The Age of Innovation and The Age of Innovation and IndustryIndustry

United States History – United States History – Chapter 13Chapter 13

Essential VocabularyEssential Vocabulary

• CapitalismCapitalism• Definition: an economic system in which Definition: an economic system in which

investment in and ownership of the means investment in and ownership of the means of production, distribution, and exchange of production, distribution, and exchange of wealth is made and maintained chiefly of wealth is made and maintained chiefly by private individuals or corporations, esp. by private individuals or corporations, esp. as contrasted to cooperatively or state-as contrasted to cooperatively or state-owned means of wealthowned means of wealth

1.1. Create your own definitionCreate your own definition

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Essential VocabularyEssential Vocabulary

• Free EnterpriseFree Enterprise• Definition: an economic and political Definition: an economic and political

doctrine holding that a capitalist doctrine holding that a capitalist economy can regulate itself in a freely economy can regulate itself in a freely competitive market through the competitive market through the relationship of supply and demand with a relationship of supply and demand with a minimum of governmental intervention minimum of governmental intervention and regulation.and regulation.

1.1. Create your own definitionCreate your own definition2.2. Create a visual representation of the Create a visual representation of the

termterm

Essential VocabularyEssential Vocabulary

• IndustrializationIndustrialization• Definition: an economic organization Definition: an economic organization

of society built largely on of society built largely on mechanized industry rather than mechanized industry rather than agriculture, craftsmanship, or agriculture, craftsmanship, or commerce.commerce.

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Essential VocabularyEssential Vocabulary

• Labor UnionLabor Union• Definition: an organization of wage Definition: an organization of wage

earners or salaried employees for earners or salaried employees for mutual aid and protection and for mutual aid and protection and for dealing collectively with employers; dealing collectively with employers; trade union.trade union.

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Essential VocabularyEssential Vocabulary

• SocialismSocialism• Definition: a theory or system of social Definition: a theory or system of social

organization that advocates the vesting organization that advocates the vesting of the ownership and control of the of the ownership and control of the means of production and distribution, of means of production and distribution, of capital, land, etc., in the community as a capital, land, etc., in the community as a whole.whole.

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InventionsInventions

• What are the three most important What are the three most important inventions created in inventions created in youryour lifetime? lifetime?

• How have they changed your life?How have they changed your life?

Essential QuestionEssential Question

• Was the rise of Industry good for Was the rise of Industry good for the United States?the United States?

Causes of Rapid Causes of Rapid IndustrializationIndustrializationCauses of Rapid Causes of Rapid IndustrializationIndustrialization

1.1. Steam Revolution of the 1830s-Steam Revolution of the 1830s-1850s.1850s.

2.2. The Railroad fueled the growing US The Railroad fueled the growing US economy:economy:

First big business in the US.First big business in the US. The key to opening the West.The key to opening the West. Aided the development of other Aided the development of other

industries.industries.

1.1. Steam Revolution of the 1830s-Steam Revolution of the 1830s-1850s.1850s.

2.2. The Railroad fueled the growing US The Railroad fueled the growing US economy:economy:

First big business in the US.First big business in the US. The key to opening the West.The key to opening the West. Aided the development of other Aided the development of other

industries.industries.

Causes of Rapid Causes of Rapid IndustrializationIndustrialization

Causes of Rapid Causes of Rapid IndustrializationIndustrialization

3.3. Technological innovations.Technological innovations. Bessemer and open Bessemer and open

hearth processhearth process Refrigerated carsRefrigerated cars Edison Edison

o ““Wizard of Menlo Park”Wizard of Menlo Park”o light bulb, phonograph, light bulb, phonograph,

motion pictures.motion pictures.

3.3. Technological innovations.Technological innovations. Bessemer and open Bessemer and open

hearth processhearth process Refrigerated carsRefrigerated cars Edison Edison

o ““Wizard of Menlo Park”Wizard of Menlo Park”o light bulb, phonograph, light bulb, phonograph,

motion pictures.motion pictures.

4.4. Unskilled & semi-skilled Unskilled & semi-skilled labor in abundance.labor in abundance.

5.5. Abundant capital.Abundant capital.

6.6. New, talented group of businessmen New, talented group of businessmen [[entrepreneursentrepreneurs] and advisors.] and advisors.

7.7. Market growing as US population increased.Market growing as US population increased.

8.8. Government willing to help at all levels to Government willing to help at all levels to stimulate economic growth.stimulate economic growth.

9.9. Abundant natural resources.Abundant natural resources.

4.4. Unskilled & semi-skilled Unskilled & semi-skilled labor in abundance.labor in abundance.

5.5. Abundant capital.Abundant capital.

6.6. New, talented group of businessmen New, talented group of businessmen [[entrepreneursentrepreneurs] and advisors.] and advisors.

