The Rise of Industry: Economic Growth, Railroads, and Big Business

1. Splash Screen

2. Chapter Introduction Section 1:The Rise of Industry Section 2:The Railroads Section 3:Big Business Section 4:Unions Visual Summary Chapter Menu

3. Did Industry Improve Society? Many factors promoted industrialization, including cheap labor, new inventions and technology, and plentiful raw materials. Railroads rapidly expanded, while government policies encouraged economic growth. • What changes in lifestyle do you think occurred because of industrialization? • How do you think industrialization changed American politics? Chapter Intro

4. Chapter Timeline

5. Chapter Timeline

6. The Rise of Industry What economic policies allowed industries to expand after the Civil War? Chapter Intro 1

7. The Railroads How did the railroads encourage the settlement of the Plains and the West? Chapter Intro 2

8. Big Business Why did captains of industry such as Andrew Carnegie expand their businesses through new ways of organization? Chapter Intro 3

9. Unions Why did workers form unions? Chapter Intro 4

10. Chapter Preview-End

11. Big Ideas Government and SocietyThe United States government adopted a policy of laissez-faire economics, allowing business to expand. Section 1-Main Idea

12. Content Vocabulary • gross national product • laissez-faire • entrepreneur Academic Vocabulary • resource • practice Section 1-Key Terms

13. People and Events to Identify • Edwin Drake • Alexander Graham Bell • Thomas Alva Edison • Morrill Tariff Section 1-Key Terms

14. A B Do you agree with the idea of laissez-fair economics or government? A. Agree B. Disagree Section 1-Polling Question

15. The United States Industrializes Natural resources and a large labor force allowed the United States to industrialize rapidly. Section 1

16. The United States Industrializes (cont.) • By the late 1800s, the United States was the world’s leading industrial nation. By 1914, the nation’s gross national productwas eight times greater than it had been in 1865 when the Civil War came to an end. • An abundance of raw materials was one reason for the nation’s industrial success. Section 1

17. The United States Industrializes (cont.) • At the same time, people began using petroleum. In 1859 Edwin Drake drilled the first oil well near Titusville, Pennsylvania. Natural Resource Sites of the United States, c.1890 Section 1

18. The United States Industrializes (cont.) • The human resources available to American industry were as important as natural resources in enabling the nation to industrialize rapidly. Population growth stemmed from two causes—large families and a flood of immigrants. Section 1

19. A B C D Where were many of the natural resources located? A.The Northeast B.The South C.The West D.The Southwest Section 1

20. New Inventions During the late 1800s, inventions such as the telephone and the lightbulb spurred economic development. Section 1

21. New Inventions (cont.) • In 1876 a Scottish immigrant named Alexander Graham Bell succeeded in creating the first telephone. • Thomas Alva Edison invented or improved the following: Phonograph Electric generator Lightbulb Motion picture Dictaphone Battery American Inventions, 1865–1895 Section 1

22. New Inventions (cont.) • Edison also supplied electric power to New York City. • George Westinghouse invented an air-brake system for railroads and an alternating current system to distribute electricity using transformers and generators. American Inventions, 1865–1895 Section 1

23. New Inventions (cont.) • Other inventions during the late 1800s: Ice machine Refrigerated railroad car Northrop automatic loom Power-driven sewing machine and cloth cutter Section 1

24. A B C D Who laid the first telegraph cable across the Atlantic Ocean? A.Thaddeus Lowe B.Nikola Tesla C.Thomas Watson D.Cyrus Field Section 1

25. Free Enterprise Laissez-faire economics promoted industrialization, but tariffs protected American companies from competition. Section 1

26. Free Enterprise (cont.) • Another important reason the United States was able to industrialize rapidly was its free enterprise system. In many ways, the U.S. practiced laissez-faireeconomics in the late 1800s. In other ways, the government went beyond laissez-faire and introduced policies intended to promote business. Section 1

