Warm-up: What differences do you notice between these images in terms of how work is performed?
Warm-up: What differences do you notice between these images in terms of how work is performed?
What is Industrialization? Factors of Production (aka “inputs”): Three things that you need to make anything
What is Industrialization? Pre-industrial economy Land (where was the product made?) In the home! Ex: individual people make candles in their homes, not in any one location Labor (who provided the labor to make the product?) Skilled individuals Ex: a person had to know how to make the entire product from the beginning to the end Capital (who provided the money / resources needed to produce the product?) The individual worker provided the money to start up the business The individual worker made the product with their own two hands Effect on Goods Fewer goods produced; higher cost per good
What is Industrialization? Industrial economy Land (where was the product made?) In a centralized location (factory) Ex: move the manufacturing of the product under one roof (rather than spread-out, individual homes) Labor (who provided the labor to make the product?) Unskilled individuals Ex: production process is broken down into small steps and each person will only perform a single step so they get really good at it! Capital (who provided the money / resources needed to produce the product?) Investors provided the money to start up a company because of high start up costs Machinery made the products Ex: Products were no longer made by hand but by machine Effect on Goods More goods produced; lower cost per good
Relative Share of World Manufacturing
What caused the Industrial Revolution? Connected raw materials with factories and factories with consumers Raw materials in west powered eastern factories Spurs development of new technologies Creates demand for industrial goods Growth of Railroads Western Expansion The Civil War (1861-1865) Millions of immigrants! New intellectual ideas (ie. Social Darwinism) Industrial Revolution Large supply of cheap labor Business-friendly government policy Abundant capital ($$$$) to start up factories New business organizations (corporations) Corporations make raising money easier! Fed. Govt. passes tariffs (taxes on imported goods) to encourage people to buy American Laissez-faire = no regulations on businesses! Raise capital by selling stock Owning stock = own company Special laws to protect investors
The West and Raw Materials!
The Transcontinental Railroad
U. S. Patents Granted 1790s 276 patents issued.
Thomas Alva Edison “Wizard of Menlo Park”
The Light Bulb
The Phonograph (1877)
The Ediphone or Dictaphone
The Motion Picture Camera
Alexander Graham Bell Telephone (1876)
The Airplane Wilbur Wright Orville Wright Kitty Hawk, NC – December 7, 1903
Model T Automobile Henry Ford I want to pay my workers so that they can afford my product!
“Model T” Prices & Sales
New Type of Business Organizations Pool Rochester Widgets Incorporated Medina Widgets Incorporated Buffalo Widgets Incorporated Trust Board of Trustees/Directors (Standard Widgets Incorporated) Rochester Widgets Incorporated Medina Widgets Incorporated Buffalo Widgets Incorporated Standard Oil Holding Company Select investors with 51% ownership in all 3 companies Rochester Widgets Incorporated Medina Widgets Incorporated Buffalo Widgets Incorporated
Standard Oil Co.
The Protectors of Our Industries
The ‘Bosses’ of the Senate
The ‘Robber Barons’ of the Past
Cornelius [“Commodore”] Vanderbilt Can’t I do what I want with my money?
Relative Share of World Manufacturing