History Alive! Pursuing American Ideals

Industrialization Key Terms

The Age of Innovation and Industry:

The rise of corporations, heavy industry, mechanized farming and technological innovations transformed the American

economy from an agrarian to an increasingly urban industrial society.

Engagement

Chinese Fortune Cookie!

Homemade vs Industrialized

Capitalism/Capitalist

• Definition:– An economic

system in which factories, and other means of production are privately owned rather than government controlled.

Capitalism in Action

Shark Tank $$$$$

https://www.youtube.com/watch?v=jqtM9brwBDg

https://www.youtube.com/watch?v=FfxsEfqdDsQ

Heavy Industry

• New innovations like the Bessemer process allowed the steel industry to explode!

The Bessemer Process

A method of converting iron to steel patented by Henry Bessemer

• Involved blowing air through molten iron which removed it’s impurities

• This made steel harder, stronger, and lighter than iron making it more preferred

• This process also aloud steel to be produced more cheaply and quickly

Mechanized Farming• From the beginning

of America until the IR, the U.S. was an agrarian country using farm animals to do the work.

• With the onset of the IR, even farming became heavily mechanized.

Production Methods?

Frederick Taylor:

•Used scientific methods to analyze the production process

• Time-and-motion studies

•Determined the most efficient way to work quickly

• Thus increasing productivity and profits

Industrial Growth

Key Factors:

Capital – any asset that can be used to produce an income including money, buildings, tools, and/or machinery

Industrial Growth

Corporations – a company that exists independently from the owners (investors)

•Corporations would become known as “Big Business”

•Unlike traditional businesses, big businesses were reasonable to their investors and driven by profit

Reducing Competition

Monopoly – Company that completely dominates a particular industry (Standard Oil)

Trusts – Set of companies managed by a small group to prevent them from competing with one another

Horizontal Integration

• Definition:– A corporate

expansion strategy.– Involves joining

together as many firms from the same industry as possible.

John D. Rockefeller’s Standard Oil

Vertical Integration

• Definition: – Corporate expansion

strategy– Control of each step

in the production and distribution of a product.

• Acquiring raw materials to manufacturing, packaging, and shipping.

Laissez-Faire

• Definition:

– The idea that the free market, through supply and demand, will regulate itself if government does not interfere.

Time Warner

Internet

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Publishing

Cartoon Network Turner Network Television (TNT)

AOL Instant Messenger

MapQuest

Winamp

Amazon.com (partial)

Netscape

Time Warner Cable

Castle Rock Entertainment

Warner Bros. Studios

Hanna - Barbera Cartoons CNN

HBO Court TV

Road Runner

Time

People Mag.

Sunset Books

Sports Illustrated

Fortune

Kablevision (53.75% - cable television in Hungary)

RadioCNN Radio

http://cjrarchives.org/tools/owners/timewarner.asp

America in the Gilded Age1. To cover with or as if with a thin layer of

gold.

2. To give an often deceptively attractive or improved appearance to

Captains of Industry(Entrepreneurs)

How did the captains of industry create and maintain control of United States

industry?

What is a Captain of Industry?!

A business leader whose way of achieving personal fortune contributes positively to

the country in some way.

This can be through:

Increasing Production

Providing Jobs

Philanthropy

Someone who makes large charitable donations ($$) to improve the well-being

of others.

What is a Philanthropist?!

This is often to:

Hospitals/ Medicine

Schools/ Universities

Libraries

A business man who dominated their industry and made huge fortunes through unfair business practices.

What is a Robber Baron?!

This was done by:

Eliminating smaller/weaker businesses

Holding all of the power in

their company

Sometimes used illegal business practices

Andrew Carnegie: • Controlled the steel Industry

• Brought the Bessemer Process from England -Made it easy and cheap to make

large amounts of steel by refining iron.

-Steel production increased 500 times 1867-1900

Andrew Carnegie:• Used vertical integration to be

successful.

Vertical Integration = Owning all aspects of production for a certain product. As a result the owner makes all the profit (money)

•Was a Philanthropist who gave money to

libraries.

John D. Rockefeller • Owned the Standard Oil Trust

•Had a reputation as a Robber Baron

John D. Rockefeller• Tried to control all businesses in the oil

industry

•Gave away more than $500 million during his lifetime

Cornelius Vanderbilt• Built a huge railroad

empire through ruthless business tactics,

•Had a reputation as a robber baron

Cornelius Vanderbilt• Left $1 million to Vanderbilt

University after his death.

• He is the 2nd wealthiest person in U.S. History

Wealthiest in US History • 1. John Rockefeller - $253 Billion

• 2. Cornelius Vanderbilt - $205 Billion

• 3. John Jacob Astor - $138 Billion

• 4. Stephen Girard - $120 Billion

• 5. Richard Mellon - $103 Billion

• 6. Andrew Carnegie – 101 Billion

• 12. Bill Gates - $74 Billion

• 13. Henry Ford – $67.2 Billion

• 14. Warren Buffett - $63.8 Billion