Growth

The Good

• Growth-Nationwide Markets

• Subsidies-Government Pays to Build Railroads

  • Leads to profit

  • More money for companies

• Jobs-Created thousands of jobs in industries

Early Lines

Efficiency

• Means more, faster, better

To be more efficient, they

• Standardized Gauges

• Consolidation-Join Railroads Together

• Create a network of rails

• Vanderbilt

  • He created a railroad empire

  • He consolidated many railroads

  • Generated a lot of profit

• Philanthropy

  • Many people get rich from railroads

  • They have extreme wealth

  • They believe that since they have so much wealth, they should try to improve society

  • Vanderbilt is an example of this

Civil War

• The US Wants to promote growth in the West

• They dislike building railroads in the west and center because native Americans reside there

The Transcontinental Railroad (TCRR)

https://junior.scholastic.com/issues/2018-19/051319/the-railroad-that-changed-america.html#1040L

New Rails

• Government Paid Money to Build-Favored BB

• Paid $16,000 to $48,000 per mile

  • Union and Central Pacific were the only 2 companies building railroads in this area

  • The railroads were paid for them by the government

  • Massive Profit

• Government built through Native American Land

  • There were no rights given to Native Americans

Transcontinental Railroad

• Union Pacific - Easier

  • Starts East

  • Builds Westward

• Central Pacific - Leland Stanford

  • Starts West

  • Builds East

• Labor

  • Chinese, Irish, African Americans, Mexicans

  • No workers rights

  • Horrible Conditions

Continued Growth

New States Through Settlement

New States Through Settlements

Growth

• 8 New States were formed

• Territories to States based on Population

• Demonstrates growth west of the Mississippi

• Nationwide Markets

  • Expanding business across the country

  • Bigger Businesses

Eww thats Growth

Cut-throat Competition

• Favored Larger Companies

  • They can afford to lose money cutting prices

  • When competition can’t keep up

  • Buy them when they go bankrupt

  • Creates Monopoly

• Fix Prices higher to create more profit

• No competition-worse for consumer

Pooling

• Companies join Together in a region

  • Everyone Raise Prices

  • No competitio

  • Higher Prices

• Split Profits

Natural Monopoly

• Natural Monopoly - Complete control of an industry due to difficult conditions for competitors to enter an industry

  • In the south, there wasn’t enough people for competition, creating a natural monopoly

• Not enough people for competition

• Called Natural Monopoly when there is not enough people to compete

• No competition

  • Higher prices

  • Worse service