Chapter 20.1AMERICA ENTERS THE INDUSTRIAL AGE

Industrial Revolution – Transition to new manufacturing processes. For example: Hand production to machine production.

VOCABULARY

Patent – Government document giving an inventor the exclusive right to make and sell an invention

Corporation – A business owned by investors who buy part of it through shares of stock

Shareholder – An investor who buys part of a company through shares of stock

Monopoly – Business that gains control of an industry by eliminating other competitors

Business Cycle – The pattern of good and bad economic times

Depression – A period of low economic activity

Gilded Age – Late 1800’s era of great wealth

How did industry and new inventions change society?

During the Industrial Revolution many moved from rural areas to cities to find work.

Urbanization – growth of cities. Skyscrapers- use of steel, accommodate LARGE # of people

Electric Elevator by Otis Elevator company 1889

INDUSTRIALIZATION CHANGES CITIES

Growing Population 1860-1900 population more than doubled

Natural Resources Forests, water, coal, iron, copper, silver

Government Support Land grants, subsidies and tariffs to help businesses

growImproved transportation

Steamboats, canals, railroads-ship more farther+quickerNew Inventions

More goods more efficiently Investment Capital

Banks + wealthy people lent businesses money

CAUSES OF THE INDUSTRIAL REVOLUTION

Homestead Act1862 law that offered 160 acres free to anyone who agreed to live on and improve the land for 5 years

Promontory, Utah: Transcontinental railroad officially completed here

HOW DID THE GOVERNMENT GET PEOPLE TO MOVE WEST?

What inequalities emerged in the late 19 th century?1890 – 11 out of 12 million people living in

poverty. Tenements- run down overcrowded apartment

houses. Leads to disease and poverty Slums- no running water, no garbage pick up

etc. Became know as: The Gilded Age – “rags to riches” stories.

Mark Twain named “Gilded Age” because of wealth masking poverty and corrupt politics. Pg 636

PROBLEMS WITH URBANIZATION

Rockefeller and Oil Industry: thought best way to make $ was to put competition out of business . Rockefeller became known as a

robber baron –a business leader who uses dishonest methods to grow rich

Carnegie tried to beat his competition by making the cheapest and best steel : Sold his steel company to

J.P. Morgan (Nations Top Banker) in 1901 for 480 million dollars.

Carnegie and Rockefeller became philanthropists, or people who give large sums of money to charities.

Joseph Pulitzer and William Hearst- Newspaper publishers

CAPTAINS OF INDUSTRY

Cornelius Vanderbilt - Railroad J.P. Morgan - Banker

John D. Rockefeller - Oil

Andrew Carnegie - Steel