The Economic History of the United States 7

The Economic History of the United States 7

1. Lecture 7
The Economic History of the United States

2. Midterm Essay
My Family's American Economic History
2,000 words
Writing Center Signature
Wednesday October 9th

3. 3x

5. 1955

6. 2013

7. 20131955

8. 20131955

10. $1.24
How does this
product earn
Walmart $3.65
in gross profit
each year?

11. Quantities tell us what there is.
Prices tell us what to do about
what there is.

12. Do you consume knowledge?
The more knowledge you
consume the more knowledge
you create.

15. Whale oil for light
Demand increases
Whales are common property
Run out of whales
Price of lamp oil goes up
Look for substitutes

16. Samuel Kier
Pennsylvania
USA
1840s
Salt Mine
Oil byproduct

18. Petroleum
Latin
petra - rock
oleum - oil

19. George H. Bissell

20. Benjamin Stillman
Yale University
First to distill
petroleum into
parts or fractions
distill is to heat up
and capture vapor
at different
temperatures

21. BISSELL REPORT
Your company have in their
possession a raw material from
which, by simple and not
expensive process, they may
manufacture very valuable
products.
It is worthy of note that my
experiments prove that nearly
the whole of the raw product
may be manufactured without
waste, and this solely by a well-
directed process which is in
practice in one of the most
simple of all chemical
processes.”Professor Benjamin Sillman
Yale College

22. Products Degrees C. Carbon
liquified petroleum gas 20 1 - 4
chemical, naphtha 70 5 - 9
gasoline 120 5 - 10
jet fuel, kerosene, paraffin 170 10 - 16
diesel 270 14-20
lubricants, oils, waxes, polishes 320 20 - 50
ships, factories, heating 370 20 - 70
bitumen, roads, roofs 400 >70

24. George H. Bissell
Needed
Financial Capital:
incorporation laws
and investors
Pennsylvania Rock-
Oil Company
Used Stillman
Report

26. Colonel Drake
August 27, 1859
Colonel Drake
Titusville, Pennsylvania
USA

29. Kerosene
Greek
“wax”
Gasoline and
Diesel
Dangerous
byproducts

30. Electric Light Bulb
1883
1/4 the the price of
Kerosene light

31. Nikolaus Otto
1867
Germany

32. Charles Duryea
1892
First gasoline-powered car
1/4 the the price of Kerosene light

33. Rudolph Diesel
French - German
reads a book by
Sadi Carnot
1881 patent
ice maker

34. At first, his submission
is declined as being "not
original", however, after
an appeal, a patent is
granted on February 28,
1892.
Has 15 years of
protection
Receives patents in
Germany, United States,
and England
Financial Capital
Maschinefabrik Augsburg

35. John D. Rockefeller


Buys first refinery
1865
Starts Standard Oil
1870
Controls 90% of U.S.
oil market
1890

36. Standard Oil
Blue Barrel of Oil


bbl
42 U.S. gallons
159 liters
allow for
evaporation and
leakage to 40 gallons

37. Henry Ford


automobile
innovator
Starts Ford Motor
Company
1903

38. 1908
Model T Ford

41. Ford
Cars
Rockefeller
Gasoline

42. Wright
Brothers

44. December 17, 1903

48. 1911
Monopoly Breakup

49. Damman No. 7
March 3,1938
Dhahran
Standard Oil
Rockefeller
World’s most
valuable company

50. Hans von Ohain
German
1939
Gas Turbine

51. Gas Turbine

52. Frank Whittle
U.K.
May 15, 1941
First Jet Aircraft
Flight

53. Kerosene Fuel

54. Whales to 747s

55. 42 Gallons

56. Get rich by making things
affordable for everyone