1. and Inventions Industrialization in America

2. The Industrial Age From the Civil War (1861) to World War I (1914), the US went through an economic transformation including: The development of an industrial economy The expansion of big business The growth of large-scale agriculture The rise of national labor unions and industrial conflict Industrialization, in the long term, increased the standard of living and opportunities for most Americans, but what was the cost? Industrialization

3. How did it all start? New inventions! The new and improved steam engine finally made its way across the pond from England. This helped to increase demand for a larger railroad system The Railroad was the first big business in the US oFrom this big business we get Cornelius VanderBILT (1796-1877), (get it, cause he built railroads!) because of his success in the railroad business he would become one of the richest Americans in HistoryVanderBILT

4. How did it all start? New inventions! Besides helping jumpstart the idea of big business, railroads would also help with transportation Rapid transportation would lead to greater demand for goods, which means businesses need to find faster ways of making products

5. How did it all start? New inventions! In comes Henry Ford (1913), developing the use of the assembly line for manufacturing (and yes, he also started Ford Motor Company)

7. How did it all start? New inventions! With faster production, business would want to operate for longer periods during the day…but it’s hard with just candle light, they cause fires you know In comes Thomas Edison (1876), with a new and improved, longer lasting, light bulb! Which used electricity as its power source.

8. How did it all start? New inventions! With longer working hours, and fast production, factory owners want to expand, make bigger and better buildings. But it’s hard with just lumber as a building material… Here comes Henry Bessemer, he accidentally discovered a better way to make steel stronger The process of introducing oxygen (1856) during the steel making process became known as the “Bessemer process” (real original)

9. How did it all start? New inventions! Once the steel industry started booming Andrew Carnegie began to forge his steel empire He tried to control the ENIRE steel industry by buying all his suppliers, and other producers of steel. (this is called Vertical and Horizontal integration) Basically he created a steel monopoly

10. Iron and Steel Production

11. How did it all start? New inventions! In 1901 Carnegie sold his Carnegie Steel Company to J.P. Morgan for $480 million. This made Carnegie another of the world’s richest men Once JP Morgan gained control, he merged Carnegie Steel with another steel business and formed the world’s first billion-dollar corporation.

12. How did it all start? New inventions! JP Morgan was a very powerful banker in his time (1837-1913) Not only did he create an even larger steel company, he would also help form General Electric, US Steel, and found one of the largest banking companies in the US – JPMorgan Chase Random fact, his uncle wrote “Jingle Bells”

13. How did it all start? New inventions! Now that production is faster, the factory owners need to find a faster way to communicate… Y’all know what’s coming now? The telephone! oFirst patented by Alexander Graham Bell in 1876.Alexander Graham Bell There is still dispute today whether he was the sole inventor

14. How did it all start? New inventions! During all this industrialization, there are these two crazy brothers who think it would be really cool to fly Wilbur and Orville Wright are the first to achieve powered, sustained, and controlled airplane flight in 1903 Wilbur and Orville Wright That doesn’t mean they INVENTED the airplane, they were the first to create one that worked the way we think of airplanes today

15. How did it all start? New inventions! With the invention of the car, plane, and new machines that operate with moving parts, the world needed to find a lubricant. FINALLY oil is a GOOD thing to find! Previous to the industrial age, if you had oil on your property it was deemed worthless John D Rockefeller would make his fortune in this fledgling business

16. How did it all start? New inventions! John D Rockefeller (1839- 1937) established Standard Oil in 1870, and by the early 1880s controlled 90% of US refineries and pipelines Another monopoly…that would soon be busted by anti-trust laws

17. How did it all start? New inventions! With all these new inventions, clearly there will be new business starting up. The only problem is, if your company goes bankrupt, so do you Some smarty comes up with the idea of Corporations, or limited liability businesses (Limited Liability Act 1855) This seems strange to include in the industrial revolution, but it is really crucial. Without the idea of limited liability, people were rather afraid of starting companies fearing they would be help liable for the companies debts…

18. Economic Transformation Through the industrial revolution in Europe (which occurred nearly 100 years earlier than in America) new economic practices were being born Like the idea of Capitalism More specifically for America, Laisse-faire capitalism This is the idea that an “invisible hand” (or supply and demand) should shape the market, and that the government should have no control over the economy oThis idea is what gives rise to monopolies, no government regulation

19. Economic Transformation Immigrants role: With the influx of immigrants throughout the 1860s- 1900s, these new industries have plenty of laborers at cheap prices. Over time these immigrants and “original” American workers will start to fight back against the injustice of the industrial age They start to form labor unions – more on that later

20. Economic Transformation Why was America so successful during the industrial age? Americans loved the idea of Laissez-faire capitalism, we had a very large and still growing labor force But more importantly, we had an abundance of natural resources (coal, iron ore, oil, land, rivers, etc.) These things combined made America an unstoppable force during the industrial age, and would help us dominate in WWI, and become a world power after WWII.

24. Summary