INDUSTRIALIZATION US History Objectives Discuss the rise of

INDUSTRIALIZATION US History Objectives: **Discuss the rise of the Progressive Movement **Detail the rise of President Teddy Roosevelt SOL – VUS. 8 Timeline – 1870 s -1920 s

Twas a time of Inventions and Innovations � � Business and Industry grew rapidly after the Civil War New inventions reinforce economic development

#1 Bessemer Steel Process � � Henry Bessemer invents a process for making high-quality steel efficiently and cheaply. Partners with Andrew Carnegie – open a steel company in Pittsburgh in 1875

#2 Thomas Edison � � The Wizard of Menlo Park Invented the Phonograph in 1877 Perfected the light bulb in 1879 Over 1000 patents and inventions

#3 Alexander Graham Bell � � Invented the telephone in 1876 Creates first phone company – Bell Telephone � Today it is AT&T

#4 Wright Brothers � First successful powered flight at Kitty Hawk, NC in 1903

#5 Henry Ford � � � Inventor of the assembly line in 1913 Divides operations into simple tasks Reduces time of making cars from 12 hours to 93 minutes

#6 Corporate America � � Goal = monopoly – control all aspects of industry Limited Liability – limits a shareholders risk to only the original investment and is not liable for the debts of the company.

Reasons for Economic Transformation #1 Laissez-Faire Capitalism � Favors Business � low to no taxes � low to no Gov’t regulation

#2 Increasing labor supply � � Millions of immigrants Rural migration to the city

#3 Natural Resources � � � Coal Iron Timber Water Copper

The Trusts / Monopolies One company allows another company to “manage” their business (sneaky way around anti-monopoly laws) � Vertical Integration � Horizontal Integration �

The Gilded Age (1870 s-1900 s) � Industrialization creates a huge gap between the rich Robber Barons & everyone else ( the 1% and the 99%) Rich Poor

The Robber Barons #1 – Andrew Carnegie (1835 -1919) � � � Owned 80% of US steel Teamed w/ Bessemer to make steel Vertical Integration – owned all the businesses which depend on the operation.

The Robber Barons #2 – John D. Rockefeller (1839 -1937) � � Owned 90% of US oil - Standard Oil Horizontal Integration – combined similar businesses into one large corporation

The Robber Barons #3 – Cornelius Vanderbilt (1794 -1877) � Controlled East USA railroads

The Robber Barons #4 - J. P. Morgan (1813 -1917) Major player in US banking, steel, and RRs (J. P. Morgan & Company) � Richest man in the world (estimated worth in today’s money = $1. 3 billion dollars) �