Causes of Industrialization
Factors of Production
Factors of Production•The elements that must be present for a country to be a successful industrial nation
Factor/ Cause #1• Natural Resources/ Raw Materials–Water–Timber–Coal –Oil–Copper
• US had an abundance of raw materials• Allowed us to obtain them cheaply• Settlement of west helped accelerate
industrialization• New resource, petroleum, was used for fuel• In 1859, Edwin Drake drilled first oil well near
Titusville, PA
Factor/ Cause #2• Entrepreneurs and Inventions• Came up with new inventions• Inventions helped increase
productivity and improved transportation and communication• Inventions led to new corporation
providing new jobs and wealth
Inventors
• Alexander Graham Bell and the Telephone• Edison and Electricity– Created research lab and held more than 1000 patents
when he died– Edison electric powered NYC– Several of his companies formed what is now GE
• George Westinghouse and Electricity– Invented air brake system for railroads allowing trains
to travel faster– His company was first to use hydroelectric power of
Niagara Falls to generate electricity for street cars
Factor/ Cause #3•Capital – –land –Factories– machines– money
Factor/ Cause # 4• Labor–Large workforce fueled by immigration
and large families–1860-1910 – population tripled in US• Created greater demand for consumer
goods
Factor/ Cause # 5• Transportation–Streetcars, subways, automobiles–Railroad• Pacific Railway Act provided construction of
railroad by two companies–Union Pacific pushed west from Nebraska–Central Pacific pushed east with 10,000 workers from
China due to labor shortage in California–After 4 years companies met at Promontory Summit,
Utah to complete transcontinental railroad
Railway Significance
• Promoted trade• unite Americans in different regions • Provided jobs• sped up Western settlement• set up standard time to provide train
safety• factories could send out product faster to
more people
Factor/ Cause # 6• Markets– Places to sell product• Late 1800s - Free Enterprise Market• Laissez- faire gov’t not interfere with economy• Rely on supply and demand to regulate prices
and wages• Supporters claimed free markets with
competing companies leads to greater efficiency and creates more wealth for all
# 6 continued• Gov’t Role during late 1800s–High tariffs set to protect American
industry from foreign competition•Problem: Europe raises their tariff
thus keeping us from selling our goods there
–Subsidies to companies like railroad