- Slides: 14
Please sit in your assigned seats and quietly follow the directions below: Copy the quote of the week: “If you want to succeed you should strike out new paths, rather than travel the worn paths of accepted success. ” –John D. Rockefeller Do you agree or disagree? Why?
USHC Standard 4: The student will demonstrate an understanding of the industrial development and the consequences of that development on society and politics during the second half of the nineteenth and the early twentieth centuries. USHC 4. 3: Evaluate the role of capitalism and its impact on democracy, including the ascent of new industries, the increasing availability of consumer goods and the rising standard of living, the role of entrepreneurs, the rise of business through monopoly and the influence of business ideologies.
MAIN IDEA: Capitalism has played a central role in the development of the United States and the American economy since the first settlers landed.
What is capitalism? • Capitalism is the economic system that is characterized by private ownership of property and the use of that property to make a profit for the individual or the corporation acting as an individual. • Capitalism supports the democratic ideal of individual freedom and opportunity
CORPORATION a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
Corporations in America: • Corporations promoted early industrialization before the Civil War by raising capital through the sale of stock to invest in large scale business ventures • In the post Civil War period, corporations became larger and more powerful through mergers and monopoly and had a greater influence on the economy, politics and government policy • Critics began to question the compatibility of large unfettered corporations and the rights of workers and consumers in a democracy
Corporations in America
How did the railroad affect American industry and economy? • New industries rose to prominence in the post Civil War period • The railroad was the economic engine that drove the economy • The establishment of several transcontinental routes helped to unite the country and promoted economic growth and the development of a national market
• The industry’s need for steel rails, wooden railroad ties and railroad cars and its ability to transport goods contributed to the growth of steel, the lumber, the meat packing, and the coal industries and many others • The railroad brought new settlers through aggressive advertising and land sales and provided farmers access to markets • New towns grew along its routes and older ones were able to specialize in particular products
MAIN IDEA: Capitalism led to competition. =
What kind of problems did competition cause? • Competition caused some railroads to be forced to merge with others to survive • When the cut-throat competition drove some railroad companies into bankruptcy the national economy was thrown into depression • Unrestricted competition led to economic uncertainty and periodic depressions and eventually to a public call for government regulation of monopolistic practices
• Concerns of the public over the political power of the monopolies later contributed to the Progressive Movement • Monopoly: exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices.
Concerns over monopolies vs. pro-business ideologies: • Public concerns over monopoly were offset by the popularity of pro-business ideologies • Captains of industry justified their sometime use of cut-throat practices with ideologies of Social Darwinism and laissez-faire capitalism • Social Darwinism: survival of the fittest • Laissez-faire: little to no government intervention in business
Response to America the Story of Us: Cities 1. How did the video illustrate the idea of the “rugged American spirit”? Explain. 2. How did steel lead to development of cities and skyscrapers? Explain. 3. Do you think America is better off because of industrial development, or would it have been more beneficial to remain largely agricultural? Explain your answer!!