Chapter 20.1AMERICA ENTERS THE INDUSTRIAL AGE
Industrial Revolution – Transition to new manufacturing processes. For example: Hand production to machine production.
VOCABULARY
Patent – Government document giving an inventor the exclusive right to make and sell an invention
Corporation – A business owned by investors who buy part of it through shares of stock
Shareholder – An investor who buys part of a company through shares of stock
Monopoly – Business that gains control of an industry by eliminating other competitors
Business Cycle – The pattern of good and bad economic times
Depression – A period of low economic activity
Gilded Age – Late 1800’s era of great wealth
How did industry and new inventions change society?
During the Industrial Revolution many moved from rural areas to cities to find work.
Urbanization – growth of cities. Skyscrapers- use of steel, accommodate LARGE # of people
Electric Elevator by Otis Elevator company 1889
INDUSTRIALIZATION CHANGES CITIES
Growing Population 1860-1900 population more than doubled
Natural Resources Forests, water, coal, iron, copper, silver
Government Support Land grants, subsidies and tariffs to help businesses
growImproved transportation
Steamboats, canals, railroads-ship more farther+quickerNew Inventions
More goods more efficiently Investment Capital
Banks + wealthy people lent businesses money
CAUSES OF THE INDUSTRIAL REVOLUTION
Homestead Act1862 law that offered 160 acres free to anyone who agreed to live on and improve the land for 5 years
Promontory, Utah: Transcontinental railroad officially completed here
HOW DID THE GOVERNMENT GET PEOPLE TO MOVE WEST?
What inequalities emerged in the late 19 th century?1890 – 11 out of 12 million people living in
poverty. Tenements- run down overcrowded apartment
houses. Leads to disease and poverty Slums- no running water, no garbage pick up
etc. Became know as: The Gilded Age – “rags to riches” stories.
Mark Twain named “Gilded Age” because of wealth masking poverty and corrupt politics. Pg 636
PROBLEMS WITH URBANIZATION
Rockefeller and Oil Industry: thought best way to make $ was to put competition out of business . Rockefeller became known as a
robber baron –a business leader who uses dishonest methods to grow rich
Carnegie tried to beat his competition by making the cheapest and best steel : Sold his steel company to
J.P. Morgan (Nations Top Banker) in 1901 for 480 million dollars.
Carnegie and Rockefeller became philanthropists, or people who give large sums of money to charities.
Joseph Pulitzer and William Hearst- Newspaper publishers
CAPTAINS OF INDUSTRY
Cornelius Vanderbilt - Railroad J.P. Morgan - Banker
John D. Rockefeller - Oil
Andrew Carnegie - Steel