The Growth of Industry Explain the business cycle and describe the growth of the steel industry

Business Cycle Business Cycle – periods of good and bad times Booms – good times when people buy more and some invest in business Industries and businesses grow

Busts – bad times when spending and investing decrease Industries lay off workers and produce less Low economic activity = depression

Bessemer Steel Process Steel industry contributed to industrial growth Prior mid-1800s – steel-making process required huge amount of coal making steel expensive New manufacturing technique uses 1/7th of the coal Cut the cost of steel increasing production 500 times between 1867 and 1900

Industries make products of steel instead of iron – plows, barbed wire, nails, beams for buildings Main use was expansion of railroads

Summary – Answer the following questions: What is the business cycle? What caused the steel making industry to boom and why? Activity: Illustrate the business cycle