Question

How does industrialization impact economic ideas like capitalism and socialism?

Answer 1

​Capitalism caused the Industrial Revolution because industrialization required significant work and investment from individuals and not necessarily the government. ... This investment from individuals, whose actions were guided by the profit motive, would not have been possible without the emergence of capitalism.

Answer 2

The Industrial Revolution meant that poverty became concentrated in urban areas instead of the countryside. ... It led to contestation of laissez faire economics since it was associated with the emergence of that poverty. Socialist thinkers contested capitalism both in Europe and in the USA

To build on this, in the United Kingdom, Fredrick Ingles and Karl Marx saw the poverty that the poor were working in. This gave birth to a book called “The Communist Manifesto” this book explained an economic system where the people were benefiting equally.

Step-by-step explanation: