Let’s Get Better New Ways to Industrialize The Rest of Chapter 13, Sections 2-3 Notes

Let the Machine Do Its Work How Machines affected Work—Types of Workers How Machines affected Work—Types of Workers 1. The introduction of steam-powered machinery made work easier to do 1. The introduction of steam-powered machinery made work easier to do 2. Employers wanted people who could learn a few simple tasks 2. Employers wanted people who could learn a few simple tasks –For example, women and children could operate machines as efficiently as men –What were advantages to hiring women and children? Answer: Women and children were cheaper to hire and some kids’ hands fit in machines better Answer: Women and children were cheaper to hire and some kids’ hands fit in machines better Unskilled labor became preferred to skilled labor because it was cheaper Unskilled labor became preferred to skilled labor because it was cheaper

Money, Money, Money, Money…MAAAHHH-NAAAYYYY The Wage System: How the Number of People and Types of Jobs Affected Wages The Wage System: How the Number of People and Types of Jobs Affected Wages 1. Workers worked only a small part of the job as opposed to earlier days when workers worked at home from beginning to end on their products 1. Workers worked only a small part of the job as opposed to earlier days when workers worked at home from beginning to end on their products 2. Owners of a factory paid for workers’ wages based on the number of hours worked or the amount of goods produced 2. Owners of a factory paid for workers’ wages based on the number of hours worked or the amount of goods produced 3. Wages were determined by producing goods as cheaply as possible (if land or capital costs increase, then workers’ wages decrease to make up for it) 3. Wages were determined by producing goods as cheaply as possible (if land or capital costs increase, then workers’ wages decrease to make up for it) 4. Law of Supply and Demand of workers 4. Law of Supply and Demand of workers –More Workers = Less Money Offered –Fewer Workers = More Money Offered –If You Need More Workers = More Money Offered (ex: textile factories) –Men’s Wages > Women’s Wages

Market Freedom Before industrialization, many economies were controlled by the government Before industrialization, many economies were controlled by the government Capitalism emerged in the late 1800s Capitalism emerged in the late 1800s Capitalism exists when individuals or corporations control the factors of production Capitalism exists when individuals or corporations control the factors of production What are factors of production? What are factors of production? Answer: Land, Labor, and Capital Answer: Land, Labor, and Capital Industrialization worked well in capitalism because the means of production was privately owned and operated Industrialization worked well in capitalism because the means of production was privately owned and operated This means if you could make more stuff, as long as people want to buy it, you would make more money This means if you could make more stuff, as long as people want to buy it, you would make more money

If It Ain’t Broke, We Can Still Fix It Factory owners learned it is quicker and easier to create the same thing over and over if people work together Factory owners learned it is quicker and easier to create the same thing over and over if people work together They hired unskilled labor and assigned a step of the process to each worker They hired unskilled labor and assigned a step of the process to each worker Why would they do this? Why would they do this? Answer: It’s cheaper to hire unskilled labor than skilled labor and the tasks on an assembly line don’t require skilled laborers Answer: It’s cheaper to hire unskilled labor than skilled labor and the tasks on an assembly line don’t require skilled laborers The division of labor increased production, as did interchangeable parts The division of labor increased production, as did interchangeable parts Many machines had parts that were all alike so they could be used in different types of machines Many machines had parts that were all alike so they could be used in different types of machines The use of machines helped the workers produce more The use of machines helped the workers produce more The lowered cost of production made more profit for the owners The lowered cost of production made more profit for the owners

If It Ain’t Broke, We Can Still Fix It The assembly line method was also used by the most successful groups last week in the candy activity, as you produced large numbers of identical items The assembly line method was also used by the most successful groups last week in the candy activity, as you produced large numbers of identical items This is called mass production; what’s needed for it? This is called mass production; what’s needed for it? –Division of labor –Use of interchangeable parts –An assembly line What types of products were manufactured on the assembly line? What types of products were manufactured on the assembly line? Answer: automobiles, clothing, furniture, and machinery Answer: automobiles, clothing, furniture, and machinery How was the formation of the assembly line a good thing for the average person? How was the formation of the assembly line a good thing for the average person? Answer: Costs were lower, so manufacturers could lower prices Answer: Costs were lower, so manufacturers could lower prices Why was the assembly line so useful? Why was the assembly line so useful? Answer: Parts were carried from worker to worker so each worker can do a specific job Answer: Parts were carried from worker to worker so each worker can do a specific job Henry Ford built many cars by carrying automobile frames down a conveyor belt from one worker to the next until the car is built Henry Ford built many cars by carrying automobile frames down a conveyor belt from one worker to the next until the car is built

Rise of the Corporation Corporations were groups of businesses that allowed people to buy stock in their companies Corporations were groups of businesses that allowed people to buy stock in their companies This made it easier to raise money that was needed to run and expand a business This made it easier to raise money that was needed to run and expand a business Also, a stockholder was only financially responsible to the percent of the company they owned Also, a stockholder was only financially responsible to the percent of the company they owned If you owned a lot of stock, you made more profits and had more risk; if you owned a little stock, you made less in profits and had less risk If you owned a lot of stock, you made more profits and had more risk; if you owned a little stock, you made less in profits and had less risk A monopoly existed when a corporation gained almost complete control of the production or sale of a single good or service A monopoly existed when a corporation gained almost complete control of the production or sale of a single good or service Key monopolies: Andrew Carnegie (Carnegie Steel Company), JP Morgan (U.S. Steel, bought from Carnegie), John D. Rockefeller (Standard Oil) Key monopolies: Andrew Carnegie (Carnegie Steel Company), JP Morgan (U.S. Steel, bought from Carnegie), John D. Rockefeller (Standard Oil)

Business Cycle You Can Put It On The Board… You Can Put It On The Board…