Chapter 17 – Industrial Supremacy. Sources of Industrial Growth.

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Presentation transcript:

Chapter 17 – Industrial Supremacy

Sources of Industrial Growth

Industrial Technologies The rapid increase of the railroad industry following the Civil War led to: An equally rapid increase in iron production Steel at the time = TOO EXPENSIVE until…

Who Would Win?? IRONMAN MAN OF STEEL Steel is stronger than iron and soon became one of the major forces expanding industry in the U.S.

Importance of Pittsburgh Coal was plentiful in western PA and needed to fuel the huge furnaces (anthracite & bituminous coal)

What was the steel industry’s effect on the oil industry?

Automobiles’ Beginnings Creation of gasoline Internal Combustion Engine The automobile affected the social and cultural life of the United States

Research and Development In order to stay ahead of the competition, companies set up R&D Departments Competition Companies with R&D Scientists vs. Engineers

The Science of Production Makes production more efficient Workers become interchangeable Reduces the need for skilled labor Increases employer’s control over workforce and workplace Frederick Winslow Taylor

The Rise of Corporate America Andrew Carnegie John D. Rockefeller

Not having control of the production of my product at all levels is my… KRYPTONITE!!!!!! The Real “Man of Steel” Used vertical integration to become a steel juggernaut Sold his business to J.P. Morgan for $450 million – became U.S. Steel Corporation

Rockefeller and the Standard Oil Trust My Kryptonite is competition!!! Rockefeller and many other businessmen felt that competition was the greatest hindrance to the modern economy Horizontal Integration Forming Trusts

Horizontal Integration

Do you agree with Rockefeller? Rockefeller stated that competition was the curse of the modern economy. Some questions to consider in groups: 1. Do you agree with him? 2. Should corporations be allowed to consolidate? 3. Shouldn’t they be allowed to do that in a free market economy? 4. At what point does it become wrong (if at all)? 5. Explain the sources of industrial growth.

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