Impact of ideas and belief was a huge enduring issue that happened during the Industrial Revolution. Capitalism and Socialism are systems created by the ideologies of people. Karl Marx was credited with Socialism. Socialism is the radical solution that other thinkers like Marx believed would save society from the “evils” of the laissez-faire economic system or capitalism. In socialism people as a whole rather than individuals would operate the means of production. Capitalism is the result of Adam Smith (Technically it was the laissez-faire economic system he created), capitalism is the investment in money to create profit without the government’s regulations getting in the way.
During the Industrial Revolution, capitalism would have reached a new high. With new methods of production such as assembly lines and interchangeable parts, new innovations would not have to be completely destroyed or disassembled, increasing the life expectancy. Also, with assembly lines being created, mass production was introduced creating more successful innovations to be introduced into the market (like the Ford Model T). Having new means of production meant more supply, and more demands could be met, ultimately creating profit for individuals looking to put out their innovations in the market. Even if employees were hurt and fired in that time they worked in the factory, they did have mutual-aid societies which did help them cope and supported them.
During the Industrial Revolution, there was an inequality and a clear division between the middle class and the working class. Socialism would have erased the line that divided the working and middle class. During the Industrial Revolution, the conditions were terrible for the working class while the middle class was relaxing. Socialism if executed correctly, can help balance or even increase the standard of living for everyone, now the poor have access to all these new things like efficient showers, and others like that. If everyone owned the means of production, theoretically everyone would be the same and things like the woman’s suffrage could have been avoided.
Capitalism may have very promising features such as earning lots of money by investing in stocks or shares in companies to own a little bit of the company, and earn money through dividends, corporations, etc. Capitalism has some cons if you are not in its favor. For example a con of capitalism would be the market, the market is sporadic and sometimes the prices would inflate due to more demand than supply. The Cartel is an association that fixes these prices and control markets. Monopolies were a huge disadvantage in capitalism in the Industrial Revolution. Monopolies struck conflict in the people, some believed that people who owned whole industries were just showing off their prowess as a successful businessman, others believed that the were “robber barons” trying to destroy all competition.
Ideally socialism is a good concept, however, if it is not executed properly, many could suffer. An example is urban renewal. Since everyone owns the means of production, there would be no poor areas and no need for change, and certain changes could benefit the country. Not only that if the Utopian ideals were to exist within a country, no money flow means that it would be near impossible to support the country and its benefits like running water, electricity from dynamos, mass production, etc.
Both concepts are very beneficial and are easily understandable. Although if not done correctly, many people can suffer extreme consequences such as an economic recession or depression. The biggest difference is what the benefits are, and will they benefit people? Certain people with ideas or morals that value money should go with capitalism because there is more potential. Those who wish to find happiness in a society should go with socialism.