Industrialization Causes of Industrialization Civil War encouraged production

Industrialization

Causes of Industrialization • Civil War – encouraged production, innovation, & expansion of RRs • Ample natural resources • Edwin Drake– 1 st oil well in Titusville, PA 1859 • Growing workforce – large numbers of immigrants from Europe willing to work for low wages • Migration from farms

• New technology & inventions • Capitalism -- innovative business practices • Railroads • Government policies • Laissez faire – minimal government regulation

Major Inventions of the 1800 s 1852 1880 1844 1883 1884

• Telegraph – Samuel Morse • Light bulb – Thomas Edison • Bessemer Process – makes a strong, lightweight steel • Safety elevator – Elisha Otis • Skyscrapers • Suspensions Bridges • Time zones • Used by railroads to regulate travel & set schedules

Rise of Big Business • • • Corporations Monopolies Cartels Horizontal integration Trusts Vertical integration • • • Debates Small businesses bought up or squeezed out of competition Consumers paid high prices Provided jobs Benefited the nation’s economy Business leaders were philanthropists.

Corporation A number of people share the ownership in a business. Investors lose what they originally invested. Each Mc. Donald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants.

Monopoly Complete control of a product or service

Cartel Businesses work together to control a product thus keeping prices high.

Trusts A group of separate companies that are placed under the control of a single managing board in order to form a monopoly. Companies assign their stock to an organization, paying themselves dividends on profits.

Horizontal Integration Consolidating many firms in the same business

Vertical Integraton Controlling many different businesses that make all phases of a products development Oil Wells Tank Cars/Railroads Retail Outlets Oil Company

Robber Barons or Captains of Industry �John D. Rockefeller – oil tycoon; started Standard Oil Company �Andrew Carnegie – steel tycoon �J. P. Morgan – banking tycoon Powerful businesses have unfair advantage – squeeze out small businesses; high prices set on products, capacity to swindle the poor Or Served the nation positively – provides jobs, efficient business practices, stimulates innovation; philanthropists

• Social Darwinism- natural selection, survival of the fittest; from Charles Darwin On the Origin of Species • Interstate Commerce Commission (ICC) Oversees Railroads, monitored business operations • Sherman Antitrust Act Outlawed trusts that operated in “in restraint of trade or commerce among several states. ”

long hours sweatshops dangerous work National Trades Union Workers Suffer Knights of Labor A Labor Movement Grows Pullman Strike Company Store Strikes Homestead Strike Haymarket Riot Labor Unions organize American Federation of Labor (AFL)