getting to california

• gross national product (GNP) – the total value of all goods and service produced by a country in a given year.

• Edwin Drake – drilled the first oil well in Pennsylvania in 1859

• laissze-faire – “let people do as they choose”

• entrepreneurs – people who risk their own capital (money) in organizing and running a business

• tariff – a tax on imported goods meant to encourage people to buy products produced in their own nation

• Alexander Graham Bell – invented the telephone (1874) and created the Bell Telephone Company in 1877 (now known as AT&T)

• Thomas Edison – invented and improved on many products including the phonograph, lightbulb, battery, mimeograph, electric generator and motion picture.

Ch 9 Sec 1: The Rise of Industry

Intro 2

Chapter Objectives

• Identify the effects of expanding population on industry.

• Explain the effects of technological innovations such as the telephone and telegraph on American development.

Section 1: Rise of Industry

Section 1-3

Guide to Reading (cont.)

Section ThemeEconomic Factors The free enterprise system

nurtured the growth of American industry.

Objective: Identify the effects of expanding population on industry.Objective: Identify the effects of expanding population on industry.

• By the early 1900s, the United States

had become the world’s leading industrial nation.

(pages 308–309)(pages 308–309)

The United States Industrializes• With the end of the Civil War, American industry

expanded and millions of people left their farms to work in mines and factories.


http://upload.wikimedia.org/wikipedia/commons/c/c5/Lathe.PNG

• By 1914 the gross national product (GNP), or total value of goods and services produced by a country, was eight times greater than at the end of the Civil War.

(pages 308–309)(pages 308–309)

The United States Industrializes


2006 GNP per capita (per person)2006 GNP per capita (per person)

• Water, timber, coal, iron, and copper are natural resources found in the United States that led to the country’s industrial success.

The United States Industrializes(cont.)

(pages 308–309)(pages 308–309)


Section 1-6

• Transcontinental railroads increased industrialization by bringing settlers and miners to the West and moving resources to the factories in the East.

• Petroleum could be turned into kerosene for lanterns and stoves.


(pages 308–309)(pages 308–309)


• The demand for kerosene created the American oil industry.

• In 1859 Edwin Drake drilled the first oil well near Titusville, Pennsylvania.

• As oil production increased, so did economic expansion.


(pages 308–309)(pages 308–309)


• Between 1860 and 1910, the population of the United States almost tripled.

• This provided a large workforce and a greater demand for consumer goods.


(pages 308–309)(pages 308–309)


http://upload.wikimedia.org/wikipedia/en/5/57/US_Population_Graph_-_1790_to_Present.svg

(page 310)(page 310)

Free Enterprise• Laissez-faire, a French phrase that means “let

people do as they choose,” was a popular idea in the late 1800s.


“It doesn’t matter if you do or if you don’t…”

Have you ever had a “laissez-faire” teacher?


Free Enterprise

• Many Americans believed the government should not interfere with the economy.

• Instead, they wanted supply and demand to regulate prices and wages.


• Entrepreneurs risked their capital to organize and run a business.

• In the late 1800s, entrepreneurs were attracted to manufacturing and transportation fields.

• As a result, hundreds of factories and thousands of miles of railroad were built.

• Another important source of private capitol was Europe.

• Foreign investors saw more opportunity for profit in the U.S. than they did at home.

Free Enterprise (cont.)




Free Enterprise – “Robber Barons”• Robber barons – people who loot an industry but

give nothing back.

• Another important source of private capitol was Europe.

• Foreign investors saw more opportunity for profit in the U.S. than they did at home.




(pages 310–311)(pages 310–311)

Government’s Role in Industrialism• In the late 1800s, state and federal government had

a laissez-faire attitude by keeping taxes and spending low and by not imposing regulations on industry.

• The government did not control wages or prices.

• It adopted policies to help industry.

• Since the early 1800s, the northeastern states and southern states debated on economic policies.


• Northerners wanted high tariffs to protect their industries from foreign competition.

• Southerners opposed tariffs to keep the cost of imported goods down.

• After the south seceded, the Morrill Tariff was passed, which reversed years of declining tariffs.

Government’s Role in Industrialism(cont.)

(pages 310–311)(pages 310–311)


• The high tariffs contradicted laissez-faire policies and harmed many Americans.

• As the United States raised tariffs on foreign products, other countries responded by raising tariffs against American products.

• American companies who sold goods overseas, especially farmers, were hurt by these high tariffs.


