Industrialization Unit 2
Questions: • How did you feel after the “assembly line” activity? • What problems do you foresee when it comes to Industrialization • Which invention did you research? • Which invention do you think had a greater impact on the people of its time, the internet or electricity?
U.S. Economy • Capitalism: economic system in which capital assets are privately owned • goods and services are produced for profit in a market economy
Other type of Economy • Socialism: is an economic system characterized by social ownership of the means of production and co-operative management of the economy.
Objectives 1 and 2: • How did Industrialization affect our nation positively and negatively? • Identify and describe the key capitalist and industrialist and their impact on American Society
America Industrialized because… • Abundance of natural resources • Coal, iron, timber, petroleum and waterpower • Abundance of Labor • Immigration increased population • Workers of all ages • Investors invested large amounts of capital ($) • Monopolies • Government promotes economic growth • No regulations like European countries • Laissez-faire: hands off, no gov’t interference
Industrial Revolution • *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!
Empire on the Rails- Vanderbilt Video • Advantages • Better than a ship- • More direct routes, greater speed, greater safety, dependable schedules, larger volume of traffic, year round service • Tied the country together • Independence and specialization • Ex: Chicago-meat, Texas-cattle, Florida-fruit • Mass production and mass consumption • Paved the way for business development • How to handle modern business • Labor relations, government regulation, management, etc.
Disadvantages of the Railroad • Corruption in business • Competition and greed • J.P Morgan Saves the Day! • Redesigned and managed railroads, and took control of industry Other industrial empires…
Andrew Carnegie & Steel • 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-Why was he so successful? • Management practices • Make products better—cheaply • Vertical integration: buy out the suppliers • Horizontal integration: buy out competing producers
Rockefeller and Oil -video • 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
Inventions That Changed Society • Christopher Sholes: typewriter (1867) • Alexander Graham Bell: telephone (1876) • Typewriter & Telephone • Created new jobs for women Clerical work (Secretary)
Inventions Promote Change • Electricity • 1876- Thomas Edison: established 1st research lab & perfected incandescent light bulb Funded mainly by J.P. Morgan, Jr.: business mogul, banker
Industry Changes Society • 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
Captains of Industry….or Robber Barons?? • Identify the key players during Industrialization • How did they positively and negatively affect our nation?
Vocabulary • 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
Andrew Carnegie • +Donated $ for Libraries • +Self made- American Dream • +Donated billions in today’s equivalent • -Crushed Labor Unions • -Slashed wages of workers • -Homestead Steel Strike-
JP Morgan • +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
John D Rockefeller • +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”-
Cornelius Vanderbilt • +Standardized the Railroad • +Donated Ships in the Civil War • +Vanderbilt University • -Monopolies eliminated competition • -intimidated competitors with railroad blockades • -bribery and corruption in government
Henry Ford • +Ford company revolutionized Assembly Line • +Ford company revolutionized the automobile • +Set a new standard for employee treatment • -Monopolies • -Broke up labor unions
George Pullman • +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
Andrew Mellon • + • + • + • - • - • -
Thomas Edison • +Established world’s 1st research laboratory • +