What is Industrialization?

A New Industrial Age

Natural resources and new ideas create a boom for industry and railroads. Government addresses corruption in business, and laborers

organize for better working conditions.

Immigrants

• Old Immigrants = Northern Europe and England.

• New Immigrants = Eastern and Southern Europe.

• Result: Immigrants moved into the cities for jobs and overcrowding occurred.

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• Why did business grow in the late 19th century?Business grew because of advances in technology and

manufacturing, because mining in the West was providing the needed capital, and because the government was not interfering in business practices.

• What is meant by the term “Gilded Age”? Big Business led to an enormous amount of wealth for

some people. They spent it on all sorts of luxuries. Mark Twain came up with this term

Intellectual

• By new technology• New economic methods• New social issues and reforms

This time period is characterized

• What technological advances and new production methods helped industries expand in this period?

Industries were helped by steel, electricity, lightbulbs, power stations, motors, the telephone, and the division of labor ( assembly line) for the production of goods.

• What technological advances were used in the Triangle Factory?

The Triangle Factory used electric motors, the division of labor, electronic freight elevators, and telephones.

Technology

• Bessemer Steel Process

• *Bessemer process puts air into iron to remove carbon to make steel cheaply.

• Allows Carnegie to create an steel empire.

• Steel helps create modern city and society (cars, refrigerators, bridges, buildings)

Technology Notes

• 1851 = Ice-making machine 1895 = Kellogg's Corn Flakes Safe• 1895 = razor 1896 = Electric stove • 1852 = Elevator brake 1896 = Ice Cream Cone • 1855 = Gas burner 1899 = Tape recorder • 1857 = Sewing machine 1900 = Alkaline storage cells • 1860 = Repeating rifle • 1865 = Web printing machine • 1865 = Railway sleeping car • 1867 = Typewriter • 1867 = Barbed Wire • 1868 = Railroad refrigerator car • 1869 = Oleomargarine • 1870 = Stock ticker • 1876 = Telephone • 1877 = Phonograph • 1879 = Cash register • 1879 = Filiment for light bulb • 1882 = Electric fan • 1885 = Adding machine • 1886 = Coca Cola • 1888 = Kodak camera • 1889 = Kinetoscope• 1890 = Electric chair • 1891 = zipper

American Inventions 1850-1900

The Light Bulb

The Phonograph (1877)

The Motion Picture Camera

Alexander Graham Bell

Telephone (1876)

The Power of Electricity ( check this out)• 1876, Thomas Alva Edison establishes first research

laboratory( 1880, patents incandescent light bulb& creates system for electrical production, distribution )

• Electricity changes business ( you can now produce 24 hours)• Becomes available in homes; encourages invention of

appliances• Allows manufacturers to locate plants

anyplace; industry grows

Inventions Promote Change

• Rise of the Railroads

• Transcontinental Railroad

• Use of Chinese Labor to build railroad

Technology

• Division of America into labor specialties

• Refrigerated Cars• Economy tied to RR-

steal, jobs, creation of cities etc

• Communication- telegraph

• Leisure Travel- Pullman Cars

• Time!!!

Effects of RR

• How did men like Rockefeller and Carnegie make their businesses bigger?

ROCKEFELLER AND CARNEGIE GREW THEIR BUSINESSES BY SETTING UP CORPORATIONS (BUSINESSES OWNED BY INVESTORS) AND TRUSTS (GROUPS OF CORPORATIONS RUN BY A SINGLE BOARD OF DIRECTORS). BOTH OF THESE MEN BOUGHT OUT THE COMPETITION

• How big was the Triangle Factory? IT WAS THE LARGEST SHIRTWAIST FACTORY IN THE

COUNTRY.

Economics

• Corporation- a business owned by investors. They raise $ by selling STOCK

• Trust-group of corporations that unite in order to reduce competition and control prices in business

The Robber Barons did this.. Guys like Rockefeller (oil), Carnegie(steel) and JP Morgan(banking)

Monopoly- a company that controls all production of particular product or service

New Words

Carnegie’s business• New Uses for Steel• Steel used in railroads,

barbed wire, farm machines

• Changes construction: Brooklyn Bridge; steel-framed skyscrapers

• Rockefeller and the “Robber Barons”• Makes fortune in refining and then dominating the

entire oil industry.• Starts Standard Oil = First multinational corporation• Rockefeller profits by paying low wages, underselling

others- when controls market, raises prices• *Critics call industrialists robber barons• Industrialists also become philanthropists

Rockefeller

Iron & Steel Production

Standard Oil Co.

New Type of Business Entities

Trust: Horizontal Integration John D.

Rockefeller Vertical Integration:

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

Economic Survival of the Fittest

• Vertical integration:– Buy all productive

resources related to the final product

– Control the CoP = control the production = control the price

• Horizontal integration:– Buy out / undercut

all competitors– Economy of scale