Chapter 4 Flashcards
What was economic growth like during the 1880s
Grew at a rate of 3.8%
What happened to the gdp of the us during the 1880s
It doubled
What is gdp
Gross domestic product- monetary value of all the finished goods and services produced within a country’s borders within a specific time period
What impact did the civil war have on manufactured goods
-guns, clothing as well as transport was being produced
- mass production and methods of transport had to be developed
What impact did the civil war have on Wall Street
The goverment had to raise money to pay for the war
Leading to a capital raising bases system being created in New York
How did the civil war impact paper currency
Caused the goverment to introduce paper currency which was known as the United States note this meant a banking system had to be set up
What impact did the civil war have on banking
Banks were created to deal the new amount of money in circulation as well as the goverments need to finance the war
What impact did the civil war have on tarrifs
Government introduced tariffs to create income for the government, ensured the necessary protection of us manafactured goods and reduced competition from already industrialised regions such as Britain
How did the availability of land and natural resources impact the westward settlement a
The availability of land alowed the us to expand westward this stimulated economic growth as it created a market for manufactured goods
How did the availability of land and natural resources impact the 1862 homestead act
The availability of land allowed the goverment to release land in 160 acre plots for free if they promised to farm for 5 years, this allowed for greater production.
How did the availability of land cause greater mechanisation
As people expanded their became a greater market for mechanisation due to a rapidly expanding export market
How did availability of land increase oil production
Greater expansion caused oil to go from 3 million barrels in 1865 to 58 million in 1890, there was also a 1,833% rise of kerosene lamps coming form better techniques of extraction.
What increase in steel production was there
In 1870 America was able to mine 1.7 million tones iron ore and in 1890 were able to produce 9.5 million tonnes. In 1875 steel production 360,000 tonnes by 1900 America is producing around 60,000,000 tonnes of steel
How did availability of land increase silver production and the economy
America had significant silver deposits the silver could be used as a form of currency.
What was the increase in tobacco production
1865 180 million pounds
1890 487 million pounds
What was the increase in cotton
In 1865 cotton was roughly 2.3 million bails by 1890 it was around 7.5 million
What happened to population growth between 1860-1880
The population of USA was 31.5 million in 1860 but this had increased to 50 million by 1880
How did population growth impact labour forces
Rapid growth of population provided an ample source for cheap labour
What were the reasons for increased population
Increased incomes
Better food and housing
Progress in public health and medical knowledge
Lower death rates
What happened to death rates
They lowered as a result of better medical knowledge in public health
What happened to immigration between 1870 and 1890
In 1870 immigration was at 2.8million
People moved from all over Asia and Europe migrating to the big city’s this provided a cheap labour force
1880-1890 5.2 million immigrants
How did population growth stimulate demand
Immigration caused greater demand for coal clothes and food
How did the railroads impact efficiency of travel
You could now travel fro New York to San Francisco in 6 days instead of 6 months
What was the impact of the transcontinental railroads
Opened up the west for mining and ranching
What was the extent of railroad track increase
Railroad track mileage tripled between 1860 and 1880. Between 1868 and 1873 58,000 km of railroad was laid down.
How did the railroads impact employment
They employed thousands of workers 1 million by 1900 all of whom were consumers
How did railroads encourage demand
They encouraged demand as railroads required a lot of steel and coal. Manafacturers were also encouraged to build engines.
How did transport cause encouraged competition
This encouraged competition and pushed down prices and led to technological improvements and improved quality.
How did the railroads cause road building
The rail centres needed rail roads in order to be able to distribute goods to outlying areas therefore stimulating further growth.
How did the availability of capital encourage entrepreneurs
Entrepreneurs often needed to borrow money to develop their buisness
How did the civil war impact the availability of capital
The huge profits generated by the civil war encouraged the emergence of a highly developed stock market
What happened to the stock market between 1865 and 1890
By 1865 the annual turnover by the New York stock exchange was over 6 billion b6 1890 it had become the second largest in the world
What was the constitutional role of government in the economy
The constitution gave the federal goverment no role in running the economy
What was the result of limited government intervention in the economy
Buisness man had substantial freedom in running their enterprises. There were no laws restricting hours of labour, no taxes on profits and no rules
What was the domination of Buisness interests polliticaly
Congress and state goverments were dominated by business interests, very little national or state legislation that interfered with buisness
How did the introduction of tarrifs help expansion
Congress imposed a protection tarrifs to ensure that foreign manufactured goods were more expensive, duties could be as high as 50%
What impact did trade unions have
Trade unions were largely powerless so businesses did not have to deal with them and were generally free to manage their workforce the way they wanted.
How were industrial disputes dealt with
In the event of industrial disputes, employers were often supported by states and federal authorities.
What immigration control was there
Very little
Chinese exclusion act
What was the impact of corporations
Economic growth was also encouraged by the new Buisness methods as corporations and trusts each of which emerged due to reduced intervention.
How did trusts emerge
These emerged because in some states there were laws that stopped people from buying shares in more than one state or company, Henry Flagler found a way of avoiding these laws he appointed himself the trustee for the stocks that the company was not allowed to own.
What theories justified robber barrons
Rugged individualism
Social Darwinism
What was the Bessemer converter
Converting iron ore into steel effectively, carneighe bought the process to us steel
Which individual was depicted as the indicator for technological improvements
Thomas Edison
What did Thomas Edison do
- Gramophone
1877 incandescent light bulb
1888 electromagnetic process for separating iron ore
Reasons for the depression of 1873
-rapid economic expansion outstripped system of finance and banking
-agriculture and industry dependent on investment and loans in order to expand and innovate
-banks were mostly small and did not have reserves so often went broke
- there was little to no regulation and a lot of financial speculation
What was the impact of the 1873 depression
-stock exchange was closed for ten days and credit dried up
-factories closed their doors and thousands were laid off,
-1 in 4 labourers were out of work in the winter of 1873 - 1874 a million were unemployed
-railroad expansion declined massively from 7,500 in 1872 to 1,600 1874
How did increased population affect housing
Rapid influx or workers often led to rubbish houses being constructed quickly, overcrowded and polluted
What corruption was there in city’s
Ran by a boss(local mayor)
What did the city boss do
He would sell the rights to build housing and transport to the highest bidder
He would provide jobs for immigrants and African Americans and in return they would vote for him
