1. The Rise of Industry and Railroads
Chapter 14 Sections 1 & 2

2. US Industrializes
By the early 1900’s the US was the world’s leading industrial nation
GNP – gross national product – the total value of all goods and services produced by a country
GNP – was 8 times greater than it had been at the end of the Civil War

3. Natural Resources Natural resources Transcontinental railroad
Water, timber, coal, iron, & copper
Transcontinental railroad
Brought settlers and miners to the West and carried the resources back to the East
Petroleum b/g to be exploited
Kerosene for lanterns and stoves
1859 – Edwin Drake drilled the first oil well in Pennsylvania

4. Large Workforce Massive population growth 2 Causes
Large families – improve farming methods
Flood of immigrants – looking for a better life
This provided a large workforce for industry
There was a greater demand for consumer goods that factories produced

5. Free Enterprise Laissez-faire – let people do as they choose
Laissez-faire relies on supply and demand instead of the govt. regulating prices and wages
Govt. should not interfere in the economy
If the govt. regulates the economy it increases costs and eventually hurts society more than it helps
A free market w/ competing companies leads to greater efficiency and creates more wealth for everyone
Entrepreneurs – people who risk their capital in organizing and running a business

6. New Inventions 1876 – Alexander Graham Bell – invented the telephone
1877 – Bell and others organized the Bell Telephone Company
Eventually b/c AT&T
1879 – Thomas Alva Edison – perfected the lightbulb and the electric generator
1889 – Edison General Electric Company
Now known as GE

7. Linking the Nation
1862 – Pacific Railway Act – construction of a transcontinental railroad by two corporations
The Union Pacific and Central Pacific railroad companies
Railroad growth helped increase the size of markets and the economy itself by spending money on steel, coal, timber, etc.

8. Linking the Nation
1883 the American Railway Association created time zones – to make rail service safer and more reliable
The nation was divided into 4 time zones – in each region the same time was kept
The change was ratified by the US gov’t in 1918

9. Land Grant System
The govt. gave land grants to railroad companies to encourage railroad construction
Railroads companies then sold the land to settlers, real estate companies, etc. to raise money they needed to build the railroad