Five factors helped the development of industry in the late 1800s: there were abundant natural resources, abundant labor supplies, railroads, favorable business politics and, as we will see in the second slide, labor saving technological advances.
Gilded Age
Industry & Big Business
The new technology of Carnegie Steel help industrialization by the people needing steel for work so they built industries to melt the steel faster and in larger numbers.
Did you know?
Over 400,000 people got new jobs in Chicago because of industrialization
Quiz
Which was the main source of energy for factories during the gilded age?
- Coal
- Petroleum
. They paid low wages to workers and tried to obtain raw materials as cheaply as possible. They adopted forms of business organization, such as horizontal or vertical integration, and applied other innovations in production management to seek out efficiencies that would in turn decrease their cost of producing goods or services
Against industries: they said that too advantage was given to the trusts and corporation and the work was too hard for them.
Supporting industries: they thought that industries would serve the nation positively and that they will be the future for a growing country.
a number of people share the ownership of a business. If a corporation experiences economic problems, the investors lose no more than they had originally invested in the business. The corporation was the perfect solution to the challenge of expanding business, especially for risky industries such as railroads or mining.
businesses making the same product agree to limit their production and thus keep prices high. John D. Rockefeller, an Ohio oil tycoon, made agreements with railroads that made it difficult for his competitors to ship their products:
The effects on consumers include: Higher prices - cartel members can all raise prices together, which reduces the elasticity of demand for any single member, and the other effects were reliable infrastructures.
A robber baron is someone who becomes rich due to ruthless business tactics. And the term captain of industry is a business leader whose means of amassing a personal fortune contributed positively to the country in some way.