1. Warm-up: What differences do you notice between these images in terms of how work is performed?

2. Warm-up: What differences do you notice between these images in terms of how work is performed?

3. What is Industrialization?
Factors of Production (aka “inputs”): Three things that you need to make anything

4. What is Industrialization?
Pre-industrial economy
Land (where was the product made?)
In the home!
Ex: individual people make candles in their homes, not in any one location
Labor (who provided the labor to make the product?)
Skilled individuals
Ex: a person had to know how to make the entire product from the beginning to the end
Capital (who provided the money / resources needed to produce the product?)
The individual worker provided the money to start up the business
The individual worker made the product with their own two hands
Effect on Goods
Fewer goods produced; higher cost per good

5. What is Industrialization?
Industrial economy
Land (where was the product made?)
In a centralized location (factory)
Ex: move the manufacturing of the product under one roof (rather than spread-out, individual homes)
Labor (who provided the labor to make the product?)
Unskilled individuals
Ex: production process is broken down into small steps and each person will only perform a single step so they get really good at it!
Capital (who provided the money / resources needed to produce the product?)
Investors provided the money to start up a company because of high start up costs
Machinery made the products
Ex: Products were no longer made by hand but by machine
Effect on Goods
More goods produced; lower cost per good

6. Relative Share of World Manufacturing

7. What caused the Industrial Revolution?
Connected raw materials with factories and factories with consumers
Raw materials in west powered eastern factories
Spurs development of new technologies
Creates demand for industrial goods
Growth of Railroads
Western Expansion
The Civil War
( )
Millions of immigrants!
New intellectual ideas
(ie. Social Darwinism)
Industrial Revolution
Large supply of cheap labor
Business-friendly government policy
Abundant capital ($$$$) to start up factories
New business organizations (corporations)
Corporations make raising money easier!
Fed. Govt. passes tariffs (taxes on imported goods) to encourage people to buy American
Laissez-faire = no regulations on businesses!
Raise capital by selling stock
Owning stock = own company
Special laws to protect investors

8. The West and Raw Materials!

9. The Transcontinental Railroad

10. U. S. Patents Granted 1790s  276 patents issued.

11. Thomas Alva Edison
“Wizard of Menlo Park”

12. The Light Bulb

13. The Phonograph (1877)

14. The Ediphone or Dictaphone

15. The Motion Picture Camera

16. Alexander Graham Bell
Telephone (1876)

17. The Airplane Wilbur Wright Orville Wright
Kitty Hawk, NC – December 7, 1903

18. Model T Automobile
Henry Ford I want to pay my workers so that they can afford my product!

19. “Model T” Prices & Sales

20. New Type of Business Organizations
Pool
Rochester Widgets Incorporated
Medina Widgets Incorporated
Buffalo Widgets
Incorporated
Trust
Board of Trustees/Directors
(Standard Widgets Incorporated)
Rochester Widgets Incorporated
Medina Widgets Incorporated
Buffalo Widgets
Incorporated
Standard Oil
Holding Company
Select investors with 51% ownership in all 3 companies
Rochester Widgets Incorporated
Medina Widgets Incorporated
Buffalo Widgets
Incorporated

21. Standard Oil Co.

22. The Protectors of Our Industries

23. The ‘Bosses’ of the Senate

24. The ‘Robber Barons’ of the Past

25. Cornelius [“Commodore”] Vanderbilt
Can’t I do what I want with my money?

26. Relative Share of World Manufacturing