Transcript Industrialization

Unit 2
Questions:
1. How did you feel after the “assembly line” activity?
2. What problems do you foresee when it comes to
Industrialization
3. Which invention did you research?
4. Which invention do you think had a greater impact
on the people of its time, the internet or
electricity?
U.S. Economy
Capitalism: economic system in which capital assets
are privately owned
• goods and services are produced for profit in a market
economy
Other type of Economy
Socialism: is an economic system characterized by
social ownership of the means of production and cooperative management of the economy.
Objectives 1 and 2:
1. How did Industrialization affect our nation positively and
negatively?
2. Identify and describe the key capitalist and industrialist and
their impact on American Society
America Industrialized because…
1. Abundance of natural resources
• Coal, iron, timber, petroleum and waterpower
2. Abundance of Labor
• Immigration increased population
• Workers of all ages
3. Investors invested large amounts of capital ($)
• Monopolies
4. Government promotes economic growth
• No regulations like European countries
• Laissez-faire: hands off, no gov’t interference
Industrial Revolution
*Industrial growth was not inevitable- America worked
hard- but industrialization brought social benefits and
costs.
Major revolutions in transportation and
communication
• Railroad- most significant invention of the century!
Empire on the Rails- Vanderbilt Video
Advantages
1. Better than a ship• More direct routes, greater speed, greater
safety, dependable schedules, larger volume of
traffic, year round service
2. Tied the country together
• Independence and specialization
• Ex: Chicago-meat, Texas-cattle, Florida-fruit
3. Mass production and mass consumption
4. Paved the way for business development
• How to handle modern business
• Labor relations, government regulation,
management, etc.
Disadvantages of the Railroad
1. Corruption in business
• Competition and greed
2.J.P Morgan Saves the
Day!
• Redesigned and
managed railroads, and
took control of industry
Other industrial empires…
Andrew Carnegie & Steel
• Advances in Steel promoted changes
• Helped construction of longer bridges, taller buildings, stronger railroad
track, deadlier weapons, better plows, heavier machinery, and faster
ships.
• Bessemer Steel Process- steel produced quicker and cheaper
• Andrew Carnegie
• Immigrant from Scotland
• Manufactured more steel than all of Britain's factories combined
• 1 million tons a year, employed 20,000 workers
• Sold business to J.P Morgan
Brooklyn Bridge
Skyscrapers
Andrew Carnegie-Why was he so successful?
• Management practices
• Make products better—cheaply
• Vertical integration: buy out the suppliers
• Horizontal integration: buy out competing producers
Rockefeller and Oil -video
• Oil boom- “Black Gold”
• Edwin Drake drilled the first oil well
John D Rockefeller- built the Standard Oil
Company
• Developed system of “trusts” or monopolies
• Way to success = Join with competing
companies into trusts
Inventions That Changed Society
Christopher Sholes: typewriter (1867)
Alexander Graham Bell: telephone (1876)
Typewriter & Telephone
Created new jobs for women  Clerical
work (Secretary)
Inventions Promote Change
Electricity
• 1876- Thomas Edison: established 1st research lab & perfected incandescent
light bulb
Funded mainly by J.P.
Morgan, Jr.: business
mogul, banker
Industry Changes Society
• Nation of Consumers
• Millions of dollars spent in
advertising
• Impacted all Americans (rich, poor,
rural, urban, ethnic groups)
• Labor of millions of men and
women built the new industrial
society
• Pros and cons
Captains of Industry….or Robber
Barons??
Identify the key players during
Industrialization
How did they positively and
negatively affect our nation?
Vocabulary
• Monopoly - only supplier of a particular commodity(eliminates
competition)
• Trust- agreement between competing companies to take over market
through a board of trustees(group who ran separate companies as one)
• Robber Baron - cruel and ruthless businessmen who would stop at
nothing to achieve great wealth
• Captain of Industry - powerful industrialist who uses his wealth in a
positive way
• Anti-Trust - law that promotes or seeks to maintain market competition
by regulating anti-competitive conduct by companies
Andrew Carnegie
+Donated $ for Libraries
+Self made- American Dream
+Donated billions in today’s equivalent
-Crushed Labor Unions
-Slashed wages of workers
-Homestead Steel Strike-
JP Morgan
+Standardized companies
+Donated $ to research institutes and universities
+Saved the US economy multiple times
-Monopolies and intimidation
-manipulated ALL people for his own gain
(including President of US)
-Shady business
John D Rockefeller
+Made 1% of the US GDP to help economy
+Donated billions of dollars to colleges
+Revolutionized business practices
-Monopolies- eliminated competitors
-poor working conditions for workers
-”Cleveland Massacre”-
Cornelius Vanderbilt
+Standardized the Railroad
+Donated Ships in the Civil War
+Vanderbilt University
-Monopolies eliminated competition
-intimidated competitors with railroad blockades
-bribery and corruption in government
Henry Ford
+Ford company revolutionized Assembly Line
+Ford company revolutionized the automobile
+Set a new standard for employee treatment
-Monopolies
-Broke up labor unions
George Pullman
+Created the Pullman car…changed the luxury of travel
+Changed the atmosphere around which factories were
built
+Established towns throughout the country
-Obsessive control over this towns and workers
-Charged high rent to town’s residents
-Paid workers very little
Andrew Mellon
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Thomas Edison
+Established world’s 1 st research laboratory
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