test2 - The Rise of Big Business(1865-1920 I A period of...

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The Rise of Big Business (1865-1920) I. A period of rapid & significant industrial growth o Note growth in labor force v. growth in output (Tables 17.1 & 17.2) 1. Agriculture grew by 2.0, which means it doubled Railroads is at the top, grew by 23. Total labor force grew by 3.4 Manufacturing grew by 5.4 (total manufacturing) 2. Railroad grew by 98.1 (freight) Cement grew by 70.7 Coal grew by 46.1 (shows use of coal for energy source) linked to steel, because it was used to heat. 3. Labor force increase in agriculture 2.0, but output expansion was 3.7. This means that there was increased productivity. Output growth that is more than increase in labor force, shows increase in productivity gains. o Productivity growth in all sectors, but especially in manufacturing, RR, iron/steel VA (value added) per worker rising (Table 17.5) o VA = Total value of output – material costs o VA per worker = VA/# of employees 1. Value added per worker reflects both labor and capital productivity 2. Greatest percent change: Men’s clothing – 269% 3. Greatest increase in men’s clothing & boots and shoes because of the increased productivity in these sectors. There was also a lot of demand for boots and men’s uniforms because of the war. But it was the standardized sizing that made it possible to increase productivity so much. Before standardized sizing, each boots/clothing had to be tailored for the person; however, afterwards, they could mass produce boots/clothing to each size and fit everyone. Standardized sizing mass production By 1900: o U.S. is world leader in manufactured goods 1. Germany is #2, but way less than the US By 1915: o U.S. producing 1/3 of world's manufacturing output o Manufacturing primary source of income in U.S. 1. Note the rapid shift of the US economy from being dominated by agriculture to being dominated by manufacturing. Increased D (demand) fueled manufacturing growth o Both domestic and international demand increased o Evidence of highly developed and productive manufacturing sector, because exporting not only the goods, but the technology to make the goods.
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Note magnitude of VA by manufacturing o Figures in 17.3 are in millions of nominal dollars – meaning they are not adjusted for inflation/deflation. However, this is okay, because this was a period of deflation, so figures would actually be higher if adjusted. Note changes between 1860 and 1910
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This note was uploaded on 03/19/2008 for the course ECON 2200 taught by Professor Moore during the Fall '07 term at UGA.

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test2 - The Rise of Big Business(1865-1920 I A period of...

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