Causes of Industrialization Factors of Production.

Causes of Industrialization

Factors of Production

Factors of Production•The elements that must be present for a country to be a successful industrial nation

Factor/ Cause #1• Natural Resources/ Raw Materials–Water–Timber–Coal –Oil–Copper

• US had an abundance of raw materials• Allowed us to obtain them cheaply• Settlement of west helped accelerate

industrialization• New resource, petroleum, was used for fuel• In 1859, Edwin Drake drilled first oil well near

Titusville, PA

Factor/ Cause #2• Entrepreneurs and Inventions• Came up with new inventions• Inventions helped increase

productivity and improved transportation and communication• Inventions led to new corporation

providing new jobs and wealth

Inventors

• Alexander Graham Bell and the Telephone• Edison and Electricity– Created research lab and held more than 1000 patents

when he died– Edison electric powered NYC– Several of his companies formed what is now GE

• George Westinghouse and Electricity– Invented air brake system for railroads allowing trains

to travel faster– His company was first to use hydroelectric power of

Niagara Falls to generate electricity for street cars

Factor/ Cause #3•Capital – –land –Factories– machines– money

Factor/ Cause # 4• Labor–Large workforce fueled by immigration

and large families–1860-1910 – population tripled in US• Created greater demand for consumer

goods

Factor/ Cause # 5• Transportation–Streetcars, subways, automobiles–Railroad• Pacific Railway Act provided construction of

railroad by two companies–Union Pacific pushed west from Nebraska–Central Pacific pushed east with 10,000 workers from

China due to labor shortage in California–After 4 years companies met at Promontory Summit,

Utah to complete transcontinental railroad

Railway Significance

• Promoted trade• unite Americans in different regions • Provided jobs• sped up Western settlement• set up standard time to provide train

safety• factories could send out product faster to

more people

Factor/ Cause # 6• Markets– Places to sell product• Late 1800s - Free Enterprise Market• Laissez- faire gov’t not interfere with economy• Rely on supply and demand to regulate prices

and wages• Supporters claimed free markets with

competing companies leads to greater efficiency and creates more wealth for all

# 6 continued• Gov’t Role during late 1800s–High tariffs set to protect American

industry from foreign competition•Problem: Europe raises their tariff

thus keeping us from selling our goods there

–Subsidies to companies like railroad