The 2nd Industrial Revolution Flashcards
Factors Encouraging Industrial Growth in the U.S. up until 1990.
Natural resources
Government economic policies
Growing population
New sources of power
Introduction to machinery
American inventors’ inventions
Improved communication and transportation
War
Natural Resources
An abundance of raw materials was prominent. America was loaded, so there was no need to import (no dependency on any country).
Our Constitution and Government Policies (allows for prosperity)
Stable Currency
Free enterprise
Private enterprise (able to own and control a whole industry from raw materials to the shelf)
Capitalism (Risky- the economy can be good but also crash)
Practicing laissez-faire or the government keeping a hands off approach to private business (to be left alone). The only thing holding you back is yourself. With all of these, there is motivation to succeed; thus, growth.
A Growing Population
Due to a high birth rate and considerable immigration, the U.S. population increased.
Creates an increase in workers/labor and a market to sell those products
New Sources of Power
Electricity, steam power, and petroluem
Electricity
We first used this as a source of power in the telegraph and telephone. Later, it was used for lighting and driving motors. Not invented but harnessed/mastered. Drive machines and communication.
Samuel Morse found a way to send electric pulses by telegraph (Morse Code: messages with dot and dashes)
Steam Power
steam engines, still most powerful engine, used in tractors and power for factory machines
Petroleum
In 1859, Edwin Drake drilled the first successful oil well. At first, oil was used for lubrication and lighting (replaced whale oil in street lamps). In the late 1800’s, it was used as two products: gasoline and diesel oil in internal combustion engines in transportation. Used to be a problem as it burned in the wild forever. Then, people used that to an advantage.
Samuel Slater
First American Industrial Revolution
England forbade textile workers to leave the country (keep the secrets to themselves to prevent other countries from being good), so he left the country in disguise and built the machines from memory.
Philanthropists
someone of great wealth who donates large sums of money to promote the welfare of society. Driving force of Industrial Revolution
Peter Cooper
born into a family of wealth, kept building and improving steam locomotives. By 1880’s, trains went to Texas and up North. The railroad is the backbone of the market. Promontory Point
Andrew Carnegie
young Scottish immigrant, poor asf, came to U.S., worked as do-all in American Steel, 1900- owned U.S. Steel (one of biggest in world), rich by vertical integration, created monopoly, control of where iron was mined to who bought it, education, built libraries, believed in education, Carnegie Hall for music.
John D. Rockefeller
rich by horizontal integration, made millions in petroleum, during 1900- owned every drop of oil, contributed more to transportation of the automobile than anyone, Standard Oil Company
Andre Mellon
not as rich, invented aluminum (tin and bauxite combo), control of whole patent, lighter metal, in airplanes
Henry Ford
invented mass production and assembly lines, Detroit, car frame down assembly line to functioning car, Model T first $395, first pickup, everyone could afford.
JP Morgan
largest banking system/firm
Simon Geigenheim
copper mines for wire for telegraphs
Imperialism
Panama Canal fought for with Columbia for better travel
American trade looks for new markets worldwide.
As a result, we adopt a new policy of Imperialism and move away from being a nation who advocates isolationism
Serious Economic Problems Emerge
Monopolies- companies that control the whole market, control price, they make rules (U.S. Postal still in reign)
No protection for consumers or workers, poor, dangerous working hours and conditions, child labor, no drug companies to test rotten food.
Living standards- to get a job, you must live in poor housing from company
Corrupt banking- No FDIC, bank could fail and lose your money
Taxes, graduated income not fair, poor people paid more than rich people
Laissez-faire economics
government policy of little to no intervention. Allows businesses to do whatever. French term for to be left alone
Court injunctions
court orders requiring an official to do their job.
Free enterprise
when business owners are free to do as they will. Make money however they want
Monopoly
the elimination of competition
Dividends
rebates given back to investors
Bonds
certificates showing ownership of a company
