2. What was the Industrial Revolution?
The era between 1700 and 1900 when changes in technology transformed the world
Shifted the way people worked
From human and animal power to water and steam powered machines (allows for mass production)
Fueled by innovation and inventions
Starts in Great Britain and comes to America by the early 1800s

3. Today’s LEQ
What motivates people to invent and be innovative?

4. Why Invent? Population boom increases demand for goods and services
Immigration
Healthier people
Inventions were made to solve problems
Problem: How do we speed up production to meet the huge increase in demand?
Solution: Invent new machines for mass production

5. Why Invent? There is profit to be made!!!
Capitalism – an economic system where factories, equipment, and other means of production are privately owned rather than being controlled by the government
There is profit to be made!!!
Capitalists funded new technology, scientific research, and the building of railroads and factories
Hoped to make a profit in return. Generally speaking, the bigger the risk, the bigger the reward

6. Capitalism Cont’d… Let’s Discuss…
Financial backers protected their investments through patents
License to use, make, and sell an invention
Let’s Discuss…
Why would patents protect the investments of capitalists?

7. Key Improvements of the Industrial Revolution
There were many inventions and innovations after the Civil War that completely transformed the nation
Improvements in Communication
Improvements in Transportation
Improvements in Oil Drilling
Agricultural Improvements
Bessemer Process
Electricity
*** In pairs, you will learn more about specific inventions and innovations in each category. Stand by for further instructions  ***

8. Why is the Bessemer Process so Important?
Allowed for the growth of cities!
Turned iron into steel (harder, stronger, and lighter)
Railroads switched to steel rails
Used for heavy construction
Now we have longer bridges and taller buildings!

9. Early Skyscrapers
Strong steel plus elevators mean that America’s teeming cities can now grow upwards!

10. The Brooklyn Bridge, designed with steel cables suspended from high towers, was made possible by mass production.

11. Automobile
Automobile – Henry Ford made the car more affordable by using the assembly line
Assembly line – process where each worker does one task in the making of a final product 11

13. Division of Labor When someone completes one task as part of the job
Positive:
Allows for mass production (productivity greatly increases)
Allows for specialization (concentrate labor on one specific task)
Negative: workers no longer take pride in work and removes creativity

14. Compare The Idea of Making Shoes
He may never work on shoes!

15. Frederick Winslow Taylor “Father of Scientific Management”
Organized and systemized factories
How fast should the line move?
Goal: to get workers to produce more in less time

16. Industrial Revolution
Business Leaders
Business Practices
Business Regulations
Today’s LEQ: Why might the rise of
industry be good or bad for the U.S.?

17. The Rise of Corporations
Small business owners didn’t have all the capital they needed to expand and formed corporations
Recognized as legal entity separate from its owners (can own property, borrow money, sue, or be sued)
People invest in a corporation by buying stock (shares of a company); the more shares a person buys the more of the company they own

18. Corporations Cont’d
Corporations competed for business – this benefited the consumer!
Lower prices, more variety, better quality
Cut throat competition! Business owners devise plans to get rid of their competitors

19. Getting Rid of the Competition
Monopoly – when one company buys out each of its competitors and dominates a particular industry
What if there were only 1 cell phone company?!
Trusts – multiple companies selling the same product agree to set their prices and split the profits evenly instead of competing with each other
What if all the cell phone companies agreed to charge you $1,000 a month for your cell phone?!
Cartels - a loose association of businesses in a similar agree to limit supply to drive up prices
What if Chevrolet controlled the steel industry, railroads, and oil companies?!

20. Big Business and Government
Trusts and monopolies put money and power in the hands of a few people
Industrial giants = “big business”
Corporations expanded in two ways:
Horizontal Integration – joining together as many firms from the same industry as possible
Vertical Integration – taking control of each step in the production and distribution of a product

21. Controlling the Market
Bob’s Pizza
Using Vertical Consolidation, Bob could control the Pizza market in town by controlling many of the costs associated with making his pizza!
Bob’s Trucking Company
Bob’s Cheese Factory Factory
Bob’s Farm

22. Controlling the Market
Bob’s Pizza
Delaware
Pizza
Happy Time
Pizza
Pizza Pizza
Using Horizontal Consolidation, Bob could control the Pizza market in town by buying the other Pizza shops!
Bob’s Pizza
Bob’s Pizza
Bob’s Pizza
Bob’s Pizza

23. Governments Leave Businesses Alone
By the 1800s, many Americans realized that big business was limiting competition
Caused prices to rise (helped producers; hurt consumers)
Politicians favored a policy of laissez-faire (French for “allow to do” or leave it alone)– the market, through supply and demand, would regulate itself if government didn’t interfere

24. WAKE UP!!!!!
YOU! Put your head up!

25. Social Darwinism
Another influential idea at the time was Social Darwinism – “survival of the fittest”
The best-run businesses led by the most capable people would survive and prosper
Held the idea that government should leave businesses alone to succeed or fail on their own
Monopolies, cartels, and trusts all exemplified the practice of Social Darwinism

26. Government Takes Some Action to Limit Business
Public concern provokes response from the federal government
Congress passed the Sherman Antitrust Act in 1890 – outlawed trusts, monopolies, and other forms of business that restricted trade

27. Two Types of Business Owners
Captains of Industry Or Robber Baron

28. Stop whining… We’re almost done!

29. Captains of Industry
Practiced Social Darwinism to an extent but:
They increased the supply of goods by building factories.
They raised productivity and expanded markets, further lowering prices
They created jobs at decent wages and in safe factories that enabled many Americans to buy new goods and raise their standard of living.
They also funded museums, libraries, and universities, many of which still serve the public today.

30. Robber Barons
Business leaders who made their fortunes by taking advantage of the public
They drained natural resources and charged high prices
They persuaded public officials to interpret laws in their favor.
They ruthlessly drove their competitors to ruin.
They paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions.