Industry & Immigration

1865-1914

Causes of Industrialization

• Civil War– The war encouraged production, innovations

and expansion of railroads.

• Natural Resources– Ample natural resources, including oil, fueled

growth.

• Growing Workforce– Immigrants willing to work for low wages

flowed in to the country

• Technology/Innovation– New technology and innovative business

practices spurred growth– Entrepreneurs: people who invest money in a

product to make a profit

• Government Policies– Encouraged investment in businesses & new

technology– Protective tariffs

• Taxes that would make imported goods cost more than those made locally

– Laissez-faire• Allowed businesses to operate under

minimal government regulation

Important People• Thomas Edison

– Invented new technology, such as electric lighting, that stimulated business

• Henry Bessemer– Developed process for creating strong,

lightweight steel for use in construction and railroads

• Andrew Carnegie– Use of vertical consolidation influenced the rise of

big business (pg 111)– Urged businessmen to also be philanthropists

• John D. Rockefeller– Use of new business strategies, such as horizontal

consolidation, influenced the rise of big business (pg 110)

• Samuel Gompers– Formed the AFL, influencing the rise of labor

unions

Important Govt. Policies• Protective tariffs

– Congress enacted tariffs on imported goods to make them cost more than locally produced goods

• Laissez-faire policies– Government allowed businesses to operate under

minimal government regulation

• Subsidizing railroads– Government gave railroad builders millions of

acres of land

• Strike breaking– Government troops routinely helped break up

strikes

• Antiunion actions– Courts used legislation like the Sherman Antitrust

Act to order unions to stop disrupting free trade

Robber Barons or Captains of Industry• “Robber Barons”

– Shrewd capitalists were able to swindle the poor

• “Captains of Industry”– Business leaders served the country positively in

several ways: