1. Causes of Industrialization
Factors of Production

2. Factors of Production
The elements that must be present for a country to be a successful industrial nation

8. Factor/ Cause #1 Natural Resources/ Raw Materials Water Timber Coal
Oil
Copper

9. US had an abundance of raw materials
Allowed us to obtain them cheaply
Settlement of west helped accelerate industrialization
New resource, petroleum, was used for fuel
In 1859, Edwin Drake drilled first oil well near Titusville, PA

14. Factor/ Cause #2 Entrepreneurs and Inventions
Came up with new inventions
Inventions helped increase productivity and improved transportation and communication
Inventions led to new corporations providing new jobs and wealth

15. Inventors Alexander Graham Bell and the Telephone
Edison and Electricity
Created research lab and held more than 1000 patents when he died
Edison electric powered NYC
Several of his companies formed what is now GE
George Westinghouse and Electricity
Invented air brake system for railroads allowing trains to travel faster
His company was first to use hydroelectric power of Niagara Falls to generate electricity for street cars

20. Factor/ Cause #3
Capital –
land
Factories
machines
money

26. Factor/ Cause # 4
Labor
Large workforce fueled by immigration and large families
– population tripled in US
Created greater demand for consumer goods

31. Factor/ Cause # 5 Transportation Streetcars, subways, automobiles
Railroad
Pacific Railway Act provided construction of railroads by two companies
Union Pacific pushed west from Nebraska
Central Pacific pushed east with 10,000 workers from China due to labor shortage in California
After 4 years companies met at Promontory Summit, Utah to complete transcontinental railroad

32. Railway Significance Promoted trade
unite Americans in different regions
Provided jobs
sped up Western settlement
set up standard time to provide train safety
factories could send out product faster to more people

38. Factor/ Cause # 6 Markets Places to buy & sell a product
Late 1800s - Free Enterprise Market
Laissez- faire gov’t not interfere with economy
Rely on supply and demand to regulate prices and wages
Supporters claimed free markets with competing companies leads to greater efficiency and creates more wealth for all

39. # 6 continued Gov’t Role during late 1800s
High tariffs set to protect American industry from foreign competition
Problem: Europe raises their tariff thus keeping us from selling our goods there