light bulb, phonograph, motion pictures.</li></li></ul><li>Thomas Alva Edison<br />“Wizard of Menlo Park” <br />One of first Americans to open a lab<br />Invented for a living<br />Opened lab during an economic downturn<br />
The Airplane<br />Wilbur Wright<br />Kitty Hawk, NC – December 7, 1903<br />Orville Wright<br />
U. S. Patents Granted<br />1790s 276 patents issued.<br />1990s 1,119,220 patents issued. <br />
Causes of Rapid Industrialization<br />Unskilled & semi-skilled labor in abundance.<br />Abundant capital.<br />New, talented group of businessmen [entrepreneurs] and advisors.<br />Market growing as US population increased.<br />Government willing to help at all levels to stimulate economic growth.<br />Abundant natural resources.<br />
New Business Culture<br />Laissez Faire the ideology of the Industrial Age.<br /><ul><li>Individuals should compete freely in the marketplace.
No room for government in the market!</li></li></ul><li>Social Darwinism<br /><ul><li>Advocate of laissez-faire.
Individuals must have absolute freedom to struggle, succeed or fail.
Therefore, state intervention to reward society and the economy is futile! (unnatural)</li></ul>Herbert Spencer<br />
New Type of Business Entities<br />Pool: A temporary grouping of two or more people to manipulate a businesses’ price and/or volume. Pooling resources is an example<br />Trust: A legal organization set up for the control and management of assets and property of a business. It’s a way to manage several companies (Standard Oil)<br />
Vertical Integration: A supply chain united by a common owner. Usually each member of the supply chain produces a different product but contribute to a final product (Carnegie & US Steel)<br />Horizontal Integration: Occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm, e.g. a car manufacturer merging with another car manufacturer (a "buy out" or "take-over“)<br />Types of Trusts<br />
Regulating the Trusts<br />1877 Munn. v. IL<br />1886 Wabash, St. Louis & Pacific Railroad Company v. IL<br />1890 Sherman Antitrust Act<br /><ul><li>in “restraint of trade”
“rule of reason” loophole</li></ul>1895 US v. E. C. Knight Co. <br />
Economy moves through three phases:<br />Peak<br />Recovery<br />Panic (Recession; Depression—long recession)<br />Panic of 1893: Worst until Great Depression of 1930s:<br />Businesses cut production & fired workers (no unemployment insurance)—see Pullman Strike in next Powerpoint<br />Jacob Coxey took unemployed men to D.C. to demand public works jobs (1st March on Washington)<br />Laisez-faire government said no!<br />Downside: Business Cycle<br />