Figure 1.-- America was already the world's leading industrial power when the automobile appeared. Henry Ford's assembly line and the internal combustion engine sping-boarded America into the world's industrial powerhouse. Ford's Model-T was the world's first affordable automobile that ordinary people including workers could afford. It was first only made in black and Ford in the nme of efficeny did not want offer colors. Eventually competition forced Ford to yield to conumer demand. Here we see a snazy Ford roadster being offered about 1930 during the Depression. The capitalist economy which the automobile helped create and paid workers the highest salaries in tne world would prove to be the force that destroyed the brutal totalitarian dictatorships of the 20th century, including socialist regimes claiming to be worker paradises, but paying minimal wages.

The handicrafts of the northeast developed into industrial manufacturing beginning in the early-19th century. British limits on American industry was one of the causes of the Revolution. The Industrial Revolution began in America with the textile industry just as it did in Britain. This process occurred mostly in the North. The motivation for industrialization is to reduce the costs of production. And one of the major costs were labor. With slave labor it became less important to industrialize. The same process was at play in Russia with serfdom or in China with a peasantry forced to labor for minimal wages. A series of scientific discoveries and technical innovations fuled the Industrial Revolution in both Europe and America. Many of the innovations came from America which into the 20th century did not have the same advancced research institutes and universiities that existed in Europe. Here America benefitted from a fine public education system. And the absence of an entenchd class system meant that America was more fully utiling the energies and talents of its people than other countries. Northern industry was the major factor in the Federal victory in the Civil War. Over the space of the 19th century, America shifted from an agricultural country to an industrial giant. As in Europe, textile production was the first major industry. The railroads were a major development leading the country's heavy industrial dvelopment. Railroads required steel and vast quantities were needed to run rail lines across the country. Cornelius Vanderbelt helped launch the rairoad industry and John P. Morgan helped rationalize it. Andrew Carnegie played a key role in the developmnt of the American steel industry. Thomas Edison founded the electonics/electrical industry in the late-19th centuty. By the end of the century, American industry surpassed the European powers. At about the turn of the 20th century, the urban population began to dominate and America became the world's major industrial country. In the 20th century, Henry Ford's assembly line helped increase industrial effidencies that made possible a huge new automobile imdustry. This led to an unparalled level of affluence, importantly including the workers. Ford's assembly line also enable the production of low cost cars that the average person could afford. This mean production in vast numbers exceeding not only major European countries, but all of Europe. The automobile became a key factor in America's 20th century industrial expansion. By the time of the Depression, Will Rogers quipped, "America was the first country to go to the poor house in the autmobile." And unlike Europe, America had the petroleum resources to power the vast fleet of cars. Here John D. Rockelfeller played a key role in the devlopmnt of the petroleum industry. It would be American capitalist industry that would not only help defeat the Axis powers in World War II, but the Soviet Union in the Cold War, ironically a state based on an ideolgy claiming to create a workers' paradise. Economic growth was a key factor in the Cold War. The Soviets for a time posted impressive numbers in industrial expnsion, but what they did not achieve was efficent production and the ability to innovate. Although winning the Cold War, the United States allowed its heavy industrial base to decline creating the Rust Belt. Amother irony is that labor unions, major corporations and the political estblishment, including he labor friendly Democratic Party, cooperated in this process.

