Chapter 5 - Industrialization
Rise of Industry By the late 1800 s, the U.S. was the world s leading industrial nation. What does an industrialized nation mean? Gross National Product - total value of all goods/services produced by a country What would be included in this? Let s name 3! 1. 2. 3.
Why were we so successful? 1. Lots of natural resources 2. A large workforce (lots of people) 3. Free enterprise
Free Enterprise Laissez-faire - Policy that believes the government should interfere as little as possible with the economy This relies on supply and demand to regulate the economy This type of economy promotes low taxes from businesses and the rich and little government debt Pros? Cons? Entrepreneurs - a person who organizes and assumes the risk of a business Were there any entrepreneurs who were successful during this time? Let s look!
Business Tycoons of the 19th Century Cornelius Vanderbilt John D. Rockefeller Water Transport, Railroad, Vanderbilt University Oil Andrew Carnegie J.P. Morgan Steel Investment Banking Leland Stanford Central Pacific Railroad, Politician, Stanford University
Many of these Tycoons became rich because of their involvement in the railroads... Pacific Railway Act - 1862 act (signed by Abraham Lincoln) to make a transcontinental railroad by two corporations. The Union Pacific and Central Pacific Many other railroads were built as well! Land grants - a grant of land by the federal gov for roads and railroads
Captain of Industry A business leader whose means of amassing a personal fortune contributes positively to the country in some way. This may have been through increased productivity, expansion of markets, providing more jobs, or acts of philanthropy Robber Baron Used to describe a powerful 19th century businessman or banker who used questionable or unethical business practices to become powerful or wealthy
What do you think Captain of Industry or Robber Baron?
Captain of Industry or Robber Baron?
Captain of Industry or Robber Baron?
Captain of Industry or Robber Baron?
You Decide! Captain of Industry? Or Robber Baron? 1.) You will be assigned a small group and will be assigned one of the leaders of business in the United States at this time 2.) You will complete research, fill out a graphic organizer, and determine whether they were a robber baron or captain of industry (this is opinion, however you need to justify your answer with facts through research) 3.) When complete, your group will complete the same graphic organizer over an entrepreneur of today and determine whether he/she is a modern captain of industry or robber baron. 4.) Your group will present your evidence and research to the class. Do you believe these businessmen were captains of industry? Or Robber barons?
Big Business Corporation - organization owned by many people but by law treated as a single person Corporations made money by selling stock through the stock market Stock - shares of ownership bought with money through investment Corporations could invest in new technology, hire large workforces, and purchase many machines for factories. This was a huge benefit because it made things cheaper Economies of Scale - the cost of manufacturing is decreased by producing goods in large quantities (bulk)
Another reason industry grew? THE ASSEMBLY LINE! Created by Henry Ford (of Ford cars), this is a process by which people work in succession repeating a task until an identical item is progressively assembled
There are two types of companies: 1. Vertical integration - a combination of all of the different companies needed for production in a particular industry 2. Horizontal Integration - combining many firms of the same type of buisness into one large corporation
Let s Practice with these! VERTICAL INTEGRATION? HORIZONTAL INTEGRATION?
Pizza Shop!
Let s do an assembly line! Station 1 - Take 1 piece of paper and place it in front of the next person Station 2 - Fold the paper vertically Station 3 - Open the paper Station 4 - Fold the top right corner down to meet the fold line Station 5 - Fold the top left corner down to meet the fold line Station 6 - Fold the paper vertically again but opposite of the corner folds Station 7 - Fold down the left wing Station 8 - Fold down the right wing Station 9 - Test fly the airplane into the trash can
Your Assignment: Using a clothing store, you must on a piece of paper create the vertical and horizontal integrations using a list format. 1. Write the name of the clothing store you are using at the top 2. Put vertical integration on the left and horizontal integration on the right like you see below a. You must identify 3 INTEGRATIONS FOR EACH! Vertical Integration Horizontal Integration Company name Company name
Unions The life of workers was very hard already Then, because of the rise of industry, DEFLATION occurred Deflation - The rise in the value of money which decreases the volume of money and lowers prices Seems good at first, but the companies began paying their workers less because money was more valuable Workers began forming Unions Companies did not like unions and used many strategies to stop them Blacklist - a list of troublemakers who the company disapproves of who cannot be hired in the future Lockouts - When unions did form, companies locked the employees out and refused to let them work or pay them
Writing - Interpret this political cartoon in your notes. What does this mean?
1. Get in a small group, with a partner, or by yourself. 2. Read together the rest of section 4 of chapter 5 starting on page 200. 3. When done, answer the following questions on page 207: 3, 4, 5, and 6 Turn it into the basket when you are done...
RAFT WRITING ASSIGNMENT ROLE - An American worker living during the Industrial Revolution AUDIENCE - A friend or family member in another state FORMAT - Letter TOPIC - Write a letter explaining to your friend or family member why you support or oppose unions. Include details you learned from Section 4.