I. Industrial Revolutions
A. Industrious Revolution
a. People in UK and Northern Europe begin to work harder, longer hrs, and more productive
b. International trade level goes up tremendously – goods and desires for goods increases
B. 1st Revolution (Requires investment & risk-taking)
a. Water wheels for power; In Great Britain – greater surplus
b. Colonization and tax barrier helped to raise domestic production
C. 2nd Revolution (Steam Power) –
a. American System of Manufacturers – Starts in armory
Interchangeable Parts & Standard Gauges; Mechanized Production + Assembly Line Production
US. Gov. assured market for mass production (Eventually led to Ford & moving assembly line)
b. Steam Power
Coal mines in GB and Pennsylvania provides energy source
Printing of magazine and newspaper accessible – changes nature of communication
E7ects on transportation (steam boats and rail roads) – schedule in transportation available
i. 1869: 1ST Transcontinental rail road
ii. Reduce transportation time; increase city size; growth of steel industry
Telegraph: e7ect on politics and business; deaths of family members
D. Age of Electricity (Life Expectation increases greatly)
a. Electric Dynamo (possibility of harvesting electricity and transmi>ng electricity)
b. Edison: incandescent light bulb – creates demand for electricity
Pearl Street Station (1882, NYC) – marked the beginning of modern electricity industry
c. Electricity – E7ect of improving continuous production (24hrs)
d. E7ect of size of cities
i. Electric Street Car (1st in Richmond, VA, 1888); by 1890, all major cities adopted
ii. Subway: 1890s Boston; 1904 NYC
iii. Restructuring of the sectors in a city (upward and outwards)
E. Age of Petroleum
a. ReDneries in West Pennsylvania: main product – gasoline starting from 1890s
b. John D Rockefeller: Monopoly of reDneries – Standard Oil (reDning + distributing)
c. Internal Combustion Engine – Fundamental to the age of petroleum (perfected in 1885)
By 1930s, 60% of US families own cars (1900: 1%)
Raise changes in infrastructures + distribution of public space
Most of the roads were built by federal/local government
Trucks became the main tool of mass transportation
II. Gilded Age (1870s-1900s) — Reconstruction: 1863-1877; Progressive Era: 1900-1920
A. Basics
a. Access to raw material improves greatly (coal, petroleum, agricultural product)
b. Access to technology: Inventors + Patent system (Machinery & Chemicals)
c. Growth of market (Domestically and internationally)
d. Strong system of transportation & communication
e. Increasing access to capital (Productivity outstripped demand & high volatility in econ)
B. Economy of Scales – To deal with high volatility
a. Larger Business – Managerial Revolution + Creation of LLC
b. Competition
i. Pool/Cartel – informal alliance of producers
ii. Trust (control over all the trustee’s shares + operations) – Monopoly
iii. Holding Co.: aNer anti-trust act, merger movement
c. Vertical/Horizontal Integration
C. Gilded Age Presidency
a. Extremely Weak oOces –
i. ConPicts: freed labor force from slavery; Immigration; Machinery
ii. Only serves to dispense patronage – corruption increases – Civil Service Reform