Spectacular economic growth after the Civil War

 Create concept map with FACTORS LEADING TO ECONOMIC GROWTH in the middle and 7 outer circles, leaving room to add information to those 7 outer circles on the outside of them Example of Concept Map

 Abundant Natural Resources  Fertile soil  Swift-flowing streams  Vast quantities of timber  Rich deposits of coal, iron ore, oil, phosphates, and copper

 Laissez-faire policy (government “hands-off” economic matters)  Patent system – encouraged inventiveness by guaranteeing an inventor exclusive rights to the use of his or her invention for a limited period

 The Free-Enterprise System  Capitalist system – factors of production are privately owned  People are free to buy and sell goods and labor on an open market  Market acts to eliminate less efficient producers  Producers of better and cheaper goods are generally able to compete more effectively and stay in business

 We have the people  High birth rate  Immigrants  Women and children

 Tariffs  Protected American manufacturing from foreign competition by imposing customs duties on foreign-made goods

 Legacy of First Industrial Revolution  Use of steamboats and railroads began linking the country  In the South, led to the expansion of the “Cotton Belt”  Midwest produced livestock and wheat for both the NE and the South

 Economic stimulus provided by the Civil War  Northern manufacturing grew from the needs of the war  The passing of the following federal laws:  Morrill Tariff (1861) – protect American manufacturing from European competition  National Banking Act (1863&1864) – created national banking system and currency  Homestead Act (1862) – offered free land to settlers occupying farms in the West  Morrill Act (1862) – gave land grants to states to support technical and agricultural colleges  Pacific Railway Act (1862) – gave federal loans and land grants to railroad companies to complete transcontinental railroad

Gilded Age and Second Industrial Revolution

 Spread of Railways  By the end of the Civil War, the U.S. had 35,000 miles of railroad track.  25 years later, it had more than 5X that mileage – more than all of Europe  Steel rails replaced iron ones  Refrigerated cars were invented to haul meat long distances

 George Pullman  Invented the sleeping car so passengers would be more comfortable

 Steel  Bessemer Process made producing steel more economical  Cheaper steel allowed Americans to produce thousands of miles of railroad track, build giant steamships, suspension bridges, turbines and engines, and skyscrapers  Andrew Carnegie brings the Bessemer Process to America and begins Carnegie Steel

Andrew Carnegie Bessemer Process

 The Gilded Age  Historians sometimes refer to the Second Industrial Revolution as the “Gilded Age”  A gilded surface has a thin layer of gold on top concealing a less expensive metal beneath  Phrase taken from Mark Twain  Humorously criticized greed and corruption in American society

 Philosophy that the most successful individuals were those endowed with superior talents who had the ability to adapt, survive, and thrive  Wealthy people often viewed poverty as the fault of the poor themselves rather than as the product of circumstances or of injustices in the social system

 Telegraph  Samuel Morse invented the telegraph using electromagnetism and using a code of long and short spaces capable of transmitting the alphabet.  By breaking and closing the circuit, the telegraph operator communicate over a long distance

 Transatlantic Cable  In 1865, Cyrus Field made a heavy and durable cable to be able to send and receive telegraphic messages between America and Europe

 Telephone  Alexander Graham Bell began investigating how to reproduce the sounds of speech electronically to help the deaf since his mother and wife were both deaf  In 1875, he patented the telephone which made it possible to communicate over long distances using natural speech instead of Morse code

 Electricity  Edison worked with electricity for several years before he patented the phonograph (record player)  Continuing his research in Menlo Park, NJ, he invented a practical electric light bulb in 1879  Continued inventing things like motion pictures, improved battery, first electric power station  He filed more than 1,000 patents

Phonograph Young Edison Edison’s Light Bulb Older Edison

 Nicola Tesla – Serbian immigrant who came to the U.S. to work with Edison.  Left to partner with Westinghouse because he believed “AC” was better than Edison’s “DC”

