IndustrializationUNIT 2: LESSON 1: THE RISE OF INDUSTRY

LEQ:Why was the United States successful at industrialization?

Drill:What does a country need in order to be successful?

Industrial Revolution **Revolution - a drastic change**

A period from the 18th to the 19th century (1700s-1800s) that is characterized by major changes in agriculture, manufacturing, mining, transport, and technology

A transition from manual labor and animal–based to machine-based manufacturing

It had a profound effect on socioeconomic and cultural conditions

Began in Great Britain then spread throughout Europe, North America, and eventually the world.

abundance of raw materials United States Becomes an Industrial Nation

Why was the United States successful at industrialization?

abundance of raw materials; oil production

population increase

new inventions

the economic system :Free enterprise =

laissez-faire

United States Becomes an Industrial Nation

Why was the United States successful at industrialization?

Lesson 1 Assignments:1. Read pages 92-95 of the text and complete LEQ graphic

organizer

2. Define the following terms: gross national product (GDP), laissez-faire, entrepreneur

LEQ:How did the railroad industry transform the nation?Drill:

What importance does transportation have in our world today?

How do modes of transportation effect society and our lives?

Transcontinental Railroad•1862 Pacific Railway Act gave the Union Pacific and Central Pacific railroad companies permission to build a transcontinental railroad

•Built to link the well developed railway network of the Eastern coast with rapidly growing Western coast (California)

•May 10th 1869 Union Pacific and Central Pacific railroads meet in Promontory, Utah to complete the Transcontinental Railroad

Union Pacific

Central Pacific

Wealth •Federal government gave land grants to railroad companies

•Companies sold the land to raise money for construction

•Great wealth was amassed by railroad entrepreneurs like Cornelius Vanderbilt – a shipping and railroad tycoon he was a self-made multi-millionaire of the 19th century

Corruption: Credit Mobilier Scandal of 1872

• Thomas Durant was vice-president of the Union Pacific and believed there was $$$ in constructing the railroad

•Durant created the Credit Mobilier of America, which just happened to win the contract to build 667 miles of Union Pacific railroad

•The Credit Mobilier charged the railroad tens of millions of dollars more than the actual cost of construction

•By the time they were done, they'd cleared at least $23 million

How did the railroad industry transform the nation?

Development of time zones

Long distance travel is faster (days vs. months)

United America’s regions

Promoted a national market

Ended Native American way of life in the West; greatly altered the environment

LEQ:Following the Civil War, how did corporations affect the business practices?

Drill:

What is a corporation?

Pop-Quiz1. A corporation is

A) owned by a proprietor

B) owned by two or more managers

C) owned by stockholders

2. A loan is a

A) fixed cost

B) operating cost

C) trust

Pop-Quiz 3. When the cost of manufacturing is decreased by producing goods quickly in large quantities

A). Holding company

B). Monopoly

C). Economies of scale

4. Opened a steel-mill near Pittsburgh in 1875

A). J.P. Morgan

B). Andrew Carnegie

C). John D. Rockefeller

Pop-Quiz5. _____________ is the total control of a type of industry by one person or one company

A). trust

B). monopoly

C). corporation

6. By 1900, retailers were spending over ____________ on advertising

A). $90 million

B). $80 million

C). $70 million

Nature of a Corporation•At its simplest, a corporation is an artificial person

•The corporation has rights similar to that of a human being

•A corporation can own property, pay taxes, exist for an indefinite period, sue, and be sued

Nature of a Corporation•Corporations have a separate identity from the people who created them

•Stockholders have limited liability = low risk investment (not personally responsible for the acts or obligations of the corporation)

Effects of Corporations•Entrepreneurs and stockholders were able to amass great wealth

•Monopolies developed and controlled all aspects of a particular industry = destroys competition

Effects of Corporations•New machines and technology improved productivity (the amount of goods a worker could turn out)

•Assembly line = allowed manufactures to reduce cost and lower prices

•Trade expanded beyond national borders = international trade and increased wealth

Selling Products•Retailers had to expand in size as a result increased manufacturing (more goods to sell)

•Advertising companies developed (N.W. Ayer and Son was the first)

•Began printing large advertisements in newspapers

•First department stores are created and the start of mail order catalogs (Sears)

The Men Who Built AmericaAndrew Carnegie John D. Rockefeller J.P. MorganBought shares in iron

mills and factories

Made equipment & infrastructure for

railroads

Opened Carnegie Steel in 1875

Invested in an oil refinery in 1863

Established Standard Oil Company in 1870

Controlled 90% of U.S. oil refining industry by

1880

Investment Banker

Bought Carnegie Steel and created U.S. Steel

Basis for JPMorgan Chase & Co. today

Following the Civil War, how did corporations affect the business practices?•Corporations were able to force out competition and create monopolies. The businessmen who ran them and their stockholders amassed great wealth, power, and influence.

•Retailers were forced to expand and devise new methods of advertisement to attract customers.

LEQ:In what ways did the Industrial Revolution change the way Americans worked?Drill:How did corporations affect business practices? (review your notes from Friday)

Working in the United States•In the 1700s most manufacturing was done at home and the employer and employee worked side-by-side

•This working relationship began to change in the 1800s with the factory system

•Employers began to focus more on production and the cost of labor

Content Vocabulary•Standard of living – a level of subsistence (life) and comfort in daily life maintained by a community, class, or individual

•Recession - an extended decline in general business activity

•Consolidate - to unite into one system or whole; combine

LEQ:How did American industrial workers respond to their harsh work environments?

Drill:Describe what a day of work in an 1850s steel mill might be like.

Unionization

•Workers wanted higher wages, less hours, and a better work environment

•Common laborers had few skills and received low wages

•Laborers began to unionize in order to have their demands met

•Union - an organized group of workers who collectively use their strength to have a voice in their workplace

Opposition to Unions•Employers often resented unions. There were no laws protecting or giving the workers the right to form unions

•Detectives were hired to identify union organizers and place leaders on a list

•Companies used lockouts to break up unions = locked workers out of the property and refused to pay them

•If a union called a strike the employers would hire replacement workers “strikebreakers or “scabs”