The Rise of Industry in the United States Causes of America’s Industrialization

America Begins to Industrialize Although industrialization begins prior to the Civil War, most of the U.S. remains agricultural until after it. Out of a population of 30 million, only 1.3 million worked in industry in 1860 After the Civil War, industry will rapidly expand as millions begin to leave the farm By 1914, the United States’ Gross National Product, the total value of all goods and services produced by a country, was eight times greater than when the Civil War ended

Causes of America’s Industrialization: Natural Resources The U.S. contained an abundance of resources upon which industry in the 1880’s depended 1.    Water 2.    Timber 3.    Coal 4.    Iron 5. Copper The presence of these natural resources meant that American industries could obtain them cheaply A new natural resource also fueled industrialization and expansion, petroleum Even before the invention of the automobile, petroleum was in high demand because it could be turned into kerosene Used in lanterns and stoves

A Large Workforce Another cause of industrialization in America was its large population Between 1860 and 1910 the population of the U.S. almost tripled This allowed more people to work in factories, but also created a higher demand for the goods they produced Increased immigration also added to the population boom

Free Enterprise Laissez-Faire Economics: The government should not interfere with the economy other than to protect private property rights If they do, it increases costs and hurts the national economy This system allows supply and demand to set prices and wages A free market with competing companies leads to greater efficiency

Role of the Government For the most part, the government of the 1800’s allowed laissez-faire economics to take control Did not try to control prices or wages However, they did interject on some issues Tariffs: taxes on imported goods A constant battle between the North and the South regarded tariffs; North wanted them, South did not With the Republicans in power after the Civil War, more tariffs began to pass in Congress Morill Tariff: tax on imported manufactured goods Gave Western lands and millions of dollars to Western Rail Roads