Is the Constitution Laissez-Faire?: The Framers, Original ...
THE RISE OF INDUSTRY. Vocabulary Gross National Product (GNP): total value of all goods and services...
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Transcript of THE RISE OF INDUSTRY. Vocabulary Gross National Product (GNP): total value of all goods and services...
Vocabulary • Gross National Product (GNP): total value of all goods
and services produced by a country • Laissez-faire: policy that government should interfere as
little as possible in the nation’s economy • Entrepreneur: one who organizes, manages, and
assumes the risks of a business or enterprise• Starts their own business
The US Industrializes• By the start of the Industrial
Revolution in the 1800s, many areas of the US was still farming country• Out of 30 million people, 1.3 million
Americans worked in industry by 1860
• After the Civil War, many Americans left their farms to work in mines and factories
• By the early 1900s, Americans had transformed the US into the world’s leading industrial nation• The nation’s GNP was eight times
greater than it had been before the Civil War
Natural Resources• The United States had an abundance of natural resources or raw materials• Water• Timber• Coal• Iron• Copper
• American companies could obtain them cheaply and did not have to import them
A Newly Abundant Resource
• A new resource was found in the US: Petroleum• Could be turned into
Kerosene• American industry was
built around petroleum • Was found in Western
Pennsylvania• First oil well was drilled in
Titusville, Pa
• Fueled economic expansion
A Growing Workforce• Having human resources were just as important as
natural resources• Between 1860 and 1910, the population of the US tripled
• Population grew because:• Large migration
• Conditions in China and Europe led people to people to leave their nations and travel to the US
• Opportunity• US was in need of workers with the growing industries
Free Enterprise • Free enterprise allowed the
US to industrialize rapidly • Americans embraced the
idea of laissez-faire• Supporters: believed the
government should not interfere in the economy other than to protect privacy rights and maintain peace
• Believed if the government was involved it would increase cost and hurt society
Idea of Laissez-faire• Relies on supply and demand rather than government
regulation• Idea of that a free market allows competing companies
which creates more wealth• Attracted entrepreneurs
• More businesses brought more industry
Government’s Role in Industry • State and federal governments kept taxes and spending
low and did not impose regulations• Did not try to control wages and prices• Adopted policies that helped industries
The US and Laissez-faire• US created the largest growing industry in the world
making it successful• Constitution bans states from imposing tariffs and little
regulation against goods crossing the country • Practiced free trade in labor
• Allowed the large influx of immigration
US Against Laissez-faire• High tariffs contradicted laissez-faire ideas and hurt many
Americans• US raised tariffs on imported goods and in return countries raised
tariffs on American goods• Farmers were hurt the worse
Necessary Measures• Business leaders and Congress members believed the tariffs were necessary• Western Europe was already
industrialized and many wanted American companies to be able to compete• Tariffs were put in place to make
them more competitive• Wanted Americans to buy
American goods