What is Industry?

Industry

Agricultural

Industrial

Factors of Industrialization

A. Free and mobile labor supply1. must be able to move to the jobs2. cannot be slaves, must get paid

Question one: What groups of people became the factory workers of the late 1800’s?

B. New inventions & methods needed1. must find faster & cheaper ways to produce2. machines take over the work

Question two: What inventions did Americans create to accomplish this?

II. Entrepreneurs + CapitalA. Entrepreneurs

1. people willing to risk their own wealth to start a business

B. Capital1. the $ and collateral that people put into their business2. must be willing to reinvest their profits!!

Question Three: Who were the entrepreneurs in the U.S. during the late 1800s and what industry did they dominate?

Coal Deposits in the U.S.

Iron, gold, silver, copper deposits

III. Raw MaterialsA. Raw Materials needed

1. must have raw materials for:a. Energyb. To make products

-i.e.: need iron to make steel !!

Question Four: What raw materials did the U.S. have to help industrialization?

IV. Surplus AgricultureA. Need to feed the growing cities!

1. less farmers needing to feed more people2. innovations to produce more

-i.e. tractor & steel plow

Question five: How did the U.S. meet the requirement of feeding the growing population of the cities?

1914 exports: $2.5 billion

1870 exports: $450 million

1890 exports: $910 million

Expanding Markets

V. Expanding MarketsA. Growing foreign trade

1. necessary to force businesses to expand2. goal of industry = to keep finding more

and more consumers-i.e. McDonald’s went from local to

state to regional to national to international business-also, Coca-Cola & Pepsi

Question six: Where did the U.S. expand its markets? (With which countries did they increase trade?)