1.Bell Ringer – “Write down some of the work restrictions/limitations that you know of (ie: minimum wage) 2.Notes sheet and study guide 3.Powerpoint – Industrialization in the US AGENDA – 8/26/2013

Coach Black

THE RISE OF INDUSTRY Gross National Product (GNP) – total value of all goods and services that a country produces Eight times greater than it had been in 1865 Natural resources/transcont. Railroad accelerated US industrialization

LARGE WORKFORCE Between – population nearly tripled Two Reasons 1. large families 2. immigration – 17 million immigrants arrived in US

CAUSES OF RAPID INDUSTRIALIZATION 1.Steam Revolution of the 1830s-1850s. 2.The Railroad fueled the growing US economy:  First big business in the US.  A magnet for financial investment.  The key to opening the West.  Aided the development of other industries. 1.Steam Revolution of the 1830s-1850s. 2.The Railroad fueled the growing US economy:  First big business in the US.  A magnet for financial investment.  The key to opening the West.  Aided the development of other industries.

CAUSES OF RAPID INDUSTRIALIZATION 3.Technological innovations.  Bessemer and open hearth process  Refrigerated cars  Edison o “Wizard of Menlo Park” o light bulb, phonograph, motion pictures. 3.Technological innovations.  Bessemer and open hearth process  Refrigerated cars  Edison o “Wizard of Menlo Park” o light bulb, phonograph, motion pictures.

THOMAS ALVA EDISON “Wizard of Menlo Park”

THE LIGHT BULB

THE PHONOGRAPH (1877)

THE EDIPHONE OR DICTAPHONE

THE MOTION PICTURE CAMERA

ALEXANDER GRAHAM BELL Telephone (1876)

ALTERNATE CURRENT George Westinghouse

ALTERNATE CURRENT Westinghouse Lamp ad

THE AIRPLANE Wilbur Wright Orville Wright Kitty Hawk, NC – December 7, 1903

MODEL T AUTOMOBILE Henry Ford I want to pay my workers so that they can afford my product! Henry Ford I want to pay my workers so that they can afford my product!

“MODEL T” PRICES & SALES

U. S. PATENTS GRANTED 1790s  276 patents issued. 1990s  1,119,220 patents issued.

4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. 4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. CAUSES OF RAPID INDUSTRIALIZATION

FREE ENTERPRISE 1. Laissez Faire  “let the people be”  Individual as a moral and economic ideal.  Individuals should compete freely in the marketplace.  Gov’t not interfere w/ economy other than to protect private property rights.  Relies on supply and demand to regulate prices and wages  Low taxes and limited regulations on business  Individual as a moral and economic ideal.  Individuals should compete freely in the marketplace.  Gov’t not interfere w/ economy other than to protect private property rights.  Relies on supply and demand to regulate prices and wages  Low taxes and limited regulations on business

2. SOCIAL DARWINISM × British economist. × Advocate of laissez-faire. × Adapted Darwin’s ideas from the “Origin of Species” to humans. × Notion of “Survival of the Fittest.” × British economist. × Advocate of laissez-faire. × Adapted Darwin’s ideas from the “Origin of Species” to humans. × Notion of “Survival of the Fittest.” Herbert Spencer

2. SOCIAL DARWINISM IN AMERICA William Graham Sumner Folkways (1906) $Individuals must have absolute freedom to struggle, succeed or fail. $Therefore, state intervention to reward society and the economy is futile! $Individuals must have absolute freedom to struggle, succeed or fail. $Therefore, state intervention to reward society and the economy is futile!

