113A: Reasons for industrial growth Flashcards
What was the initial reason for expansion in the US industry?
The Civil War
Why did the Civil War cause industry to grow?
It stimulated the demand for manufactured goods as the army needed guns, clothing and transport
What needed to be developed for the Civil War?
Mass production and methods of distribution
What did the war provide?
Financial infrastructure to stimulate economic growth
What was introduced during the war by the government?
Paper currency known as the United States Note
What did the introduction of the US note mean for the banking system?
It had to evolve to cope with the growing amount of money in circulation
What was introduced to ensure protection for US manufactured goods?
Tariffs were introduced to reduce competition rom other industrialised nations such as Britain
What did increased westward settlement encourage?
Further railroad development
What was the land like in the West?
Very fertile which led to the expansion of farming
From 1860 to 1880 how much did the population of the US grow?
It increased from 31.5 million in 1860 to 50 million in 1880
What did the rapid growth of population provide?
Ample source of cheap labour for economic expansion
What was a main reason for the increase in population?
Immigration
Why did many immigrate to the US?
In search of better living standards
What did the US experience a revolution in?
Transport
What did the railroads provide?
Fast and efficient means of transporting raw materials from the West to the East
After the first transcontinental railroad how long did it take to travel across the US compared to before?
It took only 6 days instead of 6 months
Why did the railroads stimulate economic growth?
- Employment
- Encouraged demand for steel and coal
- Encouraged competition- leading to lower prices and improved quality
Before the Civil War what was the tradition of government interference in the economy?
There was minimal government interference and as a result businesses had too much freedom and no laws
What did businesses freedom mean for government?
Congress and State governments were dominated by business interests
What did economic growth and lack of government control or regulation encourage?
New business methods such as corporation and trust
What did corporation mean?
It could own a number of businesses and could hire management to run the corporation. Moreover, it could buy, sell and own property and take over more companies
What were trusts?
Trusts emerged because there were laws preventing people from owning shares in more than one company and people found ways of avoiding these laws
How did key individuals bring about growth in industry?
Individuals such as Andrew Carnegie brought about changes in technology and business methods
