Industrialization Industrialization Natural Resources • Abundance of water oil

							Industrialization
            Natural Resources
• Abundance of water, oil, timber, coal, iron and
  copper in the U.S. made it cheaper for
  Americans to produce goods!
        NO NEED TO IMPORT GOODS!
           Large Work Force
• Immigration increases
• Between 1860-1910 U.S. population tripled
• Demand for products increases!
                Laissez-faire
• Little government intervention in the U.S.
  economy
• Government places few regulations on
  business in order to keep costs low and
  increase consumer spending
              Entrepreneur
• People who risk their own money in
  organizing and running a business
           They start their business!
              New Inventions!!
• Thomas Alva Edison          • Alexander Graham Bell
                                  -Telephone
  – Incandescent light bulb
  – Phonograph
  – Motion picture
  – Batteries
  – Electric generator
                   The Railroads
• Transcontinental RR – 1869
  - Union Pacific (Greenville Dodge):
       Started from Omaha, NB and
  headed west.
       Employed 10,000 workers (Civil
  War veterans, and Irish immigrants)
  - Central Pacific (Big 4):
       Started in San Francisco and
  headed east.
       Employed 10,000 Chinese
  immigrants
                       RR Cont.




• Time Zones
   – To make rail service safer and more reliable the
     American Railway Assn. (ARA) divided the country into
     time zones
                    RR Cont.
• Land Grant System – Building the rails
  required money
  – To encourage railroad construction the
    government issued land grants to many railroad
    companies.
  – Railroads would then sell the land to settlers, real
    estate companies and other businesses to raise
    money
             Cornelius Vanderbilt
•   Railroad Tycoon
•   Purchased and merge 3 short railroads in New York
•   Created first rail service from NYC to Chicago
•   Constructed NYC’s Grand Central Station
Rise of Big Business
         • Corporations made big
           business possible
         • Stockholders – owners
           of corp.
         • Economies of scale –
           producing more at a
           cheap price by using
           efficient means of
           production
               Corporations
• Could produce goods more cheaply and
  efficiently
• Led to corruption
• Pools: when competing companies come
  together and agree to maintain prices at a
  certain level.
• By the 1870s, competition had reduced many
  industries to a few large and highly efficient
  corporations.
             Corporations Cont.
• Vertical vs. Horizontal Integration
   – Vertical: When a company owns all other businesses
     down the production line.
     Ex.: Ace Meat Industries – own the cattle,
     slaughterhouses, refrigerated railroad cars, cooled
     warehouses, meat packing plants, and delivery
     wagons.
   - Horizontal (Diversification) : When a company owns
     similar businesses.
   Ex.: Anheizer Busch – owns many different beers and
     amusement parks.
                Andrew Carnegie
• U.S. Steel – Bessemer Process (cheap way of
  producing steel)
• Headquartered in Pittsburgh, PA
• Vertical Integration

                   U.S. Steel
 Limestone     Coal mines   Iron ore fields   Steel Factories
 quarries

             FINAL PRODUCT STEEL!!!
                John D. Rockefeller
 • Standard Oil
 • Horizontal Integration


Oil Company A      Oil Company B   Oil Company C




                   Standard Oil
Robber Barron Name Sakes




 Carnegie Hall - NYC




                          Rockefeller Center - NYC




                       Vanderbilt University