What is Industrialization?
A New Industrial Age Natural resources and new ideas create a boom for industry and railroads. Government addresses corruption in business, and laborers organize for better working conditions.
Immigrants Old Immigrants = Northern Europe and England. New Immigrants = Eastern and Southern Europe. Result: Immigrants moved into the cities for jobs and overcrowding occurred. 3
Why did business grow in the late 19th century? Business grew because of advances in technology and manufacturing, because mining in the West was providing the needed capital, and because the government was not interfering in business practices. What is meant by the term “Gilded Age”? Big Business led to an enormous amount of wealth for some people. They spent it on all sorts of luxuries. Mark Twain came up with this term Intellectual
By new technology New economic methods New social issues and reforms This time period is characterized
What technological advances and new production methods helped industries expand in this period? Industries were helped by steel, electricity, lightbulbs, power stations, motors, the telephone, and the division of labor ( assembly line) for the production of goods. What technological advances were used in the Triangle Factory? The Triangle Factory used electric motors, the division of labor, electronic freight elevators, and telephones. Technology
Bessemer Steel Process *Bessemer process puts air into iron to remove carbon to make steel cheaply. Allows Carnegie to create an steel empire. Steel helps create modern city and society (cars, refrigerators, bridges, buildings) Technology Notes
1851 = Ice-making machine 1895 = Kellogg's Corn Flakes Safe 1895 = razor 1896 = Electric stove 1852 = Elevator brake 1896 = Ice Cream Cone 1855 = Gas burner 1899 = Tape recorder 1857 = Sewing machine 1900 = Alkaline storage cells 1860 = Repeating rifle 1865 = Web printing machine 1865 = Railway sleeping car 1867 = Typewriter 1867 = Barbed Wire 1868 = Railroad refrigerator car 1869 = Oleomargarine 1870 = Stock ticker 1876 = Telephone 1877 = Phonograph 1879 = Cash register 1879 = Filiment for light bulb 1882 = Electric fan 1885 = Adding machine 1886 = Coca Cola 1888 = Kodak camera 1889 = Kinetoscope 1890 = Electric chair 1891 = zipper American Inventions
The Light Bulb
The Phonograph (1877)
The Motion Picture Camera
Alexander Graham Bell Telephone (1876)
The Power of Electricity ( check this out) 1876, Thomas Alva Edison establishes first research laboratory ( 1880, patents incandescent light bulb & creates system for electrical production, distribution ) Electricity changes business ( you can now produce 24 hours) Becomes available in homes; encourages invention of appliances Allows manufacturers to locate plants anyplace; industry grows Inventions Promote Change
Rise of the Railroads Transcontinental Railroad Use of Chinese Labor to build railroad Technology
Division of America into labor specialties Refrigerated Cars Economy tied to RR- steal, jobs, creation of cities etc Communication- telegraph Leisure Travel- Pullman Cars Time!!! Effects of RR
How did men like Rockefeller and Carnegie make their businesses bigger? R OCKEFELLER AND C ARNEGIE GREW THEIR BUSINESSES BY SETTING UP CORPORATIONS ( BUSINESSES OWNED BY INVESTORS ) AND TRUSTS ( GROUPS OF CORPORATIONS RUN BY A SINGLE BOARD OF DIRECTORS ). B OTH OF THESE MEN BOUGHT OUT THE COMPETITION How big was the Triangle Factory? I T WAS THE LARGEST SHIRTWAIST FACTORY IN THE COUNTRY. Economics
Corporation- a business owned by investors. They raise $ by selling STOCK Trust-group of corporations that unite in order to reduce competition and control prices in business The Robber Barons did this.. Guys like Rockefeller (oil), Carnegie(steel) and JP Morgan(banking) Monopoly- a company that controls all production of particular product or service New Words
Carnegie’s business New Uses for Steel Steel used in railroads, barbed wire, farm machines Changes construction: Brooklyn Bridge; steel- framed skyscrapers
Rockefeller and the “Robber Barons” Makes fortune in refining and then dominating the entire oil industry. Starts Standard Oil = First multinational corporation Rockefeller profits by paying low wages, underselling others - when controls market, raises prices *Critics call industrialists robber barons Industrialists also become philanthropists Rockefeller
Iron & Steel Production
Standard Oil Co.
New Type of Business Entities Trust: Horizontal Integration John D. Rockefeller Trust: Horizontal Integration John D. Rockefeller Vertical Integration: o Gustavus Swift Meat-packing o Andrew Carnegie U. S. Steel Vertical Integration: o Gustavus Swift Meat-packing o Andrew Carnegie U. S. Steel
Economic Survival of the Fittest Vertical integration: – Buy all productive resources related to the final product – Control the CoP = control the production = control the price Horizontal integration: – Buy out / undercut all competitors – Economy of scale