reason demand curves always slope downward from left to right—as price falls, demand increases. But a second economic principle plays a role as well. The law of diminishing marginal utility tells us that individual demand for a good will decrease each time that good is purchased or consumed.

Deriving the Demand Curve

In-class assignment: if asked to explain to a friend who knew nothing about the demand curve, how would you explain it? Where does the demand curve come from?

Income influences demand. As our income changes, our willingness and ability to buy a product changes. When you were working for the minimum wage, you may have been willing and able to pay only 75¢ for a donut. But after your wage was doubled, your willingness and ability changed. Now you are willing and able to pay $1.25 and maybe $1.50 for a donut. And if for some reason income levels rise or fall more generally—say during a depression—the entire demand curve will shift. During good times the demand curve for donuts might look like this.

But suppose the bottom fell out of the stock market, the unemployment rate shot up, and the national average income dropped 15%. Our demand curve would shift to the left and look like this.
Want a good indicator of the income effect?  How about yacht sales.  Yachts are nice, of course.  But they're not exactly necessities (for most of us, anyway).
Yacht sales are thus highly sensitive to the income effect.
In the first half of 2008, before the bottom fell out of the economy, 4,157 sailboats were sold in America.
In the first half of 2009, with the economy a mess and incomes falling, sales were 28% lower.

The Law of Demand

Okay—let’s start with a basic and simple fact: as the price of something falls, demand for it rises; and as the price of something rises, the demand for it falls. This is the law of demand and every kid who has ever sold lemonade, baseball cards, or Beanie Babies understands it. If the price of a good is cut in half, more people will buy it. If the price doubles, fewer people will buy it.

But the concept of demand is a bit more complicated than the law of demand. (Or at least economists like to make it sound more complicated.) So to make sure you don’t embarrass yourself at a cocktail party filled with economists (yeehaw), memorize this definition. Demand refers to the amount of a good or service that people are willing and able to buy at a specified price.

There are a couple of key phrases in this definition—willing and able and specified price. To accurately gauge demand for a particular item we need to eliminate the willing but unable and the able but unwilling—in other words, there may be plenty of people with interest in our item but no money. And there may be people with plenty of money but absolutely no interest in the good. They should not be factored into our calculation of demand. Moreover, identifying a vague interest in a product is meaningless unless we can link that interest to a specific price. Sure, you may like what we are selling, and you may be willing and able to buy our product—but are you willing and able to pay $3? $4? $5?

Demand, therefore, means more to economists and businessmen than some vague, desire for something—it refers to the amount of a good or service that people are willing and able to buy at a specified price.

Consumer tastes may affect demand. Consumers may clamor for an item one year and ignore it the next. The clothing industry is particularly vulnerable to quickly changing tastes. How ready was the clothing industry for the abandonment of the polyester bell bottom complemented by a form-fitting butterfly collar shirt? How ready was the industry for the revival of these ridiculous clothes thirty years later?

Every Christmas season, it seems, there is that one must-have item that everybody just needs to have under the tree.  Manufacturers just can't make enough, stores run out of inventory, and desperate shoppers trample each other on Black Friday trying to get their hands on the precious, the precious.
Here are the best-selling must-haves of recent holiday shopping seasons:

Best Selling Christmas Items
2009Nook eReader (Barnes & Noble)
2008Elmo Live (Fisher Price)
2007iTouch (Apple)
2006Playstation 3 (Sony)
2005Xbox 360 (Microsoft)
2004RoboSapiens (WowWee)
2002-3Beyblades (Hasbro)
2001Bratz Dolls (MGA Entertainment)
2000Razor Scooters (Razor USA)

market demand curve

marginal utility

diminishing marginal utility

Diminishing Marginal Utility, 4:15

In-class assignment: define diminishing marginal utility based on the video and its explanation.

Economists use the word utility to describe the ability of a good or service to satisfy some want we possess. A donut has utility if it can satisfy our hunger; a movie has utility if it satisfies our desire for entertainment. Economists also recognize that the ability of a product to satisfy our want or need may diminish the more frequently it is consumed. The first donut you buy may do a great job of satisfying your hunger, the second may as well. But the third may be less satisfying to you, and you may be totally uninterested in the fourth. The once invaluable donut has lost much of its seductive appeal. We might call this the law of diminishing seductive appeal. But economists are a stodgy bunch, so they call this the law of diminishing marginal utility.

Now given our law of demand, we realize that if the donut vendor cuts his price, we may recover some interest. At half price, we might muscle-up for one more 417 calorie chocolate covered cholesterol enhancing treat. But even at a reduced price, utility will eventually diminish until prices drop again and then again and again.

The laws of demand and diminishing marginal utility combine to produce demand curves that predictably flow downward from left to right. The actual market price for a good may change, and that will trigger a change in the number of units sold, but the relationship between demand and price will remain constant—prices and demand will shift in sync with one another along the demand curve.

Economists refer to this sliding along the demand curve as movement. Movement occurs when changes in the market price for a good causes demand to slide up or down the curve—or when a change in the demand causes

prices to slide up or down the curve.

But economists also recognize the existence of certain factors that will cause the entire curve to shift—move either to the left or the right. Changes in income, consumer tastes or preferences, and in the price of substitution goods and complementary goods will prompt not just movement along the curve but a shift of the curve in one direction or the other.

Imagine you've been lost in the desert, wandering around in the blistering heat without water for days. Somehow you finally stumble into a roadside oasis, a gas station and mini-mart that has sweet, delicious water for sale. You'd probably give your left... leg for a bottle. Your demand for water is off the charts.

So you enjoy that first bottle of water. You no longer feel like you're about to die. Your lips are no longer cracked and dry, your throat no longer parched.

You're thinking about maybe buying a second bottle of water. But you don't need it. You'd pay a few bucks for it, sure, but it's no longer of nearly priceless value to you.

That's diminishing marginal utility.

