Chapter 14 Industrialization - Chapter 14 Industrialization...

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Chapter 14 Industrialization Section 1 The Rise of Industry US Industries With the end of the Civil War, American industry and millions of people left their farms to work in mines and factories By the early 1900’s, the US become world’s leading Industrial nation By 1914, the gross national product (GNP) was 8 times greater than at the end of the War - The larger your GNP the higher you rank, total number of goods and services - Total Value of goods and services produced by a country Natural Resources US had an abundance of raw materials - Water, timber, coal,iron,and copper Allowed companies to obtains material cheaply and did not have to import from other countries Transcontinental Railroads increased industrialization - Brought settlers and miners to the West - Moved resources to the factories in the East At the time, petroleum began to be exploited - Petroleum could be turned into kerosene for lanterns and stoves - Demand for Kerosene created American oil industry - 1859 Edwin Drake drilled first oil well Pennsylvania As oil production increased, so did economic expansion Workforce An available workforce just as important to industries as natural resources Between 1860-1910, the population tripled Provided a large workforce and created greater demand for consumer goods Population growth came from 2 sources - 1. Large families - 2. Flood of immigrants Over 20 million Free Enterprise Free Enterprise was crucial to industrialization Many Americans embraced idea of Laissez-faire - “Let do” … hand off - Belief that government should not interfere in the economy other than to protect private property or maintain peace - Wanted supply and demand to regulate price and wages Supporters claim a free market with competing companies leads to greater
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efficiency and creates more wealth Advocate law taxes and keeping government dept limited - Keeps people in Control of the money Entrepreneurs Entrepreneurs - people who risk their capital in organizing and running a business I In the late 1800’s, entrepreneurs attracted to manufacturing and transportation fields As a result, hundreds of factories and thousands of miles of railroad were built Another source of private capital was Europe - Foreign investors saw more opportunity for profit in the US than at home Government’s Role In the late 1800’s, state and federal gov had a laissez-faire attitude - Kept taxes and spending low - Did not impose regulations on industry - Gov did not control wages or prices - Adopted policies to help industry Northeastern and southern states always differed on economic policies - Northerners wanted high tariffs - Southerners opposed tariffs to keep cost of imports down The Civil War ended the economic debate - After the south secede, the morrill Tariff passed - Reversed years for declining tariffs Government’s Role The high tariffs contradicted laissez-faire policies - Harmed many Americans As the US raised tariffs, other countries responded
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