Unit 5 Part 1 – Industrial Revolution

I. Rise of Industry in America

oil - lubricate machines / fuel lamps - found in Ohio & Penn A. Natural Resources coal - power steam engines / machines - large coal deposits found in Penn, WV, Kentucky & Ohio oil - lubricate machines / fuel lamps - found in Ohio & Penn iron ore - make steel - found in Minnesota & Pittsburgh

B. Increased Labor Force 14 million immigrants many Americans gave up farming to work in factories – Rural to Urban large number of African Americans move to cities – Great Migration increased number of consumers

C. Increased Capital Cause = investors seek to make money by investing in companies (buying stock) result = companies have more capital ($) to spend on raw materials & labor

. free enterprise supply and demand individuals & private business are free to organize and operate for profit in competition with others supply and demand  supply  demand = Price Low  supply  demand = Price High

C. entrepreneurs invested money in products in order to make profits. Entrepreneurs fueled industrialization and helped spur innovation in the late 1800s. They benefited from laissez-faire policies, which allowed businesses to work under minimal government regulation. Congress enacted protective tariffs to encourage the buying of American goods. 11

D. Business Organization corporations = groups of investors who buy shares of stock in a company dividends = $ stock holders receive based on the number of stock they own consolidation = corporations join together to compete with other companies protected them from losing more than their original investment.

Competitors forced out of business Corporations used strategies to eliminate competition and decrease costs. Competitors forced out of business monopolies cartels horizontal integration vertical integration Better control of production, reduced costs 14

The ICC and the Sherman Antitrust Act began a trend toward government limits on corporate power. Interstate Commerce Commission oversaw railroad operations Sherman Antitrust Act Passed by the Senate in 1890 Outlawed trusts that operated “in restraint of trade or commerce among the several states”