1. THE RISE OF INDUSTRY

2. Vocabulary Gross National Product (GNP): total value of all goods and services produced by a country Laissez-faire: policy that government should interfere as little as possible in the nation’s economy Entrepreneur: one who organizes, manages, and assumes the risks of a business or enterprise Starts their own business

3. The US Industrializes By the start of the Industrial Revolution in the 1800s, many areas of the US was still farming country Out of 30 million people, 1.3 million Americans worked in industry by 1860 After the Civil War, many Americans left their farms to work in mines and factories By the early 1900s, Americans had transformed the US into the world’s leading industrial nation The nation’s GNP was eight times greater than it had been before the Civil War

4. Natural Resources The United States had an abundance of natural resources or raw materials Water Timber Coal Iron Copper American companies could obtain them cheaply and did not have to import them

5. A Newly Abundant Resource A new resource was found in the US: Petroleum Could be turned into Kerosene American industry was built around petroleum Was found in Western Pennsylvania First oil well was drilled in Titusville, Pa Fueled economic expansion

6. A Growing Workforce Having human resources were just as important as natural resources Between 1860 and 1910, the population of the US tripled Population grew because: Large migration Conditions in China and Europe led people to people to leave their nations and travel to the US Opportunity US was in need of workers with the growing industries

8. Free Enterprise Free enterprise allowed the US to industrialize rapidly Americans embraced the idea of laissez-faire Supporters: believed the government should not interfere in the economy other than to protect privacy rights and maintain peace Believed if the government was involved it would increase cost and hurt society

9. Idea of Laissez-faire Relies on supply and demand rather than government regulation Idea of that a free market allows competing companies which creates more wealth Attracted entrepreneurs More businesses brought more industry

10. Government’s Role in Industry State and federal governments kept taxes and spending low and did not impose regulations Did not try to control wages and prices Adopted policies that helped industries

11. The US and Laissez-faire US created the largest growing industry in the world making it successful Constitution bans states from imposing tariffs and little regulation against goods crossing the country Practiced free trade in labor Allowed the large influx of immigration

12. US Against Laissez-faire High tariffs contradicted laissez-faire ideas and hurt many Americans US raised tariffs on imported goods and in return countries raised tariffs on American goods Farmers were hurt the worse

13. Necessary Measures Business leaders and Congress members believed the tariffs were necessary Western Europe was already industrialized and many wanted American companies to be able to compete Tariffs were put in place to make them more competitive Wanted Americans to buy American goods

14. Inventions Lead the Way Important inventions emerged during the Industrial Revolution that helped increase the nation’s productivity Increased productive capacity Improved the network of transportation and communication New inventions led to new corporations Increased wealth and jobs