Factors Of Production And Obama´S Administration

HOMEWORK - AMERICAN CULTURE AND REGIONAL ECONOMICS |
BY: SANTIAGO GARCÍA F. |
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1. How did the use of Factors of Production Change between 1860 and 1914?
The period from the end of the civil war to 1900 was an era of unmatched economic growth in the United States. New methods in technology and business allowed the country to tap its richsupply of natural resources, increase its production, and raise the money needed for growth. The growing transportation system made it easier for merchants to reach distant markets.

The change from an agricultural economy to an industrial one was possible because the United States has the resources needed for a growing economy. Among these resources were the factors of production: land, laborand capital.
The first factor of production, land, means not just the land itself but all natural resources. The United States held variety of natural resources that were useful for industrial production.
The second production factor is labor. Large numbers of workers were needed to turn raw materials into goods. This need was met by the rapid growth f population. Between 1860 and 1910, thepopulation of the country more than doubled.
The third production factor, capital, is the equipment (buildings, machinery and tools) used in production. Land and labor are needed to produce capital goods. These goods, in turn, are essential for the production of consumer goods.

The term capital is also used to mean money for investment. Huge amounts of money were needed to finance industrialgrowth. One source of money was the selling of stock by corporations. Another was corporate savings, or business investing a portion of their earnings in better equipment.

Many important factors helped to promote America's huge industrial growth during the period from 1860 to 1900. Before the blossom of this industrialization, the United States consisted of mostly farms and small towns. Thedevelopment of factories and urban cities soon changed all of this. The railroad system expanded and eventually turned into a goldmine for commerce in the United States. Machinery started to decrease the amount of animal labor used, which allowed the consistency and production of goods to rise. As it reached the brink of the 20th century, America had surprisingly become the world's greatest industrialnation in history.

The Civil War, caused by Southern states seceding from the Union, sparked the beginning of the United States' industrial growth. As the war came to and end, reconstruction within the country began to take place. Many new ideas and inventions began to pop up and American business leaders recognized them. One of these ideas was a railroad that would run from coast to coast. In1862, the building of this Transcontinental Railroad began. It was finished by 1869 and drastically increased cultural diffusion. The Republican party of the Federal Government was in control during most of the country's industrial boom. Their platform wanted to impose tariffs, or taxes, on foreign goods to keep America's spending within its own borders. They also supported the construction of theTranscontinental Railroad. The railroad allowed goods to be sold throughout the whole country, which in turn increased production and sales. At that point in time, as well as today, time equaled money. Travel times were cut, and therefore money was raked in more than ever before. By 1900, there was almost 200,000 miles of railroad track in America. This was an increase of over 160,000 miles from1860. The United States was "on track" to becoming a huge industrial nation.

During the period of time between 1860 and 1900, there were many needs in industry. These needs included communication, natural resources, power sources, cheap labor, and applied technology. In the 1850s, 52% of all power came from animals while only 35% came from water and coal. By the 1900s, the use of water and coal...