Warm Up:

1. Warm Up: Review for Quiz, Chapter Section 1

2. Quiz Clear Desk No talking

3. Chapter 5 Section 2 The Second Industrial Revolution

4. Oil Boom • First commercial oil well discovered in Pennsylvania in 1859 - Pennzoil • Oil prospectors (wildcatters) began to search for oil • Discovery of oil near Beaumont TX in 1901 began oil boom • Oil refined into kerosene, gasoline, petroleum products • began revolution in transportation and industry

5. Steel • Bessemer Process made steel production cheaper and easier American Steel Production • The U.S. became the world’s top producer of steel

6. Steel • Steel helped transform the U.S. into a modern industrial economy Uses of steel: • Locomotives • Rails • Bridges • Skyscrapers • Factories used steel machinery to make goods faster

7. Railroads • 1865-1890 number of miles of railroad tracks increased 5x - Cheap steel - Federal land grants

8. Railroads • Transcontinental Railroad completed in 1869 • Union Pacific laid tracks eastward from Omaha • Central Pacific laid track westward from Sacramento • Met in Promontory Summit in Utah • Cut travel time across country from months to days

9. Railroads Effects of the Railroads • The railroads promoted trade • created jobs, • helped western settlement. • Railroads also led to the adoption of a standard time, • rail schedules could not accurately depend on the sun’s position, • USA divided into four time zones

11. Warm Up: Create a list of important business people & entrepreneurs. What business did they make their money in?

12. The Rise of Big Business Factors behind the rise of big business • Entrepreneurs- risk takers who start new businesses • Capitalism- an economic system in which most businesses are privately owned • Laissez-Faire Capitalism - French for “leave alone”, refers to an economic system where companies operate without much government interference

13. A new form of business organization allowed businesses to grow Read: The Corporate World

14. New Business Organization Corporation • A business with the legal status of an individual • Owned by people who buy stock, (or shares), in the company • A Board of Directors makes the decisions • Corporate officers run the day to day operations • Corporations can raise money by selling stock • Stockholders can only lose the amount of money they invested in the business • Corporations can continue to exists after founders leave/die

15. New Business Organization Trust • A group of corporations who join together under the same leadership so they can control and industry. Monopoly • A company or trust that controls and entire industry • Can raise prices or lower quality at will

16. The Gilded Age • The period of economic expansion in the late 19th century marked by corporate leaders amassing staggering fortunes

17. Industrial Tycoons • To increase profits and grow businesses: Vertical integration • the combination of companies which are at different stages of the production process. Horizontal Integration • The combination of companies that are in the same business

19. Read: Industrial Tycoons • Captain of Industry- Business leaders who help business grow and gave away money to help others. • Robber Barons - forced many companies to go out of business and treated their workers poorly. • Summarize how the industrial tycoon made his fortune, and what he did with it. • Was he a captain of industry or a robber baron?

20. Inequality of Wealth • As tycoons like Rockefeller, Carnegie, Vanderbilt, and Morgan amassed large fortunes • Many industrial workers scraped by in $500 per year • By 1890, ten percent of the population held 75% of the nations wealth

21. Read Gospel of Wealth Answer Questions on a separate sheet of paper

22. Inequality of Wealth Social Darwinism • the belief that Charles Darwin’s ideas of natural selection also apply society. • Stronger people, businesses and nations would prosper • Weaker ones would fail

23. Do you think that the rich deserve to be rich, and the poor to be poor? • What are potential problems with economic inequality? • Do you think that the level of economic inequality that existed during the Gilded Age exists today?

26. Warm Up: In general, how would you characterize is the economy doing right now?

27. In the third quarter of 2010, corporate profits reached a record high • American businesses earned profits at an annual rate of $1.659 trillion

28. Who benefits when corporations have high profits?

30. Current US unemployment rate is 9.3%

32. How might stagnant wages and high unemployment effect workers?

35. How might high unemployment rate and stagnant finances impact government tax revenue?

37. How will declining tax revenue impact the Federal Budget?

38. Total Debt of the Federal Government $13,847,884,133,109.61 (As of Yesterday)

40. What are some ways that the government can solve these problems? Unequal Distribution of Wealth Declining Tax Revenue Record Debts and Deficits

41. Warm Up: If you have a lot of Christmas shopping to do, and very little time, what is the most effective means of getting it done? How do you know the best things to get people for gifts?

42. Mass Marketing • Retail merchants looked to maximize profits • New forms of marketing Brand names • Allowed mass produced goods to be marketed nationally

43. Brand Names

44. Mass Marketing Advertising • Goal to get consumers to consume a specific brand • Aimed at women • Ads in magazines

45. Advertising

46. Mass Marketing Department Stores • Sold many different types of products under one roof • Made shopping more convenient for consumers • Located in cities

47. Department Stores Macy’s in New York 1858 Lord and Taylor’s 1861

48. Mass Marketing Mail Order Catalogues • Allowed rural customers access to a variety of goods • Everything from shoes to houses

49. Sears Catalogue

50. Government Action • Government grew uneasy about power of corporations Sherman Anti-Trust Act (1890) • Made it illegal to form trust that interfered with free trade • Ineffective