7.7. Market growing as US population increased.Market growing as US population increased.

8.8. Government willing to help at all levels to Government willing to help at all levels to stimulate economic growth.stimulate economic growth.

9.9. Abundant natural resources.Abundant natural resources.

Causes of Rapid Causes of Rapid IndustrializationIndustrializationCauses of Rapid Causes of Rapid IndustrializationIndustrialization

Thomas Alva EdisonThomas Alva EdisonThomas Alva EdisonThomas Alva Edison

““Wizard of Menlo Park” Wizard of Menlo Park” ““Wizard of Menlo Park” Wizard of Menlo Park”

The Light BulbThe Light BulbThe Light BulbThe Light Bulb

The Phonograph The Phonograph (1877)(1877)The Phonograph The Phonograph (1877)(1877)

The Ediphone or The Ediphone or DictaphoneDictaphoneThe Ediphone or The Ediphone or DictaphoneDictaphone

The Motion Picture The Motion Picture CameraCameraThe Motion Picture The Motion Picture CameraCamera

Alexander Graham BellAlexander Graham BellAlexander Graham BellAlexander Graham Bell

Telephone (1876)Telephone (1876)

Alternate CurrentAlternate CurrentAlternate CurrentAlternate Current

George WestinghouseGeorge Westinghouse

Alternate CurrentAlternate CurrentAlternate CurrentAlternate Current

Westinghouse Lamp ad

Westinghouse Lamp ad

The AirplaneThe AirplaneThe AirplaneThe Airplane

Wilbur Wright Orville WrightWilbur Wright Orville Wright Wilbur Wright Orville WrightWilbur Wright Orville Wright

Kitty Hawk, NC – December 7, 1903Kitty Hawk, NC – December 7, 1903 Kitty Hawk, NC – December 7, 1903Kitty Hawk, NC – December 7, 1903

Model T AutomobileModel T AutomobileModel T AutomobileModel T Automobile

Henry FordI want to pay my workers so that they

can afford my product!

Henry FordI want to pay my workers so that they

can afford my product!

““Model T” Prices & Model T” Prices & SalesSales““Model T” Prices & Model T” Prices & SalesSales

U. S. Patents U. S. Patents GrantedGranted

U. S. Patents U. S. Patents GrantedGranted

1790s 276 patents issued. 1790s 276 patents issued.

1990s 1,119,220 patents issued. 1990s 1,119,220 patents issued.

13.213.2

13.313.3

13.413.4

13.513.5

New Business New Business CultureCultureNew Business New Business CultureCulture

1.1. Laissez FaireLaissez Faire the ideology of the the ideology of the Industrial Age. Industrial Age.

1.1. Laissez FaireLaissez Faire the ideology of the the ideology of the Industrial Age. Industrial Age.

Individual as a moral and Individual as a moral and economic ideal.economic ideal.

No room for government in the No room for government in the market!market!

Individual as a moral and Individual as a moral and economic ideal.economic ideal.

No room for government in the No room for government in the market!market!

2.2. Social DarwinismSocial Darwinism2.2. Social DarwinismSocial Darwinism Adapted Darwin’s Adapted Darwin’s

ideas from the ideas from the “Origin of “Origin of Species” to Species” to humans.humans.

Notion of Notion of “Survival of the “Survival of the Fittest.”Fittest.”

Adapted Darwin’s Adapted Darwin’s ideas from the ideas from the “Origin of “Origin of Species” to Species” to humans.humans.

Notion of Notion of “Survival of the “Survival of the Fittest.”Fittest.”

Herbert SpencerHerbert Spencer

2.2. Social Darwinism in Social Darwinism in AmericaAmerica2.2. Social Darwinism in Social Darwinism in AmericaAmerica

William Graham SumnerFolkways (1906)

William Graham SumnerFolkways (1906)

$ Individuals must Individuals must have absolute have absolute freedom to freedom to struggle, succeed struggle, succeed or fail.or fail.

$ Individuals must Individuals must have absolute have absolute freedom to freedom to struggle, succeed struggle, succeed or fail.or fail.

New Business Culture:New Business Culture:“The American Dream?”“The American Dream?”New Business Culture:New Business Culture:“The American Dream?”“The American Dream?”

3.3. Protestant (Puritan) “Work Ethic”Protestant (Puritan) “Work Ethic” Horatio Alger [100+ novels]Horatio Alger [100+ novels]

3.3. Protestant (Puritan) “Work Ethic”Protestant (Puritan) “Work Ethic” Horatio Alger [100+ novels]Horatio Alger [100+ novels]

Is the idea of the “self-made man” a MYTH??Is the idea of the “self-made man” a MYTH??

