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Rise of Industry

Gilded Age

QuestionAnswer
Reasons for Birth of Industry 1. coal deposits - cheap energy 2. tech innovation/factories 3. competition - lower costs, monopolies
Coal deposits key points 1. in Pennsylvania, West Virginia, Kentucky 2. fueled factories/railroads
New technology effects 1. manufacturers can hire cheap labor 2. consumer prices drop- consumers happy 3. farmers/industrial workers suffer from low wages 4. high interest rate- bad for farmers/entrepreneurs
Railroad innovations 1. sold bonds to public to raise money 2. sold stocks 3. magnetic telegraph (1837) - avoid schedule mistakes 4. railroad lines divided into geographic units- each w superintendent 5. accounting systems - predict profit/loss 6. railroad managers
Competition between railroads 1. special arrangements for bulk buyers 2. free passes for politicians 3. tried to create pools- divide traffic equally
Jay Gould crookedness 1. ran parallel tracks to rivals 2. manipulated price of rivals stock 4. sold rates below cost
Pushback against corruption 1. farmers/small business ask gov for help 2. Supreme court supports railroads 3. no gov intervention
Who helped during the depression of 1893 that was caused by the railroad industry ? investment bankers
Created by: kayla57575
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