Industrialization created new social classes. Te new aristocrats were those who became rich from industrial success. A middle-class formed, made up of managers, accountants, ministers, lawyers, doctors, and other skilled professionals. Finally, at the bottom of the pyramid was the working class -- and it was huge -- made up of factory workers. Meanwhile, labor unions were formed. The unions were vehicles through which thousands of employees bargained for better working conditions, or threatened to strike, therefore shutting down the factory.
Communism
In 1848, Karl Marx and Fredrich Engels wrote the Communist Manifesto, in which he advocated the interests of the working class, or proletariat. Marx believed that capitalism exploited workers and widened the gap between the rich and poor. Further, he envisioned that the conditions of the working class in capitalist countries would eventually become so intolerable that workers would join together in a revolution against the industrialists who controlled the "means of production," whom he called the bourgeoisie. Marx believed that after this revolution there would be no social classes because private property would not be permitted; there would be no cause for greed or strife, and therefore no need for a government. This would lead to true communism, a society of equality and cooperation. Marx's view of history relied on the notion that class conflicts over economic issues row the events of history. Marxist ideas that workers had the right to organize and negotiate for better wages and working conditions too root in several European countries, although communism did not become the foundation of any governments in Europe. However, Marxist communism would later be reinterpreted and and implemented in Russia and China in the 20th century.
Capitalism
The rise of the industrial class had its origins in the concept of private ownership. Adam Smith wrote the Wealth of Nations, that economic prosperity and fairness is best achieved through private ownership. Individuals should own the mean of productions and sell their products and services in a free and open market, where the demand for their goods and services would be determine their price and availability. A Free Market System (also known as Capitalism), Smith argued would best meet the needs and desires of individuals and nations as a whole. When governments remove themselves entirely from regulation, the process is called Laissez-faire.