Chapter 14 – Section 1The Rise of Industry

The Second Industrial Revolution

First one occurred in Great Britain during early 1800s, driven by three main factors:1. Coal-powered steam engine2. Textile machines for cloth3. Blast furnaces for iron

Second Industrial Revolution was centered in the United States and Germany

Driven by three main factors:4. New transportation and

communication network (railroads and telegraph)

5. Use of electric power6. Systematic application of

scientific research to industrial processes

The United States Industrializes

Industrial Revolution began in the early 1800s, but was not widespread in America

1860• Population was approximately 33

million• Only 1.3 million worked in

industry

By 1900, U.S. was leading industrial nation in the world

Gross National Product (GNP) – total value of all goods and services produced by a country

U.S. has 3 major advantages:1. Natural resources2. Large workforce3. Free enterprise

Natural ResourcesRaw materials are necessary to become an industrial power

U.S. had these in abundance: water, timber, coal, iron, copper

Settlement of the West provided U.S. with even more of these raw materials

First oil tycoons also learned how to turn petroleum into kerosene, starting the oil industry

Edwin Drake – drilled first oil well near Titusville, PA in 1859

A Large WorkforceBetween 1860 and 1910, U.S. population triples (from about 30 million to more than 90 million)

Provided larger workforce and increased demand for consumer goods

Increase came from 2 sources:• natural increase• immigration

Between 1870 and 1910, 20 million immigrated to the U.S.• largely came from China and

Eastern Europe

Free Enterpriselaissez-faire – “let do”; idea that government should not interfere with economy through regulations, etc.

• supply and demand should regulate market

• taxes should be low• government debt should also

be low

entrepreneurs – people who risk their capital in organizing and running a business

2 sources of capital• domestic, particularly in New

England• foreign – Great Britain and

France in particular

Government’s RoleIn general, U.S. government operated under a laissez-faire system

Prior to Civil War, debate over government’s role was between North and South• North wanted high tariffs to

protects its industry• South wanted low tariffs to

protect its exports

Civil War ended the debateAfter the Southern states seceded, Congress passed the Morrill Tariff Act – inaugurated a period of trade protection in the U.S.

Government’s RoleRepublicans were very much in favor of government helping to develop industry

Pacific Railroad Act – gave huge tracts of land and subsidies to railroad companies

Gov’t sold mineral rights far below their market value

Subsidies for internal improvements, transportation infrastructure

Don’t forget the Homestead Act

Government’s RoleFree trade within the nation gave U.S. a crucial advantage1. Largest free-trade zone in

the world2. Free immigration policy,

allowing labor into the country when it was needed

On the other hand…• High tariffs hurt trade with

other nations, hurting farmers as a result

• High tariffs also instigated a low-level trade war, with other nations raising their tariffs in retaliation

U.S. policymakers were concerned U.S. industry would be unable to compete with Europe without the tariffs

New Inventions

Alexander Graham Bell and the telephone

1876 – Bell figures out a way to use electrical impulses of varying intensity to transmit sounds electronically

Organized Bell Telephone Company• Eventually became American

Telephone & Telegraph (AT&T)

New InventionsThomas Edison

Research lab at Menlo Park, NJ become the forerunner of the modern research lab

• phonograph• light bulb• electric generator• battery• dictaphone• motion picture

Consolidated Edison

General Electric"Mother Necessity"

New InventionsIn 1890s, U.S. patent office issued 235,000 new patents

Revolution in Food Storage• Ice machines

• Refrigerated railroad cars

Revolution in Clothing• Standard sizes

• Cheaper clothes and shoes

Communications Revolution• Transatlantic telegraph

cable

Changes in Work

When working for themselves, laborers set their own hours, manage their own expenses, reap their own profits

When working for employers, laborers must do as they are told or they will be fired

Wages are set by the market – any profits gained from higher productivity or better business go to the corporation itself

The Laborer as Commodity

commodity – (n) an article of commerce, especially when delivered for shipment; a good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors (as brand name) other than price

What is the difference between these four things?

1. worker2. iron ore3. lumber4. wheat