Equilibrium Price

As useful (and fascinating) as supply and demand curves are on their own, they become even more valuable (and for economists, truly sublime) when combined. When we plot supply and demand for a product on the same graph, we discover how producers and consumers will interact in the marketplace—and where exactly they will converge.

Remember the demand curve looked like this.

And the supply curve looked like this.

Now look at what happens when we combine these graphs (and add a little curviness).

They intersect a t a certain point. They intersect at the price where the amount producers are willing and able to supply converges with the amount consumers are willing and able to purchase. This point of convergence is called the equilibrium price. Theoretically it is where supply and demand meet and prices settle. If suppliers ignore demand, and continue to produce units and price them too high, they will not be purchased. Instead they will sit in the warehouse. If they produce too few, demand will go unmet and consumers will clamor for more.
This clamoring for more goods might encourage new suppliers to enter the market. And as we noted above, the entrance of new competitors will increase supply. And when this occurs the market will settle on a new equilibrium price.

If factors such as the introduction of new technology or decreasing production costs shift the supply curve to the right (S2) or if other factors such as new government regulations or increasing production costs shift the supply curve to the left (S3) the market will produce a new equilibrium price.

Similarly, if demand shifts for any reason (the changing price of substitution or complementary goods, changing income, etc.) the market will generate a new equilibrium price.

What's the equilibrium point for an iPhone?  Each time a new model comes out, it seems, Apple ends up with production shortages.  That implies that the sticker price Apple is charging may be too low.  But the company may have other reasons for selling below the equilibrium price... such as not wanting the price for the phones end up too high a few months later, once the initial frenzy has worn off.

Academic Vocabulary



Reading Strategy

Products in the News

Wrist Watch

An Introduction to Demand

Main Idea

Economics and You

Demand Illustrated

The Individual Demand Schedule

The Individual Demand Curve

Reading Check


How do you react to a change in the price of an item? How does this illustrate the concept of demand?

The Law of Demand

Main Idea

Economics and You

Why We Call It a "Law"

The Market Demand Curve

Reading Check


How does the market demand curve reflect the Law of Demand?

Demand and Marginal Utility

Main Idea

Economics and You

Reading Check


How does the principle of diminishing marginal utility explain the price we pay for another unit of a good or service?

HW email to or hand in hard copy.

The Chapter 2 Test is Thursday.


Thursday HW

1. p. 93, How does this situation reflect the Law of Demand?

2. What causes a change in demand?

3. Reading Check


How do you react to a change in the price of an item? How does this illustrate the concept of demand?

Honors World History II: 2 December 2010

Current Events:

EU Speech Euro Ideal as Economic Collapse Looms

British politician and the leader of the UK Independence Party (UKIP) Nigel Farage has slammed EU bosses over European crisis. "It's even more serious than economics because if you rob people of their identity, if you rob them of their democracy, then all they are left with is nationalism and violence. I can only hope and pray that the Euro project is destroyed by the markets before that," Farage stated.

1 December 2010: The Federal Reserve bailed out foreign entities with $3.3 Trillion.

1 December 2010: US Ready to Back Bigger EU Stability Fund: Official

The Chapter 11 Section 3 The Age of Napoleon Make-Up Quiz is today.


#19. should have listed: "d) Anne Louise Germaine de Staël"

#20. do not answer, skip the question entirely, go on to #21.

New feature:

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HW is available below at the bottom of the daily blog post.

Chapter 12 Industrialization and Nationalism 1800-1870

Section 1 The Industrial Revolution


Wordle: Ch. 11 Sec. 1 Industrialization


Section 1 The Industrial Revolution


Key Terms

The Industrial Revolution in Great Britain, p. 363


ABCya! Cf.


Who Wants to Be a Cotton Millionaire?


Britain emerged in Victorian times as the world's first industrial power, but the transition wasn't smooth.

Some entrepreneurs made fortunes from the new cotton industry, but many of the factory start-ups went bust. Success depended on a variety of factors, which you will encounter as you play the game.

As you play, your stacks of money will rise and fall, depending on the choices you make, and you'll find out if you can make it as a Victorian entrepreneur.

Choose well, make money and the business will survive. Choose badly, and the businessman could end up in debtors' prison.

ABCya! Cf.

vozMe: Cf.

Contributing Factors, p. 364

Why Britain?

What characteristics of eighteenth-century Britain made it ripe for industrialization? Historians cite several reasons for Britain’s lead.

Natural Resources Abound

Britain had the advantage of plentiful natural resources such as natural ports and navigable rivers. Rivers supplied water power and allowed for the construction of canals. These canals increased accessibility for trade and were instrumental in bringing goods to market. In addition, Britain was able to establish communications and transport relatively cheaply due to its easy accessibility to the sea from all points. Britain’s plentiful supply of coal was fundamental to its industrialization and was used to power steam engines. Vast supplies of iron were available to be used to build the new machines.

The Effects of Demand and Capital

In the 1700s, Britain had plenty of skilled mechanics who were eager to meet the growing demand for new, practical inventions. This ready workforce, along with the population explosion, boosted demand for goods. In order to increase the production of goods to meet the demand, however, another key ingredient was needed. Money was necessary to start businesses.

From the mid-1600s to 1700s, trade from a growing overseas empire helped the British economy prosper. Beginning with the slave trade, the business class accumulated capital, or money used to invest in enterprises. An enterprise is a business organization in an area such as shipping, mining, railroads, or factories. Many businessmen were ready to risk their capital in new ventures due to the healthy economy.

In addition to the advantages already cited, Britain had a stable government that supported economic growth. While other countries in Europe faced river tolls and other barriers, Britain did not. The government built a strong navy that protected its empire, shipping, and overseas trade. Although the upper class tended to look down on business people, it did not reject the wealth produced by the new entrepreneurs. These entrepreneurs were those who managed and assumed the financial risks of starting new businesses.

