The Industrial Revolution Spreads. 1. New powers emerge – A. Other nations raced to catch up to...

The Industrial Revolution Spreads

• 1. New powers emerge– A. Other nations raced to catch up to Britain.– B. By mid 1800s, several nations caught up

because:• 1. Other nations had more coal, iron and other

resources (USA, Germany, France)• 2. Other nations borrowed British experts, technology• (U.S.-first textile factory, steamboat)• 3. Germany and U.S. became industrial leaders.• 4. By 1900, U.S. manufactured 30% of all goods.

– C. Uneven development• 1. Some nations developed slowly-lack of resources or

capital• 2. Russia slow to industrialize due to social and political

conditions• 3. Japan rapidly industrialized after 1868.• 4. Canada, Australia, New Zealand industrialized.

– D. Effects of Industrialization• 1. Working class worked long hours, dangerous

conditions.• 2. Goods prices lower.• 3. Demand for goods created jobs.• 4. Competition changed global trade.• 5. Western powers came to dominate the world.

• E. Technology sparked growth– 1. By 1880s, companies hired professionals to create

products and machines.• A. 1856-Henry Bessemer developed process for making

steel.• B. 1866-Alfred Nobel invented dynamite, used for

construction and warfare.• C. 1800-Allesandro invented first battery.• D. Michael Faraday created first dynamo-(machine that

generates electricity).• E. 1870s-Thomas Edison developed the light bulb.

Thomas Edison

Thomas Edison

• F. New Methods of production– 1. Interchangeable parts introduced in 1800s.– 2. 1900s-Assembly line introduced.

• G. Transportation and Communication Advances– 1. Nikolaus Otto-internal combustion engine– 2. Gottlieb Daimler-four wheel car– 3. Early 1900s-Henry Ford made assembly line to mass

produce cars– 4. 1903-Wright brothers flew first airplane– 5. Samuel Morse-first telegraph 1844. (1860s-

underwater cable relaying messages Europe to U.S.)– 6. 1876-Alexander Graham Bell-telephone– 7. 1890s-Guglielmo Marconi-radio

• II. Business Takes a New Direction– A. Rise of Big Business• 1. Owners sold stock to raise money for businesses• 2. Investors became a tiny part owner of the company• 3. Some sold 100s of 1000s of shares.• 4. These companies became first corporations• (businesses owned by many investors).• 5. Allowed companies to expand

• B. Move Toward Monopolies– 1. Monopolies and trusts were created by big

business.– 2. Controlled entire industries or areas of the

economy• A. Krupp-German steelmaking• B. Rockefeller –U.S. Standard Oil Company• Rockefeller dominated oil industry

Andrew Carnegie –U.S. Steelworth $298 billion in todays dollars

John D. Rockefeller-Standard Oil Company worth $663 billion in

todays dollars

JP Morgan-banking financier

Cornelius Vanderbilt-shipping railroads

– 3. Ruthless business leaders destroyed competition.

– Free to raise prices– 4. Some formed a cartel-an association to fix

prices-control markets

• C. Move Toward Regulation– 1. Creation of immense wealth sparked debate• A. Viewed as captains of industry or robber barons

– 2. Reformers called for regulation on monopolies– 3. By 1900s, some governments did start

regulations against monopolies despite business leaders efforts to hinder regulation

– 2. Reformers called for regulation on monopolies– 3. By 1900s, some governments did start

regulations against monopolies despite business leaders efforts to hinder regulation