1. Growing Pains: Robber Barons and the Growth of U. S
Growing Pains: Robber Barons and the Growth of U.S. Industry, AN AGE OF BIG BUSINESS
Mr. Pitcairn
U.S. History
2005/06

2. FOUNDATIONS FOR GROWTH
Factors of Production
time of great economic growth
New technology + new business methods  allow U.S. to
tap rich supply of natural resources
increase production
raise $ needed for growth
Growth possible because U.S. benefited from “factors of production”
LAND (land & natural resources)
LABOR (availability of workers)
CAPITAL (buildings, machinery, & tools)

3. FOUNDATIONS FOR GROWTH
Growth of railroads after Civil War stimulates economic growth
1869: first transcontinental railroad
By 1890: five major transcontinental railroads
Miles of track:
1860: about 30,000
1900: almost 200,00

5. FOUNDATIONS FOR GROWTH
Raising Capital
Economic & business growth requires “capital”
$ for investment
Banks: businesses borrowed $ to expand

6. FOUNDATIONS FOR GROWTH
“Corporation”
Company that sells shares – “stock” – of its business
“shareholders” – people who invest in a company by buying shares
GOOD TIMES  shareholders do well
“dividends” – cash from company’s profits
stock rises in value
BAD TIMES  shareholders lose investment
Stocks sold in “stock markets”
Railroads first businesses to incorporate

8. THE OIL BUSINESS 1850s oil found in PA hills
Oil valuable
lubricate machinery
burn to produce energy
1859 first oil well
Titusville, PA
Edwin Drake
Oil industry grows rapidly in late 1800s

9. THE STEEL BUSINESS Steel becomes big business in late 1800s Steel
Strong & long-lasting form of iron
Iron alloyed with carbon
Great for railroad tracks, bridges, buildings, etc.
1860s: new methods of making steel (Bessemer process)  could produce larger amounts, more cheaply
1870s: Pittsburg, PA  steel capital of US
Close to sources of iron ore (PA & OH)
Large steel mills built

10. “Making Bessemer Steel at Pittsburgh, the Converters at Work” Charles Graham Harper’s Weekly April 10, 1886

12. REFERENCES
“The Growth of Industry” (Chapter 19). The American Journey. New York: Glencoe McGraw-Hill, 2003.
“Industrial Revolution.” Wikipedia. Wikimedia. <
“The American Experience: Andrew Carnegie.” PBS. <