Changes in Cotton Production, p. 364

The Textile Industry Advances

The Industrial Revolution first took hold in Britain’s largest industry—textiles. In the 1600s, cotton cloth imported from India had become popular. British merchants tried to organize a cotton cloth industry at home. They developed the putting-out system, also known as cottage industry, in which raw cotton was distributed to peasant families who spun it into thread and then wove the thread into cloth in their own homes. Skilled artisans in the towns then finished and dyed the cloth.

Inventions Speed Production

Under the putting-out system, production was slow. As the demand for cloth grew, inventors came up with a string of remarkable devices that revolutionized the British textile industry. For example, John Kay’s flying shuttle enabled weavers to work so fast that they soon outpaced spinners. James Hargreaves solved that problem by producing the spinning jenny in 1764, which spun many threads at the same time. A few years later, in 1769, Richard Arkwright patented the water frame, which was a spinning machine that could be powered by water.

Meanwhile, in America, these faster spinning and weaving machines presented a challenge—how to produce enough cotton to keep up with England. Raw cotton grown in the South had to be cleaned of dirt and seeds by hand, a time-consuming task. To solve this, Eli Whitney invented a machine called the cotton gin that separated the seeds from the raw cotton at a fast rate. He finished the cotton gin in 1793, and cotton production increased exponentially.

Factories Are Born in Britain

The new machines doomed the putting-out system. They were too large and expensive to be operated at home. Instead, manufacturers built long sheds to house the machines. At first, they located the sheds near rapidly moving streams, harnessing the water power to run the machines.

Later, machines were powered by steam engines.

The Spinning Mill Animation


Spinning mills used 'line shafting', which is the means by which the power of the steam engine is transmitted along rotating shafts (rods) to spinning or weaving mills.

This animation depicts a spinning mill like that found at Quarry Bank museum in Cheshire. It shows a furnace powering a flywheel, which is there to smooth out the otherwise jerky rotation of the crank.

In spinning mills, which could be multi-story, there are large numbers of ropes coming off the flywheel. These 'rope races' convey power to the mill's different floors.
Spinners and weavers now came each day to work in these first factories, which brought together workers and machines to produce large quantities of goods. Early observers were awed at the size and output of these establishments. One onlooker noted: “The same [amount] of labor is now performed in one of these structures which formerly occupied the industry of an entire district.”


What led to the advancement of the British textile industry?

The Coal and Iron Industries, p. 365

Another factor that helped trigger the Industrial Revolution was the development of new technology. Aided by new sources of energy and new materials, these new technologies enabled business owners to change the ways work was done.

An Energy Revolution

During the 1700s, people began to harness new sources of energy. One vital power source was coal, used to develop the steam engine. In 1712, British inventor Thomas Newcomen had developed a steam engine powered by coal to pump water out of mines. Scottish engineer James Watt looked at Newcomen’s invention in 1764 and set out to make improvements on the engine in order to make it more efficient. Watt’s engine, after several years of work, would become a key power source of the Industrial Revolution. The steam engine opened the door not only to operating machinery but eventually to powering locomotives and steamships.

The Quality of Iron Improves

Coal was also a vital source of fuel in the production of iron, a material needed for the construction of machines and steam engines. The Darby family of Coalbrookdale pioneered new methods of producing iron. In 1709, Abraham Darby used coal instead of charcoal to smelt iron, or separate iron from its ore.

Darby’s experiments led him to produce less expensive and better-quality iron, which was used to produce parts for the steam engines. Both his son and grandson continued to improve on his methods. In fact, Abraham Darby III built the world’s first iron bridge. In the decades that followed, high-quality iron was used more and more widely, especially after the world turned to building railroads.

Abraham Darby III completed the world’s first iron bridge in 1779. The bridge still stands today.


What new technologies helped trigger the Industrial Revolution?

Railroads, p. 365

Stephenson's Rocket Animation


The Rocket was designed and built by George Stephenson with the help of his son, Robert, and Henry Booth, for the 1829 Rainhill Trials.

The Trials were held by the Liverpool and Manchester Railway Company, to find the best locomotive engine for a railway line that was being built to serve these two English cities. On the day of the Trials, some 15,000 people came along to see the race of the locomotives.

During the race, the Rocket reached speeds of 24mph during the 20 laps of the course. This was due to several new design features. It was the first locomotive to have a multi-tube boiler - with 25 copper tubes rather than a single flue or twin flue.

The blast pipe also increased the draught to the fire by concentrating exhaust steam at the base of the chimney. This meant that the boiler generated more power (steam), so the Rocket was able to go faster than its rival, and thus secure its place in history.

The Rocket can be seen at the Science Museum, in London.
One of the most important developments of the Industrial Revolution was the creation of a countrywide railway network. The world’s first major rail line went from Liverpool to Manchester in England. Fanny Kemble, the most famous actress of the day, was one of the first passengers:

“We were introduced to the little engine which was to drag us along the rails. . . This snorting little animal, . . . started at about ten miles an hour. . . . You can’t imagine how strange it seemed to be journeying on thus, without any visible cause of progress other than the magical machine . . .”


Focus Question

What key factors allowed Britain to lead the way in the Industrial Revolution?

The New Factories, p. 365

The new machines doomed the putting-out system. They were too large and expensive to be operated at home. Instead, manufacturers built long sheds to house the machines. At first, they located the sheds near rapidly moving streams, harnessing the water power to run the machines. Later, machines were powered by steam engines.

Spinners and weavers now came each day to work in these first factories, which brought together workers and machines to produce large quantities of goods. Early observers were awed at the size and output of these establishments. One onlooker noted: “The same [amount] of labor is now performed in one of these structures which formerly occupied the industry of an entire district.”


What led to the advancement of the British textile industry?

Reading Check


How were adult and child factory workers disciplined?

