1. Economic Growth
USH-4.2 & 4.3

2. I. Factors Economic boom during and after Civil War Major factors:
Land and natural resources
Labor – workers
Capital – money
Technology
Entrepreneurship – starting businesses

3. II. Beginnings
US government provided environment that helped businesses
Protective tariff to help northern business
National bank provided capital and regulated lending
Westward expansion opened new markets and raw materials
Gov’t removing NAs helped

4. II. Beginnings Supreme Court helped Steam engine
Dartmouth v Woodward held up contracts and protected patent laws
Gibbons v Ogden regulated interstate commerce
Steam engine
Steamboat
Railroad
Oil drilling

5. III. Growth Congress helped railroads and regulated banking
War contracts stimulated many businesses
Gov’t provided protection for settlers
Raised tariffs
Higher wages but higher prices
Promoted open immigration to have lots of workers when needed
Chinese Exclusion Act was passed after the railroad was completed and they no longer needed them

6. III. Growth Gov’t helps break up and end strikes
Helps Big Business
Hurts poor workers
Surplus of goods become exports
Gov’t wants to expand (imperialism)

7. IV. Capitalism
Economic system that has private ownership of property and it is used to make a profit
For individuals or corporations
Supports democratic ideas of freedom and opportunity
Hard work = more money
No work = no money
Corporations grow during Civil War and have greater influence

8. V. Railroads
Transcontinental RR; markets; opportunity; resources (USH-4.1)
Leads to the growth of other industry
Lumber – RR ties
Steel – rails & engines
Coal – for steam and transporting it
Meat packing – special cars for transporting it

9. V. Railroads
Grow so big that when some RRs go bankrupt, the whole country goes into a depression

10. VI. Vertical Integration
Form of a monopoly where every aspect of production is controlled
Andrew Carnegie – owner of US Steel
Owned coal mines
Owned iron ore mines
Owned steel mills
Controlled steel distribution
Able to drive prices down to kill competition

11. VII. Horizontal Integration
To entirely control one facet of production to create a monopoly
John D Rockefeller – owner of Standard Oil
Controlled almost all oil refineries in US
Undersold competition
Forced retail outlets to NOT sell competitors
Forced RR to give him sweet deals

12. VIII. Robber Barons? Were business leaders:
Ripping off the public for their personal wealth
Captains of Industry
Using capitalism to make the US wealthy
Monopolies lead to the Sherman Anti-Trust Act
Limits on Big Business and breaks up monopolies

13. VIII. Robber Barons? CEO’s used cut-throat practices justified by:
Social Darwinism
Survival of the fittest for people and businesses
Laissez-faire
“Let it be”
Gov’t doesn’t touch the economy
They still wanted gov’t protection against labor

14. VIII. Robber Barons? Many became philanthropists
Gave away millions for:
Schools
Hospitals
Libraries
Theaters
Orphanages
Charities
“Buying their way into Heaven”

15. IX. Standard of Living Life got better for most people
Monopolies create lots of new products
Electricity
Typewriter and telephone
New jobs for women
Mass production lowers prices
Henry Ford’s moving assembly line in 1913
Some farmers & factory workers still have nothing