us economy in the 19 th century ii l.
Skip this Video
Loading SlideShow in 5 Seconds..
US Economy in the 19 th century II PowerPoint Presentation
Download Presentation
US Economy in the 19 th century II

Loading in 2 Seconds...

play fullscreen
1 / 23

US Economy in the 19 th century II - PowerPoint PPT Presentation

  • Uploaded on

US Economy in the 19 th century II. Ing. Tom áš Dudáš, PhD. . Possible essay topics. Strengths and weaknesses of the American economy The future of USD as a global currency Is the double deficit of the American economy sustainable? Future of American economy – prosperity or collapse?

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

US Economy in the 19 th century II

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
    Presentation Transcript
    1. US Economy in the 19th century II Ing. Tomáš Dudáš, PhD.

    2. Possible essay topics • Strengths and weaknesses of the American economy • The future of USD as a global currency • Is the double deficit of the American economy sustainable? • Future of American economy – prosperity or collapse? • Lessons from the Great Depression (1929-33) • The role of entrepreneurship in the economic success of the USA • American health care reform – is Obama able to push it through? • The role of innovation in the American economy

    3. Famous US industrialists in the 19th century • Cornelius Vanderbilt • J. P. Morgan • John D. Rockefeller • Leland Stanford • Henry Clay Frick • John Jacob Astor • Andrew Carnegie • James Buchanan Duke

    4. Famous US industrialists in the 19th century • Cornelius Vanderbilt - railroads • J. P. Morgan – banking, finance, steel industry • John D. Rockefeller – Standard Oil • Leland Stanford - railroads • Henry Clay Frick – steel industry • John Jacob Astor – fur trade, real estate • Andrew Carnegie – railroads, steel industry • James Buchanan Duke - tobacco

    5. John D. Rockefeller Cornelius Vanderbilt

    6. Andrew Carnegie J.P. Morgan

    7. The Economic Effects of the Civil War • Approximately 600 000 people died on both sides – 9 % of the male population in the age group 15-39 • Another 500 000 were wounded • Estimated loss of human capital – 1,8 billion USD on both sides • Direct government expenditures – 2,3 billion in the North, 1 billion in the South • Destruction of property – 1,5 billion USD (mainly in the South) • On the other hand – the war was a great source of income for someone

    8. Railroads and Economic Development • The construction of railroads continued after the civil war • By 1910 the USA had 351 767 miles of track, of which 266 000 were main track • Constructing the American railroads was one of the biggest efforts in the American history • Three major waves – 1868/73, 1879/83 and 1886/92 • The majority of the construction was financed by borrowed money • Government help – subsidies and land grants

    9. Agriculture between 1860 and 1910 • Huge expansion of farm output – extensive growth • No chemical and biological improvements available • Slow mechanization

    10. Population growth and the Atlantic migration • Strong migration – 37 million people came from Europe between 1840 and 1920 • Sources - 6 million from Germany; 4.5 million from Ireland; 4.75 million from Italy; 4.2 million people from England, Scotland and Wales; 4.2 million from the Austro-Hungarian Empire; 2.3 million from Scandinavia; and 3.3 million people from Russia (mostly Jews, and Poles and Lithuanian Catholics) • On the other hand, domestic fertility was decreasing (41,1 births/1000 people in 1860 compared to 29,2 births/1000 people in 1910)

    11. Population growth and the Atlantic migration • Other demographic trends • Continuing rise in the population living in urban areas • The country continued to spread out geographically • The percentage of foreign born rose, especially from Europe • The nonwhite portion of the population continued to fall

    12. The rise of the heavy industry • Industry growth rates between 1860-1910 • Machinery – 690 % • Lumber – 650 % • Printing and publishing – 520 % • Iron and Steel – 310 % • Men’s clothing – 260 % • Railroad Cars – 205 %

    13. The rise of the heavy industry • American manufacturing production surpassed the combined total of Great Britain, Germany, and France • Railroads opened new areas to commercial farming, creating a truly national marketplace and inspiring a boom in coal mining and steel production • By 1900, the process of economic concentration had extended into most branches of industry—a few large corporations, called "trusts", dominated in steel, oil, sugar, meatpacking, and the manufacture of agriculture machinery • Increased mechanization of industry is a major mark of the Gilded Age's search for cheaper ways to create more product

