great thinkers, great ideas

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214 Economic Theory: An Introduction

managing a large spinning mill. His work experience was not
only successful in terms of advancement and monetary return,
but it provided him with first hand observations of the factory
system which triggered ideas which he developed into theories
about the nature of man. By the time he was twenty nine he had
amassed a large fortune, was a partner in the spinning mill he
managed and was ready to embark on his most important
venture.
During Owen’s lifetime he was witness to the impact of the
Industrial Revolution and the impact of that revolution on
English society. The invention of the steam engine and the use
of that engine for driving machines to spin cloth, coupled with
the invention of the power loom launched the textile industry.
People left the farms to come to work in the city’s factories and
brought with them the problems of overcrowding, disease, and
the problems which accompany social disorientation. The social
consequences of greater class mobility due to economic oppor­
tunity brought about by technology also became apparent. The
conflicts between classes which did not exist a generation ago
also became a problem which was manifested by the struggles
between laborers and employers. The growing demand for
factories, production and labor brought about by the war with
France compounded the problems. Owen’s observations and
experiences in this fast paced environment led him to certain
postulates which he developed, not simply into theories, but into
a plan for action.
Owen’s first principle is that a person’s character is made for
him and not by him. Second, that any community, small or large,
can be made good or bad, based upon the way the government
controls the environment. These two principles as presented by
Robert Owen say much about his concept of the nature of man.
Man is basically good, and can be perfected. Environment is the
determining factor in the development of man’s character.
Properly controlled, the environment can not only make people
good, but also entire communities good. Society is a social
contract, and the rules for governing can be used to accomplish
this Utopian goal.
Education is the key. Owen’s view of education is an interest­
ing combination of the ideas of Plato and Rousseau. Children

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