The Second Industrial Revolution Mid1850’s to the early 1900’s.

Differences between 1 st and 2 nd Industrial Revolution 1 ST INDUSTRIAL REVOLITION 1.Started with the textile industry. 2.Factories were developed. 3.Development of new machines powered by water, then later by steam. 2 nd INDUSTRIAL REVOLITION 1.Oil and electricity become important. 2.Major improvements in transportation. 3.Large scale mass production. 4.Development of large companies.

Factors that Contributed to Industrial Growth 1.Plentiful Natural Resources 2.Growing Population 3.Improved Transportation 4.High Immigration 5.New Inventions 6.Investment Capital 7.Government Assistance

Factors that Contributed to Industrial Growth 7.Government assistance: A. Tariffs B. Subsidies: money gov. gives to certain groups because they can help the public. C. Land grants (free land) were given to railroad companies because they improve travel, which increases trade, resulting in a better economy.

Second Industrial Revolution Timeline 1870s- Inventors of the electric- power industry designed efficient generators Alexander Graham Bell invented the telephone in March Thomas Edison invented 1st working light bulb. Also invents phonograph, motion picture camera, and a 1000 other designs! Chris Latham helped invent typewriter Rudolph Diesel invents the Diesel Engine Orville and Wilbur Wright invent 1 st airplane Henry Ford invents the Model T Ford Invents the assembly line The Bessemer Steel Process improved steel making.

Business Cycle Pattern of ups (boom) and downs (bust) that the American economy regularly faces.

Depressions in America: 1837 and 1857, 1873, 1893 Between 1860 and 1900 manufactured goods increased to 6 times during these years. Bust Boom

Corporation A large company controlled by investors who own stock in that company. That means there’s no one owner, but a group of people controlling a company. A corporation can sell “stock” (part ownership in the company) to raise money. Those who buy that stock gets dividends, or a share of the profits that the company makes.

Trust A business group that holds stock in different companies in order to gain an advantage or monopoly.

John D. Rockefeller and Standard Oil Monopolized the oil industry by buying out his competitors or running them out of business. Made secret deals to have railroads carry his oil at a lower rate. Formed Standard Oil. Used horizontal integration.

Horizontal Integration When a big corporation buys up similar businesses in order to obtain a monopoly. Ex-

Andrew Carnegie and the Steel Industry Owned the world’s largest steel mill in Bought iron ore mines, ships/railroads that carried the ore. Controlled all processes related to the manufacture of steel (vertical integration).

Vertical Integration When a business owns/controls all the parts of production and doesn’t have to pay someone else for those parts. Ex- = Owned farms that grew wheat. Owned farms that grew lettuce, tomatoes, onions. Owned farms that raised cattle. Owned bakeries that made buns.

What is a “Robber Baron”? Someone who becomes very wealthy through unethical means. During the Second Industrial Revolution, robber barons bribed government officials, broke laws, cheated employees, and did what ever it took to gain an advantage over their competition. Although Rockefeller and Carnegie did many charitable things with their wealth, the way they got their wealth could be called into question.