1. Industrialization
After the Civil War, American industry grew
rapidly. This boom brought revolutionary
changes to American society.
It was during this time the United States
became the leading industrial power in the
world.

2. Reasons for Industrial Boom
● Natural Resources
– Iron Ore
– Coal
– Oil
– Lumber
● Large Workforce
– Immigrants
– Large Families

3. Reasons for Boom con't
● Laissez-faire style of government
– In French it means “let do”
– Government tends to stay out of industry's way
● Relies on supply and demand
● Kept taxes low
● Limited government regulation on industry

4. Reasons for boom con't
● Technology/Inventions
– Telephone
● Alexander Graham Bell
– Light Bulb and the Electric Generator
● Thomas Edison
– Ice Machine: the basis of refrigeration
● Thaddeus Lowe

5. Economic Principles
● Corporation
– Company owned by many people but that
operates as if it was owned by one person.
– People buy stock (a percentage of the company)
in the company which increases the value of
that company.

6. Economic Principles
● Supply and Demand
– Basic economic principle that determines price of
goods.
● Supply- the amount of the product available
● Demand- the amount of the product wanted

7. Economic Principle
● Economies of Scale
– Reduction in cost per unit resulting from
increased production, realized through
operational efficiencies.
– Economies of scale can be accomplished
because as production increases, the cost of
producing each additional unit falls.

8. Economic Principles
● Monopoly
– Complete market control of a good

9. Conditions that gave rise to
Unions
● machines put unskilled workers in demand
● abundance of workers made unskilled workers expendable
● led to wage decrease
● Long hours
● Health and safety issues- work places were dangerous
● the division of wealth became more apparent
● Any time workers would protest the working conditions,
corporations would blacklist the uncooperative workers and
replace them with workers who would often work for lower pay
and without any benefits.

10. Methods Unions Used to Gain
Power
● Strikes
– Work stoppage caused by workers protesting.
● Boycotts
– Refusal to use or buy a product in protest.
● Arbitration
– Third party helps workers and managers reach
an agreement.