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Chapter 14: Industrialization
Terms in this set (27)
Literally means "let do", a French phrase meaning "let people do as they choose." Supporters of laissez-faire believe the government should not interfere in the economy other than to protect private rights and maintain peace. They argue that if the government regulates the economy, it increases costs and eventually hurts society more than it helps.
Alexander Graham Bell
A young Scottish-America inventor who invented the telephone.
The most famous inventor of the late 1800s. Stood as a symbol for the emerging age of technology. Invented the phonograph. Perfected the lightbulb and the electric generator. Went on to improve the battery, the dictaphone, and the motion picture.
invented the ice machine, the basis of the refrigerator.
invented a refrigerated railroad car. The widespread use of refrigeration kept food fresh longer and reduced the risk of food poisoning.
Pacific Railway Act
Act that provided for the construction of a transcontinental railroad by tow corporations, the Union Pacific and the Central Pacific railroad companies. To encourage rapid construction, the government offered each company land along its right-of-way. Feverish competition between the two companies developed, as each sought to obtain as much public land and money as possible.
Railroad company that Began pushing westward from Omaha, Nebraska, in 1865. The laborers of the company faced blizzards in the mountains, scorching heat in the dessert, and sometimes angry Native Americans. The railroad workers included Civil War veterans, new immigrants from Ireland recruited especially for the task, frustrated miners and farmers , cooks, adventurers, and ex-convicts. Employed about 10,000 workers.
A former Union general, engineer and leader of the Union Pacific Company.
Railroad company that had a shortage of labor in California, so they hired about 10,000 workers from China. All of the companies equipment-rails, cars, locomotives, and machinery-was shipped from the East, either around Cape Horn at the tip of South America or over the Isthmus of Panama in Central America.
A merchant who owned stock in the Central Pacific Company. Eventually made huge fortunes in his investments. Became governor of California and later served as a United States senator founding Stanford University in 1885.
One of the most famous and successful railroad consolidators. Was a former boat captain who had built the largest steamboat fleet in America. By 1869 he had purchased and merged three short New York railroads to form the New York Central, running from New York City to Buffalo. Within four years he had extended his control over lines all the way to Chicago, which enabled him to offer the first direct rail service between New York City and Chicago. In 1871 Vanderbilt began construction of New York's Grand Central Station.
An organization owned by many people but treated by law as though it were a single person. It can own property, pay taxes, make contracts, and sue and be sued.
People who own corporations.
Economies of scale
When corporations make goods more cheaply because they produce so much so quickly using large manufacturing facilities.
Costs a company has to pay, whether or not it is operating.
Costs that occur when running a company, such as paying wages and shipping charges and buying raw materials and other supplies.
agreements to maintain prices at a certain level.
A railroad supervisor who knew that he could make a lot of money by investing in companies that served the railroad industry. Bought shares in iron mills and factories that made sleeping cars and locomotives. Also invested in a company that built railroad bridges. Frequently traveled to Europe to sell railroad bonds. Began the vertical integration of the steel industry.
A new process for making high quality steel efficiently and cheaply invented by Henry Bessemer. Consisted of using a Bessemer converter to blast air through molten iron and thus burning the excess carbon and impurities.
When a company owns all of the different businesses on which it depends for its operation. For example, instead of paying companies for coal, lime, and iron, Carnegie's company bought coal mines, limestone quarries, and iron ore fields. Saved companies money while enabling big companies to become even bigger.
When a company combines many firms engaged in the same type of business into one large corporation. Took place frequently as companies competed.
When a single company achieves control of an entire market.
A legal concept that allows one person to manage another person's property. Became a new way of merging businesses that did not violate the laws against owning other companies.
Allowed corporations to own stock in other businesses without any need for special legislative action. Does not produce anything itself. Instead, it owns the stock of companies that do produce goods. Controls all the companies it owns, effectively merging them into one large enterprise.
The ideas of Karl Marx. Argued that the basic force shaping capitalist society was the class struggle between workers and owners. The belief that workers would eventually revolt, seize control of the factories, and overthrow the government. Claimed that after the revolution, the government would seize all private property and create a socialist society where wealth was evenly divided. Eventually believed that the state would wither away, leaving a Communist society where classes did not exist. Strongly shaped the thinking of European unions.
Shares of ownership. when issued it allows a corporation to raise large amounts of money for big projects while spreading out the financial risk.
The idea that the government should own and operate industry for the community as a whole. Wanted the government to buy up large companies, especially industries that affected everyone, such as railroads and utilities.
THIS SET IS OFTEN IN FOLDERS WITH...
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