Chapter 14 – Section 1 The Rise of Industry

The Second Industrial Revolution First one occurred in Great Britain during early 1800s, driven by three main factors: Coal-powered steam engine Textile machines for cloth Blast furnaces for iron Second Industrial Revolution was centered in the United States and Germany Driven by three main factors: New transportation and communication network (railroads and telegraph) Use of electric power Systematic application of scientific research to industrial processes

The United States Industrializes Industrial Revolution began in the early 1800s, but was not widespread in America 1860 Population was approximately 33 million Only 1.3 million worked in industry By 1900, U.S. was leading industrial nation in the world Gross National Product (GNP) – total value of all goods and services produced by a country U.S. has 3 major advantages: Natural resources Large workforce Free enterprise

Natural Resources Raw materials are necessary to become an industrial power U.S. had these in abundance: water, timber, coal, iron, copper Settlement of the West provided U.S. with even more of these raw materials First oil tycoons also learned how to turn petroleum into kerosene, starting the oil industry Edwin Drake – drilled first oil well near Titusville, PA in 1859

A Large Workforce Between 1860 and 1910, U.S. population triples (from about 30 million to more than 90 million) Provided larger workforce and increased demand for consumer goods Increase came from 2 sources: natural increase immigration Between 1870 and 1910, 20 million immigrated to the U.S. largely came from China and Eastern Europe

Free Enterprise laissez-faire – “let do”; idea that government should not interfere with economy through regulations, etc. supply and demand should regulate market taxes should be low government debt should also be low entrepreneurs – people who risk their capital in organizing and running a business 2 sources of capital domestic, particularly in New England foreign – Great Britain and France in particular

Government’s Role In general, U.S. government operated under a laissez-faire system Prior to Civil War, debate over government’s role was between North and South North wanted high tariffs to protects its industry South wanted low tariffs to protect its exports Civil War ended the debate After the Southern states seceded, Congress passed the Morrill Tariff Act – inaugurated a period of trade protection in the U.S.

Government’s Role Republicans were very much in favor of government helping to develop industry Pacific Railroad Act – gave huge tracts of land and subsidies to railroad companies Gov’t sold mineral rights far below their market value Subsidies for internal improvements, transportation infrastructure Don’t forget the Homestead Act

Government’s Role Free trade within the nation gave U.S. a crucial advantage Largest free-trade zone in the world Free immigration policy, allowing labor into the country when it was needed On the other hand… High tariffs hurt trade with other nations, hurting farmers as a result High tariffs also instigated a low-level trade war, with other nations raising their tariffs in retaliation U.S. policymakers were concerned U.S. industry would be unable to compete with Europe without the tariffs

New Inventions Alexander Graham Bell and the telephone 1876 – Bell figures out a way to use electrical impulses of varying intensity to transmit sounds electronically Organized Bell Telephone Company Eventually became American Telephone & Telegraph (AT&T)

New Inventions Thomas Edison Research lab at Menlo Park, NJ become the forerunner of the modern research lab phonograph light bulb electric generator battery dictaphone motion picture Consolidated Edison General Electric "Mother Necessity"

New Inventions In 1890s, U.S. patent office issued 235,000 new patents Revolution in Food Storage Ice machines Refrigerated railroad cars Revolution in Clothing Standard sizes Cheaper clothes and shoes Communications Revolution Transatlantic telegraph cable

Changes in Work When working for themselves, laborers set their own hours, manage their own expenses, reap their own profits When working for employers, laborers must do as they are told or they will be fired Wages are set by the market – any profits gained from higher productivity or better business go to the corporation itself

The Laborer as Commodity commodity – (n) an article of commerce, especially when delivered for shipment; a good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors (as brand name) other than price What is the difference between these four things? worker iron ore lumber wheat