The Spread of Industrialization, p. 366

Europe, p. 366

Industrial Europe, c. 1850

North America (note how in the Glencoe textbook the entire section is about the United States; it states nothing about Mexico and Canada yet the section is entitled "North America."), p. 366

Reading Check


Social Impact in Europe, p. 367

Growth of Population and Cities, p. 367


How did an agricultural revolution contribute to population growth?

The Industrial Middle Class, p. 368

The Industrial Middle Class, p. 369

The Industrial Working Class, p. 369


Focus Question

What were the social effects of the Industrial Revolution?

The Industrial Revolution brought great riches to most of the entrepreneurs who helped set it in motion. For the millions of workers who crowded into the new factories, however, the industrial age brought poverty and harsh living conditions.

In time, reforms would curb many of the worst abuses of the early industrial age in Europe and the Americas. As standards of living increased, people at all levels of society would benefit from industrialization. Until then, working people would suffer with dangerous working conditions; unsafe, unsanitary, and overcrowded housing; and unrelenting poverty.

People Move to New Industrial Cities

The Industrial Revolution brought rapid urbanization, or the movement of people to cities. Changes in farming, soaring population growth, and an ever-increasing demand for workers led masses of people to migrate from farms to cities. Almost overnight, small towns around coal or iron mines mushroomed into cities. Other cities grew up around the factories that entrepreneurs built in once-quiet market towns.

The British market town of Manchester numbered 17,000 people in the 1750s. Within a few years, it exploded into a center of the textile industry. Its population soared to 40,000 by 1780 and 70,000 by 1801. Visitors described the “cloud of coal vapor” that polluted the air, the pounding noise of steam engines, and the filthy stench of its river. This growth of industry and rapid population growth dramatically changed the location and distribution of two resources—labor and people.


What led to the massive migration of people from farms to cities?

While the wealthy and the middle class lived in pleasant neighborhoods, vast numbers of poor struggled to survive in foul-smelling slums. They packed into tiny rooms in tenements, or multistory buildings divided into apartments. These tenements had no running water, only community pumps. There was no sewage or sanitation system, so wastes and garbage rotted in the streets. Sewage was also dumped into rivers, which created an overwhelming stench and contaminated drinking water. This led to the spread of diseases such as cholera.

Vocabulary Builder
contaminated—(kun tam uh nayt id) adj. unclean and impure; polluted

Workers Stage Futile Protests

Although labor unions, or workers’ organizations, were illegal at this time, secret unions did exist among frustrated British workers. They wished to initiate worker reforms, such as increases in pay, but had no political power to effect change. Sometimes their frustration led to violence. The first instances of industrial riots occurred in England from 1811 to 1813. Groups of textile workers known as the Luddites (lud yts) resisted the labor-saving machines that were costing them their jobs. Some of them smashed textile machines with sledgehammers and burned factories. They usually wore masks and operated at night. There was widespread support among the working class for these Luddite groups.

Workers Find Comfort in Religion

Many working-class people found comfort in a religious movement called Methodism. This movement was influenced by the Industrial Revolution as people moved to cities and lost connections with their old churches. John Wesley had founded the Methodist movement in the mid-1700s. Wesley stressed the need for a personal sense of faith. He encouraged his followers to improve themselves by adopting sober, moral ways.

Vocabulary Builder
stressed—(stresd) vt. emphasized

Methodist meetings featured hymns and sermons promising forgiveness of sin and a better life to come. Methodist preachers took this message of salvation into the slums. There, they tried to rekindle hope among the working poor. They set up Sunday schools where followers not only studied the Bible but also learned to read and write. Methodists helped channel workers’ anger away from revolution and toward reform.


How did members of the working class react to their new experiences in industrial cities?

Life in the Factories and Mines

The heart of the new industrial city was the factory. There, the technology of the machine age and the rapid pace of industrialization imposed a harsh new way of life on workers.

Discovery School Channel

Watch In Old New York on the Witness History Discovery School™ video program to learn about life during the Industrial Age.

Factory Workers Face Harsh Conditions

Working in a factory system differed greatly from working on a farm. In rural villages, people worked hard, but their work varied according to the season. Life was also hard for poor rural workers who were part of the putting-out system, but at least they worked at their own pace. In the grim factories of industrial towns, workers faced a rigid schedule set by the factory whistle.

Working hours were long, with shifts lasting from 12 to 16 hours, six or seven days a week. Workers could only take breaks when the factory owners gave permission. Exhausted workers suffered accidents from machines that had no safety devices. They might lose a finger, a limb, or even their lives. In textile mills, workers constantly breathed air filled with lint, which damaged their lungs. Those workers who became sick or injured lost their jobs.

The majority of early factory workers were women rather than men. Employers often preferred to hire women workers because they thought women could adapt more easily to machines and were easier to manage. In addition, employers generally paid women half what they paid men.

Factory work created a double burden for women. Their new jobs took them out of their homes for 12 hours or more a day. They then returned to their tenements, which might consist of one damp room with a single bed. They had to feed and clothe their families, clean, and cope with such problems as sickness and injury.

Miners Face Worse Conditions

The Industrial Revolution increased the demand for iron and coal, which in turn increased the need for miners. Although miners were paid more, working conditions in the mines were even worse than in the factories. They worked in darkness, and the coal dust destroyed their lungs. There were always the dangers of explosions, flooding, and collapsing tunnels. Women and children carted heavy loads of coal, sometimes on all fours in low passages. They also climbed ladders carrying heavy baskets of coal several times a day.

Even children as young as five years old worked in the mines. James Kay-Shuttleworth worked as a physician among the different classes of the Industrial Revolution in Manchester. His profession allowed him to see the working conditions of poor in the cities. How was work in factories and mines different from work on the farm?

Children were accustomed to work on a farm: the money earned by children was vital to most working class families during the early 20th century and before.

