Industrialization Key Terms History Alive! Pursuing American Ideals Industrialization Key Terms The Age of Innovation and Industry: The rise of corporations, heavy industry, mechanized farming and technological innovations transformed the American economy from an agrarian to an increasingly urban industrial society.

Capitalism/Capitalist Definition: An economic system in which factories, and other means of production are privately owned rather than government controlled. Capitalist: Provided financial backing for scientific research and new machinery

The Bessemer Process A method of converting iron to steel patented by Henry Bessemer Involved blowing air through molten iron which removed it’s impurities This made steel harder, stronger, and lighter than iron making it more preferred This process also allowed steel to be produced more cheaply and quickly

Mechanized Farming From the beginning of America until the IR, the U.S. was an agrarian country using farm animals to do the work.

With the onset of the IR, even farming became heavily mechanized. (machines do the work)

Production Methods? Frederick Taylor: Used scientific methods to analyze the production process Time-and-motion studies Determined the most efficient way to work quickly Thus increasing productivity and profits

Industrial Growth Key Factors: Capital – any asset that can be used to produce an income including money, buildings, tools, and/or machinery

Industrial Growth Corporations – a company that exists independently from the owners (investors) Corporations would become known as “Big Business” Unlike traditional businesses, big businesses were reasonable to their investors and driven by profit

Reducing Competition Monopoly – Company that completely dominates a particular industry (Standard Oil) Trusts – Set of companies managed by a small group to prevent them from competing with one another

Horizontal Integration Definition: A corporate expansion strategy. Involves joining together as many firms from the same industry as possible. John D. Rockefeller’s Standard Oil

Vertical Integration Definition: Corporate expansion strategy Control of each step in the production and distribution of a product. Acquiring raw materials to manufacturing, packaging, and shipping.

Laissez-Faire Definition: U.S. Economic Policy during the Age of Industrialization. The idea that the free market, through supply and demand, will regulate itself if government does not interfere.

America in the Gilded Age To cover with or as if with a thin layer of gold. To give an often deceptively attractive or improved appearance to

What is a Captain of Industry?! A business leader whose way of achieving personal fortune contributes positively to the country in some way. Providing Jobs This can be through: Increasing Production Philanthropy

What is a Philanthropist?! Someone who makes large charitable donations ($$) to improve the well-being of others. Schools/ Universities This is often to: Hospitals/ Medicine Libraries

What is a Robber Baron?! A business man who dominated their industry and made huge fortunes through unfair business practices. This was done by: Holding all of the power in their company Sometimes used illegal business practices Eliminating smaller/weaker businesses

Andrew Carnegie: Controlled the steel Industry Brought the Bessemer Process from England -Made it easy and cheap to make large amounts of steel by refining iron. -Steel production increased 500 times 1867-1900

Was a Philanthropist who gave money to libraries. Andrew Carnegie: Used vertical integration to be successful. Vertical Integration = Owning all aspects of production for a certain product. As a result the owner makes all the profit (money) Was a Philanthropist who gave money to libraries.

John D. Rockefeller Owned the Standard Oil Trust Had a reputation as a Robber Baron

John D. Rockefeller Tried to control all businesses in the oil industry Gave away more than $500 million during his lifetime

Cornelius Vanderbilt Built a huge railroad empire through ruthless business tactics, Had a reputation as a robber baron

Cornelius Vanderbilt Left $1 million to Vanderbilt University after his death. He is the 2nd wealthiest person in U.S. History