2.9 The Rise of US Dominance as an Economic and Industrial Power Flashcards
Which businessmen had laid the foundations of a big business empire?
Vanderbilt, Carnegie, and Rockefeller
What was the impact of immigration on the economy?
Provided a flexible supply of labour
What role did America play in the world economy in 1890?
It was still a net importer, both of goods and finance. Britain, challenged by Germany, was still seen as the greatest force in the international economy.
What is a net importer?
A country where the total volume and value of its imports is greater than that of its exports
When was the ‘Second Industrial Revolution’ and what did it involve?
Around 1880 to the First World War and it involved the surge in advanced technical developments in industries such as electric power; engineering
When were the two major surges in American manufactured exports?
- 90% increase between 1895 and 1900
- 77% increase between 1908 and 1913
How had the American economy developed by 1913?
- It was a net exporter
- Exports were increasingly concentrated on iron, steel, copper, and oil
- Productivity was better than Britain’s and American export prices were lower
What did European competitors refer to American economic growth as?
the ‘American Commercial Invasion’
What were the main causes of economic growth?
- Higher productivity through innovation and efficient management methods
- A cheap labour supply due to immigration
- Rising world demand
- Republican government limited regulation of big business
- US benefited from vast natural resources
What are some examples of the natural resources the US had?
- High grade iron ore found in Messabe hills 1892
- World’s leading oil producer and by 1910, US oil production equalled that of the rest of the world combined
How did politics aid in this economic growth?
Republican Party dominance 1896-1912 meant there was only limited regulation of business
How did trading help the American economy?
- World shipping routes stretched across the Atlantic and the Pacific
- Canada and Latin America provided the US with peaceful trading partners