Primary Source

“Whilst the engine runs, people must work—men, women, and children are yoked together with iron and steam. The animal machine is chained fast to the iron machine, which knows no suffering and weariness.”

—James Kay-Shuttleworth, 1832

Children Have Dangerous Jobs

Factories and mines also hired many boys and girls. These children often started working at age seven or eight, a few as young as five. Nimble-fingered and quick-moving, they changed spools in the hot and humid textile mills where sometimes they could not see because of all the dust. They also crawled under machinery to repair broken threads in the mills. Conditions were even worse for children who worked in the mines. Some sat all day in the dark, opening and closing air vents. Others hauled coal carts in the extreme heat. Because children had helped with work on the farm, parents accepted the idea of child labor. The wages the children earned were needed to keep their families from starving.

Child labor reform laws called “factory acts” were passed in the early 1800s. These laws were passed to reduce a child’s workday to twelve hours and also to remove children under the age of eight or nine from the cotton mills. Because the laws were generally not enforced, British lawmakers formed teams of inspectors to ensure that factories and mines obeyed the laws in the 1830s and 1840s. More laws were then passed to shorten the workday for women and require that child workers be educated.

Families could afford to take trips to such places as the zoo as wages increased.


How did the Industrial Revolution affect the lives of men, women, and children?

Early Socialism, p. 370

While the champions of laissez-faire economics praised individual rights, other thinkers focused on the good of society in general. They condemned the evils of industrial capitalism, which they believed had created a gulf between rich and poor. To end poverty and injustice, they offered a radical solution—socialism. Under socialism, the people as a whole rather than private individuals would own and operate the means of production—the farms, factories, railways, and other large businesses that produced and distributed goods. Socialism grew out of the Enlightenment faith in progress, its belief in the basic goodness of human nature, and its concern for social justice.

Are Utopians Dreamers?

A number of early socialists established communities in which all work was shared and all property was owned in common. When there was no difference between rich and poor, they said, fighting between people would disappear. These early socialists were called Utopians. The name implied that they were impractical dreamers. The Utopian Robert Owen set up a model community in New Lanark, Scotland, to put his own ideas into practice.

Owen’s Utopia

For: Interactive Village
Web Code: nap-1941

Owen Establishes a Utopia

A poor Welsh boy, Owen became a successful mill owner. Unlike most industrialists at the time, he refused to use child labor. He campaigned vigorously for laws that limited child labor and encouraged the organization of labor unions.


What did early socialists believe?

Reading Check


What type of working conditions did the industrial workers face?

References and Resources

Rise of the Working Class by Jurgen Kuczynski

Making of the English Working Class by E.P. Thompson

Cultural Foundations of Industrial Civilization by John U. Nef
As in a traditional American Thanksgiving, 1830s America, as demonstrated at Old Sturbridge Village, celebrated God, flag, and country.


Sign entering the village. Graphic source: The Next Generation

A living museum can be viewed at Old Sturbridge Village. The village is well worth exploring in some detail.

The flag is central to village life. Graphic source: The Next Generation

Our relationship to God is of paramount importance. Graphic source: The Next Generation

Defense is always a concern for a nation. Graphic source: The Next Generation

If you have questions about 19th Century life you can always "Ask Jack."

In-class assignment: to function during the Industrial Revolution, you will need to know the Tools of the trade and common expressions. Working with a partner we will quiz you on your knowledge of the Industrial Revolution.

To feel more at home in the village you will need to know the tools of the trade. A number of fun and educational links are available for the OSV.
The In-class assignment for today:

Each class will be divided into small groups to discuss the 19th Century Industrial Revolution tool to guess what they think the implement is used for. Hints are included and you may feel free to come up closer to read or describe the tool to your small group.

In addition, individuals will also be assigned a saying or phrase from the "Why We Say It!" section. Once assigned, individuals will put their name on a piece of paper to explain the assigned phrase. These individuals should hand in the paper at the end of class.
Old Sturbridge Village Feature Shown on Al Jazeera Television winter 2008

Laura Linney and Ken Burns on the importance of Old Sturbridge Village

4th of July at OSV.

Redcoats to Rebels at OSV.

Mystic sign. Photo Source: The Next Generation

Mystic Seaport -- The Museum of America and the Sea is the nation's leading maritime museum. In it, you can explore American maritime history first-hand as you climb aboard historic tall ships, stroll through a re-created 19th-century coastal village, or watch a working preservation shipyard in action.

Traditional American Music performed live at Mystic Seaport, CT: Part 1

Traditional American Music performed live at Mystic Seaport, CT: Part 2

Traditional American Music performed live at Mystic Seaport, CT: Part 3

The Charles W. Morgan embarks on a voyage of restoration at the Henry B. DuPont Preservation Shipyard at Mystic Seaport. Shipyard Director, Quentin Snediker explains what is done to prepare the ship for the historic journey.

The Charles W. Morgan is the last surviving wooden whaling ship from the great days of sail. Built in 1841 in New Bedford, MA, the Morgan had a successful 80-year whaling career. She made 37 voyages before retiring in 1921, and was preserved as an exhibit through the efforts of a number of dedicated citizens. After being on display in South Dartmouth, MA, until 1941, she came to Mystic Seaport, where each year thousands of visitors walk her decks and hear the fascinating story of her career as a whaling vessel, historic exhibit, film and media star, and a porthole into America's rich history.

Over the last three decades, the Charles W. Morgan has undergone two regimes of partial restoration along with annual maintenance. Despite these efforts, the inevitable effects of time on the wooden fabric of the vessel's structure demand additional extensive restoration. If left unchecked, these deficiencies will threaten the structural integrity of the Morgan and her use as a primary artifact in Mystic Seaport's interpretive programs.

Mystic Seaport, 1960 (No, this is not Dr. Smith as a boy), from family home movies.

Whaling in popular culture: Mountain, "Nantucket Sleighride"

The cold hard steel of the harpoon's point
Struck deep into its side.
We played out line and backed the oars
And took the cruel sleighride.