27. Free Enterprise (cont.) • The profit motive attracted many entrepreneurs from New England and Europe. • After the Southern states seceded, the Republican-controlled Congress passed the Morrill Tariff, which greatly increased tariff rates. High tariffs contradicted laissez-faire ideas and hurt American companies trying to sell goods abroad. Section 1

28. Free Enterprise (cont.) Later, in the early 1900s, after American companies had become large and efficient, business leaders began to push for free trade. Section 1

29. A B Which part of the country supported low tariffs to promote trade and to keep the cost of imported goods low? A.The North B.The South Section 1

30. Section 1-End

31. Big Ideas Science and TechnologyThe growth of railroads encouraged development of the Plains and Western regions. Section 2-Main Idea

32. Content Vocabulary • time zone • land grant Academic Vocabulary • integrate • investor Section 2-Key Terms

33. People and Events to Identify • Pacific Railway Act • Grenville Dodge • Leland Stanford • Cornelius Vanderbilt • Jay Gould • Crédit Mobilier • James J. Hill Section 2-Key Terms

34. A B Are there any recent inventions that have made your life easier? A. Yes B. No Section 2-Polling Question

35. Linking the Nation After the Civil War, the rapid construction of railroads accelerated the nation’s industrialization and linked the country together. Section 2

36. Linking the Nation (cont.) • The railroad boom began in 1862, when President Abraham Lincoln signed the Pacific Railway Act. This act offered two companies land along its right-of-way in order to speed progress. • Under the direction of engineer Grenville Dodge, the Union Pacific began pushing westward from Omaha, Nebraska, in 1865. The Transcontinental Railroad Connects the Nation Section 2

37. Linking the Nation (cont.) • The Central Pacific Railroad began as the dream of engineer Theodore Judah. He sold stock to four Sacramento merchants, including Leland Stanford. • Workers completed the Transcontinental Railroad in only four years, despite the physical challenges. On May 10, 1869, five gold and sliver spikes were hammered into the rails at Promontory Summit, Utah. Section 2

38. Linking the Nation (cont.) • By linking the nation, railroads increased the markets for many products, spurring American industrial growth. • Railroads also stimulated the economy by spending huge amounts of money on steel, coal, timber, and other materials. • One of the most successful railroad consolidators was Cornelius Vanderbilt. Federal Land Grants to Railroads, 1870 Section 2

39. Linking the Nation (cont.) • To make rail service safer and more reliable, the American Railway Association divided the country into four time zones in 1883. • The nationwide rail network also helped unite Americans in different regions. Section 2

40. A B C D All of the following made railway operations efficient EXCEPT A.The booming oil industry B.New locomotive technology C.The invention of air brakes D.Integrated railroad systems Section 2

41. Robber Barons The government helped finance railroad construction by providing land grants, but this system also led to corruption. Section 2

42. Robber Barons (cont.) • To encourage railroad construction across the Great Plains, the federal government gave land grants to many railroad companies. • Corruption in the railroad industry became public in 1872 when the Crédit Mobilier scandal erupted. This scandal created the impression that all railroad entrepreneurs were “robber barons.” Section 2

43. Robber Barons (cont.) Jay Gould was the most notoriously corrupt railroad owner However, James J. Hill, who built and operated the Great Northern Railroad, was an honest businessman. Section 2

44. A B C D E Who was punished after the Crédit Mobilier scandal went public? A.James Garfield B.Schuyler Colfax C.James G. Blaine D. All of the above E. None of the above Section 2

45. Section 2-End

46. Big Ideas Economics and SocietyBusiness people such as Andrew Carnegie developed new ways to expand business. Section 3-Main Idea

47. Content Vocabulary • corporation • stock • economies of scale • pool • vertical integration • horizontal integration • monopoly • trust • holding company Section 3-Key Terms

48. Academic Vocabulary • distribution • consumer People and Events to Identify • Andrew Carnegie • John D. Rockefeller Section 3-Key Terms

49. A B Does advertising influence your decision when buying a product? A. Yes B. No Section 3-Polling Question

50. The Rise of Big Business Corporations could produce goods more efficiently, which allowed the rise of big business. Section 3