New Type of New Type of Business EntitiesBusiness EntitiesNew Type of New Type of Business EntitiesBusiness Entities

1.1. Monopoly -Monopoly - A situation in which a A situation in which a single company owns all or nearly all single company owns all or nearly all of the market for a given type of of the market for a given type of product or service product or service

1.1. Monopoly -Monopoly - A situation in which a A situation in which a single company owns all or nearly all single company owns all or nearly all of the market for a given type of of the market for a given type of product or service product or service

Standard Oil Co. Standard Oil Co.

Standard Oil Co.Standard Oil Co.Standard Oil Co.Standard Oil Co.

New Type of Business New Type of Business EntitiesEntitiesNew Type of Business New Type of Business EntitiesEntities

2.2. TrustTrust:: Horizontal IntegrationHorizontal Integration John D. John D.

Rockefeller Rockefeller

2.2. TrustTrust:: Horizontal IntegrationHorizontal Integration John D. John D.

Rockefeller Rockefeller Vertical Integration:o Gustavus Swift Meat-packingo Andrew Carnegie U. S. Steel

Vertical Integration:o Gustavus Swift Meat-packingo Andrew Carnegie U. S. Steel

Iron & Steel Iron & Steel ProductionProductionIron & Steel Iron & Steel ProductionProduction

New Type of Business New Type of Business EntitiesEntitiesNew Type of Business New Type of Business EntitiesEntities

U. S. Corporate U. S. Corporate MergersMergers

U. S. Corporate U. S. Corporate MergersMergers

New Financial New Financial BusinessmanBusinessmanNew Financial New Financial BusinessmanBusinessman

The Broker:The Broker: J. Pierpont MorganJ. Pierpont Morgan

The Broker:The Broker: J. Pierpont MorganJ. Pierpont Morgan

Wall Street – 1867 & Wall Street – 1867 & 19001900Wall Street – 1867 & Wall Street – 1867 & 19001900

The Reorganization of The Reorganization of WorkWorkThe Reorganization of The Reorganization of WorkWork

Frederick W. TaylorThe Principles of Scientific Management (1911)

Frederick W. TaylorThe Principles of Scientific Management (1911)

The Reorganization of The Reorganization of WorkWorkThe Reorganization of The Reorganization of WorkWork

The Assembly LineThe Assembly Line

The Protectors of Our The Protectors of Our IndustriesIndustriesThe Protectors of Our The Protectors of Our IndustriesIndustries

Cornelius Cornelius [“Commodore”] [“Commodore”] VanderbiltVanderbilt

Cornelius Cornelius [“Commodore”] [“Commodore”] VanderbiltVanderbilt

Can’t I do what I want with my money?Can’t I do what I want with my money?

William VanderbiltWilliam VanderbiltWilliam VanderbiltWilliam Vanderbilt

$ The public be damned!

$ What do I care about the law? H’aint I got the power?

$ The public be damned!

$ What do I care about the law? H’aint I got the power?

The Gospel of The Gospel of Wealth:Wealth:Religion in the Era of Religion in the Era of IndustrializationIndustrialization

The Gospel of The Gospel of Wealth:Wealth:Religion in the Era of Religion in the Era of IndustrializationIndustrialization

Russell H. ConwellRussell H. Conwell

$ Wealth no longer Wealth no longer looked upon as looked upon as bad.bad.

$ Viewed as a sign of Viewed as a sign of God’s approval.God’s approval.

$ Christian duty to Christian duty to accumulate wealth.accumulate wealth.

$ Should not help the Should not help the poor.poor.

$ Wealth no longer Wealth no longer looked upon as looked upon as bad.bad.

$ Viewed as a sign of Viewed as a sign of God’s approval.God’s approval.

$ Christian duty to Christian duty to accumulate wealth.accumulate wealth.

$ Should not help the Should not help the poor.poor.

““On Wealth”On Wealth”““On Wealth”On Wealth”

Andrew CarnegieAndrew Carnegie

$ The Anglo-Saxon race The Anglo-Saxon race is superior.is superior.

$ ““Gospel of WealthGospel of Wealth” ” (1901).(1901).

$ Inequality is Inequality is inevitable and good.inevitable and good.

$ Wealthy should act as Wealthy should act as “trustees” for their “trustees” for their “poorer brethren.”“poorer brethren.”

$ The Anglo-Saxon race The Anglo-Saxon race is superior.is superior.

$ ““Gospel of WealthGospel of Wealth” ” (1901).(1901).

$ Inequality is Inequality is inevitable and good.inevitable and good.

$ Wealthy should act as Wealthy should act as “trustees” for their “trustees” for their “poorer brethren.”“poorer brethren.”