INDUSTRIAL EXSPANSION AND ECNOMIC GROWTH Flashcards
1865-77
how was civil war a reason for industrial growth?
the civil war stimulated the demand for manufactures goods, as the army needed guns, clothing and transport. the war had provided financial infrastructure to stimulate economic growth because the government had to raise money to pay for the war which led to the development of sophisticated capital-raising system based on based on wall-street in Newyork.
how was avability of land a reason for industrial growth ?
the USA greatly expanded especially with increased westward settlement during this period which stimulated economic growth as it created market for manufactured goods as well as encouraging further railroad development. much of the land was very fertile and led to mass production of wheat, which ensured that farming expanded plenty of food for the population
how was population growth a reason for industrial growth ?
there was a rapid growth in population in American in the 1860s and 70s which provided ample source of cheap labor for economic expansion. America had 2.8 million immigrants moving to the USA and headed to cities for cheap labor.
how was transport a reason for industrial growth?
the USA experienced a revaluation in transport, especially the railroads which were fast and efficient. so they could transport raw materials and meats .
they employed lots of workers and encouraged demand as railway required a lot of steel, in turn needing coal.
how was the capital the reason for industrial growth?
the capital was essential as entrepreneurs would often need to borrow money in order do develop their business.
how was the government the reason for industrial growth?
there was a long tradition of minimal government interference in the economy. As a result business men had substantial freedom in running their enterprises.
how was new business methods a reason for industrial growth?
corporations and trusts were new methods to enable expansion of business, developed from the governments laissez-faire approach. corporations allowed ownership of more than one business.
how was technological innovation a reason for industrial growth?
British Bessemer process for producing steel brought to USA by Andrew Carnige produced steel cheaper. re-invested profits into new equipment to cutting edge industry.
