The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and...
-
Upload
mark-flynn -
Category
Documents
-
view
215 -
download
1
Transcript of The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and...
![Page 1: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/1.jpg)
The 2nd Industrial Revolution
![Page 2: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/2.jpg)
Understanding the Economy
Define Economy:
a system for producing and distributing products and services in society.
What type of Economic System do we have in the United States?
Capitalism
![Page 3: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/3.jpg)
The basic ideas of capitalism• Economic growth can best be achieved by private choices
“free enterprise” Private ownership of property and businesses.
Individual choice – consumers, investors, workers. Private profit – as an incentive to achieve.
Bottom line: all economic decisions should be made by individuals.people are free to work hard, take risks and create wealth.
![Page 4: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/4.jpg)
The government’s role in a Capitalist System
To stay out of private economic decisions
“leave alone…hands off” “Laissez-Faire”
Benefits for people and business?
Dangers for people and business?
![Page 5: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/5.jpg)
What does industrial mean?
• What do you notice about the picture?
• How would you define the term industrial?
Factories, machines, technology, production, manufacturing
![Page 6: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/6.jpg)
What is a revolution?• A Major Change• The 2nd Industrial
Revolution – a period of rapid growth in the U.S. manufacturing in the late 1800’s.
![Page 7: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/7.jpg)
#1 Causes of the Industrial Revolution: Land and ResourcesCause
•Homestead Act of 1862 – Gave 160 acres of cheap land west of the Mississippi River to anyone who applied
Effect
• Increased population West
•Growth of western cities (Kansas City, Chicago)
•New markets (place where goods are bought and sold)
• Improved economy
![Page 8: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/8.jpg)
#1 Causes of the Industrial Revolution: Land and Resources
An abundant supply of natural resources
CopperNickelGold & Silver
New Building Materials
New Power Sources:
(raw materials)
Concrete Steel
Oil (Kerosene, gasoline, diesel fuel)Electricity
![Page 9: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/9.jpg)
Bessemer Sparks a RevolutionSteel is Iron made stronger by heating it and adding other metals. Henry Bessemer created a process that created steel in minutes instead of the old way that could take up to a day or more. Lower price for steel led to:• Growth of cities (up and out)• Improved infrastructure (Bridges,
nails, wires, pipes)• Railroad Cars and tracks (30,000
miles of track in 1860 to 193,000 miles by 1900)
![Page 10: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/10.jpg)
# 2 Causes of the Industrial Revolution
Cause
New Inventions
Effect
Over 1,000 inventions – revolutionized American life.• Stock ticker• Phonograph • Microphone• Incandescent light bulb• Power generation station• Telephone• Airplane
![Page 11: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/11.jpg)
Thomas Edison “Wizard of Menlo Park”
http://www-tc.pbs.org/wgbh/amex/edison/sfeature/songs/maryhadlamb.mp3
![Page 12: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/12.jpg)
Alexander Graham Bell
Telephone, typewriter, printing technology
![Page 13: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/13.jpg)
#3 Causes of the Industrial RevolutionCause
A Large Industrial Work Force
Where did this large work force come from?
Effects
•Cities Grow•New Factory Jobs
Civil War veteranscraftsmen became industrial workers.Rising population – increasing birth rates.
![Page 14: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/14.jpg)
# 4 Causes of the Industrial Revolution: Building the Transcontinental Railroad
Why Build a Transcontinental Railroad?• Growth of West Coast• West Coast gold and silver
• Connect East with West for business
• Solidify the Union• Achieve Manifest Destiny
![Page 15: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/15.jpg)
Significance of the Railroad
Biggest and best engineering project of its timeMade the country smallerHelped spur interest in Homestead ActImproved communicationLed to other transcontinental railroads and
shorter branches
![Page 16: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/16.jpg)
Railroad Routes – 1870 & 1890
![Page 17: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/17.jpg)
# 5 Causes of the Industrial Revolution: Growth of CorporationsUnderstanding Capitalism
• Capital = $$$
• Corporation –
• Stockholder –
• Dividend
A business that is formed by selling shares of ownership (stock).
person who owns a part of a corporation
Money paid by a corporation to its stock holders
![Page 18: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/18.jpg)
# 5 Causes of the Industrial Revolution: Growth of Corporations
1. How are corporations operated?• They must receive a legal charter by a state
government. • Stockholders elect a Board of Directors.
2. What are the advantages of “incorporating?” • Selling stock allows a business to raise large amounts
of capital (money) very quickly.• It spreads the risk of owning a business among all of
the stockholders.
![Page 19: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/19.jpg)
# 6 Causes of the Industrial Revolution: Government Support of Big BusinessHow did the Federal government help businesses expand?• Kept taxes on business low.
• Passed tariffs on imported goods (which raised their prices).
• Policies of open immigration (cheap labor)
• Loans, subsidies and land grants to railroad companies.
• Refusing to pass laws to regulate the behavior of big businesses.
![Page 20: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/20.jpg)
# 7 Causes of the Industrial Revolution: Business Entrepreneurs• Created and owned new kinds of businesses…
…by combining the other factors of production.
![Page 21: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/21.jpg)
Cornelius Vanderbilt: Railroads
![Page 22: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/22.jpg)
Andrew Carnegie –
Carnegie Steel Co.
![Page 23: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/23.jpg)
John D. Rockefeller – Standard Oil
![Page 24: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/24.jpg)
James Pierpont Morgan: Banking and Steel
![Page 25: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/25.jpg)
monopolyOne company controls the
production, distribution and sale of a product throughout an entire
region (or country).
![Page 26: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/26.jpg)
The Problem with a Monopoly
• Competition between businesses eliminated… small business crushed.
• Wages and hiring conditions were fixed.
• Markets were controlled – production levels and prices were fixed…
• Consumers had little or no real choice!
![Page 27: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/27.jpg)
Why didn’t the Federal
Government act to pass laws to
regulate the actions of these
large and powerful
companies?
Corruption!
![Page 28: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/28.jpg)
Early attempts to restraint big business
Interstate Commerce Act (1887)American towns, businesses and farms were at the mercy of railroad companies.
• The first attempt to regulate the railroad industry:- outlawed secret rebates- rates were regulated- Interstate Commerce Commission (ICC) created to enforce the law and investigate complaints.
![Page 29: The 2 nd Industrial Revolution. Understanding the Economy Define Economy: a system for producing and distributing products and services in society. What.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f525503460f94c756bb/html5/thumbnails/29.jpg)
Early attempts to restraint big business
The Sherman Anti-trust Act
(1890)Meant to prohibit
monopolies
…any business action “in restraint of trade” was illegal.