Chapter 19: 19.1: The Incorporation of America

“The meatpacking houses were a model of monopoly capitalism with huge, specialized factories that polluted the Chicago River and air.”

A. The Rise of Industry

1. Four main factors which contributed to

the success of industrializationa. Natural resources

b. A large population to support market for new products; workforce

c. Explosion of inventions

d. Free Enterprise

A. The Rise of Industry2. Revolution in technology

and transportationa. Alexander Bell

b. Thomas Edison – Menlo Park; replaces steam

c. Henry Ford

d. Wright Brothers

e. RR

3. By 1900: 1st in manufactured goods; 1/3 of all goods in the world

B. Mechanization = 2nd Industrial Revolution

1. Meachanization = increased productivity

2. assembly lines and mass production = effieciency

3. Hierarchy of workers

C. Expanding Markets: Selling the Product

1. Ayer and Son (1869)

a. Advertising agencyb. Pictures included not just

print

2. Growth of department stores – Marshall Fields

3. Chain stores – i.e Woolworths

4. Sears and Montgomery Wards catalog = growth of postal services

                                 

       

D. “Winning” Strategies for Monopolies

1. Vertical integration

a. Buy out all of your suppliers

b. Control quality and costs

2. Horizontal consolidation

a. Merging of companies with similar products

“Man of Steel”

A. Carnegie

“Slick Rick” J.D. Rockefeller

3. Sherman-Antitrust Act

a. An act to protect trade and commerce against unlawful restraints and monopolies.

b. Supposed to check monopolies and stop big businesses from forming

c. Used against union instead

E. The Gospel of Wealth1. Personal wealth is

God’s reward for hard work

2. Carnegie’s Philosophy: use it philanthropically - make as much money as you can so that you can give it away

F. Robber Barons or Captains of Industry?

1. Business men who participated in questionable business practices gaining huge personal wealth

Carnegie Rockefeller JP Morgan Jay Gould

G . Business and Social Darwinism “Survival of the Fittest”

H. Horatio Alger

1. Emphasized the individual work ethic

2. “Rags to Riches”

3. Good virtue

4. Hard work will pay off

19.2: Labor in the Age of Big Business

(union game)

Unions represented the most significant and lasting response of workers to the rise of big business and consolidation or corporate power

A. The Wage System

1. Relationships among workers and employers change; worker to worker

2. Machines and women replaced male workers

3. New employment opportunities for women; blk and wht

4. “minority” males have it the worse

5. Hazardous and poor working conditions

B. The Knights of Labor

1. Skilled and unskilled

2. Zero race or gender bias

3. No child labor

4. Graduated income tax

5. Equal pay for all Terence Powderly

C. Downfall of the Knights of Labor

1. Haymarket Riota. Protesters

assembly re: recent police violence

b. End with more police violence and 7 dead

c. Union labeled trouble due to anarchist supporting them = political radicalism

D. American Federation of Labor

1. Better conditions, hrs, wages =

2. “pure and simple unionism”

3. Skilled workers

4. No blks or immigrants

5. Women s/b @ home

Samuel Gompers

19.3: The New South

Economic start slow due to needed capital, still agricultural and slavery’s legacy

A. Economically Speaking

1. Northern investors need to help build economy

2. Major industries dealt with raw materials other than textiles

B. Southern Labor

1. 1/3 pop AA

2. Unskilled

3. Segregated

4. Unions forced out

5. $0.12

6. Children

7. convicts

19.4: The Industrial City

The Long, Long Journey

The Journey Over1. 1-3 weeks voyage

2. Dirty, uncomfortable conditions,no fresh air

3. Stayed in steerage

                       

     

Ellis Island

Great Hall

Inspection Lines

Medical & Mental Exams*

A. Populating the City

Ethnic Enclaves

                                                                                         

  

B. Immigrants Arrive

1. Ellis Island (East)

2. B/4 1890, most came from N. and W. Europe “old immigrants”

3. After 1890, most came from E. and S. Europe “new immigrants”

4. Processa. 5 hr. process

b. Health & mental exams

c. Literacy test, healthy, $25 (must haves)

5. 2% did not pass

C. Moving Out of the City

D. Changing Cities

1. Chicago the first w/ Home Ins. Building, 1885

2. Chicago’s own Louis Sullivan, architect

19.5: The Rise of Consumer Economy

The Gilded Age:

Era when society was perceived as doing well but the reality was corruption, poverty, crime, and a huge gap between the rich and poor.

A. Conspicuous Consumption

B. The New Middle Class

1. Defined “areas” work and gender based

2. Exercise

3. Increased leisure time

4. Self-improvement via culture