What does “laissez faire” mean in your own words? On p. 3 of your composition book write the following questions and an answer: What does “laissez faire” mean in your own words? Why did the free enterprise system lead to so many new inventions during the Gilded Age?

Big Business And Railroads The Gilded Age Pt 2 Big Business And Railroads

Industrialization Definition of Industrialization: an economy based on manufacturing and production instead of agriculture (farming) growth of factories Large increase of industrialization during the Gilded Age (late 1800s) Industry- a specific area of business usually related to factories/ manufacturing

Why did Industrialization occur so rapidly during the Gilded Age? There was government support for big businesses- no regulation/rules Industrialization led to the development of Big Businesses Banking, RR, steel, oil, and electricity = largest industries Monopolies and trusts emerged Monopoly- one company controlling all of an industry Trust- a few companies control all of an industry Ex: if ATT was the only cell phone company Industrialization New transportation (RR) New technology/ inventions (electricity) Cheap labor sources (immigrants) Free enterprise/ Laissez faire Industrialization

What are the pros and cons of Big Business? Pros of Big Businesses Cons of Big Businesses Provide jobs Abuse of workers (bad pay, poor conditions) cheaper goods pollution faster production abuse of power/influence politicians money to spend on developing new technology overtake small businesses Pros of Big Businesses Cons of Big Businesses

Management Two ways to create big businesses Vertical integration Controlling all phases of production that make up a product Horizontal integration Combining many companies into one large company (monopoly)

Captains Of Industry Rich men of the time (because of free enterprise) Called 2 different names by different people Captains of Industry- good for the country. Provided jobs, helped economy, did good OR “Robber Barons”- made profits off of underprivileged. Didn’t pay people enough, took advantage, overcharged Why can business leaders be referred to as both “robber barons” and “captains of industry?”

John Rockefeller Andrew Carnegie JP Morgan Cornelius Vanderbilt

Growth of Railroads Led to rapid industrialization during Gilded Age Railroad lines built in industrialized North; later extended west and south Building them cost a lot of $$; needed better/new engineering, and massive labor Mostly built by Irish (east) and Chinese (west) immigrants

Growth of Railroads Led to faster and cheaper distribution of goods- created a national market Totally changed the way trade happened Government gave railroad companies land grants- free pieces of land- to build railroads on Railroad companies used the land they needed, then sold the rest for profits But led to widespread corruption- normal during Gilded Age

Compare the location of Railroads in 1860 and 1890 Compare the location of Railroads in 1860 and 1890. Where did the railroads expand? How did the expansion affect the location and growth of U.S. cities?

How did the growth of railroads promote the growth of cities and trade? How did the growth of railroads effect everyday lives of farmers? Big Business owners?

Describe what is going on in this political cartoon. What does this cartoon say about the power Cornelius Vanderbilt had over the railroads? How do you think people reacted to his power?

Industrialization The ruins of Richmond, Virginia, after the Civil War, January 1865

Industrialization Thomas Edison’s light bulb was one of many innovations that dramatically changed the daily lives of Americans. By 1910, many people had electricity and refrigeration in their homes. Compare the pictures. These illustrate a typical US city during its time. 1. What is the difference in US cities from 1865 to 1900? 2. How would the differences effect transportation and communication?

STAAR PRactice

STAAR PRactice Think back to Gilded Age Pt. 1 notes… What role does government have in a free enterprise system? In what ways did the government support big businesses during the Gilded Age?

Big Idea What is industrialization? What factors led to the rapid industrialization during the Gilded Age? How did the railroads both benefit from and contribute to the industrialization of the United States?