Although the Industrial Revolution reached the United States in the early 1800s most Americans still lived on farms when the Civil War began. Out of a population of 30 million only 1.3 million work and industry. After the war millions of Americans left the farm for the factories and mines By the late 1800s the US was the world's leading industrial nation. There were several factors that contributed to this transformation. One factor was an abundance of natural resources. The US had vast quantities of timber, coal, copper, iron ore and petroleum. American factories could obtain them cheaply and did not have to import them. Another resource the United States had an abundance of was people to work in the factories. Between 1860 and 1910 the population of the U.S. nearly tripled. Improved living conditions meant more children survived into adulthood. However, the population increase was due mainly to a sharp increase in immigration. Between 1870 and 1910 more than 20 million immigrants arrived in America searching for a better life. These immigrants provided much of the growing workforce. New inventions and technologies also played an important role in America's shift to an industrial economy. Earlier in the 19th century new technology such as Eli Whitney's cotton gin Increased productivity and the development of steamboats and railroads improved transportation. New inventions also created new industries, which in turn produced more wealth and jobs. In 1876 Alexander Graham Bell invented the telephone. The most famous American inventor was Thomas Edison who in 1877, invented the phonograph and in 1879 perfected the electric light bulb. By 1882 Edison's company began supplying New York City with electricity. Business friendly government policies also played a crucial role in the industrial growth of the United States. Limited liability laws encouraged entrepreneurs to start new industries by reducing the financial risks from launching a business. The government also largely embraced the economic policy known as Laissez-Faire. Supporters of Laissez-Faire. believed that the economy runs best when the government does not interfere. Laissez-Faire. is also called a free-market system. In a free-market the laws of supply and demand are the best regulators of business behavior not the government. Without government regulations, the most motivated and talented entrepreneurs would provide the best products. Before the civil war most businesses were small operations owned and run by just a few people. By 1900 the economy was dominated by big corporations. A Corporation is an organization, usually a business, that is owned by many people but run by a Board of Trustees. A corporation can spread the risks involved in owning a business. Sometimes corporations are publicly bought and sold meaning anyone can invest and buy shares in the company. This allows corporations to raise a lot of capital or money. Sometimes corporations grow so big and powerful that they could be considered monopolies, which means they control an entire industry. Another way corporations created monopolies was to form what's known as a Trust. A Trust is when a single Board of Trustees controlled multiple corporations. This can get very technical but whether we're talking about monopolies or trusts or holding companies, what it means is that some corporations were growing quite large. Many argued too large as a result. Some individuals were becoming extremely wealthy. Someone argued too wealthy. In the next video lecture we will look at a few of the famous wealthy tycoons of this era. Until then good night and good luck!!!