The Growth of the Economy
- Created by: mel.maharjan
- Created on: 03-10-14 19:04
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- The Growth of the Economy
- Workforce
- Rising population and mass immigration meant large workforce
- Population increased from 62 million (1890) to 92 million (1910)
- Immigrants from Italy, Ireland, Eastern Europe, China
- Moved to big cities: Boston, Chicago, New York, Philadelphia, and Pittsburgh
- China moved to the West (e.g. California)
- Rising population and mass immigration meant large workforce
- Government
- Supported big business
- Benjamin Harrison (Republican) - favoured big business and high tariffs
- 'Billion Dollar Congress'
- 'Laissez faire' approach to economy
- Passed laws to encourage growth
- McKinley Tariff Act (1890)
- Tax on the poor and favouring big business
- Up to 49.5% on certain foreign goods
- Silver Purchase Act (1890)
- Helped lead to the 1983 Depression and was repealed that year
- Government buys 4.5 million ounces of silver per month off of mine owners
- McKinley Tariff Act (1890)
- Supported big business
- Investment capital
- People invested money into companies
- Allowed them to grow and develop
- Rockefeller and Carnegie reinvested profits
- Businesses became more efficient
- J.P. Morgan (financier) lent money to companies to expand
- People invested money into companies
- Raw materials
- Massive supplies of coal, oil, iron (for steel), and fertile land
- Increased farmland meant more land for grazing for animals which results to more meat
- Fertile land for: maize, corn, wheat, cotton, tobacco
- Exploitation became prominent in 19th century
- Result of advancements in technology
- Massive supplies of coal, oil, iron (for steel), and fertile land
- Cultural attitudes
- Derrick Murphy: "Yankee ingenuity"
- American Dream
- Hard work pays off
- American attitude that admires men who work hard, own their own business, or become millionaires
- Rockefeller and Carnegie were examples to look up to
- Derrick Murphy: "Yankee ingenuity"
- Communications
- Rail road-building boom of 1860s-70s
- Good transportation networks across USA
- Track mileage increased from 30,000 miles (1860) to 190,000 miles (1900)
- Creates jobs in others industries
- Development of the telegraph and telephone
- Sped up trade deals
- Rail road-building boom of 1860s-70s
- Markets
- Rising population and mass immigration meant large markets to sell to
- Population increased from 62 million (1890) to 92 million (1910)
- Large markets abroad too
- Rising population and mass immigration meant large markets to sell to
- Industrial organsation
- Companies bigger and more organised, and forming trusts
- Able to dominate markets
- Rockefeller owned 90% America's oil industry (Standard Oil)
- Carnegie owned 90% of America's steel industry (Carnegie Steel)
- Cornelius Vanderbilt - rail road tycoon
- Able to dominate markets
- Companies bigger and more organised, and forming trusts
- Workforce
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