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Bellringer. Write these down and respond on a loose sheet of paper: What are the first three things that come to mind when you read the word “industry?” Come up with your own definition of the word “industry.”. The Rise of Industry in the late 1800s. Chapter 6, Section 1 August 30, 2010.
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Bellringer Write these down and respond on a loose sheet of paper: • What are the first three things that come to mind when you read the word “industry?” • Come up with your own definition of the word “industry.”
The Rise of Industry in the late 1800s Chapter 6, Section 1 August 30, 2010
Rise of Industrialism • In the late 1800s, many Americans move off of their farms and move into the city – a RURAL to URBAN migration • In the late 1800s and early 1900s, the U.S. goes from an AGRICULTURAL nation (one that primarily grows stuff) to a INDUSTRIAL nation (one that makes stuff). • GROSS NATIONAL PRODUCT (GNP), which is the total value of goods and services a country produces, increases 8x from the Civil War to WWI
Why the rise in Industry? • RESOURCES – The U.S. had many natural resources (which you need for industry). They could get them cheaply, and many were in the newly settled West. • In 1859, Edwin Drake drills for petroleum. People get serious about oil.
PEOPLE – Population triples (due to bigger families and immigrants), and people need jobs. They also need the goods that factories made.
FREE ENTERPRISE • Another thing that leads to rapid industrialization is America’s belief in the idea of the free enterprise system. It is embodied by the idea of LAISSEZ-FAIRE (meaning “let do” or “leave it alone”).
Laissez Faire capitalists wanted: • The government to keep taxes low and avoid regulating business. • This pro-business climate led to many ENTREPRENEURS – people who risk their capital (money and resources) to start a new business
Government Help • Even with this laissez-faire climate, the government looks to help business by placing TARIFFS (or taxes) on imported goods. • The MORRILL Tariff, passed after the Civil War, is an example. • The gov’t does this so that people will buy American goods instead of more expensive foreign goods. • This hurts many Americans, however, because they have trouble EXPORTING their goods to other countries.
NEW INVENTIONS • New inventions play a role in free enterprise as well.
WHO? Bell WHAT? Invents the first telephone WHEN? 1876 WHERE? Philadephia HOW? Transmits sound through an electrical current SO WHAT? Starts American Telephone and Telegraph (AT&T), and changes the way that people communicate with each other – thus helping the nation’s industrial growth. ALEXANDER GRAHAM BELL
WHO? Edison WHAT? Created the phonograph, the electric light bulb, and the first power plant WHEN? 1870s and 1880s Where? Menlo Park, NJ HOW? Builds a NYC power plant in 1882 that provides DIRECT CURRENT to homes and offices, allowing them to use electricity. SO WHAT? The invention of electric light revolutionizes factories, allowing industry to become more efficient. His companies are now known as General Electric (GE). THOMAS ALVA EDISON
George Westinghouse • Created a power plant that uses ALTERNATING CURRENT (AC) • While Edison’s direct current (DC) was revolutionary, it could not go very far. AC allowed power to be transmitted over long distances.
Large Corporations dominate the business world. • Some create monopolies. • A monopoly is where one business takes over an entire industry. • For instance- if I am making steel I am going to buy up all of the mines where the iron ore is found, then I’m going to buy the railroads that bring it to my factories.
Large Corporations dominate the business world. • Some create trusts • A trust is where one board manages a group of companies to more easily create a monopoly. • The trust will run my operation of buying up the mines and the railroads.
Leaders of these corporations were either loved or hated. Robber Barons Captains of Industry This was a label for corporate leaders that was positive. People believed they benefited American society because of their strong leadership and business skills. • This was a label for corporate leaders that was negative. • People believed they used ruthless business tactics to push out competitors.
Robber Baron v Captain of Industry Why call them Robber Barons? Why call them Captains of Industry? As businesses grow the economy grows and over time the standard of living improves inside the country. Many industrialists were also philanthropists (meaning they gave money to charity and tried to improve society). • When giant businesses create monopolies they can crush small businesses. • When no one is bigger than the monopoly they can make prices as high as they want and treat workers however they want.
The Men Who Built America • Andrew Carnegie • Rockefeller- Standard Oil • J.P. Morgan- Morgan Bank
Objective • Examine these primary source cartoons looking for clues about whether the characters are being portrayed as Robber Barons or Captains of Industry.baronsor captains of industry.
