The Second industrial revolution
The Rise of Industry 1861: Most Americans live on farms After the Civil War, more move to cities for work Second Industrial Revolution (Technology) 1900: USA=world’s richest country in GNP Gross National Product (GNP) = total goods and services produced in a year by a country United States’ advantages: Natural Resources (timber, copper, coal, iron, oil) Large Workforce (large families, immigrants) New Inventions (light bulb, phone, telegraph, auto loom, refrigeration, air breaks for trains)
Free Market Capitalism Laissez-faire: Government should interfere as little as possible in business affairs Relies on supply and demand to regulate wages and prices “The scariest words in politics are ‘we are the government, and we’re here to help’” Entrepreneurs: one who organizes, manages, and assumes the risks of a business or enterprise Start businesses, grow rich, help economic growth
The Railroads May 10, 1869: The first transcontinental railroad connects the Atlantic to Pacific, with two lines meeting at Promontory Summit, UT Railroads crisscross country South benefits from improved transportation Florida tourist trade begins Railroads develop idea of time zones in 1883 Gov’t gives land grants to railroad investors, investors sell the land for huge profits
Captains of Industry or Robber Barons? Huge railroad profits= corruption Bribing congressmen, cheating taxpayers, swindling Credit Mobilier Scandal Businessmen sign overpriced contracts with themselves with government money Many railroad investors like Cornelieus Vanderbilt and Leyland Stanford give large sums to charities, start universities