GDP- the Total Amount of Money Made in This Country
CHAPTER 12 NOTES
section 1
rise of the industry
- after civil war there is a rapid industrial growth by late 1800’s U.S the largest industrialized nation
GDP- the total amount of money made in this country
why? large abundance of natural resources
lots of labor, migration, large immigration
INVENTIONS:
- discovery of oil, which can be made into kerosene
Edwin Drake- drill first oil well in titusville PA.
*invention timeline*
free enterprise- start any business, trade freely, with little to no government interference.
more business —> more tax money —> more jobs
- no worry about big delays
rely on competition/ supply and demand
- the best items, products for the best prices
capitalism- allowed to do anything for profit.
( no government inference )
free enterprise helps the economy growth GDP goes up.
- attracts people from other countries.
Section 2
railroad- transcontinental- cross the entire U.S
companies:
union pacific: greenville dodge
central pacific: leland stanford
final point where they meet promontory point, utah
spurs growth- by creating new markets
*railroads used huge amounts of steel, wood, and other materials*
time zone- 1918 government adopts the time zone
changed american society- unify the nation, people became more cultured more understanding of others.
robber barons- get rich by stealing from others.
-takes free land from the government and sell to private investors, then private investors turn around and ask the government for more free land
credit mobilier- a construction company for the union pacific.
great northern railroad- james. J hill is operator.
run correctly and shows that all the others are stealing
- this is standard-
Section 3
big business- can continue to produce and sell during recession then buy out or take over local/ small business.
business consolidation- pool, where corporation limit competition by organizing together to set prices.
corporations end up not sticking to the agreement.
vertical monopoly- andrew carnegie, while working for the railroads he starts investing in steel, using bessemer process, owned steel from ground to finish product.
horizontal monopoly- rockefeller, standard oil buys up other oil companies,
Section 4
the pullman strike- organized the american railway union (ARU) in 1893.
ARU tried to organize all employees of the railroad industry.
strike began on may 11, 1894
Rise of the AFL
- american federation of labor
- in 1886 leaders of several national trade unions came together to create the AFL.
Deflation- rise of the value of money because of tensions between workers and companies
industrial unions- united all workers in a particular industry
IWW- inudstrial workers of the world (1905)