Nicola Tesla George Westinghouse

 Andrew Carnegie  Scottish Immigrant  Adopted Bessemer Process of making steel and brought it back to America  Bought out competing local companies in the 1870s  Vertical Integration – having complete control of all stages of production and distribution

 Gospel of Wealth  Wrote a book that stated that rich men should not die with their wealth but should give it away, especially to institutions that promoted self- improvement Carnegie Hall – New York Carnegie Library - Pittsburgh

 John D. Rockefeller  Early 19 th century, people used whale fat (blubber) to make oil for lighting  1 st oil well was drilled by Edwin Drake in Pennsylvania in 1859  Improvements in refining petroleum led to gasoline and Rockefeller’s Standard Oil Company

 Horizontal Integration – one owner controls all companies and facilities at one stage of production of a good  Standard Oil Trust bought 90% of all oil refining in the U.S.  Lowered the price of kerosene and other oil products by more than 80%, which his competitors could not do

THE TRUST GIANTS POINT OF VIEW – “What a funny little government”

 Banker and backer of Edison until it was shown that Tesla’s “AC” system worked better  Companies – General Electric and J.P. Morgan & Company  Bought Carnegie Steel for $400 million and changed the name to U.S. Steel, which became the first billion-dollar company in America

 Internal Combustion Engine  Henry Ford put the power of the internal combustion engine into the automobile  Revolutionized the labor aspect with the assembly line and increased wages

 First Airplane  Wilbur and Orville Wright in Kittyhawk, NC in 1903

Josephine Cochran and the 1 st Automatic Dishwasher John Albert Burr patent for new rotary blades

Granville T. Woods – patented a multiplex telegraph that could send signals between stations and moving trains Elijah McCoy – Patented oil-drop cubs that automatically added oil to lubricate the engines of locomotives and steamships enabling them to run better

Madame C.J. Walker – Sold hair care and cosmetic products for African-American women. May have been the 1 st African American millionaire Sarah Goode received a patent for a fold-away bed that could be tucked into a desk

Jan Ernst Matzeliger – Born in S. America, he moved to U.S. at the age of 19 Invented a machine that attached the upper part of a leather shoe to its sole By hand, an expert shoemaker could attach no more than 50 soles a day; with the new machine, a worker could attach 150 to 700 soles a day Cut the price of shoes in half

 Write an imaginary newspaper headline and article announcing the patenting of a new invention, such as the telephone or electric light bulb  Must be at least one paragraphs  Which invention from this period do you think had the greatest impact on society? Write at least one paragraphs stating which invention you have chose, why you have chosen it, and how it benefited/impacted society.

 Eliminating competition leads to a monopoly – complete control over the production of a good or service  Disadvantages:  Less incentive to improve products  Could raise prices at any time. Consumers had no choice because of the lack of alternative products

 Under the laissez-faire ideology, government was not supposed to interfere  Series of Supreme Court decisions affirmed that government had no right to interfere  Business leaders often gave hefty campaign contributions and some even secretly bribed government officials

 The first anti-trust laws were weakly enforced but they established that Congress could regulate business in some circumstances  Sherman Anti-Trust Act – combinations “in restraint of trade” are prohibited  Interstate Commerce Act – Congress regulates interstate railroads; sets up enforcement agency

 Henry Morrison Flagler ( )  Partner of John D. Rockefeller in the creation of Standard Oil  In 1887 and 1888, he built the Ponce de Leon Hotel (now Flagler College) and other luxury hotels in Palm Beach and Miami, forming the basis for the tourism industry  “Father of Miami”

 Florida East Coast Railroad  Flagler merged several smaller railroads  His railroad brought tourists to fill his hotels, but also made it possible for Floridians to export their agricultural products, including citrus fruits, vegetables, tobacco and cigars, cotton, beef, and cattle  Built a railroad connecting south of FL to Key West for shipping goods throughout the Caribbean (was destroyed by hurricane in 1935)

Henry Morrison Flagler