Economic Growth Flashcards
What were the main factors behind rapid US industrial growth after the Civil War?
Civil War impact, population growth, transport developments, land availability, technological innovation, capital availability, minimal government interference, corporations and trusts.
How did the Civil War stimulate economic growth in the USA?
It increased demand for manufactured goods (e.g. guns, clothing), improved transport, led to financial innovations (paper currency, Wall Street), and tariffs protected US goods.
Why was westward expansion significant for economic growth?
Created markets, encouraged railroad building, fertile land supported agriculture, increased food production for cities and exports.
How did population growth contribute to industrial expansion?
Provided a cheap labour force and increased consumer demand. The population rose from 31.5 million in 1860 to 50 million by 1880.
What was the impact of immigration in the 1870s?
2.8 million immigrants (mainly from Europe/Asia) provided cheap labour and increased demand for goods.
Why was the transport revolution (especially railroads) important?
Enabled efficient transport of raw materials and goods, supported westward expansion, created jobs, encouraged steel and coal industries, and helped unify markets.
How did capital availability support economic growth?
Entrepreneurs could borrow money easily; Civil War profits boosted the stock market (NY Stock Exchange turnover was $6bn by 1865).
How did minimal government interference encourage growth?
Few regulations or taxes, no laws limiting working hours, and Congress supported tariffs that protected US industry.
What role did tariffs play in US economic growth?
They protected US goods from foreign competition, sometimes raising import prices by up to 50%.
What was the effect of weak trade unions during this period?
Employers faced little resistance from workers and had state support during disputes.
How did corporations and trusts fuel growth
Enabled businesses to expand, reduce competition, and control multiple sectors. Example: Rockefeller’s Standard Oil Company.
How did technological innovations boost industry?
Innovations like the Bessemer Converter made steel cheaper to produce, crucial for industrial expansion.
Who was Andrew Carnegie and why was he important?
A steel magnate who revolutionised steel production using the Bessemer process, reinvested constantly, and suppressed unions.
