Causes of Industrialization Factors of Production

Factors of Production The elements that must be present for a country to be a successful industrial nation

Factor/ Cause #1 Natural Resources/ Raw Materials Water Timber Coal Oil Copper

US had an abundance of raw materials Allowed us to obtain them cheaply Settlement of west helped accelerate industrialization New resource, petroleum, was used for fuel In 1859, Edwin Drake drilled first oil well near Titusville, PA

Factor/ Cause #2 Entrepreneurs and Inventions Came up with new inventions Inventions helped increase productivity and improved transportation and communication Inventions led to new corporations providing new jobs and wealth

Inventors Alexander Graham Bell and the Telephone Edison and Electricity Created research lab and held more than 1000 patents when he died Edison electric powered NYC Several of his companies formed what is now GE George Westinghouse and Electricity Invented air brake system for railroads allowing trains to travel faster His company was first to use hydroelectric power of Niagara Falls to generate electricity for street cars

Factor/ Cause #3 Capital – land Factories machines money

Factor/ Cause # 4 Labor Large workforce fueled by immigration and large families 1860-1910 – population tripled in US Created greater demand for consumer goods

Factor/ Cause # 5 Transportation Streetcars, subways, automobiles Railroad Pacific Railway Act provided construction of railroads by two companies Union Pacific pushed west from Nebraska Central Pacific pushed east with 10,000 workers from China due to labor shortage in California After 4 years companies met at Promontory Summit, Utah to complete transcontinental railroad

Railway Significance Promoted trade unite Americans in different regions Provided jobs sped up Western settlement set up standard time to provide train safety factories could send out product faster to more people

Factor/ Cause # 6 Markets Places to buy & sell a product Late 1800s - Free Enterprise Market Laissez- faire gov’t not interfere with economy Rely on supply and demand to regulate prices and wages Supporters claimed free markets with competing companies leads to greater efficiency and creates more wealth for all

# 6 continued Gov’t Role during late 1800s High tariffs set to protect American industry from foreign competition Problem: Europe raises their tariff thus keeping us from selling our goods there