1. Effects of Industrialization

2. 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 vs. Horizontal Integration
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

3. Entrepreneurs Cornelius Vanderbilt (1794-1877)
Andrew Carnegie ( )- vertical integration
Vanderbilt-
RRs and shipping
One of the first
Paved the way for other monopolists
Carnegie-
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

4. Entrepreneurs John D. Rockefeller (1839- 1937) J.P. Morgan (1837-1913)
John D. Rockefeller ( )- 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