Which American industries do you think make the most money? Why?

Industrial World Leader -by 1880, U.S. is world’s leading producer of goods -reasons why???? unlimited labor force abundant coal supply iron mining discovery of oil in US– Drake railroad development The United States, nearing the turn of the century in the 1880s and 1890s, teemed with immigration from many European nations, as well as many Chinese immigrants. These immigrants provided a steady work force, as well as a cheap work force, as employers could get away with paying them less per hour.

Edwin Drake’s discovery of oil led many to drill for the “black gold.” At first, the unrefined petroleum brought in money for its producers and refiners. Entrepreneurs began petroleum-refining industries to transform the oil into kerosene for lamps, and they got rid of the by-products, like gasoline. It was not until the production of the car and other mechanized items, that oil refining became big business.

Public Support -laissez-faire government policies government allows business to do whatever it wants -unlimited immigration supplied labor -high tariffs protected American business -public financing of railroads for shipping goods

Entrepreneurs and Innovations -late 1800’s saw an explosion of innovation and invention -telephone Alexander Graham Bell -light bulb Thomas Edison -electric power -Nikola Tesla— AC Power -Bessemer Process makes mass production of steel possible (skyscrapers) -typewriter paves the way for new jobs for women

Edison: The Wizard of Menlo Park

Iron is a dense metal, but it is soft and tends to break and rust. It also usually contains other elements, such as carbon. Removing the carbon from iron produces a lighter, more flexible, and rust-resistant metal—steel. The raw materials needed to make steel were readily available; all that was needed was a cheap and efficient manufacturing process. The Bessemer Process increased iron refining into steel by blasting compressed air through molten iron to burn out excess carbon and impurities (which make iron rust). This improved (and cheaper) method of steel production led to a steel boom. Major industries, such as the railroads prospered from this, as well as architectural projects.

Entrepreneurs and Innovations -photography -phonograph -motion pictures silent film -radio—Nikola Tesla unites the nation -retail stores mail order catalogs -canned foods

Entrepreneurs and Innovations -John D. Rockefeller Standard Oil -Andrew Carnegie US Steel -J.P. Morgan bankers banker -Cornelius Vanderbilt railroads -Dupont Family steel industry -James B. Duke tobacco industry -George Westinghouse power and electronics

Railroads lead the Way -”iron horse” -Leading consumer of goods -better transportation leads to growth -transcontinental, standardization of time create time zones to regulate time Each community still operated on its own time, with noon when the sun was directly overhead. Travelers riding from Maine to California might reset their watches 20 times. On November 18, 1883, railroad crews and towns across the country synchronized their watches. In 1884, an international conference set worldwide time zones that incorporated railroad time. The U.S. Congress, however, didn’t adopt railroad time as the standard until 1918.

Railroad Prosperity -growth of urban areas -Development of Company Towns Pullman, Illinois makes RR cars -railroad scandals Credit Mobilier gov’t land grants The nearby town that Pullman built for his employees provided for almost all of workers’ basic needs. Pullman residents lived in clean, well-constructed brick houses and apartment buildings with at least one window in every room—a luxury for city dwellers. In addition, the town offered services and facilities for the residents’ convenience. However, the town remained firmly under Pullman control. Residents were not allowed to loiter on their front steps or to drink alcohol. Pullman hoped that his tightly controlled environment would ensure a stable work force.

Grange and the Railroads -Railroad abuses -Granger Laws -Supreme Court rulings -Interstate Commerce Act, 1887 attempt to regulate business does not work—courts favor big business “In their delirium of greed the managers of our transportation systems disregard both private and public welfare.” James Weaver Populist Candidate, 1892