(pages 310–311)(pages 310–311)


• Many business leaders and members of Congress felt tariffs were necessary to protect American industry against the already established European factories.

• By the early 1900s, American industries were larger and highly competitive.

• Many business leaders began to encourage free trade, believing they could compete internationally and succeed.


(pages 310–311)(pages 310–311)


New Inventions

•Explain the effects of technological innovations such as the telephone and telegraph on American development.•Explain the effects of technological innovations such as the telephone and telegraph on American development.

(pages 311–312)(pages 311–312)

New Inventions (cont.)• New inventions increased America’s productivity,

which in turn produced wealth and job opportunities.

• In 1876 Scottish-American inventor Alexander Graham Bell invented the telephone.

• In 1877 Bell and his associates organized the Bell Telephone Company, which later became the American Telephone and Telegraph Company (AT&T).

• Objective: Explain the effects of technological innovations such as the telephone and telegraph on American development.

• In the late 1800s, Thomas Alva Edison invented or perfected the phonograph, the light bulb, the electric generator, the dictaphone, the mimeograph, and the motion picture.

• In 1882 the Edison Electric Illuminating Co. became a new industry and began supplying electric power to customers in New York City.

New Inventions (cont.)

(pages 311–312)(pages 311–312)


• The clothing industry increased productivity in the mid-1800s with the introduction of the Northrop automatic loom, the power driven sewing machine, and cloth cutters.

• Mass production in the shoe industry allowed large factories to produce shoes more cheaply and efficiently than local cobblers.

• The savings were then passed on to the consumer.


(pages 311–312)(pages 311–312)


Section 1-21

Checking for Understanding

__ 1. policy that government should interfere as little as possible in the nation’s economy

__ 2. the total value of goods and services produced by a country during a year

__ 3. one who organizes, manages, and assumes the risks of a business or enterprise

A. gross national product

B. laissez-faire

C. entrepreneur

Define Match the terms on the right with their definitions on the left.

A

C

B


Section 1-22

Checking for Understanding (cont.)

Explain how an abundance of natural resources contributed to economic growth in the United States in the late 1800s.

Americans did not have to import resources from other countries, saving resources for internal growth.


Section 1-24

Critical Thinking

Synthesizing What role did the federal government play in increasing industrialization in the United States after the Civil War?

Congress subsidized railroads and sold lands below market value.


Section 1-8

How did the construction of the transcontinental railroad add to an increase in industrialization?

The railroads brought settlers and miners to the West to work and moved the resources back to the factories in the East.


(pages 308–309)(pages 308–309)


Chapter Assessment 4

Reviewing Key Facts

The United States had an advantage in industrializing due to its resources and large workforce. What resources did the nation have? Why was its workforce large?

The nation had iron ore, water, copper, coal, and timber. Its workforce was large due to large families and floods of immigrants.


Section 1-20

How did technology cause the prices of shoes to go down?

Large factories could mass-produce shoes more quickly and cheaply than local cobblers could, resulting in lower prices.


(pages 311–312)(pages 311–312)


Section 1-23

Reviewing Themes

Economic Factors How did the principles of the free enterprise system, laissez-faire, and profit motive encourage the rise of industry?

They put development in the hands of entrepreneurs, not the government.


Section 1-11

Why was Europe an important source of private capital?

Foreign investors saw more opportunities for growth and profit in the U.S. than at home.




Section 1-16

What were some problems caused by high tariffs?

When other countries placed high tariffs against American goods, it hurt American companies selling products overseas. Rural American farmers were especially hard hit by the tariffs, causing many of them to leave farms and take factory jobs.


(pages 310–311)(pages 310–311)



Reviewing Key Facts (cont.)

How did inventions contribute to economic growth in the United States in the late 1800s?

Inventions helped increase the nation’s productive capacity and improved transportation and communication.



Economics and HistoryThe graph below shows steel production from 1865 to 1900. Study the graph and answer the questions on the following slides.



Interpreting Graphs Between what years did steel production have the greatest increase?

The greatest increase occurred between 1895 and 1900.

Economics and History (cont.)



Economics and History (cont.)

Making Inferences How did increased steel production contribute to American industrialism?

Increased steel production allowed railroads to be built, improving transportation and benefiting industry.


Daily Focus Skills Transparency 1


Section 1-26

CloseExplain the effects of technological innovations such as the telephone and telegraph on American industrial development.


End of Section 1

getting to california

Documents

american oil industry

growth of american industry

section themeeconomic

millions of people

chooseentrepreneurs

total value of goods

consumer goods

american development