Industrialization The Consequences How industrialization affects America socially
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Industrialization: The Consequences How industrialization affects America socially and economically
Economic consequences of industrialization • Industrialization followed technological advancements such as: • Steamship • Railroads (1830) • Telegraph • The extension (expansion) of the railroad infrastructure (system) changed the way producers accessed (came into contact with) consumers • New business models were established to facilitate (make easier) management of cross country businesses • Industrialization led to big business which led to robber barons • People like John D. Rockefeller, Andrew Carnegie, and Cornelius Vanderbilt • 19 th century capitalists who were believed to have acquired their wealth through exploitation and ruthlessness
Economic consequences of industrialization • Companies like Standard Oil (Rockefeller), New York Central Railroad (Vanderbilt), and the steel industry were corporations that eventually became monopolies and trusts • Monopoly = the only supplier for a particular industry; usually squeezed out competition • Horizontal and vertical integration • It became expensive to start a major company in the industrial age • The federal government decided that the best policy for promoting/ increasing America’s wealth was a policy known as lassiez-faire (“hands-off”) • Lack of government regulation or rules • Business leaders propose Social Darwinism, survival of the fittest
Social consequences of industrialization • Farming suffered and industry boomed • Formation of farming alliances and granges (farming co-operatives) • Railroads also led to the spread and increase of the population • Settlers Homestead Act (1862) conflict with Native Americans • Urbanization; more people moving to the cities • • Invention of the “department store” to accommodate many people and needs Language barriers 1 st skyscraper, Sears Tower in Chicago to accommodate populous cities (no land) suburbs • Socioeconomic hierarchy in America • 4000 millionaires living lavish lifestyles (“Gilded Age”) • Many farmers, settlers, and factory workers
Social consequences of industrialization • Interest in technology led to higher standard of education • Public schooling became prominent • North modernizes as the South remains stagnant • North • • • Big business Wealthy elite Education Populous diverse • South • Racism • Jim Crow
