IndustrializationAfter the Civil War, American industry grewrapidly. This boom brought revolutionarychanges to American society.It was during this time the United Statesbecame the leading industrial power in theworld.
Reasons for Industrial Boom● Natural Resources – Iron Ore – Coal – Oil – Lumber● Large Workforce – Immigrants – Large Families
Reasons for Boom cont● Laissez-faire style of government – In French it means “let do” – Government tends to stay out of industrys way ● Relies on supply and demand ● Kept taxes low ● Limited government regulation on industry
Reasons for boom cont● Technology/Inventions – Telephone ● Alexander Graham Bell – Light Bulb and the Electric Generator ● Thomas Edison – Ice Machine: the basis of refrigeration ● Thaddeus Lowe
Economic Principles● Corporation – Company owned by many people but that operates as if it was owned by one person. – People buy stock (a percentage of the company) in the company which increases the value of that company.
Economic Principles● Supply and Demand – Basic economic principle that determines price of goods. ● Supply- the amount of the product available ● Demand- the amount of the product wanted
Economic Principle● Economies of Scale – Reduction in cost per unit resulting from increased production, realized through operational efficiencies. – Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls.
Economic Principles● Monopoly – Complete market control of a good
Conditions that gave rise to Unions● machines put unskilled workers in demand● abundance of workers made unskilled workers expendable● led to wage decrease● Long hours● Health and safety issues- work places were dangerous● the division of wealth became more apparent● Any time workers would protest the working conditions, corporations would blacklist the uncooperative workers and replace them with workers who would often work for lower pay and without any benefits.
Methods Unions Used to Gain Power● Strikes – Work stoppage caused by workers protesting.● Boycotts – Refusal to use or buy a product in protest.● Arbitration – Third party helps workers and managers reach an agreement.