Terms industrial capitalism- economic system in which individuals continually reinvest profits & expand businesses. interchangeable parts- production method using identical, easy-to-assemble parts. division of labor- production technique in which each worker does one specialized task. partnership- business owned by two or more entrepreneurs who share management, profits & losses. corporation- business organization that is owned by stockholders who buy shares and is run by professional managers. depression- economic situation characterized by a business slump and unemployment.
SPREAD OF INDUSTRY Great Britain tried to keep industrial monopoly. Parliament passed laws to keep workers & machines in Great Britain. 1820’s- many skilled workers left Great Britain. British industrialists got wealthy by spreading industrial revolution to other countries. Railroads in India, Latin America & North America. Factories in Europe- capital/equipment/technical staff.
SPREAD OF INDUSTRY con’t Industrialization did not take hold in other countries until 1870. Exceptions- France, Germany & United States. France- growth slow. Napoleonic wars depleted workforce. Scientists. Mining & railroad construction grew. Germany- factories, railroads (1839). 1840’s- coal, iron & textile industries. United States- shoe & textile industries in New England. Coal mines & iron works in Pennsylvania. 1870- U.S. one of world’s three most industrialized countries along with Great Britain & Germany.
GROWTH OF BIG BUSINESS Capitalism Capitalism : a way of organizing an economy so that the things that are used to make and transport products (such as land, oil, factories, ships, etc.) are owned by individual people and companies rather than by the government spurs growth. Industrial Capitalism- expand factories or invest in new business. Profits- hire more workers, buy raw materials & new machines.
MASS PRODUCTION 1800’s- Eli Whitney introduces interchangeable parts. Increased factory production. 1809- Frederick Taylor- division of labor. Divide tasks into detailed & specific segments of a step-by-step procedure. Used in factories. Worker performed specialized task on a product on a conveyor belt. Method called an assembly line. Henry Ford used assembly line method to mass produce Model T automobiles.
Partnerships- Share management responsibility & debt liability. Two or more entrepreneurs got together & raised additional capital. Corporations- Businesses owned by stockholders- buy shares in a company, vote on decisions. Shares increased/decreased depending on profits. Late 1800’s- corporations one of best ways to manage new business.
Business Cycles Businesses dependent on one another. Example- demand for cars would expand petroleum industry. Bad conditions in one industry could spread to other industries. Business cycle- alternating periods of business expansion & decline. Expansion- buying, selling, production & employment high. Expansion over- activities decline. Lowest point- depression.
SCIENTIFIC & INDUSTRIAL DEVELOPMENTS Communications 1830’s- Samuel Morse, American inventor- telegraph & Morse code. 1895- Gugliemo Marconi, Italian inventor- wireless telegraph, later modified to radio. 1876- Alexander Graham Bell American inventor- telephone.
SCIENTIFIC & INDUSTRIAL DEVELOPMENTS con’t Electricity 1900’s- electrical power harnessed & used for industrial fuel. 1831- Michael Faraday, British chemist/physicist. Experiments- magnet through a coil of wire produced current. 1870’s- electric motor devised on this principle. 1877- Thomas Edison, American inventor- phonograph player. 1879- incandescent light bulb.
SCIENTIFIC & INDUSTRIAL DEVELOPMENTS con’t Energy & Engines 1880’s- Gottlieb Daimler, German engineer- redesigned internal combustion engine to run on gasoline. Rudolf Diesel, German engineer- oil-burning internal combustion engine for industrial plants, ocean liners & locomotives. Development of motorcar helped by these inventions. 1890’s- German Ferdinand von Zeppelin- streamlined dirigible to carry passengers. 1903- Americans Wilbur & Orville Wright- first successful flight of motorized aircraft. Flew 120 feet. 5 years later- 100 miles. Need for fuel & rubber for tires caused growth in petroleum & rubber industries. Innovations & inventions changed life dramatically.