Which economic theory emerged as a response to challenges during the Industrial Revolution?

Socialism emerged as a response to the significant social and economic challenges posed by the Industrial Revolution. During this period, rapid industrialization led to urbanization, a significant shift in labor practices, and often, severe working conditions for many individuals in factories. Socialism proposed that the means of production, distribution, and exchange should be owned or regulated by the community as a whole, aiming to address the inequalities and hardships that arose from capitalism, such as wealth disparities and poor working conditions.

This theory sought to create a more equitable society by promoting collective ownership and the welfare of all citizens, rather than individual profit. Socialists argued for reforms that would improve labor rights, provide social safety nets, and ensure that wealth was distributed more fairly among the population. This response was particularly important in advocating for reforms that addressed the plight of workers, leading to movements that sought to improve labor laws, working conditions, and social welfare, contrasting sharply with the laissez-faire economic policies that favored minimal government intervention in business.