History Alive Pursuing American Ideals Industrialization Key Terms

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History Alive! Pursuing American Ideals Industrialization Key Terms The Age of Innovation and Industry:

History Alive! Pursuing American Ideals Industrialization Key Terms The Age of Innovation and Industry: The rise of corporations, heavy industry, mechanized farming and technological innovations transformed the American economy from an agrarian to an increasingly urban industrial society.

Capitalism/Capitalist • Definition: – An economic system in which factories, and other means of

Capitalism/Capitalist • Definition: – An economic system in which factories, and other means of production are privately owned rather than government controlled.

The Bessemer Process A method of converting iron to steel patented by Henry Bessemer

The Bessemer Process A method of converting iron to steel patented by Henry Bessemer • Involved blowing air through molten iron which removed it’s impurities • This made steel harder, stronger, and lighter than iron making it more preferred • This process also aloud steel to be produced more cheaply and quickly

Mechanized Farming • From the beginning of America until the IR, the U. S.

Mechanized Farming • From the beginning of America until the IR, the U. S. was an agrarian country using farm animals to do the work.

 • With the onset of the IR, even farming became heavily mechanized.

• With the onset of the IR, even farming became heavily mechanized.

Production Methods? Frederick Taylor: • Used scientific methods to analyze the production process •

Production Methods? Frederick Taylor: • Used scientific methods to analyze the production process • Time-and-motion studies • Determined the most efficient way to work quickly • Thus increasing productivity and profits

Industrial Growth Key Factors: Capital – any asset that can be used to produce

Industrial Growth Key Factors: Capital – any asset that can be used to produce an income including money, buildings, tools, and/or machinery

Industrial Growth Corporations – a company that exists independently from the owners (investors) •

Industrial Growth Corporations – a company that exists independently from the owners (investors) • Corporations would become known as “Big Business” • Unlike traditional businesses, big businesses were reasonable to their investors and driven by profit

Reducing Competition Monopoly – Company that completely dominates a particular industry (Standard Oil) Trusts

Reducing Competition Monopoly – Company that completely dominates a particular industry (Standard Oil) Trusts – Set of companies managed by a small group to prevent them from competing with one another

Horizontal Integration • Definition: – A corporate expansion strategy. – Involves joining together as

Horizontal Integration • Definition: – A corporate expansion strategy. – Involves joining together as many firms from the same industry as possible. John D. Rockefeller’s Standard Oil

Vertical Integration • Definition: – Corporate expansion strategy – Control of each step in

Vertical Integration • Definition: – Corporate expansion strategy – Control of each step in the production and distribution of a product. • Acquiring raw materials to manufacturing, packaging, and shipping.

Laissez-Faire • Definition: – The idea that the free market, through supply and demand,

Laissez-Faire • Definition: – The idea that the free market, through supply and demand, will regulate itself if government does not interfere.

America in the Gilded Age 1. To cover with or as if with a

America in the Gilded Age 1. To cover with or as if with a thin layer of gold. 2. To give an often deceptively attractive or improved appearance to

What is a Captain of Industry? ! A business leader whose way of achieving

What is a Captain of Industry? ! A business leader whose way of achieving personal fortune contributes positively to the country in some way. Providin g Jobs This can be through: on i t c u d o r P g n i s Increa Philanthropy

What is a Philanthropist? ! Someone who makes large charitable donations ($$) to improve

What is a Philanthropist? ! Someone who makes large charitable donations ($$) to improve the well-being of others. This is often to: Schools/ Universities ne i c i d e M / s Hospital Libraries

What is a Robber Baron? ! A business man who dominated their industry and

What is a Robber Baron? ! A business man who dominated their industry and made huge fortunes through unfair business practices. This was done by: f o l l a g n i Hold y n a p m o c eir h t n i r e the pow Sometimes used illegal b usiness practices Eliminating smaller/weaker businesses

Andrew Carnegie: • Controlled the steel Industry • Brought the Bessemer Process from England

Andrew Carnegie: • Controlled the steel Industry • Brought the Bessemer Process from England -Made it easy and cheap to make large amounts of steel by refining iron. -Steel production increased 500 times 1867 -1900

Andrew Carnegie: • Used vertical integration to be successful. Vertical Integration = Owning all

Andrew Carnegie: • Used vertical integration to be successful. Vertical Integration = Owning all aspects of production for a certain product. As a result the owner makes all the profit (money) • Was a Philanthropist who gave money to libraries.

John D. Rockefeller • Owned the Standard Oil Trust • Had a reputation as

John D. Rockefeller • Owned the Standard Oil Trust • Had a reputation as a Robber Baron

John D. Rockefeller • Tried to control all businesses in the oil industry •

John D. Rockefeller • Tried to control all businesses in the oil industry • Gave away more than $500 million during his lifetime

Cornelius Vanderbilt • Built a huge railroad empire through ruthless business tactics, • Had

Cornelius Vanderbilt • Built a huge railroad empire through ruthless business tactics, • Had a reputation as a robber baron

Cornelius Vanderbilt • Left $1 million to Vanderbilt University after his death. • He

Cornelius Vanderbilt • Left $1 million to Vanderbilt University after his death. • He is the 2 nd wealthiest person in U. S. History