1. The Expansion of American Industry

2. What forced the U.S’s transformation?
4 major factors push the U.S. from an agricultural society to an industrial nation
Wealth of natural resources
Growing workforce
Explosion of inventions
Free Enterprise

3. 1. Natural Resources US has – copper, iron, coal and timber
What does that mean?
Many resources were found in the American West.
Settlers and miners went out west, railroads carried the resources east to the factories
New resources being found in western PA- petroleum!
Edwin Drake – st oil well near Titusville PA
companies could get them cheap – no importing from other countries

4. Edwin Drake creates the steam engine for oil drilling
Black Gold
Abraham Gesner creates kerosene which is distilled from crude oil (petroleum) – used in stoves, lanterns
Edwin Drake creates the steam engine for oil drilling
Gasoline is extracted from petroleum and used for the newly created automobile
Bessemer Steel
Coal and iron are abundant enough to produce steel cheaply
Air injected into molten iron created stronger steel
Timber, coal, iron and copper - companies could get them cheap – no importing from other countries

5. 2. Increased Population
City populations rapidly expand – US nearly tripled from
Chicago, New York, and Boston all reach a million inhabitants
Workforces double, triple, and even quintuple in major urban centers…including women workers
1870 = 5% of the workforce is female
1920 = 40% of the workforce is female
Greater demand for manufactured goods

6. Why the population growth?
1. Large families – better living conditions caused more children to live to adulthood
2. Immigrants – Why come to the US?
Social/economic conditions in Eastern Europe/China
Oppressive governments
Religious persecution
All seeking a better life in America

7. 3. Inventions
The Power of Electricity = Thomas Alva Edison establishes the Menlo Park research laboratory in NJ –The incandescent light bulb is created and mass produced. Edison companies merged to form Edison General Electric Co (GE today)
Cities, shops, and homes receive electricity, electric streetcars are invented
George Westinghouse – continuous air-brake system for railroads - AC current to distribute electricity using transformers and generators
The Telephone = Alexander Graham Bell (and Thomas Watson) invent the telephone – Bell Telephone Company eventually becomes – American Telephone and Telegraph company (AT&T)
Idea – “it would be possible to talk by telegraph
Continuous air-brake system – stop smoothly, travel at higher speeds

8. Pros –
Refrigeration – keeps food fresh longer, reducing the risk of food poisoning – Thaddeus Lowe – ice machine First refrigerated meats shipped in Why is refrigeration so important?
Power-driven machines
Increase in recreational inventions
Camera, bicycle, and phonographs
Cons -
New inventions lead to longer hours for laborers
Consumerism and advertising becoming important

9. 4. Free Enterprise
Late 1800’s Americans embraced the idea of Laissez-Faire – “ Let the people do as they choose” Government should stay out of economic decisions
Gov’t should only protect private property rights, maintain peace.
Relies on supply and demand to regulate wages and prices of goods and services
Profit motive attracts entrepreneurs
Why is competition important
in the marketplace?
Competing companies leads to efficiency and more wealth, low taxes, limited gov’t debt
People willing to risk their capital to start a business

10. Free Enterprise – What went wrong?
North –
High tariffs – protect manufacturers from foreign competition
Federal subsidies - building roads, canals, railroads
South –
Opposed subsidies
Lower tariffs – promote trade, keep cost of imported goods down.
After Civil War – Republican controlled Congress passed the Morrill Tariff – taxes nearly tripled. It also gave huge Western land tracts and loans to Western railroads, sold mineral rich public land and below market value (contradicts idea of Laissez-faire)
US raises tariffs, other countries raise tariffs on our goods – hurt farmers