The term "Nantucket Sleighride" was coined by the whalers to explain what happened after they harpooned a whale. (Nantucket Island was considered the whaling capital of the world during the 19th century.) The first strike of the harpoon was not intended to kill the whale but only to attach it to the whale boat. The whale would take off pulling the whale boat along at speeds of up to 23 mph (37 kmh). The whale would eventually tire itself out, the leading officer in the boat would then use a penetrating lance to kill the whale.

Nantucket Sleighride is Dedicated to Owen Coffin who was cabin boy aboard the whaler Essex, which was destroyed by a sperm whale in 1819. Owen ended up in the lifeboat with Captain Pollard, his uncle. Two other lifeboats also put out. During the next 3 - 4 months, the lifeboats separated. One was never seen again, but some of those on the remaining two boats were eventually rescued.
During those long months at sea (and on desert islands), many of the men died. The remainder eventually had to resort to cannibalism to survive. After the dead of natural causes were consumed, the men determined to draw lots to see who would sacrifice his life for the others. Owen Coffin ``won'' the lottery. The Captain tried to take Owen's place, but the youth insisted on his ``right''. The executioner was also drawn by lot. That ``winner'', another young man named Charles Ramsdell, also tried vainly to swap places with Owen. Again he refused. Owen's body kept the others alive for ten days (Captain Pollard refused to eat his nephew). Another man died, and his body kept Pollard and Ramsdell alive a few more days until they were rescued.

Goodbye, little Robin-Marie
Don't try following me
Don't cry, little Robin-Marie
'Cause you know I'm coming home soon
My ships' leaving on a three-year tour
The next tide will take us from shore
Windlaced, gather in sail and spray
On a search for the mighty sperm whale
Fly your willow branches
Wrap your body round my soul
Lay down your reeds and drums on my soft sheets
There are years behind us reaching
To the place where hearts are beating
And I know you're the last true love I'll ever meet
Starbuck's sharpening his harpoon
The black man's playing his tune
An old salt's sleeping his watch away
He'll be drunk again before noon
Three years sailing on bended knee
We found no whales in the sea
Don't cry, little Robin-Marie
'Cause we'll be in sight of land soon


Farming and everyday life during the past 250 years

Children who lived in the English countryside

The Agricultural Revolution

Transportation, Industrial Revolution

Stephenson's Rocket Animation

The Spinning Mill Animation

Britain at the time of the Great Exhibition

Who Wants to Be a Cotton Millionaire?

Iron Bridge Virtual Tour

New machines that brought changes in America

Review changes of the 18th and 19th centuries

The Industrial Revolution

The everyday life of children in Victorian Britain (including the cities)

Online game about life in an industrial Victorian city

Take a tour of a workhouse

Links, resources, and bibliographical references

Dawn of the Industrial Age


Britain Leads the Way

Social Impact of the Industrial Revolution

New Ways of Thinking
Expression: Why We Say It! Shindig!


The French Revolution and Napoleon



Section 2 Reaction and Revolution.

After Waterloo, diplomats and heads of state again sat down at the Congress of Vienna. They faced the monumental task of restoring stability and order in Europe after years of war. The Congress met for 10 months, from September 1814 to June 1815. It was a brilliant gathering of European leaders. Diplomats and royalty dined and danced, attended concerts and ballets, and enjoyed parties arranged by their host, Emperor Francis I of Austria. The work fell to Prince Clemens von Metternich of Austria, Tsar Alexander I of Russia, and Lord Robert Castlereagh of Britain. Defeated France was represented by Prince Charles Maurice de Talleyrand.

Congress Strives For Peace

The chief goal of the Vienna decision makers was to create a lasting peace by establishing a balance of power and protecting the system of monarchy. Each of the leaders also pursued his own goals. Metternich, the dominant figure at the Congress, wanted to restore things the way they were in 1792. Alexander I urged a “holy alliance” of Christian monarchs to suppress future revolutions. Lord Castlereagh was determined to prevent a revival of French military power. The aged diplomat Talleyrand shrewdly played the other leaders against one another so France would be accepted as an equal partner.

The peacemakers also redrew the map of Europe. To contain French ambitions, they ringed France with strong countries. In the north, they added Belgium and Luxembourg to Holland to create the kingdom of the Netherlands. To prevent French expansion eastward, they gave Prussia lands along the Rhine River. They also allowed Austria to reassert control over northern Italy.

To turn back the clock to 1792, the architects of the peace promoted the principle of legitimacy, restoring hereditary monarchies that the French Revolution or Napoleon had unseated. Even before the Congress began, they had put Louis XVIII on the French throne. Later, they restored “legitimate” monarchs in Portugal, Spain, and the Italian states.

Congress Fails to See Traps Ahead

To protect the new order, Austria, Russia, Prussia, and Great Britain extended their wartime alliance into the postwar era. In the Quadruple Alliance, the four nations pledged to act together to maintain the balance of power and to suppress revolutionary uprisings, especially in France. Another result of the Congress was a system known as the Concert of Europe, in which the powers met periodically to discuss any problems affecting the peace of Europe.

The Vienna statesmen achieved their immediate goals in creating a lasting peace. Their decisions influenced European politics for the next 100 years. Europe would not see war on a Napoleonic scale until 1914. They failed, however, to foresee how powerful new forces such as nationalism would shake the foundations of Europe and Latin America in the next decades.

Reading Check


What was the "principle of legitimacy?"

The Conservative Order

Reading Check


What were the views of the conservative movement?

Forces of Change


Balkan Nationalism


“How is it that they [European powers] cannot understand that less and less is it possible . . . to direct the destinies of the Balkans from the outside? We are growing up, gaining confidence, and becoming independent . . .”

—Bulgarian statesman on the first Balkan War and the European powers


Focus Question

How did the desire for national independence among ethnic groups weaken and ultimately destroy the Austrian and Ottoman empires?


