4. The North railroad Improvements in railroad system Farms more heavily mechanized (using fewer workers to produce more crops) Region spared from fighting during war Transcontinental railroad opened new markets in the west Economic growth brought new immigrants to the region Many found employment in the industries of the North

5. The South Civil War ruined the economy and killed the plantation system Many farmers and planters sold off land to pay debts and start over Southern farmers returned to tobacco and cotton production NEW SOUTH – rebuilt railroads, new textile and steel mills and new industries (oil and coal production) Although, even with the changes, South still behind the North

8. Before the Civil War – single landowners and partnerships controlled most American business After the Civil War – mills and factories now needed great capital (money) for investment that one person or a few partners could raise.

10. CORPORATIONS Purpose Type To raise capital for expansion It is a business in which many investors own shares called stocks In exchange for their investment, each stockholder receives a dividend, or part of the corporation’s profits Limits investor losses If a corporation failed, investor only lost his or her investment Transportation Industries Railroads, urban transportation, automobiles) Building materials Steel Energy Coal, oil and electricity Communications Telegraph and telephone

12. What do you see? What do you think the cartoon is saying about these men?

13. MONOPOLY Purpose Company or small group of companies that has complete control over a particular field of business A monopoly often allowed a company to raise prices to almost any level it desired OUTCOME: federal legislation required

14. TRUST Purpose Type Group of corporations in the same or related fields agree to combine under a single board of trustees that control the actions of all the member corporations Shareholders in the corporations received dividends from the trust but lost any say in its operation Standard Oil Trust

15. Who were the industrial leaders? Andrew Carnegie – Steel J.P. Morgan – Finance John D. Rockefeller – Oil Cornelius Vanderbilt - Railroads

17. LAISSEZ-FAIRE Noninterference in business Government should not interfere with the economic workings of a nation FREE-ENTERPRISE SYTEM – private individuals make the economic decisions Government inference with business is minimal during this time

18. SOCIAL DARWINISM Laissez-faire capitalists found justification in their beliefs in Social Darwinism Based on Charles Darwin's theory of evolution Social Darwinists held that life was a struggle for the “survival of the fittest” Unregulated business competition would see weak businesses fail and healthy businesses thrive Government action would regulate business practices would interfere with the process of natural selection Also, any government programs to aid the poor or workers would also violate natural “laws”

19. ROBBER BARONS OR PHILANTHROPISTS? Those who gained their riches at the expense of the poor and the working class Lavish lifestyles of the wealthy at this time fed criticism Many spent freely to show off their wealth Public criticism and sense of social responsibility led the wealthy to use a part of their wealth to aid society.

22. Govt Policy towards Business industries foreign Expanding industries and growing foreign trade benefited US growth Government policies were designed to aid the growth of business Loansland Loans and land grants to large railroad companies were given High High tariffs that discouraged foreign competition circulation Tight limits on amount of money in circulation immigration = more workers Few limits on immigration = more workers

23. SHERMAN ANTITRUST ACT Why: competitionmonopolies Most corporations and trusts had eliminated most competition and set up monopolies Public Protest What it did: Prohibited monopolies. It prevented any business structure that “restrained trade” Outcome: holding trusts Corporations formed holding companies rather than trusts to get around the act

24. Clayton Anti-Trust Act Expanded the Sherman Anti-Trust Act It outlawed price-fixing Exempted unions from the Sherman Anti-Trust Act (will make sense next class)

26. URBAN AREAS Department stores –offered customers wide variety of goods RURAL AREAS mail-order catalogs – saved customers trip to the store NEW INVENTIONS Bessemer Process – made making steel easier and steel stronger Telephone – Alexander Graham Bell electric light bulb – Thomas Edison Airplane: Wright Brothers (1900s) Assembly Line manufacturing – Henry Ford