Chapter 9 Section 1 Industrial Revolution:

I. During the 1800s, the United States and several European countries joined Britain in the Industrial Revolution. A. Factories used new ways to produce goods. 1. Interchangeable parts: parts that could be used in place of one another. 2. Assembly lines: division of labor- more efficient production 3. made work faster and less costly B. A new form of power, electricity, changes industry – replaces steam C. The landscape of the economy changes with corporations. D. New inventors or developers

Inventor or Developer NationInvention or DevelopmentYear Henry Bessemer BritainProcess to turn iron ore into steel1856 Alexander Graham Bell United States Telephone 1876 Thomas EdisonUnited States Electric Light Bulb 1879 Gottlieb Daimler – Karl Benz GermanyAutomobile1887 Henry Ford United StatesMass-produced automobiles1903 Wright Brothers United Statesairplane1903

II. Business Takes a New Direction A. Rise of Big Business 1. New technologies required the investment of 2. Large amounts of money, or capital. To raise money owners sold stock, or shares of in their companies, to investors. 3. Each investor / stockholder became owner of a tiny part of a company. 4. These businesses formed giant corporations, businesses that are owned by many investors who buy shares of stocks. 5. With large amounts of capital, corporations could really expand and grow.

B. Move Toward Monopolies 1. Alfred Krupp in Germany: steelmaking 2. John D. Rockefeller in the United States: Standard Oil Company 3. In pursuit of profit, ruthless business leaders destroyed competing companies. 4. With the competition gone, they were free to raise prices. 5. Sometimes a group of corporations would join forces and form a cartel, an association to fix prices, set production quotas.

C. Move Toward Regulation 1. Some people saw the Krupps and Rockefellers as “ captains of industry”. praised their vision and skill invested their wealth in ventures that created jobs and added to prosperity 2. Some called them “robber barrons” competition destroyed damaged the free-enterprise system / laissez- faire economy reformers called for laws to prevent monopolies and regulate large corporations.

WERE BIG BUSINESS LEADERS “CAPTAINS OF INDUSTRY OR ROBBER BARONS?” WHY?