Discuss with your neighbors… President Barack Obama has imposed new environmental regulations on coal-burning power plants to help cut down on pollution. These measures are costly to the power plants and has resulted in the loss of jobs as coal-based companies try to find ways to make up for the extra costs. At the same time, the regulations have helped cut down on pollution. Is the government doing the right thing?

Industrialization Ch. 14

Background During the Civil War, only 1.3 million of the country’s 30 million people worked in industry During the Civil War, only 1.3 million of the country’s 30 million people worked in industry With the shift from farming to industry, millions will leave the farms and enter the factories creating a new age of industrialization in America With the shift from farming to industry, millions will leave the farms and enter the factories creating a new age of industrialization in America The dramatic expansion of industrialization in the late 1800’s will set the stage for America to become a global economic powerhouse The dramatic expansion of industrialization in the late 1800’s will set the stage for America to become a global economic powerhouse

Ingredients for Industrialization Abundance of natural resources Abundance of natural resources U.S. had plentiful amounts of iron, coal, copper, and many other things U.S. had plentiful amounts of iron, coal, copper, and many other things Vital resources for factories to function Vital resources for factories to function Large workforce Large workforce Population exploded after the Civil War Population exploded after the Civil War Large population of workers were required to run the factories Large population of workers were required to run the factories

Ingredients for Industrialization Free Enterprise (Free Market) Economy Free Enterprise (Free Market) Economy Laissez-faire economics Laissez-faire economics “Hands off” “Hands off” Government doesn’t get involved in the economy Government doesn’t get involved in the economy Allows industries to run efficiently and cheaply Allows industries to run efficiently and cheaply

Laissez-Faire Economics Low taxes Low taxes Few government regulations for industry Few government regulations for industry Few Labor laws Few Labor laws Few Environmental standards Few Environmental standards (Things which cost businesses $$$)

Advancements in Technology New Industrial Inventions New Industrial Inventions Electricity Electricity Automated factory machines Automated factory machines Increased productivity in factories Increased productivity in factories

Quick Review 1. What were the three ingredients the US had that helped with the industrialization? 2. Who keeps their “hands off” the economy in a Laissez- Faire system? 3. What are the characteristics of a Laissez-Faire economic system? 4. How did new inventions impact industrialization? Abundant natural resources, large labor force, Free Enterprise economy Government Low taxes, few government regulations Increased productivity

Laissez-Faire Simulation

The government has passed a new law! Every business that sells food or drinks must first purchase a permit. The cost of the permit is $50. Calculate your expected profit with the added cost factored in

The government has passed a new law! A new minimum wage law has been put into effect. All employees must now be paid a minimum of $7 per hour Calculate your expected profit with the added cost factored in

The government has passed a new law! To ensure the safety and quality of apple cider, a new law has been passed that requires all apple cider business to use an apple cider sanitation machine Calculate your expected profit with the added cost factored in