Ch 5 sec 2 THE SECOND INDUSTRIAL REVOLUTION PART 1

I. Industry and Railroads Improvements in technology allowed for increased production of steel and oil. Those in turn increased production of other products, and the development of transportation and building that changed the face of the country.

I. Industry and Railroads The Bessemer process made steel- making faster and cheaper. By 1910 the U.S. was the worlds leading steel producer. It was used to make railroads, bridges, and locomotives, as well as taller buildings. Even nails and wire were made from steel.

I. Industry and Railroads 1869 saw the first transcontinental railroad that reached from the East Coast to the West Coast. The combination of cheap steel and land grants from the federal government allowed railroads to expand in coverage and profits.

I. Industry and Railroads Railroads also led the adoption of a standard time. The companies wanted a way to predict when the trains would arrive, and there was no set time zones. A school principle came up with the idea of dividing the earth into 24 time zones, and each community in the time zone would have the same time. It became law in 1918.

II. Rise of Big Business Free market capitalism was growing by leaps and bounds in the United States. There were no regulations on business, and as the economy increased so did the wealth of many individuals.

II. Rise of Big Business The economic system was very unequal. Many more people were poor and exploited than were wealthy. Some explained this as a result of social Darwinism: the belief that the strongest will survive biologically as well as economically.

II. Rise of Big Business There was also the creation of the corporation, which was a business that legally was an individual. The corporations were owned by individuals who purchased stock in the company, and the company could raise more money by selling more stock.

II. Rise of Big Business To fight off competition from other businesses, companies would merge together to form a trust. If a trust or corporation gained complete control of an industry, (if they were the only ones making the product or providing the service), the had a monopoly. They had complete control over the price and quantity of goods sold.

II. Rise of Big Business There were two ways to gain a monopoly: vertical integration and horizontal integration. Vertical integration is acquiring companies that deal with a product from start to finish. Horizontal integration is acquiring companies that provide the same good or service as your company.

II. Rise of Big Business Some businessmen became incredibly wealthy using those tactics of vertical and horizontal integration. Rockefeller, Carnegie, Vanderbilt, Morgan, and others became either heroes of industry or evil robber barons that preyed on their competition, depending on who you ask.

II. Rise of Big Business This period of time was called the Gilded Age due to the amount of money that was being made, and the economic freedom that businesses enjoyed. Mass marketing also began, in an effort to convince consumers to buy certain products. Much of the advertisements were aimed at women, who often made the decision to purchase goods and services.

II. Rise of Big Business Department stores began to appear, giving shoppers easy access to a variety of goods that they needed, instead of traveling from store to store. Mail-order catalogs did the same for customers who did not live in the city and could not go to the department store for their shopping needs.

In your notebook Write three things you learned today Two things you want to learn more about One thing that you did not understand One thing someone else learned that you did not write down