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7-2 Rise of Industrialism

7-2 Rise of Industrialism. Andrew Carnegie. -pioneer in American business, steel production, and charity -went from making $1.20 for a 72 hour week to a net worth of over $1 billion -was innovative, ambitious, and had incomparable organizational skills

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7-2 Rise of Industrialism

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  1. 7-2Rise of Industrialism

  2. Andrew Carnegie -pioneer in American business, steel production, and charity -went from making $1.20 for a 72 hour week to a net worth of over $1 billion -was innovative, ambitious, and had incomparable organizational skills -was a giver-by his death, had donated over $350 million to worthy causes-libraries

  3. Industrialism Triumphant • -The US was in a dramatic economic transformation in the years after the Civil War • -Industrialism-movement from agriculture to manufacturing as the main source of economic growth • -machines, factories, mines, and railroads took the place of the plow

  4. The Rise of Heavy Industry • Pre-Civil War-manufacturing linked to farming • Post Civil War-focus towards heavy-industry consumer goods (railroad tracks, steam engines, and tractors) • -difference was the quantity of output was much higher with new technology • -steelmaking was central to the new heavy industry

  5. -Iron ore-raw substance for making steel provided by Michigan, Minnesota • -Mills-where steel was produced-Illinois, Ohio, Pennsylvania-mainly along rivers • -needed water for steam engines • -Coal-fuel for mines-mined in PA, OH, WV, other states

  6. The Technology Boom • Thomas A. Edison-genius inventor • -patented over 1,000 inventions in his Menlo Park laboratory • -gives us the incandescent light bulb and the technology for producing and distributing electrical power

  7. Alexander Graham Bell • -patents the telephone 1876 • -by 1900, more than 1.3 million telephones in operation • Advances in cotton machinery, mechanical reapers, blast furnaces, telegraph offices, cameras, the typewriter, etc.

  8. National Markets • -nationwide economic system made possible by the transportation network in US • -people from different parts of the country had opportunity to purchase and availability of goods like never before

  9. Refrigerated Railroad Cars • -invented by Gustavus Swift • -revolutionized the nation’s meat business • -also allowed fresh fruit and vegetables to be shipped around the nation • -people’s diets were becoming more healthy with variety

  10. Nationwide Businesses • companies used innovations in transportation and communication to run national businesses • -McCormick Harvesting Machine Company-sold mechanized farm equipment, while offering repair and credit services • -Singer Sewing Machine Company-started retail stores and used door to door sales • -Woolworth’s Five and Dime Stores-grocery chain stores ex. Giant Eagle

  11. The Birth of Consumerism • development of department stores (Macy’s & others) • -fancy decorated stores with trained sales clerks to cater to customer • -shopping portrayed as enjoyment, highly advertised • -advertising expenses rose from $50 mil in 1870 to $542 mil in 1900 • -boosted economy

  12. The Growth of Big Business • -brought about a change in business organization • -only large businesses receiving money from many investors could set up huge factories, install modern machinery, and employ hundreds of workers • -railroads allowed businesses to ship goods almost anywhere

  13. The Managerial Revolution • -functions of business became too large to be handled by one person • -had to be separated into different departments

  14. The Merger Movement • merger-combining of several competing firms under a single head • -market could become orderly and predictable • -used to combat the bankruptcy that was common in an uncontrolled market

  15. John D. Rockefeller-oil tycoon • purchased as many competing oil refineries as possible to create Standard Oil • -owned 90% of the nation’s pipelines and refined 84% of nation’s oil • -was able to sell oil for much less than the competition • -horizontal integration-joining competing businesses in one area (Rockefeller) • -vertical integration-joining all areas of one business (Carnegie) • -both methods exercised unfair control over an industry

  16. The Spirit of the Gilded Age • -big business led to a showy upper-class • -built mansions and threw lavish parties (the rock-stars of the time)

  17. Social Darwinism • was a thinking gap between upper and middle class • -upper class had a hard time of justifying its philosophy of killing off the competition to the middle and lower classes who were raised on the ideology of a fair and open society • -used theory of Social Darwinism to

  18. explain their actions (Survival of the Fittest) • -promoted by English philosopher Herbert Spencer who believed progress occurred through competition in which the weak fell and the strong forged ahead • -was highly promoted • -believed government should not interfere with big business

  19. Concern for the Less Fortunate • -although ruthless in business, many of the big business tycoons believed in charity • -Carnegie was most famous, however, many others gave to worthy causes • -even though many gave to charity, there were still many problems that had to be solved associated with population growth and industrialization

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