1. Mr. Williams 10th Grade U.S. History
The Gilded Age
Mr. Williams
10th Grade U.S. History

2. Causes of Industrialization
Great amount of natural resources
Large work force
High tariffs reduce the import of foreign goods
National transportation and communication networks

6. Effects of Industrialization
Workers left farms for factories
Machines replaced hand made goods
U.S. became world’s leading industrialized nation
GNP-total value of goods and services X8 from before Civil War

8. Free Market/Capitalism
Economic system in which most businesses are privately owned (by people not govt.)
Laissez-faire (“Leave Alone” or “Hands Off”) : companies operate without government interference

9. Freedom of Enterprise
Individuals own and control the factors of production
Success is NOT A GIVEN
Government plays a hands off role BUT places some restrictions on businesses to protect individuals

10. Freedom of Choice People can buy what they want
Demand determines what is produced
What happens if no one wants your product?

12. Competition Different people produce similar products and services
How do different companies compete?

14. Getting Started
Entrepreneurs: People who decide to take a risk and start a business
Collect information about business, factors of production for products, and learn about taxes and laws relating to businesses

15. Corporation: organization owned by many people called stockholders but treated by law as a single person
Own property, pay taxes, make contracts, sue and be sued
Stock: shares of ownership which allow corporation to raise money

17. Cornelius Vanderbilt
By 1869 had purchased and merged three short New York railroads to form New York Central
First railroad to connect N.Y. to Chicago
1871 began building Grand Central Terminal in NYC
Today would be worth $185 BILLION

19. Andrew Carnegie
Scottish Immigrant came to America at the age of Twelve
Started out cleaning bobbins in a factory for $1.20/week
Carnegie Steel provided material for railroads, skyscrapers, cars, etc.
Net Worth Today: $310 Billion

20. Vertical Integration
Carnegie Steel plant could churn out ten thousand tons a week
Cut the cost of making rails in half from $58 to $25 a ton
“From the moment these crude stuffs were dug out of the earth until they flowed in a stream of liquid steel in the ladles, there was never a price, profit, or royalty pain to any outsider.”

23. John D. Rockefeller 1870 founded the Standard Oil company
Owned 90% of oil refining business at height of his power
Rockefeller first American Billionaire
Net Worth Today: $340 Billion

25. The Trust HORIZONTAL INTEGRATION
Combined oil refineries into one large corporation ran by board of trustees
Once Trust gained complete control over an industry, it held a MONOPOLY
Single company achieves control of an entire market and can raise prices or lower quality at will

29. Social Darwinism: Stronger people and businesses would prosper while weaker ones fail.
Little or no government interference (Laissez-Faire)
Small businesses could not compete with the monopolies
Average worker made $500/year

31. Gilded Age U.S. became world’s leading industrialized nation
GNP x 8 from before Civil War
Number of millionaires increases-Carnegie, Rockefeller, Vanderbilt, J.P. Morgan, etc.

32. -Can be both but give EXAMPLES 3.8 Format
Writing Response-
During the Gilded Age, the government was strictly laissez-faire toward business. What does this mean? Was this a good thing or bad thing for the country during the time?
-Can be both but give EXAMPLES
3.8 Format