1. The Industrial Revolution
CHAPTER 13
The Industrial Revolution
Section 1: Origins of the Industrial Revolution
Section 2: The Factory System
Section 3: New Methods and Business Organizations
Section 4: Living and Working Conditions
Section 5: Socialism

2. Capitalism SECTION 3 Israel and the Occupied Territories
New Methods and Business Organizations
Capitalism
Economic system where individuals (not govt) controls the factors of production.
Businesses and the means of production are privately owned and operated.

3. Commercial Capitalism: Merchants bought & sold goods.
SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
Commercial Capitalism: Merchants bought & sold goods.
Industrial Capitalism: produce and manufacture goods.

4. Israel and the Occupied Territories
SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
Industrial Capitalism brings about a New Middle Class:
businessmen, merchants, inventors benefited most
from the Industrial Revolution
they lived in nice homes, dressed well, ate large meals,
and hired servants
valued hard work as a way to "get ahead"
thought poor people brought on their own misery
- laziness and ignorance would keep them in poverty

5. SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
Factories were built on the beliefs of Division of Labor and Interchangeable Parts
Divided the jobs into steps
Hire unskilled labor for each step
DIVISION OF LABOR!
Increased production
All of this Lowered Costs = MORE PROFIT

6. Eli Whitney Parts were all alike interchangeable parts
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New Methods and Business Organizations
Eli Whitney
Parts were all alike
interchangeable parts
Speedy production of inexpensive muskets
Easily repaired!

7. Mass Production Producing large numbers of identical items
SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
Mass Production
Producing large numbers of identical items
What do you need for Mass Production?
Division of labor
Use of interchangeable parts
An assembly line

8. Israel and the Occupied Territories
SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
The Assembly Line
Parts brought together to one location Carried from worker to worker
Saved time and energy

9. Karl Benz 1886 first 3-wheeled auto SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
Karl Benz
1886
first 3-wheeled auto

10. Henry Ford – Mass Production
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New Methods and Business Organizations
Henry Ford – Mass Production
Used a conveyor belt
Founded one of the largest industries in the world
Model T would be assembled in 93 min.
Other industries would mass produce items….

11. Rise of the Corporation
SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
Rise of the Corporation
Partnership: two or more people own and run a business.
Sole proprietorship: one person owns & runs the business.

12. Capitalist: investor in a business
SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
Capitalist: investor in a business
…became more involved in producing and manufacturing goods ----

13. Big Businesses - Corporations
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New Methods and Business Organizations
Big Businesses - Corporations
Company that allows people to buy “shares of stock”
Each share would receive a portion of the profits
By late 1800s, some corporations were very large and powerful. J.P. Morgan – US Steel

14. J.P. Morgan – U.S. Steel Corporation Pittsburgh, Pennsylvania
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Israel and the Occupied Territories
New Methods and Business Organizations
J.P. Morgan – U.S. Steel Corporation
Pittsburgh, Pennsylvania
Henry Bessemer British engineer who invented steel (made through a process of purifying iron ore) - steel was lighter, harder, more durable than iron.

15. SECTION 3
Israel and the Occupied Territories
New Methods and Business Organizations
Monopoly
When a corporation gains COMPLETE CONTROL over the production or sale of a good/service

16. Cartel SECTION 3 Israel and the Occupied Territories
New Methods and Business Organizations
Cartel
When corporations join together to control every stage of an industry.
Example: German steel industry -coal & iron mines -steel mills -factories

17. business cycle SECTION 3 Israel and the Occupied Territories
New Methods and Business Organizations
business cycle
Alternating periods of prosperity and decline
As industry became more and more important, it influenced the economies of many nations.
depression