Electricity
 Why is electricity important to you?
 Have you ever lived without it?
 At the turn of the 19th century, Electricity turned
from a scientific curiosity into an essential tool for
modern life.
 Industry could now be located just about anywhere!
 Thomas Edison invented the lightbulb in 1879.
Telephone
 Invented by Alexander Graham Bell in 1876.
 Why was this significant??? Imagine your life without a
phone.
 He made the first long-distance telephone call in 1892,
reaching Chicago from New York.
 Communication was forever changed!
Assembly Line
 In 1913 Henry Ford created the first assembly line.
 We already know what an assembly line is. Why is it
significant? Think of one of my favorite words……
 The four principles Ford followed were.
1. Interchangeable parts
2. Continuous flow
3. Division of labor
4. Reducing wasted effort
Assembly Line
EFFICIENCY!!!!
 More products = More $$$!!!
Horizontal Integration
 Basically a merger between 2 similar companies.
 http://www.investopedia.com/terms/h/horizontalintegr
ation.asp
Examples
 The Heinz and Kraft Foods merger
 The Standard Oil Company’s acquisition of 40 refineries.
 An automobile manufacturer’s acquisition of a sport
utility vehicle manufacturer.
 This is ok UNLESS all producers of a particular good or
service in a given market were to merge, this would be a
.......????
Vertical Integration
 Vertical Integration is different from Horizontal
because businesses are buying other companies that
provide products necessary to produce their own
goods or services.
 Does this make sense?
 Vertical integration occurs when a company assumes
control over several production or distribution steps
involved in the creation of its product or service.
Vertical Integration
 The merger of Live Nation and Ticketmaster created a
vertically integrated entertainment company that
manages and represents artists, produces shows
and sells event tickets.
 Apple Inc. is one of the best known companies for
perfecting the art of vertical integration. The company
produces most of its parts (A-series chips & custom
touch ID fingerprint sensor) instead of contracting the
work out to another company.
More Railroads???
 The railroads were still kind of a big deal!!!
 By 1900, America’s railroads were very nearly at their
peak, both in terms of overall mileage and
employment.
 Railroads were also about to enter the age of
government regulation!!!
 Passenger trains were introduced, impacted travel.
Political Machine = Power!!!
 Big city political machines and Boss Tweed
 Political machines were organized groups of dishonest
politicians who had two main goals:
 Get the group's own candidates elected to all of
the top jobs in the city government.
 Once in control of the city government, use that
power to make the leaders of the organization
rich.
 The top man in a political machine was called the city
"Boss." The most famous example was William M.
Tweed. From around 1860 until 1872, Boss Tweed ran a
political machine that had control of New York City's
government.
Political Machine = Power!!!
Political Machine = Power!!!
 To win elections, a political machine depended
mainly on the votes of the immigrants pouring into
America's cities.
 The organization would have supporters in all the
city's neighborhoods. They would meet new
immigrants and give them help of various kinds,
such as help finding a job or a place to live. On
election day, the machine's supporters would make
sure the immigrants knew who to vote for to return
the favor.
Political Machine = Power!!!
How city bosses got rich
 Once in control of the city's top elected offices, a city
boss had many ways of making money. He could
demand bribes from businesses that wanted to get
city contracts for jobs like paving city streets, for
example.
 Tweed was finally exposed for his crimes by
newspaper reporters. He was first arrested in 1871.
Political Machine = Power!!!
But. . . political machines
did some good things!
 Boss Tweed and his political machine, known as
Tammany Hall, did some good things for New York
City. He pushed for real improvements to the city's
schools, hospitals, roads, and the city water system.
 Supporters of the organization made it a point to give
help to the immigrants and other poor people of the
city. That help, no matter how small, would be
remembered for a long time. When Tweed died,
thousands of New Yorkers attended his funeral.