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How did industrialization and new technology affect the economy and society?

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American began a major transformation after the end of the civil war marked by expanding business and industrialization. This "second industrial revolution," led by scientists and inventors, turned the United States into an industrial powerhouse.

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Several factors led to increased industrial growth during the Civil War. This laid the groundwork for postwar prosperity.

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Factories used new tools and methods to produce supplies in large numbers. Railroads expanded across the nation. The government encouraged immigration. Natural resources provided fuel for growth.

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A great many immigrants to the United States were pushed from their homelands by

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Political upheaval at home. Religious discrimination. Crop failures. They provided a willing workforce to industry.

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American entrepreneurs invested money in products in order to make profits.

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Entrepreneurs fueled industrialization and helped spur innovation in the late 1800s. They benefited from laissez-faire policies, which allowed business to work under minimal government regulation. Congress enacted protective tariffs to encourage the buying of American goods.

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Major inventions of the 1880s

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• Samuel Morse-Telegraph-1844 • Elias Howe-Sewing machine-1846 • Elisha Otis-Safety elevator-1852 • Thomas Edison -light bulb-1880 • Granville woods-steam boiler-1884

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The Bessemer process, which purified iron to create steel, changed construction. Steel made skyscrapers and suspension bridges possible.

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Railroads expanded.

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Railroads changed America...

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They encouraged innovation. They led to the growth of industry and mass production. Air brakes were invented in 1869. Refrigerated cars were invented to transport food. Timezones were set. Businesses obtained raw materials easily. They sold products to people far away.

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America exported grain, steel, and textiles in huge amounts and became?

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a world economic power.

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Mechanization of farming meant fewer farmers were needed to produce food

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Many Americans moved to cities to find work,

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People began to raise concerns about

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the impact of industrialization of the environment. In response, Congress set aside protected lands. Yellowstone National Park was created in 1872.

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How did big business shape the American economy in the 1800s and early 1900s?

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The growth of big business in the late 1800s change American society. The rise of business empires turned the United States into one of the most economically powerful countries in the modern world.

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Industrialization changed how businesses were run.

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Business leaders combined funds and resources. Investors formed corporations that protected them from losing more than their original investment. Aided by railroads and the telegraph, corporations could operate in different regions.

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Corporations worked to maximize profits by

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Paying workers low wages. Paying lower prices for raw materials. Supporting research labs.

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Corporations used strategies to eliminate competiton and decrease costs.

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Monopolies & cartels- competitors forced out of business. Horizontal & vertical integration- better control go production, reduced costs.

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Tycoons of the late 1800s

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John D. Rockefeller - oil Andrew Carnegie - steel Cornelius Vanderbilt - railroads

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Theory of survival of the fittest is used to defend big business

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• Charles darwin's idea of evolution of species o Applied to American capitalism • Becomes social Darwinism

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Social Darwinists believed

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government should stay out of private business and thought it was wrong to use pubic funds to assist the poor.

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Americans who worried about the methods of industrialists

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called for federal regulation of business practices.

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The ICC and the Sherman Antitrust Act began a

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trend toward government limits on corporate power.

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ICC-

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interstate commerce commission oversaw railroad operations.

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Sherman antitrust act-

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Passed by the senate in 1890. Outlawed trusts the operated "in restraint of trade or commerce among the several states"

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How did the rise of labor unions shape relations among workers, big business, and government?

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The booming American economy relied on workers to fuel its success. They began to rebel against low pay and unsafe working conditions. Struggles between business owners and workers intensified.

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Industrial workers faced hardships.

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• Factory owners employed people who would work for low wages. Many of these people were immigrants and children. • They often labored in hot, dark, dirty workhouses known as sweatshops. • Laborers often had to live in company towns and buy goods at high interest at company stores.

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Labor unions formed.

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Workers tried collective bargaining to gain more power against employers. One form was the strike, in which workers stopped working until their demands were met.

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A movement called socialism..

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spread through Europe in the 1830s. It held that wealth should be distributed equally to everyone. Most Americans rejected socialism, but some labor activists borrowed ideas from it to support social reform.

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As membership in unions grew in the 1870s, a wave of confrontations between labor and management rocked the country.

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In 1877 the federal government sent in troops to restore order after a major strike by railroad workers

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Across the nation, workers mounted demonstrations for more rights. One such protest in Chicago turned violent.

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The 1886 Haymarket Riot made many Americans wary of labor unions.

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Private police were called in to quell

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fighting between workers and Carnegie Steel.

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Pullman strike

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halted nationwide railroad traffic and mail delivery.

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Entrepreneur-

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person who invests money in a product or enterprise in order to make a profit

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Protective tariff-

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tax on imported goods making the price high enough to protect domestic goods from foreign competition

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Laissez faire-

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a policy which allowed businesses to operate under minimal government regulation.

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Patent-

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a grant by the federal government giving an inventor the exclusive right to develop, use, and sell an invention for a set period of time

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Thomas Edison-

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an inventor who recieved more than 1,000 patents for new inventions

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Bessemer process-

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method developed in the mid-1800s for making steel more efficiently

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Suspension bridge-

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bridge that has a roadway suspended by cables

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Time zone-

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one of the 24 longitudinal areas of the world within which the same time is used.

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Mass production-

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systems that depended on machinery to turn out large numbers of products quickly and inexpensively

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Corporation-

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a form of group ownership in which a number of people share the ownership of a business

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Monopoly-

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exclusive control by one company over an entire industry

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Cartel-

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an arrangement in which businesses making the same product agree to limit production to keep prices high

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John D. Rockefeller-

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an oil tycoon who made deals with railroads to increase his profits

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Horizontal integration-

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a system of consolidating many firms in the same business to lower production costs

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Trust-

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group of separate companies that are placed under the control of a single managing board in order to form a monopoly

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Andrew Carnegie-

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a steel tycoon who used vertical integration to increase his power

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Vertical Integration-

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the practice of gaining control of many different businesses that make up all phases of a product's development

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Social Darwinism-

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the belief held by some in the late 1800s that certain nations and races were superior to others and therefore destined to rule over them

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Interstate commerce commission(ICC)-

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first federal agency monitoring business operations, created in 1887 to oversee interstate railroad procedures

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Sherman Antitrust Act-

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a bil passed in 1890 which outlawed any trust that restrained interstate trade or commerce

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