1. “Why did America become the greatest industrial power in the world ?”
Unit
Essay 1
“Why did America become the greatest industrial power in the world ?”

2. Unit 2 – Essay #1 “Why did America become the greatest industrial power in the world in the late nineteenth century?”
Interactive Notebook: 1. Which natural resources fueled the growth of American industry? Pg Which transportation network supported industry and business? Where did it expand by 1890? Pg. 239 Map 3. Which 3 new inventions were important for the growth of American industry? Pg. 233

3. I. A New Industrial Age What FACTORS led to Industrialization?
RAILROADS move goods, resources and raw materials  opens
“NATIONAL MARKETS” =
goods can be sold ANYWHERE
What can you buy from :
Florida ?
Alaska ?
Where can you send local grown fruit ?

4. I. A New Industrial Age National Market for
perishable fruit and vegetables, thanks to:
The refrigerated boxcar !
Farmers can send goods ANYWHERE !

5. I. A New Industrial Age B. New TECHNOLOGIES 
What FACTORS led to Industrialization?
B. New TECHNOLOGIES 
new businesses, new JOBS
See pg (the timeline)
(Pick 4 new technologies)

6. I. A New Industrial Age Immigrants…E___ Island
What FACTORS led to Industrialization?
C. Growth of Urban Population in USA  leads to…
CONSUMERISM =
More people demand more PRODUCTS… (which creates more BUSINESSES, more JOBS… etc.)

7. I. A New Industrial Age D. Government encourages Big Business growth
What FACTORS led to Industrialization ?
D. Government encourages Big Business growth
Pro-business North/FEDERALISTS
won Civil War so they make laws to FAVOR Big Business and economic growth of USA  leads to…
Big Business MONOPOLIES & TRUSTS
“Tycoons” -- Who were they ?

8. Pro-business Government: Huge LAND Grants to RR companies

9. II. Monopoly Strategies – “playing to win” the Big Business game
Business Strategies
Pro-business Philosophy

10. Business Strategies Interactive Notes: VERTICAL Integration=
combine/merge all TYPES of businesses in order to control the whole PRODUCTION process
Interactive Notes:
4. Create another type of business/industry using Vertical Integration strategy?
Production companies =
Distribution companies =
Manufacturing
Companies =

11. Business Strategies HOROZONTIAL Integration =
merge companies of one type in order to control an industry
Consolidation is another term for “integration”

12. Business Strategies Trusts = an ILLEGAL way to merge companies.
Larger companies take over SMALLER ones – but do not do so OPENLY.
Rival companies do not KNOW about this take-over, which is a DIS-ADVANTAGE.
Also, it unfairly eliminates COMPETITION

13. Pro-Business Philosophy
SOCIAL DARWINISM=
Herbert SPENCER said Darwin’s idea of Natural SELECTION applies to BUSINESS too.
Survival of the fittest

14. Pro-Business Philosophy
SPENCER said that the economy is better off with BIGGER/STRONGER Companies
Spencer said it is good to eliminate WEAKER/SMALLER companies;

15. Pro-Business Philosophy
This is a “NATURAL process” and that Government should not INTERFERE to save smaller companies
SOCIAL DARWINISM provided an excuse for eliminating COMPETITION.

16. II. Monopoly Strategies & Pro-business Philosophy
Example of a Monopoly
Standard Oil Company
John D. Rockefeller
Controlled 90% of oil refineries by Which strategy ?
HORIZONTAL INTEGRATION
Example of a Monopoly
Carnagie Steel Corporation
Andrew Carnagie
Controlled nearly 50% of steel production by 1901 – (Mining, Manufacturing, Railroads companies)Which strategy?
VERTICAL INTEGRATION

17. III. Consequences of Monopolies & Trusts
Lack of COMPETITON allows a Big Business monopoly/trust to do whatever it wishes 
1. Higher PRICES for consumers (including farmers who needed R.R. transport)
2. Lower WAGES for workers
JP MORGAN (who bought Carnegie’s company and made it bigger) said:
“I like a little competition sometimes, but I prefer CONSOLIDATION”
What do you think he meant by this?