ECON 2200 Lecture Notes - Lecture 2: Mass Production, Bessemer Process, Interchangeable Parts
14 May 2018
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ECON 2200
Lecture 2
Top Ten Industries– 1860 & 1910
• Note magnitude of VA by manufacturing
o Figures in 17.3 are in millions of nominal dollars – meaning they
are not adjusted for inflation/deflation. However, this is okay,
because this was a period of deflation, so figures would actually
be higher if adjusted.
• Note changes between 1860 and 1910
o Largest industry in 1860 was cotton textiles.
1. Usually first industry used in developing countries,
because of the simplicity of production. It is an emerging
industry for developing countries.
o Entry of tobacco and malt liquors in 1910. These were
considered “luxury” items. They are income elastic goods.
o Entry of printing and publishing in 1910. People not only want
to travel now (RR), but want “ideas” travel through publishing.
o Change in transportation
1. Exit of carriages & wagons; entry of railroad cars
o Lumber stays at #2
NOTE: Study Table 17.3 for test. Think about mass production,
mechanization, income elasticity (malt liquors and tobacco), and how
changes reflect the transformation of the US economy.
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Document Summary
Top ten industries 1860 & 1910: note magnitude of va by manufacturing, figures in 17. 3 are in millions of nominal dollars meaning they are not adjusted for inflation/deflation. It is an emerging industry for developing countries: entry of tobacco and malt liquors in 1910. They are income elastic goods: entry of printing and publishing in 1910. People not only want to travel now (rr), but want ideas travel through publishing: change in transportation, exit of carriages & wagons; entry of railroad cars, lumber stays at #2. Think about mass production, mechanization, income elasticity (malt liquors and tobacco), and how changes reflect the transformation of the us economy. Innovation and invention during this time turns production into the allowing mass production of manufactured goods: mass production: After standardized sizes, shoe soles were interchangeable for other shoes of that size. Henry ford made standard interchangeable parts to fit his cars.
