1. The Rise of Industry in the United States
Causes of America’s Industrialization

2. America Begins to Industrialize
Although industrialization begins prior to the Civil War, most of the U.S. remains agricultural until after it.
Out of a population of 30 million, only 1.3 million worked in industry in 1860
After the Civil War, industry will rapidly expand as millions begin to leave the farm
By 1914, the United States’ Gross National Product, the total value of all goods and services produced by a country, was eight times greater than when the Civil War ended

3. Causes of America’s Industrialization: Natural Resources
The U.S. contained an abundance of resources upon which industry in the 1880’s depended
1.    Water
2.    Timber
3.    Coal
4.    Iron
5. Copper
The presence of these natural resources meant that American industries could obtain them cheaply
A new natural resource also fueled industrialization and expansion, petroleum
Even before the invention of the automobile, petroleum was in high demand because it could be turned into kerosene
Used in lanterns and stoves

4. A Large Workforce
Another cause of industrialization in America was its large population
Between 1860 and 1910 the population of the U.S. almost tripled
This allowed more people to work in factories, but also created a higher demand for the goods they produced
Increased immigration also added to the population boom

5. Free Enterprise
Laissez-Faire Economics: The government should not interfere with the economy other than to protect private property rights
If they do, it increases costs and hurts the national economy
This system allows supply and demand to set prices and wages
A free market with competing companies leads to greater efficiency

6. Role of the Government
For the most part, the government of the 1800’s allowed laissez-faire economics to take control
Did not try to control prices or wages
However, they did interject on some issues
Tariffs: taxes on imported goods
A constant battle between the North and the South regarded tariffs; North wanted them, South did not
With the Republicans in power after the Civil War, more tariffs began to pass in Congress
Morill Tariff: tax on imported manufactured goods
Gave Western lands and millions of dollars to Western Rail Roads