1. Industrialization Ch 3.2

2. Tuesday, February 21, 2012 Daily goals: Understand how inventions supported economic growth, how laissez faire affected business and how corporations grew and opposed unions. Think About it… Can you think of any inventions that have changed the way we live and the way business works?

3. Homestead Act The gov’t encouraged settlement in the west by offering homesteads (160 acre tracts of land) for $10.

4. A Booming Economy Entrepreneurs organized businesses to try and make money. Laissez-faire economics argued that gov’t should not interfere in the economy because regulation hurt the economy.

5. Can you think of any famous entrepreneurs? Steve Jobs-Apple Bill Gates-Microsoft Henry Ford-Ford Bill Bowerman-Nike Mark Zuckerberg-Facebook

6. Do inventions improve business? Did the car improve business? Did the computer improve business?

7. Age of Inventions Electricity – power machines, homes, spurred inventions and led to the spread of cities Thomas Edison – perfected the light bulb – What is the benefit of light bulb? Alexander Graham Bell – telephone + communication – Telephone reading 6.1 – top 10 list of “what were the 1 st words spoken on the telephone

8. Inventions help industry grow! Alexander Graham Bell invented the telephone which revolutionized business communication. Thomas Edison invented the light bulb.

9. Andrew Carnegie – Scottish immigrant – Founded US Steel – By 1900 his factories in Pittsburg employed 20,000 people and produced more steel than all of the steel mills in Britain – Controlled 80% of steel production – Known for… – Steel

10. Cornelius Vanderbilt – Made his early fortune with steam boat business – Second richest man in world by late 1800’s – Made money controlling railroads – Known for … – Railroads

11. John D. Rockefeller – Founded Standard Oil – By 1881 controlled 90% of the oil business in the US – Organized “Trusts” which increased efficiency and prevented competition. – Amassed a fortune of $900 million dollars. – know for… – Oil

12. J. P. Morgan – Made his early fortune in Railroads – Bought US steel from Andrew Carnegie in 1900, for over $400 million Largest company in the world 168,000 workers First billion dollar company – 1890 economic crisis: US treasury in trouble. President Cleveland borrows $65 million from J.P. Morgan – Known for … – Stocks + banking

13. Let’s play Monopoly! Andrew Carnagie’s US Steel Co began vertical integration of the Steel industry, controlling production “from top to bottom.” Corporations began horizontal integration of their industries by buying all their competitors.

14. Does a company make more money when it pays it employees more or less? Do union workers get paid more than non- union workers? Do you think Business leaders liked Unions?

15. Organized Labor Corporations opposed industrial unions which united all workers of an industry. The American Federation of Labor (AFL) became one of the first large unions. Unions wanted closed shops where the company could only hire union members.