Document of the Day #8 (p.33) Henry Flagler Grab your Clickers! Staple your work into your notebook! P. 30-Notebook Rubric P. 31 Civil War Vocab Quiz P. 32 WWE/Civil War/Reconstruction Vocab Get your Notebook from your Cubby!

Vocab, Notebook, & Achieve Grades 45 points for vocab Notebook: 100 points overall 70 for Cornell Notes 35 for DOD’s 30 for 3 Assignments

Reminders: Inventor Speed Dating: 9/13-9/14 (Next Class) Vocab Due Date: 9/21-9/24 Achieve 3000- 2 Articles (Words by Wire, Camp Like You’ve Never Seen it) Test Grades: Highest Grade 90 (10 Pt. Curve) 2018-2019 2017-2018 2A-54% 55% 4A-56% 58% 6B-58% 54% 7B-55% 53%

P. 34 Topic: Industry Essential Question: How did the development of industries affect business practices and the U.S.’s economy during the late 1800s?

Second Industrial Revolution 1870-1894 1920- ½ of all Americans lived in cities, large corporations produced goods for everyone. Railroads & telephone lines spanned the country Americans bought goods in department stores, chain stores, specialty shops and mail-order catalogues. Electric lights in homes and factories used electricity Automobile was spreading and we were becoming the world’s leading industrial power. 1860-Most Americans were farmers living in the country. Made things for themselves (Clothes, furniture) Bought few luxury items Depended on torches or whale oil lamps Manufacturing consisted of textiles, iron-wares and in processing food. Americans had limited contact with the world outside their community.

The Foundations for Economic Growth 1. Abundant Natural Resources The United States had a lot of valuable natural resources: Fertile soil Swift-flowing streams Timber Rich Deposits of: Coal, iron ore, phosphates, and copper 2. Economic Stimulus provided by the Civil War Wartime needs for uniforms, guns, processed foods etc. stimulated production. Profits were reinvested in manufacturing Abolition of slavery united the North and the South in free labor, free-market economy.

3. The “Free Enterprise” System “Free-enterprise” (Capitalist) system was enjoyed by the United States. Tools, factories, $$$ (capital) is all privately owned. People are free to buy and sell goods and labor on an open market. AKA “Market Economy” Producers are able to compete more effectively to stay in business. Each person pursues their own interests, the market guides all individual activity. Social Darwinism (Theory by Charles Darwin) American culture/individualism encouraged entrepreneurs, farmers & laborers to work hard. Social Darwinists believed that the most successful individuals were those endowed with superior talents who had the ability to adapt, survive, and thrive. “Survival of the Fittest” Wealthy people viewed poverty as the fault of the poor themselves rather than as the product of circumstances or injustices.

4. The Role of Government “Laissez-Faire,” capitalism- little to no government interference in the economy. Patents- system established in the U.S. Constitution, encouraged inventiveness (inventions) by guaranteeing an inventor exclusive rights to the use of their invention. Encouraged inventors to share their discoveries with the public Tariffs-protected American manufacturing from foreign competition. Congress regulated the currency and the banks. And lastly, federal land policies encouraged westward expansion and development.

5. Legacy of the First Industrial Revolution. (1st Ind 5. Legacy of the First Industrial Revolution (1st Ind. Rev: 1760-1820/1840) Great Britain in the late 18th century introduced the use of steam power and mass production of goods in factories. By the 1850’s, the use of steam power was established in the U.S. Northeast-main centers of American manufacturing Steamboats and railroads began linking distant regions of the country South- railroads and steamboats expanded the “Cotton belt” Midwest- produced livestock and wheat

Emergence of a National Market Before the Civil War, most American businesses were owned by an individual or by a group of partners. After the Civil War, a new form of enterprise became more common. Corporation- a company chartered by a state and recognized in law as a separate “person.” The corporation issues stocks (shares) of ownership in the corporation, to investors. A board of directors is elected by the stockholders and they appoint a CEO. All of the advancements our country was creating required a lot of capital. This modern industrial economy would not have taken place without entrepreneurs. (those who take risks by engaging in business to make a profit).

Monopoly To eliminate competition by establishing complete control over the production of a good or service. Disadvantages: Less incentive to improve products & could raise their prices at any time to earn excessive profits. No alternative products existed so consumers had to pay.

Captains of Industry Andrew Carnegie (Steel) John D. Rockefeller (Oil) J. P. Morgan (General Electric & Commercial and investment banking institution) Cornelius Vanderbilt (Railroads & Shipping)

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