Chapter 12 Section 1 Rise of Industry By: Megan Stone, Chris Restivo, and Kris Florer

Laissez-faire economics -A French phrase meaning “Let people do as they choose” -believed government should not interfere with the economy other than to protect private rights

-The Laissez Faire relied on supply and demand rather than the government to regulate prices. -Supporters believed a free market with competing companies led to greater efficiency

-Laissez Faire advocates low taxes and limited government debt to ensure that the government did not make all the decisions about how the nations wealth is spent. - Laissez Faire attracted many entrepreneurs to the prospect of wealth that could be made by free enterprise.

What is a Free Enterprise? Free enterprise is an economic system that provides individuals the opportunity to make their own economic decisions, free of government constraints, and as private profit- potential Businesses. The system allows for the privilege of individual ownership of property and the means of production. The key ingredient of the free enterprise system is the right of individuals to make their own choices in the purchase of goods, the selling of their products and their labor, and their participation in business structure.

An Entrepreneur -People who risk their capital to organize and run businesses. -They were attracted by the prospect of making money in manufacturing and transportation.

The Gross National Product -The GNP was the total value of all goods and services that the country produces. -U.S.'s GNP in 1914 was 8 times greater than in 1865.

Cause of Rapid Industrial Growth -Natural resources -A large work force -New Inventions -Free Enterprise

The World's leading Industrial Nation -By the late 1800's the U.S. became the worlds leading industrial nation, surpassing Great Britain and Germany. -The United states Became a more Urban country as people move to cities to find Industrial jobs. -

Mechanization - In the early 1800's America started to industrialize, however industry was small and mainly hand labor. - After the Civil War, machines were replacing hand labor, increasing production of the good and making the goods more profitable

- The telephone was invented by Alexander Graham Bell with its first successful operation in Thomas Edison invented the phonograph in Two years later Edison perfected the light bulb and the electric generator. Other major devices included the battery, the Dictaphone and the motion picture. New Inventions

● Edison's electric generator ● The telephone ● Dictaphone ● ● Phonograpth