Rise of Industrial America Benchmark – SS. 912. A. 3 Rise of Industrial America Benchmark – SS.912.A.3.2 Examine the social, political, economic cause, course, and consequence of the Second Industrial Revolution EQ: How did the development of industries affect business practices and the United States economy during the late 1800’s?

Bell ringer Based on the chart, how did industrialization change the lives of people living in the 1800’s?

AWFUL 1st Ind. Rev. 2nd Ind. Rev. c. 1760-1830 c. 1870-1914 Textiles Time Frame Methods of Production Mass Production Power Sources New Engines Inventions Standard of Living for working class c. 1760-1830 c. 1870-1914 Hand  Machine Increased Automation Textiles Steel (Bessemer Process) Water, Coal, & Steam* Petroleum & Electricity Steam Engine* Internal Combustion Spinning Jenny Water Frame Spinning Mule Cotton Gin Automobiles Chemicals Railroads Telegraph, Telephone, Radio AWFUL Think Tocqueville in Manchester Still Bad, but improving (Sewers, Sanitation, etc.) Expansion of Middle Class * Note that these technologies continued to be used during the 2nd IR but new sources of power were introduced, in addition.

Causes of the Second Industrial Revolution The causes of the Second Industrial Revolution can be classified into three different categories. Type of Cause Examples/Explanation Social Cause Example might be working conditions (# of hours, overcrowding, poor living conditions in the cities, child labor, and poor sanitation, pollution from industrialization) Affecting society: the people. Political Cause laissez faire, non-regulation of business by the government, government related issues: laws, corruption, etc. Economic Cause Money causes, expansion of business in generating money, Industrialization (growth of factories): problem: pollution, etc.

Causes of the Second Industrial Revolution Description Social/Political/Economic Abundant Natural Resources United States had a lot of natural resources: fertile soil Free Enterprise System Role of Government & Civil War stimulus Breakthroughs in Steel Processing Advancing the Railroads New Inventions

Captain of Industry or Robber Barron Using your Gateway book (pgs. 69-76) look up the following terms: Captain of Industry Robber Baron Horizontal Integration Vertical Integration

Who are these "Titans of Industry" Titans of Industry Video link Essential Questions: According to the video, what did all of these “titans of industry” have in common? How do these industrialists HELP America and how do they also perhaps HURT America?

Industrial Business Leaders Andrew Carnegie One of most admired businesspeople of the time Focused on steelmaking Used vertical integration, owning businesses involved in each step of manufacturing, to lower costs John D. Rockefeller Standard Oil Company was country’s largest refinery Developed horizontal integration, owning all businesses in a field Formed a trust, bought many companies then merged them into a single company J.P. Morgan Successful investment banker Made money through “holding companies” (company does not produce anything itself but owns the stock of companies that do produce goods and controls them) Because he was a banker & financier neither Vertical nor Horizontal Integration applies to him.

Critical Thinking Directions: Analyze the Horizontal vs. Vertical Integration slide again Then in your group discuss & list the possible advantages and disadvantages of both Horizontal and Vertical Integration. Then decide if you along with your group mates were starting a business which business strategy would you incorporate to build your business empire and why

Horizontal Integration? You Do Activity Cornelius Vanderbilt Horizontal Integration? Vertical Integration? Directions First read the article on the life of Cornelius Vanderbilt Look for possible clues in the text that suggest how Vanderbilt built his business empire. Then mark the text and list them on the graphic organizer (use Buc Up Reading Habits) Analyze the information from the article and then determine if Cornelius Vanderbilt used vertical integration or horizontal integration to build his business empire. Write (a minimum of one paragraph) that states whether you feel Vanderbilt used horizontal or vertical integration. Be sure to use evidence from the text in your writing to back up your claim.

Exit Slip Apple is a modern company that for the past 35 years has championed a business model that has seen them integrate both hardware and software development. During this time they have created most famously the I phone and the I pad with both the hardware and software being developed by Apple which has also designed its own processors for these devices. Based on the description above do you think Apple uses horizontal integration or vertical integration? Why or Why not?