1890-1920 Economy

What was the second Industrial Revolution?

• Technological developments in electrical power, engineering, oil, chemicals and pharmaceuticals

• 1895-1900- 90% surger of manufactured exports

How was America a net exporter?

• By 1913 it was considered a net exporter in iron, steel. copper and oil

• Better productivity than Britain’s ‘American Commercial Invasion’

How did USA natural resources impact the economy?

• High grade iron ore found in Minnesota (1892)- US steel bought 75% of it b y 1907

• Steel production went up by 400% by 1913

• Oil fields in Oklahoma, California and Texas

• By 1910 US oil production equalled the rest of the world’s

How was America involved in the global economy?

• Geographically placed to exploit economic opportunities

• Atlantic and Pacific trade routes

• Had peaceful trading partners (Canada and Latin America)

How did agriculture improve in the USA?

• World leader in wheat, corn and other grain (provided rest of the world with 1/3 wheat and 2/3 corn)

• Railroads increased farmers connectivity

• 1900 modernisation and mechanisation improved farmers lives

• Government was passing laws to help farmers

How did US agriculture struggle?

• Banking and credit were unrealistic sums for farmers to repay

• They were heavily dependent on railroad companies

• 1890’s depression sent agriculture into a crisis

• anonamolous climate conditions

How did WW1 impact the US economy?

• 1918- USA was one of the world’s leading economy

• Stimulated technological advancement producing locomotives and artillery shells for the allies

• Farmers could expand production overseas

• US bankers could invest in Europe

What was America’s economic position by 1920?

• produced and consumed 70% of the world’s oil

• wealth was unevenly distributed

• workers still faced harsh conditions

How influential were trusts and monopolies?

• Made up the largest 4% of Us companies and produced 57% of US industry

• US Steel became the first billion dollar company

What was the Pittsburgh Steelworkers’ strike?

• The manager cut wages and didn’t accept any union negotiation

• Private detectives were used to smuggle in strike breakers who were attacked and 13 killed

• One of the deadliest labour management conflicts in US history

What was the 1894 Pullman Strike?

• First national strike

• Company cut wages but refused to lower employees accommodation

• Cleveland sent in troops to maintain the railways, they then fired into rioters (4 people were killed)

• Omnibus Indictment Act- permitted the legal banning of strikes (until 1930s)

What caused the 1893 depression?

A slowing down of the railroad boom in Philadelphia and Reading sparked a stock market crash.

Cleveland repealed the Silver Act to attempt to boost business confidence and slowly improve unemployment rates

What were consequences pf the 1893 depression?

• 25 businesses failed per day in May

• 4 year depression

• 15,000 companies and 600 banks collapsed

• unemployment rose to 20%

• Soup kitchens were opened to feed the hungry

What caused the 1907 Panic?

• The Knickerbocker Trust Company (3rd largest trust in New York) collapsed.

• The stock exchange fell by nearly 50%

• There was no central banking system to prop up banks

How did J.P Morgan aid the panic?

• He gave millions of dollars in attempt to restore business confidence and encouraged others to do the same

• This shows the government’s inability to curb the power of big business and how important they were in the economy