Industrialization: The Consequences How industrialization affects America socially and economically

Economic consequences of industrialization Industrialization followed technological advancements such as: Steamship Railroads (1830) Telegraph The extension (expansion) of the railroad infrastructure (system) changed the way producers accessed (came into contact with) consumers New business models were established to facilitate (make easier) management of cross country businesses Industrialization led to big business which led to robber barons People like John D. Rockefeller, Andrew Carnegie, and Cornelius Vanderbilt 19th century capitalists who were believed to have acquired their wealth through exploitation and ruthlessness

Economic consequences of industrialization Companies like Standard Oil (Rockefeller), New York Central Railroad (Vanderbilt), and the steel industry were corporations that eventually became monopolies and trusts Monopoly = the only supplier for a particular industry; usually squeezed out competition Horizontal and vertical integration It became expensive to start a major company in the industrial age The federal government decided that the best policy for promoting/ increasing America’s wealth was a policy known as lassiez-faire (“hands-off”) Lack of government regulation or rules Business leaders propose Social Darwinism, survival of the fittest

Social consequences of industrialization Farming suffered and industry boomed Formation of farming alliances and granges (farming co-operatives) Railroads also led to the spread and increase of the population Settlers Homestead Act (1862)  conflict with Native Americans Urbanization; more people moving to the cities Invention of the “department store” to accommodate many people and needs Language barriers 1st skyscraper, Sears Tower in Chicago to accommodate populous cities (no land) suburbs Socioeconomic hierarchy in America 4000 millionaires living lavish lifestyles (“Gilded Age”) Many farmers, settlers, and factory workers

Social consequences of industrialization Interest in technology led to higher standard of education Public schooling became prominent North modernizes as the South remains stagnant North Big business Wealthy elite Education Populous diverse South Racism Jim Crow