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VII. Rise of Western Dominance A. Economic a. Technological, economic military rise of the West b. Altered the balance of global power c. Industrialization replaced agriculture as largest, most important sector of economy i. Began in England 18th and 19th century through Europe, later rest of the world d. Dominant mode of economic organization – free-market, laissez faire capitalism i. Commerce and banking – foundations of money-based economy – not land-based e. Transformed class structures i. Aristocracy based on land and family prestige faded ii. Those employed in agriculture shrank iii. Middle class grew tremendously, gained great wealth, diversified iv. New lower class – industrial working class was born f. Industrialization led to urbanization – cities grew in size, more cities established g. First decades of industrialization painful for lower classes i. Working conditions poor, wages were low ii. Over time, industrialization greatly raised the average properity of a society’s population a. Even lower classes benefit over time h. Non-Western worlds adopt industrialization in varying ways i. Some European imperial powers introduced to colonies ii. Rulers of free non-Western nations tried to impose from above i. Slavery still key to 18th/19th century world economy i. Africa primary victim of slave trading ii. East African and Atlantic Slave Trade continued into the 1870s/1880s j. Fall of mercantilism, rise of capitalism i. Economies more likely to flourish if left alone to function freely a. Need competition, free trade, laws of supply and demand create greater wealth b. Adam Smith – Wealth of Nations – 1776 – “invisible hand” of supply and demand k. “dismal science” – negative view of capitalism i. Thomas Malthus – Essay on Population – 1799 – a. Population growth led to poverty b. War, disease, starvation – necessary to control population ii. David Ricardo – “iron law of wages” a. Employer will pay lowest possible wage to make money b. If supply of labor goes up, salaries will drop l. Socialism, Marxism and Communism i. Socialism – economic competition is inherently unfair and leads to injustice/inequality a. Utopian socialists – with good planning and regulation – everyone can be happy ii. Marxism – more radical socialism – Communist Manifesto a. History always driven by class struggle between upper class/lower class i. Karl Marx – all history result of class struggle - bourgeoisie vs. proletariat a. middle class vs. working class c. Workers would overthrow which would lead to communism – revolution necessary i. Would eventually revolt and form “dictatorship of the proletariat” a. Would ensure social and political freedom ii. No longer a need for the state – eventually wither away iii. Result – pure communism – classless society iii. Communism a. Ideally – perfect justice, social equality and plenty B. Political a. Broad trends i. World affairs determined by policy choices in Europe ii. United States broke away from English rule, went on to dominate Americas iii. Spanish/Portuguese colonies freed themselves of European rule iv. Eastern Question – gradual decline of the Ottoman Empire presented Europe with choices v. Between 1814 > 1914 – 35% to 85% of European control of habitable territory vi. Japan only non-Western nation to develop effective, modern colonial empire vii. New nations of Germany and Italy created viii. Tensions over diplomacy, nationalism, competition for overseas possessions led to alliances b. Political developments i. greater popular representation in government and politics a. American Revolution and French Revolution were precedents

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