1. What does “laissez faire” mean in your own words?
On p. 3 of your composition book write the following questions and an answer:
What does “laissez faire” mean in your own words?
Why did the free enterprise system lead to so many new inventions during the Gilded Age?

2. Big Business And Railroads
The Gilded Age Pt 2
Big Business And Railroads

3. Industrialization Definition of Industrialization:
an economy based on manufacturing and production instead of agriculture (farming)
growth of factories
Large increase of industrialization during the Gilded Age (late 1800s)
Industry- a specific area of business
usually related to factories/ manufacturing

4. Why did Industrialization occur so rapidly during the Gilded Age?
There was government support for big businesses- no regulation/rules
Industrialization led to the development of Big Businesses
Banking, RR, steel, oil, and electricity = largest industries
Monopolies and trusts emerged
Monopoly- one company controlling all of an industry
Trust- a few companies control all of an industry
Ex: if ATT was the only cell phone company
Industrialization
New transportation (RR)
New technology/ inventions (electricity)
Cheap labor sources (immigrants)
Free enterprise/ Laissez faire
Industrialization

5. What are the pros and cons of Big Business?
Pros of Big Businesses
Cons of Big Businesses
Provide jobs
Abuse of workers (bad pay, poor conditions)
cheaper goods
pollution
faster production
abuse of power/influence politicians
money to spend on developing new technology
overtake small businesses
Pros of Big Businesses
Cons of Big Businesses

6. Management Two ways to create big businesses Vertical integration
Controlling all phases of production that make up a product
Horizontal integration
Combining many companies into one large company (monopoly)

7. Captains Of Industry Rich men of the time (because of free enterprise)
Called 2 different names by different people
Captains of Industry- good for the country.
Provided jobs, helped economy, did good OR
“Robber Barons”- made profits off of underprivileged.
Didn’t pay people enough, took advantage, overcharged
Why can business leaders be referred to as both “robber barons” and “captains of industry?”

8. John Rockefeller
Andrew Carnegie
JP Morgan
Cornelius Vanderbilt

9. Growth of Railroads Led to rapid industrialization during Gilded Age
Railroad lines built in industrialized North; later extended west and south
Building them cost a lot of $$; needed better/new engineering, and massive labor
Mostly built by Irish (east) and Chinese (west) immigrants

10. Growth of Railroads
Led to faster and cheaper distribution of goods- created a national market
Totally changed the way trade happened
Government gave railroad companies land grants- free pieces of land- to build railroads on
Railroad companies used the land they needed, then sold the rest for profits
But led to widespread corruption- normal during Gilded Age

13. Compare the location of Railroads in 1860 and 1890
Compare the location of Railroads in 1860 and Where did the railroads expand?
How did the expansion affect the location and growth of U.S. cities?

14. How did the growth of railroads promote the growth of cities and trade?
How did the growth of railroads effect everyday lives of farmers? Big Business owners?

15. Describe what is going on in this political cartoon.
What does this cartoon say about the power Cornelius Vanderbilt had over the railroads?
How do you think people reacted to his power?

16. Industrialization
The ruins of Richmond, Virginia, after the Civil War, January 1865

17. Industrialization
Thomas Edison’s light bulb was one of many innovations that dramatically changed the daily lives of Americans. By 1910, many people had electricity and refrigeration in their homes.
Compare the pictures. These illustrate a typical US city during its time.
1. What is the difference in US cities from 1865 to 1900?
2. How would the differences effect transportation and communication?

18. STAAR PRactice

19. STAAR PRactice
Think back to Gilded Age Pt. 1 notes… What role does government have in a free enterprise system?
In what ways did the government support big businesses during the Gilded Age?

20. Big Idea
What is industrialization? What factors led to the rapid industrialization during the Gilded Age?
How did the railroads both benefit from and contribute to the industrialization of the United States?