1. ADVANTAGES that FACILITATED INDUSTRIALIZATION
WEALTH of NATURAL RESOURCES
TECHNOLOGICAL INNOVATIONS
GROWING POPULATION
EXTENSIVE RAILWAY NETWORK

2. WEALTH of NATURAL RESOURCES
COAL—Fuel for Steam Power
IRON ORE—Basic building material
OIL—Basic Fuel Source
GOLD—Growing Money Supply
A.  COAL—Provides cheap fuel for steam power
     i.  Steam power is new power source that makes operation of large machinery possible
B.  IRON ORE—Provides cheap basic building material
     i.  Steel for railroads, bridges, building frames, machinery
C.  OIL—Provides basic fuel source
     i.   Kerosene for lighting  Workday not restricted to daylight
     ii.  Gasoline for internal combustion engine
D. GOLD—Necessary for Growing Money Supply
    i.      Value of dollar tied to gold (ex. $20=1oz gold)
    ii.      Total money supply determined by supply of gold & silver
    iii.      Growing economy needs a growing money supply
1.if more stuff is produced (GNP) but amount $ in society stays same, prices must 
2.prices  profits  business failures  GNP (shrinking economy)
3.if prices & profits are to stay stable, money supply must grow with economy
     iv.      For money supply to grow, must have continuous increases in gold supply
     v.      Can only increase gold supply if there are natural reserves of gold to mine

3. TECHNOLOGICAL INNOVATIONS
OIL DRILL—Easier Access to Oil
BESSEMER PROCESS—Faster Steel
STEEL FRAME CONSTRUCTION—Better Infrastructure
ELECTRICITY—Transportable Power
TELEPHONE—Improved Communication
A. OIL DRILL—Access to more oil cheaper
B. BESSEMER PROCESS—Makes more steel faster & cheaper
    i.      1 days worth of steel could now be made in 15 minutes
C. STEEL FRAME CONSTRUCTION—Longer bridges, Taller buildings (better infrastructure, more usuable space)
D.  ELECTRICITY—Power source, Lighting (more productive time)
E.  TELEPHONE—Improved communicationmore complex organization possible over long distances (see map of long distance service)

4. GROWING POPULATION Needed for: Labor—People to Make things
Markets—People to Buy things
1870 (38 million) to 1920 (103 million)
Immigration = 20 million
A. Large population needed for labor supply and market for products
B. 1870 to 1920 population increased from 38 million to 103 million (200%)
C. IMMIGRATION (See map of % of population foreign born)
    i.      : 20 million immigrants
    ii.      Immigrants often willing to work for less than native workers (wages low=cost of production low=prices low)

5. EXTENSIVE RR NETWORK Facilitates Transportation of Goods
Growth Supported by Gov’t
Creates National Market
A.   US gov’t gives land grants & generous loans to RR companies
B.   1st Transcontinental RR completed 1869
C.   Creates a national market—many more consumers can be reached  fierce competition between formerly local monopolies, incentive for expansion of business