What is Industry? Industry

Agricultural Industrial

Factors of Industrialization

I.Workers + New Inventions A. Free and mobile labor supply 1. must be able to move to the jobs 2. cannot be slaves, must get paid Question one: What groups of people became the factory workers of the late 1800’s? B. New inventions & methods needed 1. must find faster & cheaper ways to produce 2. machines take over the work Question two: What inventions did Americans create to accomplish this?

II. Entrepreneurs + Capital A. Entrepreneurs 1. people willing to risk their own wealth to start a business B. Capital 1. the $ and collateral that people put into their business 2. must be willing to reinvest their profits!! Question Three: Who were the entrepreneurs in the U.S. during the late 1800s and what industry did they dominate?

Coal Deposits in the U.S.

Iron, gold, silver, copper deposits

III. Raw Materials A. Raw Materials needed 1. must have raw materials for: a. Energy b. To make products -i.e.: need iron to make steel !! Question Four: What raw materials did the U.S. have to help industrialization?

IV. Surplus Agriculture A. Need to feed the growing cities! 1. less farmers needing to feed more people 2. innovations to produce more -i.e. tractor & steel plow Question five: How did the U.S. meet the requirement of feeding the growing population of the cities?

1914 exports: $2.5 billion 1870 exports: $450 million 1890 exports: $910 million

Expanding Markets

V. Expanding Markets A. Growing foreign trade 1. necessary to force businesses to expand 2. goal of industry = to keep finding more and more consumers -i.e. McDonald’s went from local to state to regional to national to international business -also, Coca-Cola & Pepsi Question six: Where did the U.S. expand its markets? (With which countries did they increase trade?)