Aim: What factors contributed to the growth of big business?

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Aim What factors contributed to the growth of
big business?

• Do Now
• Read pages 431-434.
• Answer the questions on the note sheet.
• Look at the HW board for your assignment.

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Objective

• By the end of this lesson, you, 8th Grade
  student, will be able to
• List the elements that contributed to the growth
  of American business.

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Lets Discuss

• Today, Mr. Levine is going to give you 100
  million dollars to help you establish and start
  your very own.Chicken Raising Business.
• However, Mr. Levine is desperate to find out what
  you are spending his money on for your business.
• For the discussion, I ask you, What would you
  spend your money on in order for your business to
  grow and become successful?

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Introduction

• In the years following the Civil War, the growth
  of the US economy was staggering.
• Industrialization, which began in the 1820s and
  1830s, went into high gear after the Civil War.
• The number and size of big businesses increased
  as a result of industrialization.
• Certain industries became important, so much so,
  that the period following the Civil War until
  1900 became known as The Era of Big Business.
• Although the economy and importance of business
  grew, certain problems emerged causing many
  Americans to seek solutions and reforms.

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1. Background to Industrial Growth

• Many factors helped to contribute to the growth
  of the United States.
• Some of these factors had been present in the
  early 1800s.
• While other factors came with the new social and
  economic changes coming after the Civil War.

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1.1 Natural Resources

• Abundant natural resources aided the growth of
  big business after the Civil War.
• One of the most important natural resources was
  coal, which was used to power steam engines.
• Which states had large deposits of coal found in
  their areas? (Red Team)

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• A second important resource was oil.
• Oil was used to lubricate machines and used as a
  fuel for lamps.
• In 1865, two million barrels of oil were produced.

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Edwin Drake
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First Oil Well-Titusville, PA
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• The third most important resource was iron ore.
• With the development and building of the Soo
  Canals, iron ore could easily be shipped through
  the Great Lakes.

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Iron Steel Production
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The Big Three Resources
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1.2 Labor Supply

• An increasing labor supply was also important in
  the growth of big business after 1860.
• Between 1860 and 1900, the workforce grew
  rapidly.

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• Three groups of people who helped the American
  labor force to grow after 1865.
• a) Farmers gave up living on their farms and
  began to work in factories.
• b) Slaves were now looking for work after the
  Civil War
• c) Fourteen million new immigrants entered the
  United States.

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• What role did immigration play in the growth of
  Big Business? (Red Team)
• Workers not only provided not only a labor supply
  but a large group of consumers-people who buy and
  use food, clothing or any article a producer
  makes.

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Labor Supply
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Labor Force
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1.3 The Importance of New Inventions

• New inventions were also important to the growth
  of big business.
• Henry Bessemer and William Kelly discovered a new
  way to make steel from iron ore.
• This process made it possible to make more steel
  at less cost and the steel industry grew rapidly.

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Henry Bessemer
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Bessemer Process
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William Kelly
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Kellys Steel Convertor
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• Other inventors helped to improve communications.
• 1867 Christopher Sholes develops the typewriter
  and by 1873, the Remington Company produced
  typewriters on a large-scale.
• 1876 Alexander Graham Bell invents the
  telephone. By the 1890s, the American Telephone
  and Telegraph Company had installed 500,000
  phones.
• Thomas Edison made major improvements on the
  telegraph. Telegraph lines reached every part of
  the United States soon after.
• Edison also develops the first practical
  electric light bulb, a dynamo to generate
  electricity and power plant. Edison is credited
  as the person who used electricity as a source of
  power.
• How did inventions helped to increase
  industrialization? (White Team)
• Who were the important inventors of the late
  1800s? (White Team)

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Christopher Sholes
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First Typewriter
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Alexander Graham Bell
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First Telephone
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Thomas Edison
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The Lightbulb
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The First Phonograph (Record Player)
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Blueprint of the Phonograph
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The First Motion Picture Camera
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Eyewitness To History

• "I'm not a scientist. I'm an inventor."
• Alfred O. Tate was Edison's associate and private
  secretary. He offers insight into the personality
  of America's greatest inventor
• "Edison certainly at times employed methods that
  might be regarded as unorthodox, but it would be
  wrong to assume that he was not abreast of
  science. He not only subscribed to but read all
  the scientific journals. He had a thoroughly
  modern scientific library which constantly was
  augmented and which did not remain unread. No one
  but himself could know to what extent he drew
  upon science and theory. He must have employed
  theory, because no forward step can be taken in
  experimentation unless the mind is projected
  ahead of it. Science may be described as
  'systemized knowledge.' It has many branches, but
  in those which Edison pursued he unquestionably
  was familiar with all 'systemized knowledge'
  associated with them, and demonstrated at times
  his ability to project it.
• His meaning was clear. If his work would sell, if
  the public would buy and pay their silver dollars
  for it, then he would know that it was useful.
  And that was his vocation - the production of new
  and useful inventions. He was a utilitarian
  inventor, and money was the only barometer that
  could be employed to indicate success."

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Alternate Current
George Westinghouse
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Alternate Current
Westinghouse Lamp ad
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The Airplane
Wilbur Wright Orville Wright
Kitty Hawk, NC December 7, 1903
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1.4 The Free Enterprise System

• Also important to the growth of big business is
  the development of the free enterprise system.
• During the 1800s, economic activity was closely
  monitored. In Europe, the town was the center of
  business activity and set their own tariffs and
  prices. As a result, producers made only what
  they could sell locally and as a result, they
  kept little in stock. In this limited market,
  there was little risk and chance of great profit.

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• In the United States, the government has
  regulated business activity only when it is
  necessary to protect the public interest or keep
  the national economy in balance.
• In a free enterprise system, individuals and
  private business decide what products to make,
  how many to produce, and what prices to charge.
• In a free enterprise system, these business can
  sell their goods in markets all over the state,
  country and world as well in local markets.
• In a free enterprise system, conditions such as
  supply and demand also play a role. Supply and
  demand means if there is a product with little
  demand for it, prices go down and vice versa.
• In a free enterprise system, there are many risks
  involved for those involved. One such group are
  called entrepreneurs.

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• When does the government regulate business
  activity? (Blue Team)

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Leland Stanford-Railroad Entrepreneur
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Causes of Rapid Industrialization

• Steam Revolution of the 1830s-1850s.
• The Railroad fueled the growing US economy
• First big business in the US.
• A magnet for financial investment.
• The key to opening the West.
• Aided the development of other industries.

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• Technological innovations.
• Bessemer and open hearth process
• Refrigerated cars
• Edison
• Wizard of Menlo Park
• light bulb, phonograph, motion pictures.

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1. Unskilled semi-skilled labor in abundance.
2. Abundant capital.
3. New, talented group of businessmen
   entrepreneurs and advisors.
4. Market growing as US population increased.
5. Government willing to help at all levels to
   stimulate economic growth.
6. Abundant natural resources.

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What Do You Know?

• The growth of our economic and business systems
  after 1865 was (were) due primarily to
• New inventions and patents.
• Increasing the output of businesses so that the
  United States would be the largest industrial
  nation by 1900.
• Improving manufacturing, agriculture and
  transportation systems.
• All of the above.

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