Industrialization is……..

1. Industrialization is……..

2. The large scale introduction of manufacturing, advanced technical enterprises, and other productive economic activity into an area, society, or country

3. The Rise of Industry

4. The industrial revolution began in the early 1800s in the United States • By the time of the Civil War the United States still largely an agricultural nation • A population of 30 million, 1.3 million worked in industry in 1860 • Post-Civil War industrial expansion took place • Millions left the farms to work in the mines or factories

5. Gross National Product

6. By the early 1900s the United States turned into the leading manufacturing nation in the world • 1914 the GNP was eight times greater than at the end of the Civil War • GNP= the total dollar value of all finished goods and services in a one year period

7. Natural Resources

8. Industrial development dependent upon raw materials • US, vast quantities of water, timber, coal, iron, and copper • US did not have to import raw materials • Industry could obtain raw materials cheaply in the US • Many resources located in the mountains of the West

9. Settlement of the West after the Civil War fed industrial growth • The construction of the transcontinental railroad brought settlers and miners to the West and transported raw materials back East

10. The Oil Industry

11. Petroleum became an important natural resource • It was refined into kerosene • Kerosene was used in lanterns and stoves • The US oil industry was built on processing oil into kerosene • The oil industry began in western Pennsylvania

12. Edwin Drake

13. 1859, Edwin Drake drilled the first oil well near Titusville, Pa. • By 1900 there were oil wells from Pennsylvania to Texas • Oil production increased and fueled economic expansion

14. Large Workforce

15. The abundance of human resources enable rapid industrial growth • 1860-1910, the population of the US almost tripled • Growth of population = large workforce for industry and demand for consumer goods that the factories produced • Population growth due to: large families and immigration

16. Industrial growth in the US occurred when social and economic conditions in China and Eastern Europe were bad • People left to come to the US • 1870-1910, 20 million immigrants • Added to the growing workforce, factories increased production and the demand for industrial products grew

17. Free Enterprise/Laissez-faire

18. The free enterprise system allowed for industrial growth • Government had a laissez-faire attitude towards business (hands off) • No government interference in the economy, just protect private property rights and maintain peace • Government interference in the economy would increase costs and hurt society more than it helped

19. Under laissez-faire supply and demand regulated prices and wages not the government • Free markets with competition increased efficiency = more wealth for all • Low taxes, individuals decided how the wealth of the nation was spent not the government • Limited government debt, left more money for individuals to borrow for their own use

20. Profit motive, attracted individuals with the ability and ambition into business • Entrepreneurs who risked capital in exchange for profit • Late 1800s the ability to profit caused entrepreneurs to venture into manufacturing and transportation industries • New England savings, from trade, whaling, textile mills and shoe manufacturing was used to build hundreds of factories and thousands of miles of railroad track

21. Private capital from Europe, especially Great Britain was invested in the United States

22. The Government Role

23. The United States government practiced laissez-faire economic policy in the late 1800s • State and federal governments kept taxes and spending low • Had very few cost adding regulations • Northern leaders wanted a high tariff to protect American industry • The federal government subsidized companies for building roads, canals, and railroads to the West

24. Southern leaders opposed the subsidies for internal improvements • They wanted lower tariffs to promote trade and keep the cost of imports down • The Civil War ended the tariff debate, the South seceded, the Republicans in control of Congress passed the Morrill Tariff; which increased tariffs, by the end of the Civil War tariffs had almost tripled

25. Congress gave Western land tracts, $65 million in loans to Western railroads • Sold public lands with mineral resources for less than market value • Laissez-faire did not agree with tariffs and subsidies which protected inefficient producers • Industrial growth so great in the 1800s in America because it was one of the largest free trade areas in the world

26. Europe; many nations each with its own tariff • Constitution forbids states from imposing tariffs • Very few regulations to slow the movement of goods across the nation • Free trade in labor, few restrictions on immigration • US increased tariffs, other nations raised tariffs on American products

27. This hurt US businesses selling in Europe • Hurt farmers, problems farmers encountered may have fueled industrial growth as many left the farm to take factory jobs • Many business leaders and members of Congress felt the tariffs were necessary • Western Europe already industrialized, afraid US industry could not compete without a protective tariff

28. 1900s US industry competitive, business leaders pushed for free trade, could successfully compete in the international market

29. Invention and Innovation

30. Invention; a new product or process • Innovation; an improvement of a product or process

31. Alexander Graham Bell

32. 1874 Alexander Graham Bell was working on the use of electrical current of varying intensity to transmit sound • 1876 successfully transmitted his voice • The invention revolutionized business and personal communication • 1877 organized Bell Telephone Company, later became AT&T

33. Thomas Alva Edison

34. Thomas Edison worked to invent new products and improve devices invented by others • Edison had a research lab at Menlo Park, NJ • The lab was staffed by skilled assistants • 1877 invented first phonograph • 1879 invented the light bulb and the electric generator

35. His lab invented or improved the battery, Dictaphone, and motion pictures • 1882 Edison Electric Illuminating Company was founded to supply electric power to customers in New York City • 1889 several Edison companies merged to form Edison General Electric Company, known as GE today

36. George Westinghouse

37. Entrepreneur and inventor • First invented the air brake for railroad cars • Allowed for longer trains that carried heavier loads

38. Thaddeus Lowe

39. after the Civil War Thaddeus Lowe invented the ice machine • The basis of refrigerator in the early 1870s

40. Gustavus Swift

41. Guatavus Swift hired an engineer to develop a refrigerated railroad car • 1877 Swift shipped meat by refrigerated rail car • Food kept fresher longer and reduced the risk of food poisoning

42. Textile Industry

43. Mid 1800s the Northrop automatic loom allowed cloth to be manufactured at a faster rate • Bobbins that had been changed by hand now were changed automatically without stopping the loom • The clothing industry moved to standardized sizes

44. The Civil War and the Clothing Industry

45. Measurements made of Union soldiers during the Civil War were used to manufacture ready-made clothes • Power driven sewing machines and cloth cutters moved the clothing industry from small tailor shops to large factories

46. Issac Singer

47. Issac Singer, a inventor, actor, and entrepreneur • The founder of Singer Sewing Machine Company • Singer made improvements to existing sewing machines • Singer sewing machines were popular due to ease of use, the adaptability to home use and purchase on installment plans

48. Shoemaking

49. New inventions and processes increased shoe production • Large factories mass produced shoes less expensively and more efficiently than local cobblers, able to pass savings along to the consumer • By the 1900s local shoe cobblers all but disappeared

50. Mass Production