The Rise of Industry and Railroads Chapter 14 Sections 1 & 2

US Industrializes By the early 1900’s the US was the world’s leading industrial nation GNP – gross national product – the total value of all goods and services produced by a country GNP – was 8 times greater than it had been at the end of the Civil War

Natural Resources Natural resources Transcontinental railroad Water, timber, coal, iron, & copper Transcontinental railroad Brought settlers and miners to the West and carried the resources back to the East Petroleum b/g to be exploited Kerosene for lanterns and stoves 1859 – Edwin Drake drilled the first oil well in Pennsylvania

Large Workforce Massive population growth 2 Causes Large families – improve farming methods Flood of immigrants – looking for a better life This provided a large workforce for industry There was a greater demand for consumer goods that factories produced

Free Enterprise Laissez-faire – let people do as they choose Laissez-faire relies on supply and demand instead of the govt. regulating prices and wages Govt. should not interfere in the economy If the govt. regulates the economy it increases costs and eventually hurts society more than it helps A free market w/ competing companies leads to greater efficiency and creates more wealth for everyone Entrepreneurs – people who risk their capital in organizing and running a business

New Inventions 1876 – Alexander Graham Bell – invented the telephone 1877 – Bell and others organized the Bell Telephone Company Eventually b/c AT&T 1879 – Thomas Alva Edison – perfected the lightbulb and the electric generator 1889 – Edison General Electric Company Now known as GE

Linking the Nation 1862 – Pacific Railway Act – construction of a transcontinental railroad by two corporations The Union Pacific and Central Pacific railroad companies Railroad growth helped increase the size of markets and the economy itself by spending money on steel, coal, timber, etc.

Linking the Nation 1883 the American Railway Association created time zones – to make rail service safer and more reliable The nation was divided into 4 time zones – in each region the same time was kept The change was ratified by the US gov’t in 1918

Land Grant System The govt. gave land grants to railroad companies to encourage railroad construction Railroads companies then sold the land to settlers, real estate companies, etc. to raise money they needed to build the railroad