Mr. Williams 10th Grade U.S. History The Gilded Age Mr. Williams 10th Grade U.S. History

Causes of Industrialization Great amount of natural resources Large work force High tariffs reduce the import of foreign goods National transportation and communication networks

Effects of Industrialization Workers left farms for factories Machines replaced hand made goods U.S. became world’s leading industrialized nation GNP-total value of goods and services X8 from before Civil War

Free Market/Capitalism Economic system in which most businesses are privately owned (by people not govt.) Laissez-faire (“Leave Alone” or “Hands Off”) : companies operate without government interference

Freedom of Enterprise Individuals own and control the factors of production Success is NOT A GIVEN Government plays a hands off role BUT places some restrictions on businesses to protect individuals

Freedom of Choice People can buy what they want Demand determines what is produced What happens if no one wants your product?

Competition Different people produce similar products and services How do different companies compete?

Getting Started Entrepreneurs: People who decide to take a risk and start a business Collect information about business, factors of production for products, and learn about taxes and laws relating to businesses

Corporation: organization owned by many people called stockholders but treated by law as a single person Own property, pay taxes, make contracts, sue and be sued Stock: shares of ownership which allow corporation to raise money

Cornelius Vanderbilt By 1869 had purchased and merged three short New York railroads to form New York Central First railroad to connect N.Y. to Chicago 1871 began building Grand Central Terminal in NYC Today would be worth $185 BILLION

Andrew Carnegie Scottish Immigrant came to America at the age of Twelve Started out cleaning bobbins in a factory for $1.20/week Carnegie Steel provided material for railroads, skyscrapers, cars, etc. Net Worth Today: $310 Billion

Vertical Integration Carnegie Steel plant could churn out ten thousand tons a week Cut the cost of making rails in half from $58 to $25 a ton “From the moment these crude stuffs were dug out of the earth until they flowed in a stream of liquid steel in the ladles, there was never a price, profit, or royalty pain to any outsider.”

John D. Rockefeller 1870 founded the Standard Oil company Owned 90% of oil refining business at height of his power Rockefeller first American Billionaire Net Worth Today: $340 Billion

The Trust HORIZONTAL INTEGRATION Combined oil refineries into one large corporation ran by board of trustees Once Trust gained complete control over an industry, it held a MONOPOLY Single company achieves control of an entire market and can raise prices or lower quality at will

Social Darwinism: Stronger people and businesses would prosper while weaker ones fail. Little or no government interference (Laissez-Faire) Small businesses could not compete with the monopolies Average worker made $500/year

Gilded Age U.S. became world’s leading industrialized nation GNP x 8 from before Civil War Number of millionaires increases-Carnegie, Rockefeller, Vanderbilt, J.P. Morgan, etc.

-Can be both but give EXAMPLES 3.8 Format Writing Response- During the Gilded Age, the government was strictly laissez-faire toward business. What does this mean? Was this a good thing or bad thing for the country during the time? -Can be both but give EXAMPLES 3.8 Format