Chronology

European countries began creating colonies as partbof their maritime outreach (16th century). The purpose of the colonies was to benefit the mother country. England was a late comer to this proces, but began implanting colonoies along the Atalantic coast of North America (17th century). The idea was that the colonies would provide raw matertials and agricultural products to support the economy of the mother country, including the manufacruring sector. And also to provide a market for manufcuting in the mother country. This became an increasingly important issue as the Industrial Revolution began in England. Parliament passed laws restricting induistry and manufacturing in the Colonies to support British manufacturing. Parliament also restricted settlement beyond the aplaalcjins. These restrictions were some oif the vissues leading to the Revolution. British limits on American industry was one of the causes of the Revolution. The Revolution removed these and other impediment (1776-83). America at the time was still alargely agrcicultural country. During the late-18th and early-19th century, the foundation. The most important step was the extensive implementation of free market capitalism and the rights of property as explaimed by Adam Smith in the Wealth of Nations. This was confirmed by subsequent law and Supreme Court decisions which enabled Americans with few Governent restrictions to develop the country's ample resources and take advantage of the growing domestic market. No other country offered such advanatages. Over the space of the 19th century, America shifted from an agricultural country to an industrial giant. The handicrafts of the northeast developed into industrial manufacturing beginning in the early-19th century. Household manufacturing out of necesity was was virtually universal in colonial America. Local craftsmen on a small scale supplied necesities for their communities. After the Revolution actual factories began to appear. This mean machines and predetermined tasks which producing products on a larger scale that were not only sold locally, but shipped to markets beyond local communities. America's Industrial Revolution began with the textile industry just as it did in Britain. This process occurred mostly in the North. Samuel Slater in Rhode Island built America's the first factory (1790). He brought the technology of the developoing British industry to America. As in in Britain, the first industrial factories were textile mills. He built a cotton-spinning mill in Pawtucket. The machinery was driven by water-power. Up until this point, America imported textiles. Soon other entrpreneurs in the northeast were opening mills. Textile manufacturing became the country's primary industry. And with El Whitney's cotton gin (1793) cottin became an immenbsly valuable crop maeaning that the txtile mills had a domestic source of raw material. Over the next decade textiles was the dominant industry in the country, with hundreds of companies created. Textiles were the first industry, but the impirtant iron a steel industry was launched shortly after. Pennsylvania's furnaces and rolling mills began to replave small local forges. Oliver Evans of Philadelphia took the first major step in using iron for industrial purposes (1804). He developed a high-pressure steam engine that could be adapted for a wide variety of industrial purposes. It was soon powering ships, sawmills, flour mills, printing presses as well as textile factories. Eli Whitney made another major contribution began making guns using interchangeable parts. This idea was not unknown in Europe and actually was first devised in anciet China. It was Whitneyt and Amnerica commercialized . From these beginnings, America by mid-century was becoming a major indistrial power, challenging European industry. It would be capitalism and free labor that powered Northern industry that would defeat the southern Confederacy and destroy the slave systrem (1861-65). By the end of the Century, America was the world leading indiustrial power. And had the best paid workers in the world which is why European workers immigrated to America in their millions. Part of the reason for this development was the availability of raw material. Many countries, however have raw materials and did not become industrial powerhouses. And the Europoean powres important industrial nations with only limited natural resources. What made America different was a legal and societal framework which supported free market capitalism and entrepreneurship. And this is why America made the huge leap over Europe. It was not the work of a brilliant scientist, but a entrepeneur who grew up on a farm and loveed to tunker--Henry Ford. Within a few years he turned America fron one of several important industrial powers into the world's preeminent industrail power. His Model-T Ford was priced so that American workers could afford a car. The industrial expansiin that followed created an industrial jugernought that woould save save Wesrern civiization and defeat the great totalitarin pors of the 20th century. Although winning the Cold War, the United States allowed its heavy industrial base to decline creating the Rust Belt. Another irony is that labor unions, major corporations and the political estblishment, including the labor friendly Democratic Party, cooperated in this process. After World War II, America would lead the way into the high-tech era.

Free Market Capitalism

Transport

Transport was amajor problem for America. Tha appalachin Mountains blocked movement West and more imprtantly the shipment of goods east. The iuninial anser to this provlenm was rivers which meamn=nt that western profuce had to be shipped down the the Ohion and Tennesse Rivers to the Mississippi and eventually to New Orleans. The Erie Canal was a major step forward (1825), playing a huge role in settkement if the Upper Midwest andcturning New York onto Americans commercial center. The reala nswer, however, was the railroad. They played major rokes in transporting people west and produce east, creating the world's largest maret place,. The final step in this effort was the Trans-Continental Railway (1869). This meang that even the n remote parts of the United States could communicate and trade relationships with not only the tge commercial centers of the notyjeast, but also the growing regional centers.

Labor

The motivation for industrialization is to reduce the costs of production. And one of the major costs were labor. With slave labor it became less important to industrialize. The same process was at play in Russia with serfdom or in China with a peasantry forced to labor for minimal wages. Industrial expansionled to an unparalled level of affluence, importantly including the workers. American affluence attracted European workers in the millions. The first group of Europeans to arrive as the Industrail Revolution got underway were the Irish. The deadly Potato Famine brought starving Irish peasants to American (1840s). They and subsequent immigrant grouos would play a major role in both the Industrial Revolution and America's Westward Expansion.

