Industrial Industrial Boom in Boom in America, America,

1860-19151860-1915

• Wealth of natural resourcesWealth of natural resources

• Government support of Government support of businessbusiness

• Growing urban populationsGrowing urban populations

• Cheap laborCheap labor

• Markets for new productsMarkets for new products

Due to…Due to…

Edwin L DrakeEdwin L Drake• Used the steam engine to Used the steam engine to

remove oil from beneath the remove oil from beneath the earth’s surfaceearth’s surface

• Started oil boom in AmericaStarted oil boom in America

• Gas started as waste by-productGas started as waste by-product

Henry BessemerHenry Bessemer• Created process which Created process which

cleaned impurities from iron cleaned impurities from iron = creating steel= creating steel

• This created materials for This created materials for things like railroads, and…things like railroads, and…

The Brooklyn BridgeThe Brooklyn Bridge

• Completed in 1883, it Completed in 1883, it spanned 1595 feetspanned 1595 feet

• Called a wonder of the Called a wonder of the world due to its height and world due to its height and weight bearing structureweight bearing structure

SkyscrapersSkyscrapers

• Allowed buildings to be Allowed buildings to be built to astronomical built to astronomical heights because of the heights because of the steel beams used in steel beams used in constructionconstruction

Inventors Inventors Change the Change the Landscape Landscape of Americaof America

Thomas EdisonThomas Edison

• Patented the light bulb in Patented the light bulb in 18761876

• Invented a system for Invented a system for producing and producing and distributing electric distributing electric power, which led to…power, which led to…

• Invention of time saving Invention of time saving appliances because energy appliances because energy was so cheap and efficientwas so cheap and efficient

• Electric streetcars spread Electric streetcars spread cities outcities out

• Plants and factories no Plants and factories no longer had to be near waterlonger had to be near water

Inventions Inventions Change Change

Lifestyles in Lifestyles in AmericaAmerica

Christopher SholesChristopher Sholes

• In 1867 invented the In 1867 invented the typewriter, which typewriter, which changed the way changed the way many people workmany people work

Alexander Graham Alexander Graham BellBell

• Invention of the Invention of the telephone in 1876 telephone in 1876 opened a worldwide opened a worldwide communications communications networknetwork

• Women became 40% of Women became 40% of the clerical work forcethe clerical work force

• Industrialization freed Industrialization freed workers from back-workers from back-breaking laborbreaking labor

• By 1890 work day By 1890 work day reduced to about 10 reduced to about 10 hourshours

Expansion of Expansion of Industry Industry Leads to Leads to

Boom in Big Boom in Big BusinessBusiness

Andrew CarnegieAndrew Carnegie

• One of 1One of 1stst Industrial Industrial moguls to make his own moguls to make his own fortunefortune

• Instituted new Instituted new management practices management practices such as…such as…

• Vertical Integration Vertical Integration –Bought out suppliersBought out suppliers

–Controlled Raw Materials and Controlled Raw Materials and TransportationTransportation

• Horizontal Integration Horizontal Integration –Bought out companies Bought out companies

producing similar productsproducing similar products

–Controlled the whole industryControlled the whole industry

Social DarwinismSocial Darwinism• Success and failure in Success and failure in

business governed by business governed by natural lawnatural law

• Justifies “laissez-faire,” or Justifies “laissez-faire,” or “allow to do.” Keeps “allow to do.” Keeps government out of government out of marketplace marketplace

• Big business created Big business created more than 4000 more than 4000 millionaires since the millionaires since the Civil WarCivil War

• Appealed to Protestant Appealed to Protestant work ethicwork ethic–Riches = God’s favor

–Poor = Lazy and inferior

• Mergers Mergers – Industrialists pursued buying out Industrialists pursued buying out

competitorscompetitors

• MonopoliesMonopolies–When industries buy out all When industries buy out all

competitors and completely competitors and completely control industrycontrol industry

–Allows them to set wages, prices, Allows them to set wages, prices, and productionand production

Holding CompaniesHolding Companies

•Set up Set up specifically to specifically to buy out stock of buy out stock of competitorscompetitors

John D RockefellerJohn D Rockefeller

• Owned Standard Oil Co.Owned Standard Oil Co.