Napoleon had dissolved the Holy Roman Empire, which the Hapsburgs had led for nearly 400 years. Austria’s center of power had shifted to Central Europe. Additional wars resulted in continued loss of territory to Germany and Italy. Why did nationalism bring new strength to some countries and weaken others?

In Eastern and Central Europe, the Austrian Hapsburgs and the Ottoman Turks ruled lands that included diverse ethnic groups. Nationalist feelings among these subject peoples contributed to tensions building across Europe.

Revolutionary Outbursts

Greek soldiers

Reading Check


How did liberalism and nationalism begin to break through the conservative domination of Europe?

The Revolutions of 1848
Revolutionary France: Les Miserables (6:41)


The backdrop for Victor Hugo's novel Les Miserables is revolutionary France in the 1800s. Les Miserables expresses Hugo's passionate belief in the spiritual possibilities of society, despite the presence of evil. Les Miserables also expresses Hugo's fight for justice, democratic ideals, and basic rights for all people.

What was the main theme of Hugo's novel Les Miserables?

What were Hugo's political beliefs?

Writing Practice

How do the choices made by Jean Valjean reflect his sense of justice and compassion for others?

Another French Revolution

Trouble in the German States


Note Taking

Recognize Sequence: keep track of the sequence of events that led to German unification by completing a chart like the one below. Add more boxes as needed.

Taking Initial Steps Toward Unity

Audio for this section

In the early 1800s, German-speaking people lived in a number of small and medium-sized states as well as in Prussia and the Austrian Hapsburg empire. Napoleon’s invasions unleashed new forces in these territories.
Napoleon Raids German Lands

Between 1806 and 1812, Napoleon made important territorial changes in German-speaking lands. He annexed lands along the Rhine River for France. He dissolved the Holy Roman Empire by forcing the emperor of Austria to agree to the lesser title of king. He also organized a number of German states into the Rhine Confederation.

At first, some Germans welcomed the French emperor as a hero with enlightened, modern policies. He encouraged freeing the serfs, made trade easier, and abolished laws against Jews. However, not all Germans appreciated Napoleon and his changes. As people fought to free their lands from French rule, they began to demand a unified German state.

Napoleon’s defeat did not resolve the issue. At the Congress of Vienna, Metternich pointed out that a united Germany would require dismantling the government of each German state. Instead, the peacemakers created the German Confederation, a weak alliance headed by Austria.
Economic Changes Promote Unity

In the 1830s, Prussia created an economic union called the Zollverein (tsawl fur yn). It dismantled tariff barriers between many German states. Still, Germany remained politically fragmented.

In 1848, liberals meeting in the Frankfurt Assembly again demanded German political unity. They offered the throne of a united German state to Frederick William IV of Prussia. The Prussian ruler, however, rejected the notion of a throne offered by “the people.”


What was the German Confederation?

Revolutions in Central Europe
The Hungarian Parliament Passes Legislation Funding an Army Against the Hapsburg Empire, 1848

The mixed symbols on the flag of the Austro-Hungarian Empire
A Multinational Empire

Equally disturbing to the old order were the urgent demands of nationalists. The Hapsburgs presided over a multinational empire. Of its 50 million people at mid-century, fewer than a quarter were German-speaking Austrians. Almost half belonged to different Slavic groups, including Czechs, Slovaks, Poles, Ukrainians, Serbs, Croats, and Slovenes. Often, rival groups shared the same region. The empire also included large numbers of Hungarians and Italians. The Hapsburgs ignored nationalist demands as long as they could. When nationalist revolts broke out in 1848, the government crushed them.

Revolts in the Italian States
Italy Before 1861

Note Taking

Reading Skill: Recognize Sequence

As you read and hear a lecture on the Italian revolt, create a time line showing the sequence of events from 1831 to 1871 that led to Italian unification (the time line continues in the next section of the Chapter).

After a failed revolution against Austrian rule in northern Italy, many rebels, fearing retribution, begged for funds to pay for safe passage to Spain. Giuseppe Mazzini (mat see nee), still a boy, described his reaction to the situation:

“He (a rebel) held out a white handkerchief, merely saying, ‘For the refugees of Italy.’ My mother . . . dropped some money into the handkerchief. . . . That day was the first in which a confused idea presented itself to my mind . . . an idea that we Italians could and therefore ought to struggle for the liberty of our country. . . .”

—Giuseppe Mazzini, Life and Writings


Focus Question

How did influential leaders help to create a unified Italy?

Reading Check


What countries experienced revolutions in 1848?

Eyewitness to History

Revolutionary Excitement

Analyzing Primary Sources, p. 377
And, to anticipate further revolutionary developments, we will consider Karl Marx.



The Age of Revolution: 1789-1848 by Eric Hobsbawm

The Church in an Age of Revolution by Alec R. Vidler

Congress of Vienna lecture, 3:42

In-class assignment: answer the following questions about the Congress.

What was the Congress meant to accomplish?
Who was the leading figure of the Congress?
Where was he from?
What was his view of democracy?
Who ultimately came to power through this form of government?
In what country was the first major problems they had to face?
What was Germany composed of?
What country was the second major problem?
What was the name of the alliance that was formed?
What countries formed the four parts of the Alliance?
What other important--three country alliance--was formed?

1) Early Socialism, p. 370
2) The Conservative Order, p. 372
3) Liberalism, p. 373
4) Nationalism, p. 373-74

Students will be assigned to one of four groups to examine the ideas of these four groups. Then, students will advocate the relative merits of their assigned group.
Define the important points associated with your assigned thought system: socialism, conservatism, liberalism, or nationalism. Points to include are their ideas on the economy and the government's role in the economy and society. What are the strengths and weaknesses of each system in terms of balancing individual freedom and public good?

