Section 1
The
Growth
of
Industry
Section 1 Objectives
• To identify factors that nurtured the
industrial revolution
• To explain how business cycles reflected
rapid economic growth
• To describe the growth of the steel and
electric-power industries
• To analyze how inventions changed
American life
A NEW INDUSTRIAL
AGE
LATE 19TH CENTURY
AMERICA EXPERIENCED
AN INDUSTRIAL BOOM
THE EXPANSION OF INDUSTRY
• After the Civil War (1865)
the U.S. was still largely
agricultural
• By 1920, the U.S. was the
leading industrial power
in the world
What factors helped U.S. industry grow?
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Plentiful Natural Resources
Growing Population
Improved Transportation
High Immigration
New Inventions
Investment Capital
Government Assistance
Plentiful Natural Resources
Growing Population
From 1860-1900, the U.S. population grew
from 31.5 million to 76 million. This led to
a growing need for goods. The demand
for goods spurred the growth of
industry.
Improved Transportation
Railroad building boomed after the Civil
War. As shipping raw materials and
finished goods to markets became even
easier, industry grew.
High Immigration
Immigrant population boomed between 1860-1900
with 14 million immigrants. Many immigrants
brought valuable specialized skills with them,
such a metalworking. Other immigrants
provided factories with the workers needed
for growing industries.
New Inventions
New machines and improved processes helped
industry produce goods more efficiently.
INVENTIONS SPUR
INDUSTRY
BESSEMER STEEL PROCESS
• Oil was not the only valuable natural
resource
• Coal and iron were plentiful within
the U.S.
• When you removed the carbon
from iron, the result was a lighter,
more flexible and rust resistant
compound – Steel
• The Bessemer process did just that
(Henry Bessemer & William Kelly)
• Bessemer’s process cut the cost of
steel so much that steel output
increased 500 times between 1867
and 1900
BESSEMER CONVERTOR
CIRCA 1880
NEW USES FOR STEEL
BROOKLYN BRIDGE
SPANS 1595 FEET IN NYC
• The railroads, with
thousands of miles of
track, were the
biggest customers
for steel
• Other uses emerged:
barbed wire, farm
equipment, bridge
construction
(Brooklyn Bridge1883),and the first
skyscrapers
ELECTRICITY
• 1876- Thomas Alva
Edison established the
world’s first research
lab in New Jersey
• There Edison perfected
the incandescent light
bulb in 1880
• Later he invented an
entire system for
producing and
distributing electricity
• By 1890, electricity
powered numerous
machines
EDISON
THE TELEPHONE
• Another important
invention of the
late 19th century
was the telephone
• Alexander Graham
Bell and Thomas
Watson unveiled
their invention in
1876
BELL AND HIS PHONE
How did other inventions of the 19th century
change the way of life in America?
Other inventions, such as the typewriter and the
sewing machine, helped open up jobs for
women. They also changed how people
purchased their clothing since ready-made
clothing was available.
THE TYPEWRITER
• Christopher Sholes
invented the typewriter
in 1867
• His invention forever
affected office work
and paperwork
• It also opened many
new jobs for women
• 1870: Women made
up less than 5% of
workforce 1910: They
made up 40%
Investment Capital
When the economy was thriving, many
businesses made large profits. Banks and
wealthy individuals hoped to share in
the profits of businesses by loaning
them money to build factories and buy
equipment.
Government Assistance
State and federal governments used tariffs,
land grants, and subsidies to help
businesses grow. Lately, government
bailouts have aided industry.
The Business Cycle
• A Pattern of good times and bad times
• Booms-people buy more and invest in
business, and business and industry grow
• Busts-spending and investing decrease,
causing industries to lay off workers and
make fewer goods. Businesses may shrink
or even close. Called DEPRESSION.
• 1837,1857, 1873, 1893
Why does the economy grow during a boom?
During a boom period, people buy more
consumer goods. People invest in business. As
a result, industries and businesses grow.
How are economic booms and busts related?
Usually, after a period where the economy is down
or in a bust time, it will be followed by a strong
economic growth.
How did the panics of 1873 and 1893 affect
industry and workers?
During the panics of 1873 and 1893, millions of
people lost their jobs and thousands of
businesses failed.