After the Civil War, the North and After the Civil War, the North and West grew quickly. Railroads West grew quickly. Railroads

helped the West grow, while helped the West grow, while industrial cities sprang up all over industrial cities sprang up all over

the north employing many the north employing many children and immigrants.children and immigrants.

Pre-Civil War: Early 1800sPre-Civil War: Early 1800s Post-Civil War: Late 1800s

•“Industrial Revolution”

•Water Power

•Machines replaced hand tools

•Interchangeable Parts

•More Factories

•Move towards cities

•More movement to cities (urbanizations)

•Railroads used to deliver supplies

•New inventions

•Electricity

•Increase in immigration, more workers

•More money to invest

CapitalMoney invested in business equipment

TransportationCanals, Roads, Boats, RailroadsNew Technology/ InventionsAssembly Line (Henry Ford)Bessmer Process (Carnegie & Steel)

Natural ResourcesLumber, Water, Oil,Coal, Silver, CopperLand!

New Business Practices: Corporations

How did railroads spur industrial How did railroads spur industrial growth?growth?

Steel & Coal were needed to run the railroads, so those businesses grew along with the demand for lumber.

Jobs were Jobs were createdcreated

Towns were born along

railroad tracks

Cornelius VanderbiltCornelius Vanderbilt

What do I care about law? Ain't I got What do I care about law? Ain't I got the power? the power?

- Cornelius Vanderbilt- Cornelius Vanderbilt

-He linked all the Railroads lines in the Great Lakes area

-Forced smaller companies out of business by offering lower prices, but then raised them once the competition was gone

-Used rebates – discounts to companies, to get corporate business

Carnegie Steel Company-Big $$$$$$$$$

-Used the Bessemer Process – made good steel at a low cost

-He owned everything needed to produce steel! – Vertical Integration

Owning all steps in the production process, so Owning all steps in the production process, so you can charge HIGH PRICESyou can charge HIGH PRICES

Carnegie Iron Ore

Carnegie Limestone

Carnegie Coal

CarnegieSteamships

CarnegieRailroad

Carnegie Steel Mills

Carnegie Warehouses And Sales Outlets

Big $$ for Carnegie, but no one could compete – this was unfair to consumers!

John D. Rockefeller owned STANDARD OIL COMPANY, the first MONOPOLY – charging HIGH PRICES!

Standard Oil Trust controlled 95% Standard Oil Trust controlled 95% of oil refining in the United States.of oil refining in the United States.

A Monopoly is a business that controls all similar businesses.

If you wanted oil…you could only buy it from Rockefeller – that’s not fair to consumers!

The Problems with The Problems with MonopoliesMonopolies

No competition

means higher

prices!They control

prices!

Force small companies out of business

Poor working conditions

Low wages

Wide gap Wide gap between between rich & poorrich & poor

-A Business owned by many people called -A Business owned by many people called investorsinvestors (people who buy stock in the company).(people who buy stock in the company).

Corporations raise $ by selling stocks, or ownership in the company. People who buy stocks are called stockholders. The money they receive when the company makes a profit is called a dividend.

Robber BaronsRobber BaronsCornelius Vanderbilt, Andrew Cornelius Vanderbilt, Andrew Carnegie, and John Rockefeller Carnegie, and John Rockefeller were seen as were seen as Robber BaronsRobber Barons because they made LOTS of because they made LOTS of money, but their workers made money, but their workers made little and worked in harsh little and worked in harsh conditions.conditions.

They gave $ to charity, does that make their actions better?

New Technology!New Technology!Thomas EdisonThomas Edison – Invented a new light – Invented a new light

bulb, phonograph, and much more!bulb, phonograph, and much more!

Alexander Graham Bell: Invented the telephone

Henry FordHenry Ford: Defined the modern age by providing jobs on an assembly line, and producing affordable cars (Model T) by mass production.

Poor Working Poor Working ConditionsConditions

-Crowded-Fire Hazards-No Emergency Plans-Child Labor

-Low Wages-Long Hours-Locked Doors

SweatshopsSweatshops

How to improve the working How to improve the working conditions?conditions?

Join a UnionJoin a Union!: an organized group of workers who would negotiate (collective bargaining)

-Knights of Labor (no strikes, too violent) Leader: Terrence Powderly

-American Federation of Labor (AFL) Leader: Samuel Gompers *Used Strikes (refusal to work) to pressure the boss. Often

became violent.