One of the most important points to note is that the terms, liberalism and conservatism, still used today in American politics, are not used in the same way that the terms were used in the 19th Century. They mean different things today.

The Congress of Vienna, between Sept. 1814 - 9 June 1815, after that France had surrender in May 1814 (Napoleon was finally defeated at Waterloo 18 June 1815).

It was a conference with ambassadors from many European states, chaired by the Austrian statesman Klemens von Metternich. It was the five "great" nations - UK, Prussia, Austria, France and Russia that decide almost everything. Norway was transferred from Denmark to Sweden and Swedish Pomerania was ceded to Prussia.

The first pictures are the Duke of Wellington who is the man who rarely lost a battle. At Waterloo he and combined British/German forces - with help of Blüchers Prussians - defeated Napoleon for the last time. Later he became Prime Minister of Great Britain and in his youth he led battles in India. Then came a pic on Metternich, and then on Talleyrand. After him come a pic on Tsar Alexander I - the most powerful man in Europe at that time. The two last pics are on Austrian castles...first "Schönbrunn" and then "Belvedere".

Congress of Vienna 1815


UK = Duke of Wellington

Prussia = Prince Karl von Hardenberg

Austria = Prince Klemmens von Metternich

Russia = Tsar Alexander I

France = Charles de Talleyrand

Sweden = Count Carl Löwenhielm

Music: Russian folk-song.

Ulf Sawert

Queen Hortense de Beauharnais - Album Artistique de la Reine Hortense (Koninklijk Huisarchief Den Haag)
Les jeunes rêves d'amour
Paula Bär-Giese soprano & pianist
La Reine Hortense project (La Reine d'Hollande 1806-1810)
Recording: Kunstzaal Palace 't Loo, Apeldoorn - The Netherlands

Hortense Eugénie Cécile de Beauharnais, Queen of Holland, Grand Duchess of Berg and Cleves, Countess of Saint-Leu (April 10, 1783 - October 5, 1837), was the wife of Louis Bonaparte, King of Holland and the mother of Napoleon III, Emperor of the French.
Hortense was born in Paris, France, the daughter of Alexandre, Vicomte de Beauharnais and of his wife Josephine Tascher de la Pagerie. In 1794 her father was executed during the Reign of Terror. Two years later her mother married Napoleon Bonaparte.
In 1802 at Napoleon's request, Hortense married his brother Louis Bonaparte. The couple had three sons:
• Napoléon Louis Charles (October 10, 1802 - May 5, 1807)
• Napoléon Louis (October 11, 1804 - March 17, 1831)
• Charles Louis Napoléon, later Napoleon III, Emperor of the French (20 April 1808- 9 January 1873)
In 1806 Napoleon appointed his brother Louis, King of Holland. Hortense accompanied her husband to The Hague, in spite of the fact that their marriage was an unhappy one (the paternity of at least one of Hortense's sons has been questioned). In 1810 Louis abdicated as King of Holland and settled in Germany; Hortense, on the other hand, returned with her sons to France.
In 1811 Hortense gave birth to a son by her lover, Charles Joseph, comte de Flahaut:
• Charles Auguste Louis Joseph (October 21, 1811 - March 10, 1865), later made duc de Morny by his half-brother, Napoleon III.

One video features just the Congress of Vienna music with period pictures supplementing the sound.

The Fezzibomb occurred on Friday November 20, 2009. A bunch of Fezziwiggers (dancers from Fezziwig's Tea Emporium at the Dickens Christmas Fair) met in Embarcadero Bart in San Francisco to dance to music provided by Bangers and Mash.

The Congress of Vienna is a choreographed waltz.

Congress of Vienna dance at Gaskell's held in Oakland October 2005

Ye Gaskell Occasional Dance Society sponsors Victorian ballroom dances several times a year. There are afternoon dance lessons and refresher lessons before the dance. Formal dress.

Brassworks is a live brass band led by Frank Beau Davis. They sound much better in person than in this clip.

Scottish Rite Center in Oakland has a beautiful ballroom for this event.

Creative sock puppet show as a dramatization of the Congress of Vienna of 1815.


Twilight of the Hapsburgs: The collapse of the Austro-Hungarian Empire by Z. A. B. Zeman.
New holiday feature: keep Christ in Christmas

Star in the East - Shape Note Christmas Song, 4:48

This shape note nativity song is here sung from The Southern Harmony, a traditional American shape note tunebook from the 19th century. It also appears in The Christian Harmony and other shape note books, most recently in Karen Willard's collection, 'An American Christmas Harp' (2009). As recorded at the Annual Harrod's Creek Shape Note Convention held in historic Harrod's Creek Baptist Church near Brownsboro, Kentucky, April 26 2009.

'JINGLE BELLS' - Original 1857 Version - Tom Roush-Instrumental, 2:35

This is an instrumental of the original 'Jingle Bells' which was then called 'The One Horse Open Sleigh' As you will hear, the melody of the chorus has been changed over the past 152 years.. This jolly Christmas favorite was written by James Pierpoint for a Sunday school Thanksgiving performance. The first verse is played by a piano and harpsichord.

We Three Kings of Orient Are (Sacred Rendition), 5:38

"We Three Kings", also known as "We Three Kings of Orient Are" or "The Quest of the Magi", is a Christmas carol written by Reverend John Henry Hopkins, Jr., who wrote both the lyrics and the music as part of a Christmas pageant for the General Theological Seminary in New York City. It is suggested to have been written in 1857 but did not appear in print until his Carols, Hymns and Song in 1863. Hopkins composed the song in Williamsport, Pennsylvania, where he was a pastor at Christ Episcopal Church (which still stands at the corner of Fourth and Mulberry Streets).

Ensemble: The Mormon Tabernacle Choir
Period: 19th Century
Written: 1857; USA

Christmas Flash Mob, 4:57

HW: email (or hard copy) me at

Thursday HW

1. p. 370, #3-6