1. CHAPTER 13
The Industrial Revolution
Section 1: Origins of the Industrial Revolution
Section 2: The Factory System
Section 3: New Methods and Business
Organizations
Section 4: Living and Working Conditions
Section 5: Socialism

2. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
13.3 Bell Ringer:
What is the chain of events
in the business cycle?
(create a Flow Map)

3. SECTION 3
New Methods and Business
Organizations
THE BUSINESS CYCLE
falling demand
DEPRESSION for goods
rising demand
PROSPERITY for goods

4. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Capitalism
• Economic system
where individuals (not
gov’ts) control the
factors of production.
• Businesses and the
means of production
are privately owned
and operated.

5. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Commercial Capitalism:
Merchants bought & sold goods.
Industrial Capitalism:
produce and manufacture goods.

6. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Capitalist: investor
in a business
…became more
involved in
producing and
manufacturing
goods ----

7. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Division of Labor and Interchangeable Parts
• Divided into steps
• Hire unskilled labor for each step
– DIVISION OF LABOR!
• Increased production
• Lowered costs
• MORE PROFIT

8. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Eli Whitney
• Used division of labor to make muskets
• Parts were all alike
• interchangeable
parts
• Speedy production
of inexpensive
muskets
• Easily repaired!

9. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Mass Production
Producing large numbers of identical items
What do you need for Mass Production?
Division of labor
Use of interchangeable parts
An assembly line

10. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
The Assembly Line
Parts brought together to
one location
Carried from worker to worker
Saved time and energy

11. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Henry Ford
• Used a conveyor belt
• Founded one of the
largest industries in
the world
• Model T would be
assembled in 93 min.
• Other industries would
mass produce items….

12. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Rise of the Corporation
Partnership:
two or more people
own and run a
business.
Sole proprietorship:
one person owns &
runs the business.

13. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Rise of the Corporation
• Company that allows people
to buy “shares of stock”
• Each share would receive a
portion of the profits
• By late 1800s, some
corporations were very large
and powerful.
J.P. Morgan – US Steel

14. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Monopoly
When a corporation gains
COMPLETE CONTROL over
the production or sale of a
good/service

15. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Cartel
When corporations join together
to control every stage of an
industry.
Example: German steel industry
-coal & iron mines
-steel mills
-factories

16. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
business cycle
Alternating periods of
prosperity and decline
depression

17. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
19th-century political
cartoon of Rockefeller,
caricatured as "King of
the World" sitting on a
barrel of oil.

18. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations

19. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations

20. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations
Any Questions?
QUIZ TIME!

21. SECTION 3
Israel and the Occupied
New Methods and Business
Territories
Organizations

22. SECTION 3
New Methods and Business
Organizations
THE BUSINESS CYCLE
factories increase falling demand large firm reduces
orders for iron and for goods orders for iron &
more hire more workers lays off workers
machines and
workers iron suppliers
needed cut production
& lay off
workers
production
increases to meet
demand PROSPERITY DEPRESSION
many workers
competing for jobs
wages go up and
people buy more
employers pay
less
new factory opens
& hires many prices go up to
rising demand workers buy
workers cover the cost of
for goods less
production