Industrialization
UNIT 2: LESSON 1: THE RISE OF INDUSTRY
LEQ:
Why was the
United States
successful at
industrialization?
Drill:
What does a
country need in
order to be
successful?
Industrial Revolution
**Revolution - a drastic change**
 A period from the 18th to the 19th century (1700s-1800s) that is characterized by
major changes in agriculture, manufacturing, mining, transport, and technology
A transition from manual labor and animal–based to machine-based manufacturing
It had a profound effect on socioeconomic and cultural conditions
Began in Great Britain then spread throughout Europe, North America, and
eventually the world.
Why was the United States successful at
industrialization?
abundance of raw materials
United
States
Becomes an
Industrial
Nation
Why was the United States successful at
industrialization?
abundance of raw
materials; oil
production
population increase
new inventions
the economic system :
Free enterprise =
laissez-faire
United
States
Becomes an
Industrial
Nation
Lesson 1 Assignments:
1. Read pages 92-95 of the text and complete LEQ graphic
organizer
2. Define the following terms: gross national product (GDP),
laissez-faire, entrepreneur
LEQ:
How did the
railroad industry
transform the
nation?
Drill:
What importance does
transportation have in
our world today?
How do modes of
transportation effect
society and our lives?
Transcontinental Railroad
•1862 Pacific Railway Act gave the Union Pacific and Central Pacific
railroad companies permission to build a transcontinental railroad
•Built to link the well developed railway network of the Eastern coast with
rapidly growing Western coast (California)
•May 10th 1869 Union Pacific and Central Pacific railroads meet in
Promontory, Utah to complete the Transcontinental Railroad
Central Pacific
Union Pacific
Wealth
•Federal government gave land grants to railroad companies
•Companies sold the land to raise money for construction
•Great wealth was amassed by railroad entrepreneurs like
Cornelius Vanderbilt – a shipping and railroad tycoon he was
a self-made multi-millionaire of the 19th century
Corruption:
Credit Mobilier Scandal of 1872
• Thomas
Durant was vice-president of the Union Pacific and believed there was
$$$ in constructing the railroad
•Durant created the Credit Mobilier of America, which just happened to win the
contract to build 667 miles of Union Pacific railroad
•The Credit Mobilier charged the railroad tens of millions of dollars more than the
actual cost of construction
•By the time they were done, they'd cleared at least $23 million
Development of time zones
How did the
railroad
industry
transform
the nation?
Long distance travel is faster
(days vs. months)
United America’s regions
Promoted a national market
Ended Native American way of life in the
West; greatly altered the environment
LEQ:
Following the Civil
War, how did
corporations affect
the business
practices?
Drill:
What is a corporation?
Pop-Quiz
1. A corporation is
A) owned by a proprietor
B) owned by two or more managers
C) owned by stockholders
2. A loan is a
A) fixed cost
B) operating cost
C) trust
Pop-Quiz
3. When the cost of manufacturing is decreased by producing goods quickly in large
quantities
A). Holding company
B). Monopoly
C). Economies of scale
4. Opened a steel-mill near Pittsburgh in 1875
A). J.P. Morgan
B). Andrew Carnegie
C). John D. Rockefeller
Pop-Quiz
5. _____________ is the total control of a type of industry by one person or one company
A). trust
B). monopoly
C). corporation
6. By 1900, retailers were spending over ____________ on advertising
A). $90 million
B). $80 million
C). $70 million
Nature of a Corporation
•At its simplest, a corporation is an artificial person
•The corporation has rights similar to that of a human being
•A corporation can own property, pay taxes, exist for an
indefinite period, sue, and be sued
Nature of a Corporation
•Corporations have a separate identity from the
people who created them
•Stockholders have limited liability = low risk
investment (not personally responsible for the acts or
obligations of the corporation)
Effects of Corporations
•Entrepreneurs and stockholders were able to amass great
wealth
•Monopolies developed and controlled all aspects of a
particular industry = destroys competition
Effects of Corporations
•New machines and technology improved productivity (the
amount of goods a worker could turn out)
•Assembly line = allowed manufactures to reduce cost and
lower prices
•Trade expanded beyond national borders = international
trade and increased wealth
Selling Products
•Retailers had to expand in size as a result increased manufacturing
(more goods to sell)
•Advertising companies developed (N.W. Ayer and Son was the first)
•Began printing large advertisements in newspapers
•First department stores are created and the start of mail order catalogs
(Sears)
The Men Who Built America
Andrew Carnegie
John D. Rockefeller
J.P. Morgan
Bought shares in iron
mills and factories
Invested in an oil
refinery in 1863
Investment Banker
Made equipment &
infrastructure for
railroads
Established Standard
Oil Company in 1870
Bought Carnegie Steel
and created U.S. Steel
Controlled 90% of U.S.
Opened Carnegie Steel
oil refining industry by
in 1875
1880
Basis for JPMorgan
Chase & Co. today
Following the Civil War, how did corporations
affect the business practices?
•Corporations were able to force out competition and create
monopolies. The businessmen who ran them and their stockholders
amassed great wealth, power, and influence.
•Retailers were forced to expand and devise new methods of
advertisement to attract customers.
LEQ:
In what ways did
the Industrial
Revolution change
the way Americans
worked?
Drill:
How did
corporations affect
business practices?
(review your notes from
Friday)
Working in the United States
•In the 1700s most manufacturing was done at home and
the employer and employee worked side-by-side
•This working relationship began to change in the 1800s with
the factory system
•Employers began to focus more on production and the cost
of labor
Content Vocabulary
•Standard of living – a level of subsistence (life) and comfort
in daily life maintained by a community, class, or individual
•Recession - an extended decline in general business activity
•Consolidate - to unite into one system or whole; combine
LEQ:
How did American
industrial workers
respond to their
harsh work
environments?
Drill:
Describe what a day of
work in an 1850s steel
mill might be like.
Unionization
•Workers wanted higher wages, less hours, and a better work
environment
•Common laborers had few skills and received low wages
•Laborers began to unionize in order to have their demands met
•Union - an organized group of workers who collectively use their
strength to have a voice in their workplace
Opposition to Unions
•Employers often resented unions. There were no laws protecting or giving the
workers the right to form unions
•Detectives were hired to identify union organizers and place leaders on a list
•Companies used lockouts to break up unions = locked workers out of the property
and refused to pay them
•If a union called a strike the employers would hire replacement workers
“strikebreakers or “scabs”