Technology and Industrial Growth

Technology and Industrial GrowthCHAPTER 9, SECTION 1

Encouraging Growth After the Civil War, industrial growth that had started

during the war continued to flourish. This was due to a variety of factors: Abundance of natural resources, including the discovery of oil

by Edwin Drake. Increased immigration from Europe and Asia

Forced out by political upheaval, religious discrimination and crop failures.

Capitalism encouraged the emergence of entrepreneurs.Government aided this by passing protective tariffs and adopting

laissez-faire policies. Laissez faire= businesses operate w/minimal government regulation.

New Technologies New innovations:

Electric light bulb Thomas Edison Telephone Alexander Graham Bell Steel Henry Bessemer

Bessemer Process= purifying iron and turning it into strong, lightweight steel. Expanding rail network demonstrated a need for the

creation of time zones to regulate train schedules. Natural resources + rail network= more growth!

Many goods were now manufactured by machines instead of by hand.

Impacts of IndustrializationIndustrialization had many impacts on the

United States. Increased population in cities immigration and

need for unskilled labor;Increased foreign trade as the U.S. expanded its

markets; Increased pollution and waste from factories

caused people to start being concerned for their environment.

The Rise of Big BusinessCHAPTER 9, SECTION 2

Fighting for ProfitsBusinesses in the 19th century transitioned from

family-owned to large corporations, where many people shared ownership.

The main goal of the corporation was to maximize profits and there were new ways in which corporations decreased costs to increase profits. Horizontal integration= consolidation of many firms in

the same business into one larger corporation. Vertical integration= controlling different businesses

that make up all phases of a product’s development.

New forms of Companies Some corporations wanted to increase profits by taking

complete control of a product. This was known as a monopoly, or a trust. Competitors were either bought out or pushed out of the

market. Once there was no competition, a business could charge

whatever price it wanted for a product. In other instances, corporations would work together to limit

production in order to control prices. This was known as a cartel.O.P.E.C. is a cartel that still exists today.

The Role of Big Business Four main leaders emerged during the late 1800s to lead

major corporations. Cornelius Vanderbilt shipping Andrew Carnegie steel John D. Rockefeller oil J.P. Morgan finance

These men were viewed in two different ways: Robber barons pushing out smaller companies; high prices to

consumers Captains of industry adding more jobs to the labor force;

provided financial backing for new technology; philanthropy

Social Darwinism and Gov. Regulation Application of Darwin’s theory of evolution to society. Social Darwinism stated that those who were more ‘fit’ would

survive over time, making the society stronger as a whole. Discrimination also increased, separating the wealthy from the

poor. To some, this meant that the government should leave large

businesses alone. The government did impose regulations to limit corporate power

Interstate Commerce Commission= monitored the ever-growing railroad operations; first government body to do so.

Sherman Antitrust Act= outlawed trusts that restricted trade or commerce between states.

Review Today’s Topics1) Which of the following is NOT a reason immigration increased during

the late 1800s?a) Greater religious freedom in the U.S. b) Political upheaval in their home countriesc) Greater crop production in home countriesd) Lesser political interference in the U.S.

2) The process of owning all areas of a product’s production is known as __________________________. a) Horizontal integration c) cartelb) Vertical integration d) monopoly

3) Which of the following is the correct match between an industrial leader and their industry?a) Morgan; shipping c) Carnegie; steel b) Vanderbilt; oil d) Rockefellar; steel

Ticket out the Door

Choose one of the industrial leaders. Is the term robber baron

or captain of industry a better term to use when describing

them? Provide at least 2 reasons why.