Industrial Revolution and America

Slide 1: 1866 - 1918

Slide 2: America’s Industrial Revolution made her the world’s greatest economic power BUT…….what was “ The Industrial Revolution”? WHY did it happen ? WHAT were the effects ?

Slide 3: The Three Waves FIRST WAVE: Agricultural Revolution 10,000 BC “Traditional Economy” SECOND WAVE: Industrial Revolution 1750 AD “Free Market Capitalism Economy” “ Socialist Command Economy” THIRD WAVE: Information Revolution 1950 AD

Slide 4: THE WEALTH OF NATIONS Published: 1776 First of the Classical Economists Division of Labor “ Pin Factory” Example “Invisible Hand” of the Free Market • Sets Prices •Allocates goods Free Trade not Mercantilism is best Individuals acting in self-interest promotes the general welfare Adam Smith Established the study of Economics as separate from Philosophy

Slide 5: ECONOMICS: The Dismal Science Study of how societies allocate scarce resources to meet unlimited needs Macroeconomics: National or Global markets Microeconomics: Economic behavior of people and companies

Slide 6: THE INDUSTRIAL REVOLUTION WAS BASED ON NEW TECHNOLOGIES AND ORGANIZATIONAL TECHNIQUES Factories Steam Power - later gas, electricity Wage Labor - workers not craftsmen Division of Labor - Specialization Mass production Uniformity Time orientation not task Competition drove down prices Monopolies

Slide 7: GOOD BAD Massive GDP growth Pollution Urbanization Slums Cultural Revolution Social Unrest Science Crime Social Progress Loss of Old Values Wealth Inequality Immigration Corruption

Slide 8: Why in Britain and America ? Liberty - small government Social Mobility - less restrictions High rates of Literacy Access to natural resources –coal, oil, water Free Trade ideology Respect for property and right of contract Functioning legal system Patents reward inventors - but not too much Scientific Revolution & The Enlightenment