Unit 2

Industrialization

1.How did you feel after the “assembly line” activity?

2.What problems do you foresee when it comes to Industrialization

3.Which invention did you research?

4.Which invention do you think had a greater impact on the people of its time, the internet or electricity?

Questions:

Capitalism: economic system in which capital assets are privately owned• goods and services are produced for profit in a market economy

U.S. Economy

Socialism: is an economic system characterized by social ownership of the means of production and co-operative management of the economy.

Other type of Economy

A New Industrial Age

1. How did Industrialization affect our nation positively and negatively?

2. Identify and describe the key capitalist and industrialist and their impact on American Society

Objectives 1 and 2:

1. Abundance of natural resources• Coal, iron, timber, petroleum and waterpower

2. Abundance of Labor • Immigration increased population • Workers of all ages

3. Investors invested large amounts of capital ($) • Monopolies

4. Government promotes economic growth• No regulations like European countries• Laissez-faire: hands off, no gov’t interference

America Industrialized because…

*Industrial growth was not inevitable- America worked hard- but industrialization brought social benefits and costs.

Major revolutions in transportation and communication

• Railroad- most significant invention of the century!

Industrial Revolution

Empire on the Rails- Vanderbilt Video

Advantages1.Better than a ship- • More direct routes, greater speed,

greater safety, dependable schedules, larger volume of traffic, year round service

2.Tied the country together• Independence and specialization • Ex: Chicago-meat, Texas-cattle,

Florida-fruit 3.Mass production and mass

consumption4.Paved the way for business

development• How to handle modern business• Labor relations, government

regulation, management, etc.

1.Corruption in business • Competition and

greed

2.J.P Morgan Saves the Day! • Redesigned and

managed railroads, and took control of industry

Disadvantages of the Railroad

Other industrial empires…

• Advances in Steel promoted changes • Helped construction of longer bridges, taller buildings, stronger

railroad track, deadlier weapons, better plows, heavier machinery, and faster ships. • Bessemer Steel Process- steel produced quicker and cheaper

• Andrew Carnegie• Immigrant from Scotland• Manufactured more steel than all of Britain's factories

combined• 1 million tons a year, employed 20,000 workers • Sold business to J.P Morgan

Andrew Carnegie & Steel

Brooklyn Bridge

Skyscrapers

•Management practices•Make products better—cheaply•Vertical integration: buy out the suppliers•Horizontal integration: buy out competing producers

Andrew Carnegie-Why was he so successful?

• Oil boom- “Black Gold” • Edwin Drake drilled the first oil well

John D Rockefeller- built the Standard Oil Company

• Developed system of “trusts” or monopolies

• Way to success = Join with competing companies into trusts

Rockefeller and Oil -video

Christopher Sholes: typewriter (1867)

Alexander Graham Bell: telephone (1876)

Inventions That Changed Society

Typewriter & TelephoneCreated new jobs for women Clerical work (Secretary)

Electricity• 1876- Thomas Edison: established 1st research lab &

perfected incandescent light bulb

Inventions Promote Change

Funded mainly by J.P. Morgan, Jr.: business mogul, banker

• Nation of Consumers• Millions of dollars spent in

advertising • Impacted all Americans (rich,

poor, rural, urban, ethnic groups)

• Labor of millions of men and women built the new industrial society• Pros and cons

Industry Changes Society

Identify the key players during Industrialization

How did they positively and negatively affect our nation?

Captains of Industry….or Robber Barons??

• Monopoly - only supplier of a particular commodity(eliminates competition)

• Trust- agreement between competing companies to take over market through a board of trustees(group who ran separate companies as one)

• Robber Baron - cruel and ruthless businessmen who would stop at nothing to achieve great wealth

• Captain of Industry - powerful industrialist who uses his wealth in a positive way

• Anti-Trust - law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies

Vocabulary

+Donated $ for Libraries

+Self made- American Dream

+Donated billions in today’s equivalent

-Crushed Labor Unions

-Slashed wages of workers

-Homestead Steel Strike-

Andrew Carnegie

+Standardized companies

+Donated $ to research institutes and universities

+Saved the US economy multiple times

-Monopolies and intimidation

-manipulated ALL people for his own gain (including President of US)

-Shady business

JP Morgan

+Made 1% of the US GDP to help economy

+Donated billions of dollars to colleges

+Revolutionized business practices

-Monopolies- eliminated competitors

-poor working conditions for workers

-”Cleveland Massacre”-

John D Rockefeller

+Standardized the Railroad

+Donated Ships in the Civil War

+Vanderbilt University

-Monopolies eliminated competition

-intimidated competitors with railroad blockades

-bribery and corruption in government

Cornelius Vanderbilt

+Ford company revolutionized Assembly Line

+Ford company revolutionized the automobile

+Set a new standard for employee treatment

-Monopolies

-Broke up labor unions

Henry Ford

+Created the Pullman car…changed the luxury of travel

+Changed the atmosphere around which factories were

built

+Established towns throughout the country

-Obsessive control over this towns and workers

-Charged high rent to town’s residents

-Paid workers very little

George Pullman

+

+

+

-

-

-

Andrew Mellon

+Established world’s 1st research laboratory

+

Thomas Edison