Topic 6.6 - The Rise of Industrial Capitalism

Gilded Age

Nickname for the Industrial Era; the nickname was given because of the era was full of faults, flaws, and problems.

deflation

Falling prices or money is worth more; the late 1800s was an era of this.

division of labor

The assignment of different parts of a manufacturing process / creating a product to different people in order to improve efficiency.

mass production

Producing goods on a large scale, usually with the help of technology / machinery.

scientific management

Evaluating the time it takes to complete each step in the production of a product and maximizing each worker's efficiency (with little or no downtime) so that the business / industry is able to maximize its profit.

economies of scale

Investing in technology in order to lower production costs and also produce more products. Although it costs more to buy the new technology, in the long run factories save money.

time zones

These were developed because railroads each kept and often ran on their own schedule / time.

George Westinghouse

Inventor of the railroad air brake and automatic coupler.

Standard gauge

This made railroad travel easier and rail lines more uniform; it was set at 4 feet 8 inches.

Cornelius Vanderbilt

The railroad tycoon who owned many railroads leading into New York City and who successfully linked New York to Chicago.

Rebate

A retroactive refund or credit given to a buyer after he has paid the full list price for a product or for a service such as transportation. Also known as a kickback.

Pool

Early on, before monopolies and trusts, businesses would sometimes agree to fix prices of products in order to make more profit. What was this agreement called?

Andrew Carnegie

Scottish immigrant that became a leader in the steel industry during the 19th century.

steel

Andrew Carnegie was involved in what industry?

Edwin Drake

He drilled the first oil well in 1859.

Pennsylvania

What state was the home to the first oil well?

John D. Rockefeller

Name the man that created the Standard Oil Company.

Standard Oil

Name of John D. Rockefeller's multi-million dollar company headquartered in Cleveland, Ohio.

kerosene

What refined petroleum product was used in lamps to create light in homes before electricity was common in households

kerosene

What one product made John D. Rockefeller the wealthiest man of the 19th century? The answer is not "oil."

Interstate Commerce Act

A federal law that targeted unfair practices in the railroad industry by attempting to eliminate discrimination against small markets, outlawing pools and rebates, and establishing a "reasonable and just" price standard.

Sherman Antitrust Act

A federal law that which prohibits businesses from colluding or merging in order to reduce competition in the marketplace.

vertical integration

It is when a business acquires several different phases of the manufacturing process. This makes supplies more reliable and improves efficiency of the manufacturing process. It controls the quality of the product at all stages of production. An owner that purchases the cattle stockyards, the meat processing plants and the refrigerated railroad cars (all different phases of the manufacturing process) would have been involved in this.

horizontal integration

When a business acquires or merges with competitors that are in the same industry / line of business.

Social Darwinism - Spencer

The belief that businesses are subjected to the same natural selection theory ("survival of the fittest") that plants and animals are. Also identify the person that came up with this concept.

William Graham Sumner

He applied "survival of the fittest" to people and social classes and argued that it would upset the natural balance of society if you were to try and help the poor too much.