Technology and Industrial Growth Chapter 9, Section 1

Encouraging Growth After the Civil War, industrial growth that had started during the war continued to flourish. This was due to a variety of factors: Abundance of natural resources, including the discovery of oil by Edwin Drake. Increased immigration from Europe and Asia Forced out by political upheaval, religious discrimination and crop failures. Capitalism encouraged the emergence of entrepreneurs. Government aided this by passing protective tariffs and adopting laissez-faire policies. Laissez faire= businesses operate w/minimal government regulation.

New Technologies New innovations: Electric light bulb Thomas Edison Telephone Alexander Graham Bell Steel Henry Bessemer Bessemer Process= purifying iron and turning it into strong, lightweight steel. Expanding rail network demonstrated a need for the creation of time zones to regulate train schedules. Natural resources + rail network= more growth! Many goods were now manufactured by machines instead of by hand.

Impacts of Industrialization Industrialization had many impacts on the United States. Increased population in cities immigration and need for unskilled labor; Increased foreign trade as the U.S. expanded its markets; Increased pollution and waste from factories caused people to start being concerned for their environment.

The Rise of Big Business Chapter 9, Section 2

Fighting for Profits Businesses in the 19th century transitioned from family- owned to large corporations, where many people shared ownership. The main goal of the corporation was to maximize profits and there were new ways in which corporations decreased costs to increase profits. Horizontal integration= consolidation of many firms in the same business into one larger corporation. Vertical integration= controlling different businesses that make up all phases of a product’s development.

New forms of Companies Some corporations wanted to increase profits by taking complete control of a product. This was known as a monopoly, or a trust. Competitors were either bought out or pushed out of the market. Once there was no competition, a business could charge whatever price it wanted for a product. In other instances, corporations would work together to limit production in order to control prices. This was known as a cartel. O.P.E.C. is a cartel that still exists today.

The Role of Big Business Four main leaders emerged during the late 1800s to lead major corporations. Cornelius Vanderbilt shipping Andrew Carnegie steel John D. Rockefeller oil J.P. Morgan finance These men were viewed in two different ways: Robber barons pushing out smaller companies; high prices to consumers Captains of industry adding more jobs to the labor force; provided financial backing for new technology; philanthropy

Social Darwinism and Gov. Regulation Application of Darwin’s theory of evolution to society. Social Darwinism stated that those who were more ‘fit’ would survive over time, making the society stronger as a whole. Discrimination also increased, separating the wealthy from the poor. To some, this meant that the government should leave large businesses alone. The government did impose regulations to limit corporate power Interstate Commerce Commission= monitored the ever-growing railroad operations; first government body to do so. Sherman Antitrust Act= outlawed trusts that restricted trade or commerce between states.