In 1859 Steam engine is used to drill for oil near Titusville, PA. This started an oil boom throughout the nation. Entrepreneurs began to transform the oil into kerosene. Gasoline will eventually become the most important product of oil.
Iron had been used for centuries ◦ Had some drawbacks ◦ Poor in cold weather ◦ Heavy New technique Developed by the British manufacturer Henry Bessemer around The technique involved injecting air into molten iron to remove the carbon and other impurities. Created an alloy lighter and much stronger than Iron--Steel New Invention: Steel
Railroad ◦ Increased amount of Railroad tracks in America ◦ Greatly increased the power of Rail companies Suspension bridges ◦ Brooklyn Bridge ◦ Golden Gate Bridge “Sky Scrapers” Farm Tools
The Increase in farming efficiency means less farm workers are needed This sends the nation’s laborers to the cities to look for jobsThis sends the nation’s laborers to the cities to look for jobs A new class of Americans is created: City-dwelling working classA new class of Americans is created: City-dwelling working class
MANY MANY INVENTIONS! Why is the invention of the light bulb so important? ◦ Allows factories to be open all night long. ◦ Invention of the “3 rd Shift” ◦ Another invention that continues the change in America from the Farm to the City
Andrew Carnegie- “Rags to Riches” Came to America poor and eventually created the largest and most powerful Steel Company in America. Richest man in America at one point Innovative Business Practices: ◦ Vertical integration- a process in which he bought out his suppliers in order to control the raw materials and transportation systems. ◦ Horizontal Consolidation-companies producing similar products merge.
Based on Darwin’s Theory of Evolution ◦ “Natural Selection” ◦ Survival of the fittest Government should not interfere with business ◦ God did not interfere with a dying species ◦ Weak businesses should be allowed to die ◦ Poor People deserve to be poor! Horatio Alger writes over 100 books about the “Self-Made Man” If men like Andrew Carnegie can do it so can you! Is this a myth or a reality?
Businessmen and bankers who dominated their respective industries and obtained huge personal fortunes, as a direct result of unfair business practices. Any businessman or banker who is thought to have used questionable business practices or scams in order to become powerful or wealthy 3 Criteria to be a “Robber Baron” ◦ Achieving great Personal wealth ◦ Changing the economic landscape by creating and using new technology ◦ Conflict with the government over unfair monopolies (anti-trust suits) ◦ Optional Fourth Criteria: Sell your company and become a Philanthropist