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Unformatted text preview: 87-157-2ECON 2200 Moore Test #2WednesdaySeptember 19The Rise of Big Business (1865-1920) was a period of rapid and significant industrial growth. Industry was growing before this period, but it really boomed during these years. Recall from the previous test’s notes that both agriculture and manufacturing were both increasing, but that manufacturing was growing much more rapidly than agriculture.Table 17.1 shows that between 1860 and 1910, the total labor force grew by 3.4 times. Note that these numbers are not percentage growths. If a particular labor force grows by two times, it has grown by 100%. Railroad employment was 23.2 times higher in 1910, and the labor force of most manufacturing sectors grew by 6.0 times or higher.Table 17.2 shows that output was expanding, as well as the labor force. Railroad passenger miles increased by 17 times and railroad freight-ton miles increased 98 times over. These are extremely high gains in output. Total manufacturing product output grew 10.8 times over, and most of the period’s large growth was centered on manufacturing. Student Notes™ • Reproduction Prohibited.187-157-2In the previous two tables, if the output multiple is higher than the correlated input multiple (labor), there was a productivity growth in that sector, which is true for all manufacturing sectors. This is based on the fact that is labor increased by two times and output increased by four times, there was some productivity increase that doubled each employee’s production by two. The strongest productivity growths were in railroads, iron, and steel.Table 17.5 deals with Value Added, which is the total value of output minus material costs. Value Added (VA) figures out what value is added by manufacturing outputs. Value added per worker is the total value added divided by the number of workers, and reflects both labor and capital productivity.There was a 128% increase in value added per worker in boots and shoes between 1860 and 1910. The value added of producing men’s clothing increased by 269% in the same period.During the Civil War, large numbers of cheap shoes were needed for the massive armies on both sides. Instead of measuring each soldier’s foot and hand-sewing a shoe to his exact specifications, the armies standardized sizes that would generally fit people as shoe sizes do now. This standardization Student Notes™ • Reproduction Prohibited....
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This note was uploaded on 04/17/2009 for the course ECON 2200 taught by Professor Moore during the Spring '07 term at UGA.
- Spring '07
- The Land