1. Industrial Revolution

2. Foundations for Economic Growth
Abundant Natural Resources
The “Free Enterprise” System
Capitalist
Free Market
Social Darwinism
The Role of Government
“laissez-faire”
Patent system
Tariffs
Fertile soil, swift flowing streams, timber, coal, iron ore, oil, phosphates, and copper
Capitalist society, tools, factories, and other means of production are privately owned, people are free to buy and sell goods (market economy), cheaper better goods compete more effectively, competitive work ethic=social Darwinism (adapt, survive, thrive)

3. Foundations for Economic Growth
The Legacy of the first industrial revolution
Steam power, and mass production of goods
Economic stimulus provided by the Civil War
Money re-invested in manufacturing

4. Spread of Railways End of Civil War=35,000 miles of railroads
25 years later 5x that amount
Transcontinental railroad- 1869
George Pullman- sleeping car
Refrigerated cars- insulated with ice on the top
Time Zones
Stimulus to steal, iron and coal industries
Shipment of goods

6. Technological Innovation
Steel
Bessemer process- cheaper to create good steel
Communication
Telegraph- transatlantic cable, then 1865
Telephone
Electricity
Phonograph
Light bulb
Nicola Tesla
Oil
First oil well in Pennsylvania
Petroleum, kerosene, gasoline
80% cheaper- railroads, steamships, suspension bridges, turbines and engines, and skyscrapers
Tesla- worked for Edison from Serbia, Edison- direct current tesla- alternating current, teslas lasted longer and could travel longer distances, lit up Chicago’s world fair in 1893
Petroleum- lighting and machine lubrication, kerosene- lighting, gasoline- internal combustion engine

7. Women and African American Inventors
Josephine Cochran- automatic dishwasher
John Albert Burr- rotary blade lawn mower
Granville T. Woods- telegraph that could send signals between trains
Sarah Goode- first African American Women to have a patent, fold away bed tucked into a desk
Madam C.J. Walker- hair car products, first African American millionaire

8. Effects of Industrialization
Growing Population
Emergence of a National Market
Department stores and Mail Order Houses
The Rise of the Corporation- large scale businesses
Economies of scale in production
Cheaper sources of supply
Vertical integration- all parts of production
Use of machinery on farms= more food= more people, rising demand for goods and supply of cheap labor
Communication, transportation and manufacturing= national market
department stores- woolworths, mail-order houses- sears and roebuck
Corporation- issues stocks or shares of ownership
economies of scale in production- larger businesses build larger facilities and can modernize faster
cheaper sources of supply- order in bulk less exensive
owned their own source of raw material, own transportation network, and manufacturing facilities

9. Entrepreneurs Andrew Carnegie (1835-1919)- vertical integration
Scottish immigrant
Bessemer Process
Bought out competing companies
Workers worked 12 hour shifts, day and night
The Gospel of Wealth- give money away in lifetime

10. Entrepreneurs John D. Rockefeller (1839- 1937)- horizontal integration
Standard oil company
Purchased rivals
Pipelines=bypass railroads
Standard Oil Trust= 90% of all oil refining
J.P. Morgan ( )
General Electric
Bought Carnegie steel in US Steel= the first billion dollar company in the US