Economy growth Flashcards
Impact of the Civil War
Stimulated demand for manufactured goods
as the army needed guns and clothing as well transport. Mass production and methods of distribution had to be developed. Stimulated evolution of banking system.
Availability of Land
Increased Westward settlement. It created a market for manufactured goods as well as encouraging further railroad development. Fertile land created more food
Population Growth
Cheap labour from immigration. 1860: 31.5 million, 1880: 50 million. Increased incomes which meant better food and housing. 1870s: 2.8 million immigrants move to the USA
Transport
Revolution in transport, especially railroads. Railroad track mileage tripled between 1860 and 1880. Between 1868 and 1973 53000 km of track was laid. Railroads employed thousands of workers (1 million by 1900). Encouraged demand for railroads needed steel and engines. Encouraged competition and pushed down prices
Availability of Capital
Borrowing of money from entrepreneurs. Creates a highly developed stock exchange in which profits were invested. By 1865 the NYSE had an annual turnover of $6 billion and by 1890 it was the 2nd largest stock exchange in the world
Role of the Government
Laissez-faire. High tariffs (up to 50%). No trade unions and government would almost always back employers
Corporations and Trusts
Emerged due to lack of government
intervention. Corporations could own a number of businesses and hire management to run the corporation. Could buy, sell and own property and take over more companies. Trusts were a way for business men to own shares in more than one state. The trustee was owner of stocks the company was not supposed to have. Rockefeller dominated oil industry in the 1870s by using trusts.
Technological Innovation
New methods and equipment to manufacture more goods faster and cheaper. Carnegie brought the
Bessemer Converter from Britain to his business in the USA
