Big Business and Industrialization A. Life in Industrialized America

Big Business and Industrialization (use of machines to do work) A. Life in Industrialized America  a large variety of products available to buy (because of national markets)  more people leaving farms, moving to city to work in factories  machines doing more of the work on farms and in the city, improving efficiency  more job opportunities for unskilled labor in factories B. Growth and Prosperity Factors (concentrated in cities)  Businesses started with raw materials (natural resources) such as coal, iron, wood, or cattle.  Natural resources were shipped to factories on the railroad.  In factories raw materials became finished products to be sold.  More labor was available, so businesses could pay workers less.  Assembly lines and cheap labor helped to lower production costs.  Lots of capital was needed to start or expand a business.  Railroads allowed products to be shipped out to national markets.  Advertising tried to get consumers’ interest and expand the business’s market. C. Inventions  Bessemer process – make stronger steel more cheaply then before  Thomas Edison – improved light bulb, figured out how to use electricity in factories  Henry Ford – used assembly line to lower production costs for automobiles D. Major Industrial Centers  Many people bought shares (parts of the ownership) of big businesses called corporations.  finished products: meatpacking in Chicago, steel in Pittsburgh, automobiles in Detroit, textiles in New England  raw materials: cotton from Southeast, beef cattle from Texas E. “Captains of Industry”  Rockefeller = Standard Oil, Carnegie = steel, Vanderbilt = railroads, J. P. Morgan = banking, Henry Ford = automobiles  used vertical integration – bought other companies so that they would control all the steps in making their products (including natural resources, transportation, factories, and markets)  created monopolies (companies that controlled most or all of a certain kind of business) by driving competitors out of business and buying other companies

Rise of Big Business: Essential-Facts Check (USII.4b & d) Part One – Growth Factors (Use the answer bank to fill in each blank.) 1. 2. 3. 4. 5. 6. 7. 8.

Businesses started with ____________________ such as coal, iron, wood, or cattle. Natural resources were shipped to factories on the ____________________. In ____________________ raw materials became finished products to be sold. More ____________________ was available, so businesses could pay workers less. Assembly lines and cheap labor helped to _________________________. Lots of ____________________ was needed to start or expand a business. Railroads allowed products to be shipped out to ____________________. _________________ tried to get consumers’ interest and expand the business’s market.

Answer Bank: labor

capital

lower production costs

railroads

advertising

national markets

natural resources

factories

Part Two – Captains of Industry (Match each “captain of industry” with his industry.) ____ 1. Andrew Carnegie

A. banking or finance

____ 2. Henry Ford

B. oil

____ 3. J.P. Morgan

C. steel

____ 4. John D. Rockefeller

D. automobiles (cars)

____ 5. Cornelius Vanderbilt

E. railroads

Part Three – Industrial Centers (Match each city or region with the associated industry.) ____ 1. Chicago

F. automobiles (cars)

____ 2. Detroit

G. steel

____ 3. New England

H. textiles (cloth)

____ 4. Pittsburgh

I. meat-packing