Causes of Rapid Industrialization
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2 Causes of Rapid Industrialization 1. Steam Revolution of the 1830s-1850s. 2. The Railroad fueled the growing US economy: First big business in U.S. Magnet for financial investment. Key to opening the West. Aided development of other industries.
3 Causes of Rapid Industrialization 3. Technological innovations. Bessemer and open hearth process Refrigerated cars Edison Wizard of Menlo Park light bulb, phonograph, motion pictures.
4 Thomas Edison Wizard of Menlo Park Most important inventor in history over 1,000 patents
5 Incandescent Light Bulb
6 The Phonograph (1877)
7 The Ediphone or Dictaphone
8 The Motion Picture Camera
9 Alternate Current George Westinghouse
10 Alternate Current Westinghouse Lamp ad
11 Alexander Graham Bell Telephone (1876)
12 The Airplane Wilbur Wright Orville Wright Kitty Hawk, NC December 7, 1903
13 Model T Automobile Henry Ford I want to pay my workers so that they can afford my product!
14 Henry Ford Net Worth day would be 199 billion 4th richest American in history Assembly Line
15 Model T Prices & Sales
16 U. S. Patents Granted 1790s 276 patents issued. 1990s 1,119,220 patents issued.
17 Causes of Rapid Industrialization 4. Abundant labor (skilled & semi-skilled). 5. Abundant capital. 6. New, talented group of entrepreneurs or robber barrons. 7. Market growing < population increase. 8. Government stimulate economic growth. 9. Abundant natural resources.
18 New Business Culture 1. Laissez Faire the ideology of the Industrial Age. Individual as moral & economic ideal. Individuals compete freely in marketplace. Market not man-made or invented. No room for government in market!
19 2. Social Darwinism Herbert Spencer British economist. Advocate of laissez-faire. Adapted Darwin s ideas from Origin of Species to humans. Survival of the Fittest.
20 2. Social Darwinism in America $ Individuals must have absolute freedom to succeed or fail. William Graham Sumner Folkways (1906) $ Therefore, state intervention to reward society and economy is futile!
21 New Business Culture: The American Dream? 3. Protestant (Puritan) Work Ethic Horatio Alger [100+ novels] Is the idea of the self-made man a MYTH??
22 New Type of Business Entities 1. Pool 1887 Interstate Commerce Act outlawed Trust John D. Rockefeller Standard Oil Co. creator of modern corporate structure: Richest American in History million, (340 billion)
23 Standard Oil Co.
24 New Type of Business Entities 2. Trust: Horizontal Integration John D. Rockefeller Vertical Integration: Gustavus Swift Meat-packing Andrew Carnegie U. S. Steel
25 Iron & Steel Production
26 New Type of Business Entities
27 U. S. Corporate Mergers
28 Industrial Consolidation: Iron & Steel Firms
29 New Financial Businessman The Broker: J. Pierpont Morgan Financial genius father of Wall Street founded investment banking saved country from depression in 1907 by raising 25 million in 15 minutes to loan government collector of fine art
30 Wall Street 1867 & 1900
31 Wealth Concentration Held by Top 1% of Households
32 % of Billionaires in 1900
33 % of Billionaires in 1918
34 The Protectors of Our Industries
35 The Bosses of the Senate
36 The Robber Barons of the Past
37 Caused Black Friday, panic of 1869, by attempting to corner the gold market James Fisk & Jay Gould
38 Cornelius [ Commodore ] Vanderbilt Can t I do what I want with my money?
39 William Vanderbilt $ The public be damned! What do I care about the law? H aint I got the power? $ Shipping & railroad magnate who made fortune with help of free land given by government to railroads $ 3rd richest American 105 million (239 billion)
40 Vanderbilt s Summer Cottage at Newport
41
42 The Gospel of Wealth: Religion in the Era of Industrialization $ Wealth no longer looked upon as bad. $ Sign of God s approval. $ Christian duty to accumulate wealth. $ Should not help poor. Russell H. Conwell
43 On Wealth Andrew Carnegie $ The Anglo-Saxon race is superior. $ Gospel of Wealth (1901). $ Inequality is inevitable & good. $ Wealthy should act as trustees for their poorer brethren.
44 Andrew Carnegie Genius of technological innovation founder of U.S. Steel philanthropist-- established over 800 public libraries in U.S. 92 music halls funded most major museums Carnegie foundation for educational research 2nd richest American: 310 million (243 billion)
45 Carnegie s Bessemer Process
46 Cartoon featuring Andrew Carnegie from Harper's Weekly April 11, 1903 Accompanied by this poem: We men are only lusty boys, Though snowy be our locks, So Skibo's master still enjoys To sit and play with blocks. Patron Saint of Libraries He donated $56,162,622 for the construction of 2509 library buildings throughout the English-speaking parts of the world.
47 Regulating the Trusts 1877 Munn. v. IL 1886 Wabash, St. Louis & Pacific Railroad Company v. IL 1890 Sherman Antitrust Act in restraint of trade rule of reason loophole
48 Relative Share of World Manufacturing
49 Entrepreneurs or Robber Barons? Entrepreneurs innovators growth of America philanthropists Robber Barons ruthless competitors let their workers starve
50 Modern Robber Barons??
51
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