• Joined companies in trust Joined companies in trust agreementsagreements– Stocks in companies held by trustees Stocks in companies held by trustees

and ran as one businessand ran as one business

– Not legalNot legal

• Drove companies out of Drove companies out of business by selling below business by selling below production cost, then production cost, then jacking up pricesjacking up prices

• Called “Robber Barons” Called “Robber Barons” for such tacticsfor such tactics

Sherman Anti-Trust Sherman Anti-Trust Act of 1890Act of 1890

• Made it illegal to form Made it illegal to form trusts that interfered with trusts that interfered with tradetrade

• Hard to uphold because it Hard to uphold because it didn’t define what a “trust” didn’t define what a “trust” waswas

Exploitation and Exploitation and Unsafe Working Unsafe Working Conditions Draw Conditions Draw People Together People Together

in Labor in Labor MovementMovement

StatisticsStatistics

• By 1882, and average 675 By 1882, and average 675 people killed in work-people killed in work-related accidentsrelated accidents

• Wages so low, most Wages so low, most families had to send families had to send everyone out to get jobseveryone out to get jobs

• 20% of boys and 10% of girls 20% of boys and 10% of girls under age 15 held jobsunder age 15 held jobs

• By 1899 women averaged By 1899 women averaged $267 per year, men $498, and $267 per year, men $498, and Carnegie $23 million not Carnegie $23 million not taxedtaxed

• Sweatshops were Sweatshops were unregulatedunregulated– Paid about $.27 for a child’s 14 hour dayPaid about $.27 for a child’s 14 hour day

American American Workers Workers

Start Start OrganizingOrganizing

Samuel GompersSamuel Gompers• Organized skilled workers in Organized skilled workers in

the American Federation of the American Federation of Labor (AFL)Labor (AFL)

• Used strikes to get higher Used strikes to get higher wages, and better hours and wages, and better hours and conditionsconditions

• The AFL was The AFL was successful in many successful in many waysways–Over the course of 15 years, the

average wages rose from $17.50 to $24.00

–Over the same time period, hours decreased from 54.5 hours to 49 per week

Eugene V DebsEugene V Debs

• Organized skilled and Organized skilled and unskilled workers into the unskilled workers into the American Railway Union American Railway Union (ARU)(ARU)

• Had a huge membershipHad a huge membership

SocialismSocialism• Labor activists like Debs Labor activists like Debs

wanted government control wanted government control of industry and equal of industry and equal distribution of wealth – not distribution of wealth – not the overthrow of capitalismthe overthrow of capitalism

RadicalsRadicals

• The Industrial Workers of The Industrial Workers of the World (IWW, or the World (IWW, or “Wobblies”) pushed for “Wobblies”) pushed for socialism including the socialism including the downfall of capitalismdownfall of capitalism

Other MovementsOther Movements• Immigrant workers such Immigrant workers such as Japanese and as Japanese and Mexicans organized as Mexicans organized as wellwell–This increased labor movements–This increased tensions between

management and labor

Women’s RolesWomen’s Roles• Women were banned from Women were banned from

most unionsmost unions

• They held a great deal of They held a great deal of influence by backing specific influence by backing specific labor leaders to demand labor leaders to demand wages, an end to child labor, wages, an end to child labor, and better working conditionsand better working conditions

Mary Harris JonesMary Harris Jones

• Supported the Great Strike Supported the Great Strike of 1877, as well as many of 1877, as well as many othersothers

• Endured threats and jailEndured threats and jail

• Nicknamed “Mother”Nicknamed “Mother”

• ““Mother” Jones led a Mother” Jones led a march in 1903 of 80 mill march in 1903 of 80 mill children, many injured children, many injured from factories, to the from factories, to the home of Theodore home of Theodore Roosevelt. Roosevelt.

• Influenced passage of Influenced passage of child labor lawschild labor laws

Triangle Shirtwaist Triangle Shirtwaist FireFire

• More than 146 More than 146 women died in firewomen died in fire

• Company had locked Company had locked all doors to prevent all doors to prevent thefttheft

• When factory owners When factory owners acquitted of the deaths, acquitted of the deaths, the public was outragedthe public was outraged

• This tragedy led to the This tragedy led to the establishment of a task establishment of a task force to study factory force to study factory working conditionsworking conditions

Management vs Management vs UnionsUnions

• Management tried to Management tried to stop unionizing by:stop unionizing by:–Forbidding union meetingsForbidding union meetings

–Firing union membersFiring union members

–Forcing employees to sign Forcing employees to sign “Yellowdog Contracts”“Yellowdog Contracts”

Courts vs UnionsCourts vs Unions

• Courts punished Courts punished unions using the unions using the Sherman Anti-Trust ActSherman Anti-Trust Act–Said unions were interrupting Said unions were interrupting

tradetrade