Discuss with your neighbors…Discuss with your neighbors…

President Barack Obama has imposed new President Barack Obama has imposed new environmental regulations on coal-burning power environmental regulations on coal-burning power plants to help cut down on pollution. These plants to help cut down on pollution. These measures are costly to the power plants and has measures are costly to the power plants and has resulted in the loss of jobs as coal-based resulted in the loss of jobs as coal-based companies try to find ways to make up for the companies try to find ways to make up for the extra costs. At the same time, the regulations extra costs. At the same time, the regulations have helped cut down on pollution.have helped cut down on pollution.

Is the government doing the right thing?Is the government doing the right thing?

IndustrializationIndustrialization

Ch. 14Ch. 14

BackgroundBackground During the Civil War, only 1.3 million of the During the Civil War, only 1.3 million of the

country’s 30 million people worked in industrycountry’s 30 million people worked in industry With the shift from farming to industry, millions With the shift from farming to industry, millions

will leave the farms and enter the factories will leave the farms and enter the factories creating a new age of industrialization in creating a new age of industrialization in AmericaAmerica

The dramatic expansion of industrialization in The dramatic expansion of industrialization in the late 1800’s will set the stage for America to the late 1800’s will set the stage for America to become a global economic powerhousebecome a global economic powerhouse

Ingredients for IndustrializationIngredients for Industrialization

Abundance of natural resourcesAbundance of natural resourcesU.S. had plentiful amounts of iron, coal, U.S. had plentiful amounts of iron, coal,

copper, and many other thingscopper, and many other thingsVital resources for factories to functionVital resources for factories to function

Large workforceLarge workforcePopulation exploded after the Civil WarPopulation exploded after the Civil War

Large population of workers were required to run Large population of workers were required to run the factoriesthe factories

Ingredients for IndustrializationIngredients for Industrialization

Free Enterprise (Free Market) EconomyFree Enterprise (Free Market) EconomyLaissez-faireLaissez-faire economics economics

““Hands off”Hands off”Government doesn’t get involved in the economyGovernment doesn’t get involved in the economyAllows industries to run efficiently and cheaplyAllows industries to run efficiently and cheaply

Laissez-Faire EconomicsLaissez-Faire Economics

Low taxesLow taxesFew government regulations for industryFew government regulations for industry

Few Labor lawsFew Labor lawsFew Environmental standardsFew Environmental standards

(Things which cost businesses $$$)(Things which cost businesses $$$)

Advancements in TechnologyAdvancements in Technology

New Industrial InventionsNew Industrial InventionsElectricityElectricityAutomated factory machinesAutomated factory machines

Increased productivity in factoriesIncreased productivity in factories

Quick ReviewQuick Review1.1. What were the three ingredients the US had that helped What were the three ingredients the US had that helped

with the industrialization?with the industrialization?

2.2. Who keeps their “hands off” the economy in a Laissez-Who keeps their “hands off” the economy in a Laissez-Faire system?Faire system?

3.3. What are the characteristics of a Laissez-Faire What are the characteristics of a Laissez-Faire economic system?economic system?

4.4. How did new inventions impact industrialization?How did new inventions impact industrialization?

Abundant natural resources, large labor force, Free Enterprise economy

Government

Low taxes, few government regulations

Increased productivity

Laissez-Faire SimulationLaissez-Faire Simulation

The government has The government has passed a new law!passed a new law!

Every business that sells food or Every business that sells food or drinks must first purchase a permit. drinks must first purchase a permit.

The cost of the permit is $50.The cost of the permit is $50.

Calculate your expected profit with the added cost factored in

The government has The government has passed a new law!passed a new law!

A new minimum wage law has been A new minimum wage law has been put into effect. All employees must put into effect. All employees must now be paid a minimum of $7 per now be paid a minimum of $7 per

hourhour

Calculate your expected profit with the added cost factored in

The government has The government has passed a new law!passed a new law!

To ensure the safety and quality of To ensure the safety and quality of apple cider, a new law has been apple cider, a new law has been

passed that requires all apple cider passed that requires all apple cider business to use an apple cider business to use an apple cider

sanitation machinesanitation machine

Calculate your expected profit with the added cost factored in