Innovation

A series of scientific discoveries and technical innovations fuled the Industrial Revolution in both Europe and America. Many of the innovations came from America which into the 20th century did not have the same advancced research institutes and universiities that existed in Europe. Here America benefitted from a fine public education system. And the absence of an entenchd class system meant that America was more fully utiling the energies and talents of its people than other countries.

Industrial Sectors

There are two basic types of industry. The first is the mostly metal producing industies that crete raw materrials. Here by far the most important was the iron and steel indusdries. Iron and steel provide the sinews of an industrial nation. This is is sometimes called heavy industry, although this is not the best term because some mnufcturers might fall within the dfinutuoin of heavy jndustry. Thus iron and steel production until after World Wwr II was the single most important indicator of industril strength. With the rise of electril power, other metals, espcially copper, become important as iron and steel become incresingly less important as an indicator of industrial power, especially after World War II. . The second major industrial sector was the manufvcturiung indusdtries which took the iron, steel, other matals and raw materials and produced products of value with increasingly efficent manufacturuing processes. The first manufaturing industry as part of the Industrial Rvolution was the textile industry which eventually turned to cotton as a raw material because ot was much less exoebsive than wool. Water wheels were at first used to genrate power. Soon industrial manufcturers began using iron, steel and other materials. Thus was the pricess in Briutain where theIndustrial revolution begn and reprated in America. Aneiuca was nit very important in America util Eli Whitny invented the cotton gin (1793). Ameriac became the source of cotton for the Ruropean Industrul Revolution abd the Indutrial Revolution in America. This occurred mostly in the North and not in the siouth or LKtin Ameriuca. Ove time, more and more metals become important as manufacturing expands. A major step in manufcaturing was perfecting assembly line processes. This would be perfected by Henry Ford and the American automobile manufcturrs at the turn of the 20h century.

Metal industries

The first industrial sector is the mining industries that find and produce raw materrials. Here the new United states had an advantage over other Europeans countries, except Russia, because it has used deposits of many metals, including Iron. And by far the most important was the iron and steel industries--the core of heavy induistry. And some were increased near coal fields. Of coures mining is needed to get the ores, but mining is important in many countries that are not induatrialized. Iron and steel became the sinews of an industrial nation. Iron is important not only because of its inhrent strength, but because it is very common in the earth's crust. A reltively high melting point require a certain level of technologcical advance. Iron production is often associated wih coal. The American iron and steel industry began during the colonial period, largely because Britain hadused most of its forests to produce ships and iron. Until the developemnt of the railroads, procucing iron was economically useless unless first wood and then coal was located nearby. This povided the foundation for iron and steel industries. Mining was increasingly important after the Industrial Revolution began and iron began replacing wood in construction. Actually the inital settlement was motivated by gold. When gold and silver were mot found in quantity, metals had to be imported thrioughout the colonial period, although iron ore, copper deposits and coal began to be exploited on a limited level by the time of the Revolution. This changed with independence and the onset of the Idustrial Revolution. The Iron and Steel complex is at the center of any industrial economy. Iron and steel were central to railroad development and the railroads were a major development leading the country's heavy industrial development. Railroads required steel and vast quantities were needed to run rail lines across country the size of the United States. Andrew Carnegie played a key role in the steel industry. Cornelius Vanderbelt helped launch the rairoad industry and John P. Morgan helped rationalize it. Andrew Carnegie played a key role in the developmnt of the American steel industry. As America developed an industrial econmomy, many other metala were needed. A range of metals were need for high-quality steel alloys. Another important metal was copper. Thomas Edison founded the electonics/electrical industry in the late-19th century whicn hugely increased the need for copper. By the end of the century, American industry surpassed the European powers. Steel has been the major component in weapronry. This made the United States a potentially significant military power. but except for the civil War, the United States was disenclined to spend on a major military. This contrasted sharply with Europe. At about the turn of the 20th century, the urban population began to dominate and America became the world's major industrial country. A new metal became important in the early 20th century--alluminum. And as a result of World War I it began to become an important industrial metal.

