Chapter 1 - The USA in the early 20th century Flashcards
What was the US economy like before FWW?
Good economy - lots of natural resources.
Hard work encouraged by the first English settlers.
Industrial/commercial society born after Northern slave victory in 1865.
Law important - economy flourished.
Sustained growth period 19th-20th century.
USA - largest GDP in the world.
What were the four elements of US GDP advancement?
GROSS DOMESTIC PRODUCT
- Application of new technology.
- Immigration.
- Transport.
- Development of large-scale business organisations - corporations.
How did the development of new technology help the US advancement of GDP? CONGRESS HELP
Short labour - high wages.
Solved by slavery - abolished in Civil War.
North/West - new technology had interchangeable parts.
Congress helped technology growth - funded colleges for agriculture and mechanical arts in 1862.
1914 - 4,000 people were graduating annually from 120 different colleges.
How did the development of methods of production help the US advancement of GDP?
Steel industry - Bessemer process.
Food production grew - bottling, canning, refrigeration and railway transport.
Mass production of sewing machines -Singer Sewing Machine Company.
How did new inventions help the US advancement of GDP? 2
Longer working hours - light bulb invention - Thomas Edison in 1879.
Improved communications - Alexander Graham Bell telephone - 1876.
1900 - 800,000 phones in the USA.
How was Henry Ford important?
Model T launched 1908 - sold at $850.
1914 - cost $440, one produced every 93 minutes.
Six months’ pay of a school teacher - no longer just for rich.
How did Henry Ford help labourers?
Systems engineering - craftsmen no longer required.
Rationalised/broken down into component parts.
Needed attentive and loyal labourers - $5 per day.
How was the process of the Model T carried out?
Components manufactured separately subordinate shops.
Transported to assembly plant - conveyor belt.
Mass production became possible.
Economies of scale - reduced production costs.
How did immigration help the US advancement of GDP?
Industrial workers trebled from 880,000 in 1860 to 3 million by 1900.
1860 - mostly British Isles emigrants.
1870/1880s - Eastern Europe and Italy outnumbered them.
Peak year 1905 - 975,000 immigrants - 1/5 Italian.
Social/political/religious tensions.
Stimulated economy.
Made rapid industry expansion possible.
How did transport help the US advancement of GDP? SHIPPING
Coal-fired steam ships crossed Atlantic faster/carried more passengers/US goods.
Refrigerated ships transported goods from the New World to feed the Old World.
GB - cheap food.
Demand stimulated agriculture/processing US industries.
How did transport help the US advancement of GDP?
First developed in GB, then copied to US.
First line - 1827.
1860 - 30,000 miles of track.
Railway companies - biggest employers.
Pennsylvania Railroad - biggest - 30,000.
1900 - lines linked the east/west coast.
1910 - 350,000 miles of track.
Railways stimulated iron/steel/agricultural industries.
Steam trains - barbed wire for farmers- took away cattle/grain to be sold/loaded onto Europe ships.
1914 - US - most advanced transport system.
How did the growth of corporations help the US advancement of GDP?
Mergers/takeovers - corporations established.
Small corporations turned into larger ones - economies of scale benefit.
Larger corporations - trusts - more efficient - reduced market competition- tried to fix prices.
Regarded as unethical/corrupt e.g. US Steel Corporation - controlled 80% US steel production.
Standard Oil Company - Rockefeller - controlled 85% US oil - business brutality; gave $500 million to charity.
How did corporations cause tensions?
Morgan and Rockefeller - powerful.
Small farmers worked hard - got very little.
West farmers resented the railroad bosses - suspected exploitation of communication and transport.
Farmers resented banks - often heavily in debt.
New trade union workers resented bosses breaking strikes/refusing union recognition.
