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Terms in this set (45)
Gross National Product
The total value of all goods and services produced by a country
supporters of this believed that the government should not interfere in the economy other than to protect private property rights and to maintain peace
People who risk their capital in organizing and running their own business
Alexander Graham Bell
Thought it would be possible to talk through the telegraph, succeeded in 1876
Bell Telephone Company (AT&T)
Thomas Alva Edison
Inventor, he improved the light bulb, electric generator and many other electric devices, his company began to supply electric power (Edison's General Electric Company)
How did oil production affect the American economy?
The American Society was built on a demand for kerosene (lights); this fueled the economic expansion
What does it mean when a government has a laissez-faire economic policy?
The government does not interfere with the economy except to provide private property rights and maintain peace
Do you think government policies at this time helped or hindered industrialization? Why?
Government policies helped the industrialization because they practiced laissez-faire economics, kept the taxes low, and did not impose costly regulations on the industry, and they did not control wages or prices
How did the use of electric power affect the economic development of the United States?
The economy developed rapidly because of the invention of electricity, there were many new opportunities (electric machines etc.); mass production and consumption resulted
Pacific Railway Act
Abraham Lincoln signed this act in 1862; it provided for the construction of a transcontinental railroad by two corporations, the Union Pacific and the Central Pacific railroad companies
Regions where the same time is kept; Pacific Time Zone, Mountain Time Zone, Central Time Zone, Eastern Time Zone
Land given to railroad companies by the federal government; railroads would then sell the land to settlers, real estate companies, and other businesses to raise the money needed to build a railroad
Government got involved because the Railway Company now had to move troops etc.
Construction company that did most of the building for Union Pacific; overcharged the Union Pacific for the work it did, and since the same investors controlled both the companies, they agreed to the high bills; By the time the railroad was completed the railway company was broke, and in order to get new land grants and money, members of Congress were given shares of the Union Pacific
Why were many workers on the Central Pacific Railroad recruited from China?
They were recruited because there was a worker shortage in California
Why did the American Railway Association divide the country into four time zones?
Local time interfered with scheduling and sometimes even passenger safety. (Scheduling errors)
How did the government help finance railroads?
They gave land grants to the railroad companies so they could sell it to settlers, real estate companies etc.
How was the Great Northern different from other railroads of the time?
It was they only railroad that was not forced into bankruptcy. James J. Hill carefully planned his railroad and managed to build it without any land grants or subsidies. He shipped goods both ways and was very successful.
Organization owned by many people but treated by laws as though it were a single person. It can own property, pay taxes, make contracts, sue and be sued.
People who own the corporation; named stockholders because they own stock
Issuing stock allows a corporation to raise large amounts of money for big projects while spreading out the financial risk.
Economies of scale
Corporations make goods more cheaply because they produce so much so quickly using large manufacturing facilities
Costs a company has to pay regardless of whether it is operating (rent, taxes, mortgages, loans)
Costs that occur when running a company (wages, shipping charges, buying raw materials + other supplies)
Agreements to maintain price at certain level, made to stop the prices from falling
A vertically integrated company owns all of the different businesses on which it depends for its operation; instead of paying for coal, lime, iron etc. Carnegie bought coal mines, limestone quarries, and iron ore fields.
This saved the company money and enabled it to become bigger at the same time
Combining many firms engaged in the same type of business into one large corporation. Took place frequently as companies competed. One company buys out all its competitors
Single company achieves control over the entire market; many feared them because monopoly companies can change whatever they want to suit their wishes
Is a new way of merging businesses that did not violate the laws of not being able to own other companies;
Legal concept that allows one person to manage another person's property (managing person = trustee)
Companies that do not produce anything by themself but hold the stock of companies that do produce goods.
What factors led to the rise of big business in the United States?
Big companies had more advantages than small companies: they could produce goods more cheaply and efficiently, they could continue to operate in poor economic conditions by cutting prices to increase sales, many were able to negotiate rebates with the railroad company (even lower operating costs)
What techniques did corporations use to consolidate their industries?
Vertical Integration (buying up all companies needed to make a specific product)
Horizontal Integration (Purchasing competing Companies in the same industry)
Trusts (legally official way of managing another person's property, without owning anything)
Holding Factories (owns the stock of a producing company)
What innovations did retailers introduce in the late 1800s to sell goods to consumers?
Advertisement (big screens with bold writing and images instead of small ads in the newspaper)
Department Stores (bringing together a huge array of different products in a large building)
Chain Stores (focused on thrift, offering low prices instead of elaborate service and décor)
Mail-Order Catalogs (used pictures to advertise goods to people living in rural areas
Rise in the value of money; causes prices to fall and increases the workers' buying power
Unions limited to people with specific skills
United all craft workers and common laborers in a particular industry
A list of troublemakers: workers who tried to organize a revolt/strike were fired and then placed on this list
Companies locked their workers out of the property and refused to pay them; used to break up unions
Ideas of Karl Marx: class struggle between owners and workers is the basic force shaping Capitalist society; believed workers would revolt and overthrow the government; his ideas were very influential in Europe
When an impartial 3rd party helps workers and management find an agreement
When companies could only hire Union members (supported by the AFL)
What aspects of industrial life caused frustration for workers in the late 1800s?
Machines replaced skilled labor and work became monotonous; workers could take little pride in their work
Working conditions are unhealthy and dangerous; uneven division of income
Why were some Americans suspicious of Unions?
Many people associated the Unions with revolution and anarchism. These feelings added to the presence of Nativism (anti immigrant feelings). People were suspicious of all the immigrants coming into the country as they associated them and the unions with these values.
Why did industrial unions fail in the late 1800s?
Lack of organization; Interference of government
What AFL policies contributed to its growth as a union?
Gompers (the head of the American Federation of Labor) believed that unions should stay out of politics, he rejected socialist and communist ideas and wanted to fight for small gains (higher wages and better working conditions)
How were female industrial workers treated differently than male workers in the late 1800s?
Even if they decided to work outside of the home, they were only allowed to take on jobs that reflected society's view of suitable jobs. They worked as domestic servants (1/3), teachers, nurses, sales clerks, secretaries (1/3), industrial workers (1/3, only in 'suitable' jobs such as garment industry);
Even when they had the same job as a man they earned less because it was assumed that they had a husband to support them
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