Tariffs – taxes on imports and exports Tariffs contradicted laissez-faire MORRILL TARIFF

Union Pacific Railway stockholders set up construction company called Credit Mobilier. Credit Mobilier UP and CM run by same people Signed contracts with themselves Overcharged on contracts = make more $ Members of Congress took stocks CREDIT MOBILIER SCANDAL

Bell Ringer – Explain the concepts of laissez-faire government. How did advocates believe it would prosper? Transcontinental Railroad notes Section 1 of Study Guide AGENDA 8/27

What is GNP? What were the three components that accelerated US industrialization? What were Edison’s big inventions? Graham Bell’s? What was the objective of the Morrill Tariff ? Why was it a failure? What did it contradict? REVIEW

Completed in four years Connected US Provided jobs – primarily immigrants (Chinese) - $1/day -time zones were created to make rail service more reliable - railroad companies were given land grants to sell - money used to financed construction of railroad TRANSCONTINENTAL RAILROAD

Cornelius Vanderbilt – steamboats first Merged NY railroads Responsible for construction of NY Grand Central Then merged from Chicago to NY Jay Gould One of most corrupt railroad owners – “Robber baron” Manipulated markets Gordon-Gordon and Black Friday – Boss Tweed KEY PLAYERS IN RAILWAYS

Explain – How did construction companies BELL RINGER

NEW TYPE OF BUSINESS ENTITIES 1.Pool 1887  Interstate Commerce Act  Interstate Commerce Commission created. 2.Trust  John D. Rockefeller 1.Pool 1887  Interstate Commerce Act  Interstate Commerce Commission created. 2.Trust  John D. Rockefeller  Standard Oil Co.

BIG BUSINESS The Big Idea The growth of big business in the late 1800s led to the creation of monopolies. Main Ideas The rise of corporations and powerful business leaders led to the dominance of big business in the United States. People and the government began to question the methods of big business.

Many entrepreneurs formed their businesses in the late 1800s as corporations, or businesses that sell portions of ownership called stock shares. Corporate leaders were some of the most widely respected members of American society. Successful corporations rewarded not only the people who founded them, but also investors who held stock. Corporations encouraged more investment in businesses because stockholders could sell stock whenever they wanted. MAIN IDEA 1: THE RISE OF CORPORATIONS AND POWERFUL BUSINESS LEADERS LED TO THE DOMINANCE OF BIG BUSINESS IN THE UNITED STATES.

Andrew Carnegie One of most admired businesspeople of the time Focused on steelmaking Used vertical integration, owning businesses involved in each step of manufacturing, to lower costs John D. Rockefeller Standard Oil Company was country’s largest refinery Developed horizontal integration, owning all businesses in a field Formed a trust, grouping many companies under a single board BUSINESS LEADERS Leland Stanford Made fortune selling equipment to miners Governor of California, one of founders of Central Pacific Railroad, and founder of Stanford University

People and the government began to view big business as a problem in the late 1800s. Concerned about child labor, low wages, and poor working conditions Many business leaders believed in social Darwinism. Darwin’s “survival of fittest” applied to which human beings would succeed in business and in life in general. Other business leaders believed that the rich should help the poor. Carnegie, Rockefeller, Stanford, and other business leaders gave away large sums of money to charities. MAIN IDEA 2: PEOPLE AND THE GOVERNMENT BEGAN TO QUESTION THE METHODS OF BIG BUSINESS.

STANDARD OIL CO.

NEW TYPE OF BUSINESS ENTITIES 2.Trust:  Horizontal Integration  John D. Rockefeller 2.Trust:  Horizontal Integration  John D. Rockefeller  Vertical Integration: o Gustavus Swift  Meat-packing o Andrew Carnegie  U. S. Steel  Vertical Integration: o Gustavus Swift  Meat-packing o Andrew Carnegie  U. S. Steel

IRON & STEEL PRODUCTION

NEW TYPE OF BUSINESS ENTITIES

1.Economy of Sale- cost of manufacturing decreased -done by using sales of stock 2.Fixed Costs – mortgage, taxes, loans, etc. Has to be paid 3.Operating Costs – paying employees, shipping, supplies -such a small part of a massive corporations costs – even in tough times – keep operating. RUNNING A BUSINESS

Vertical Integration – owns all businesses for which it depends on Carnegie needed – iron, limestone, coal, ships and trains – He bought them all Horizontal integration – buyout competing companies, particularly w/ OIL refineries -buy out an entire market - monopoly -US passed laws to make it illegal Holding Companies – does not produce anything -owns stocks of companies that do -essentially merging BUSINESS FIND LOOPHOLES