Manufacturing

The other major industrial sector was the manufvcturiung indusdtril which took the iron, steel, other matals and raw materials and produced products of value with increasingly efficent manufacturuing processes. The first manufaturing industry as pasrt of the Indutrial Rvolution was the textile industry which used cotton as a raw material and water wheels for power. Textile manufacturing as in Europe was the first major industry. And this was the case in Ameica as well. Soon industrial manufactures began using iron, steel and other materials. Over time, more and more metals become imorportant to manufacuters. A major step in manufcaturing was perfecting assembly line processes. This would be perfected by Henry Ford and the Ameican aitomobile manufcturrs at the turn of the 20h century. There were earlier precursors to the assembly line, but Ford's operation was the first use in mass productiom. Henry Ford's assembly line helped increase industrial effidencies that made possible a huge new automobile imdustry. Ford's assembly line also enable the production of low cost cars that the average person could afford. This meant production in vast numbers exceeding not only major European countries, but all of Europe. The automobile became a key factor in America's 20th century industrial expansioncreating unorcedenbd demand for steel and othermetals. Turning America from a leading industrial power into an undustril giant. By the time of the Depression, Will Rogers quipped, "America was the first country to go to the poor house in the autmobile." And unlike Europe, America not only could manufacture motor vehicles, but had the petroleum resources to power the vast fleet of cars that they built. . After World War II, technology developed during the War led to a new industrial sector--the high tech information revolution in which American again has led.

Agriculture

A notable aspect of America's industrial economy was that the United States was self sufficent in food production. It was the only major industrail power that could feed its industrial work force. The agricultural sector was not only important because it fed the industrial mworkforce, buut because in the eraly phase of industrialixation it generated the capital needed to finance industrailization. Here cotton was particularly important, it was the primary American export commidity in ghbe Antebellum period. Akso important was that it provided a market for the country's industrial output. And because this imoportant market existed, industry began creating products that helped American garmers becoming the mist efficent in the world--products like the mechanical reaper. And with the advenbt of the autobikle--Henry Ford's Tin Lizzy and light trucks. European industry did not give much attention to farmes. American industry did and turned the United States into thev World's bread basket. It would as a result be the American farmer in the 20th century that would save millions of Europoeans from starving during and after World War I and II and duriung the Cold War help feed the Sovirt Uniion despite that country's possession of huge areas of the most fertile farm land in the world.

Energy

Energy was not a driver for the European settlement of the New World, but with the Industrial Revolytion this began to change. The Indutrial Revolution created a huge and increasing demand for energy. And vital for industrialization was coal. Amnerica had vast coal resources. Coal dominated the 19th century. American coal mining grew rapidly in the early 1800s, doubling or tripling every decade. It was centered in Pennsylvania and West Virginia. This began to change after the turn-of-the 20th century. Oil proved to be a much more effective fuel for navies and marime transport in general. With the invention of the internal combustion engine (ICE), a vast consumer demand was unleashed. And the United States also had major oil fields, the first to be developed. The first American well was drilled in Pennsylvania (1859). At the time, oil was used to produce lubricants and kersoene for lighting. Here John D. Rockelfeller played a key role in the devlopmnt of the petroleum industry. The develomentof the ICE changed that, along with diesel and jet engines. American oil played an important role in World War Imand even more so in World War II. Along with oil came another hydrocarbon-natural gas. Again America has huge reserves. America's coal consumption is rapidly neing replace with NG which is more clean buring. American oil production peaked (1970s). Innovative new technoligies like fracking and horizontal drilling has massibely incrased oil and NG production. Environmental groups are attempting to prevent drilling and pipeline construction. With the invention of electrical power, hydro-power and geo-thermal became important. And inrecent years other renewable technologies have been develoed, inclusing nuclear,solar, wind, and tidal power.

Impact

Capitalism is essential economoiv freedom. And the induustrial jugernaught that free market capitalism created played a huge role in the expansion of freedom. It provided wages to American workers far above those paid in Europe which is a major reason Europenas emigrated to Amnerican in the millions. It would be American capitalist industry that would not only help defeat the southern Confederacy and end slaveryuy. American industry helped prevent German domination of Europe in World War I. American capitalism played a central role in defeating the great totalitarian powers of the 20th century. First the Axis in World War II. Than the Soviet Union and the Eastern European Communist dictatorshiops imposed by the Soviet Union as part of the Cold War. The Soviet Union ironically a state based on an ideology claiming to create a workers' paradise. Economic growth was a key factor in the Cold War. The Soviets for a time posted impressive numbers in industrial expnsion, but what they did not achieve was efficent production and the ability to innovate.

Created: 4:04 PM 2/24/2018
Last updated: 5:04 PM 8/6/2020