    14. Innovation • The United States became a world leader in applied technology. From 1860 to 1890, 500,000 patents were issued for new inventions—over ten times the number issued in the previous seventy years • George Westinghouse invented air brakes for trains (making them both safer and faster). Theodore Vail established the American Telephone & Telegraph Company. Thomas A. Edison invented a remarkable number of electrical devices, as well as the integrated power plant capable of lighting multiple buildings simultaneously • Oil became an important resource, beginning with the Pennsylvania oil fields. Kerosene replaced whale oil and candles for lighting

    15. Economic crises • Panic of 1873 • Start of the long (or great) depression (until 1879 – 65 months) • It began with a crash on the Vienna Stock exchange • Panic of 1893 • It was caused by railroad overbuilding and shaky railroad financing which set off a series of bank failures – similar to the tech bubble • In total over 15,000 companies and 500 banks failed

    16. International economic relations of the USA • International trade • The share of USA was growing – 9,1 % in 1890 • Shift from agricultural products to industrial • Trade with Europe dominated • From the start of the 20th century the current account of the BoP recorded surpluses • Heavy protectionism in the USA • International capital flow • During the turn of the centuries USA changed from international debtor to creditor

    17. Big business and government intervention • Rise of big business – huge wave of mergers during the last years of 19th century • 1892 – merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric • 1901 – merger of Carnegie Steel Company and several other steel and iron businesses to form the United States Steel Corporation • Rise of Standard Oil – one of the first multinational enterprises

    18. Why did corporations grow? • Innovation produced economy of scale in the industry • Declining transportation costs encouraged growth of optimal plant sizes • Developing financial services in the capital markets made it easier for individual firms to achieve economies of scale • Expansion of domestic and international markets made enlarged plat size profitable • Mergers are used to control markets (instead of cartels) • Other…

    19. Government response • Growing regulation of big business • Railways – Interstate Commerce Commission • Antitrust acts • The Sherman Act (1890) • It was the first Federal statute to limit cartels and monopolies, and today still forms the basis for most antitrust litigation by the United States federal government • Standard Oil – “unreasonable monopoly” - 1911

    20. Most important Standard Oil successors • Standard Oil of New Jersey (SONJ) - or Esso (S.O.) – renamed Exxon, now part of ExxonMobil. Standard Trust companies Carter Oil, Imperial Oil (Canada), and Standard of Louisiana were kept as part of Standard Oil of New Jersey after the breakup. • Standard Oil of New York – or Socony, merged with Vacuum – renamed Mobil, now part of ExxonMobil. • Standard Oil of California – or Socal – renamed Chevron, became ChevronTexaco, but returned to Chevron. • Standard Oil of Indiana - or Stanolind, renamed Amoco (American Oil Co.) – now part of BP. • Standard's Atlantic and the independent company Richfield merged to form Atlantic Richfield or ARCO, now part of BP. Atlantic operations were spun off and bought by Sunoco. • Standard Oil of Kentucky – or Kyso was acquired by Standard Oil of California - currently Chevron. • Continental Oil Company – or Conoco now part of ConocoPhillips. • Standard Oil of Ohio – or Sohio now part of BP. • The Ohio Oil Company – more commonly referred to as "The Ohio", and marketed gasoline under the Marathon name. The company is now known as Marathon Oil Company, and was often a rival with the in-state Standard spinoff, Sohio.

    21. Henry Ford – man of a new era • He was born in 1863 in Michigan in a farming family • He never liked farm life, so he left to Detroit in 1879 to work as an apprentice machinist • He worked for Westinghouse and later for Edison • 1896 – experiments with Ford Quadricycle • 1899 – Ford founded Detroit Automobile Company • 1901 - Henry Ford Company • 1902 - Ford & Malcomson, Ltd. later renamed as Ford Motor Company • 1908 – Ford Model T (15 million sold) • 1913 – Moving assembly belts