Presentation on theme: "The Growth of Industry Section: 1. Late 1700s saw establishment of textile mills in New England (Northeast US). By mid-1800s, factories spread to other."— Presentation transcript:
New machines helped improve on processes. Inventors applied for patents: government document giving an inventor exclusive rights to make or sell his/her product.
Financial resources that have cash value. Factories, equipment, land, and machinery owned by business to produce goods and services. Human Capital
Capital (money) was provided to businesses by banks (hoping to share in the profits). Businesses used capital (borrowed money) to purchase equipment, factories, labor.
1. Plentiful Natural Resources 2. Improved Transportation (RR) 3. Growing Population 4. High Immigration 5. New Inventions 6. Investment Capital
Petroleum: Oily flammable liquid (1855). Edwin Drake begins drilling in 1859 & strikes oil in August. Launches oil industry
Pattern of ups (boom) & downs (bust) in the economy.
Good times (up swing) people buy more and invest more heavily. Bad times (down swing) people spend and invest less. Down swings (recessions) lead to higher unemployment rates, less goods produced, businesses may close.
RR spanning the entire United States. Bill passed in 1862 to allow two companies to build, helping lure settlers to the West.
Central Pacific started in Sacramento, California, and build east. Union Pacific started in Omaha, Nebraska, and built west.
RRs needed large amounts of money to build. Government lent millions of $. Government also provided 20 square miles for every one mile of track. Excess land could be sold for profit.
Due to labor shortages (mining, ranching, etc.), Chinese labor was essential. At peak of production, 10,000 Chinese worked on RR.
RRs hired former soldiers from North and South, former slaves, and Irish immigrants (largest). Both companies occasionally hired Native Americans.
May 10 th, 1869, Central and Union lines connect in Promontory, Utah. 1869 RR earned $300 million 1890 RR earned $734 million
Originally, communities had set their own times. Crossing several time zones caused problems RR comes up with standard time: dividing the US into four time zones. Went into effect on November 18 th, 1883 However, Congress doesnt adopt till 1918.
1. RR linked east and west economies. Lumber, livestock, and grain carried east. 2. Lifeline to settlers, bringing food, equipment. 3. RRs push Native Americans out. 4. RRs allowed urban centers to move in-land, rather than being connected to waterway.