Immigration, Urbanization, Industrialization, and Transportation Key developments of the mid-1800s.
Industrial Revolution After 1865. Analyze the factors that led to the industrialization of the...
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Transcript of Industrial Revolution After 1865. Analyze the factors that led to the industrialization of the...
Industrial Revolution After 1865
• Analyze the factors that led to the industrialization of the United States in the late 1800s.
• Explain how new inventions and innovations changed Americans’ lives.
• Describe the impact of industrialization in the late 1800s.
Objectives
Let’s get creative!
Directions:1.Everyone will receive 5 pieces of paper. 2.Each student will specialize in something (you can even invent something new!). 3.Once you have decided on your specialty, write it on each card. (You should have the same thing written on every card.
We just demonstrated the concept of a market.
A market is a place where buyers and sellers exchange goods and services
An entrepreneur is a person who invests money in a product or enterprise in order to make a profit
Thomas Alva EdisonThomas Alva Edison
“Wizard of Menlo Park” “Wizard of Menlo Park”
The Light BulbThe Light BulbThe Light BulbThe Light Bulb
Birth of the Night Shift!
Industrial production nowpossible 24 hrs. per day!
The Phonograph (1877)The Phonograph (1877)The Phonograph (1877)The Phonograph (1877)
The Ediphone or The Ediphone or DictaphoneDictaphoneThe Ediphone or The Ediphone or DictaphoneDictaphone
The Motion Picture CameraThe Motion Picture CameraThe Motion Picture CameraThe Motion Picture Camera
Entrepreneur
Market
Tariff
Social Darwinism
Laissez-faire
Vocab Taboo: Partner up! Partner A attempts to get Partner B to guess the terms below. You may NOT use notes, the word, or any part of the word.
In less than 125 years, America became the leading industrial power of the world. Major reasons for this quick rise to power include:
RESOURCES BOTH NATURAL AND HUMAN
GOVERNMENT POLICY TOWARDS BUSINESS
NEW INVENTIONS & TECHNOLOGY RAILROADS!!!!!!!!!
Resources:Natural Resources:
Coal – amount mined doubles each decade between 1840 & 1890
Iron Ore – Great Lakes, PA, ALOil – Western PA; to TX by 1900
Human Resources:Population doubles between 1860
& 1890IMMIGRATION – 14 million
immigrants to U.S. during this time
Government Policy Towards BusinessLAISSEZ-FAIRE!!
Industry has very few government regulations and restrictions
ENTREPRENEURS One who takes the risk of organizing
and beginning a new business Received help from the U.S.
government: High protective tariffs Cheap land Liberal immigration laws – cheap labor
The government also played a role in encouraging industrialization:
Patent system- official rights given by the govt to an inventor for the exclusive right to develop, use, and sell an invention for a set period of time
Protective Tariff- tax on imported goods making the price high enough to protect domestic goods from foreign competition
The govt followed the policy of laissez faire– a policy which allowed businesses to operate under minimal govt regulation
RAILROADSThe factor MOST responsible for growth
of American IndustryStandardization & Consolidation:
Binds all sections of country together into one market
Cornelius Vanderbilt:“The Commodore” – steamboat fleetConsolidates NY railroads into NY
Central RR Company
Improvements in service: 4 track main line Standard gauge track Use of Westinghouse air
brakeTime Zones:
Develop because needed for RR scheduling
Originally 4 in U.S. How many in U.S. now? Eventually spreads worldwide
NEW INVENTIONS & TECHNOLOGY:
Alexander Graham BellAlexander Graham BellTelephone (1876)Telephone (1876)
CHRISTOPHER LATHAM SHOLES
THE TYPEWRITER Along with the
telephone, leads to feminization of the work place
Women make up
5% of all office
workers in 1870;
40% by 1910
AlternateCurrent
AlternateCurrent
GeorgeWestinghouse
GeorgeWestinghouse
AirBrakeAirBrake
Nikola TeslaNikola Tesla
The AirplaneThe Airplane
Wilbur Wright Orville Wright Wilbur Wright Orville Wright
Kitty Hawk, NC – December 7, 1903 Kitty Hawk, NC – December 7, 1903
Due to huge sums required to build railroads, corporations become major business form in U.S.
A corporation is a company formed by a group of investors who get a share of ownership in proportion to the amount of money they invest
For example, a corporation needs $100,000 to start up business You buy $10,000
shares of stock at $1 per share
You own 10% of the corporation
WHAT ADVANTAGES DO CORPORATIONS HAVE OVER OTHER TYPES OF BUSINESSES?
1. LIMITED LIABILITY - Corporate investors risk ONLY the amount of their investment (stock cost) and can’t be held personally liable for debts of the corporation
2. EASY TO RAISE LARGE SUMS OF MONEY
Small amounts of $ from many individual investors can be pooled into huge sums of $ need to start or expand a large company
What are the advantages of“Big Business?”Can produce more and better goods
at a lower costcreated jobs
What are the disadvantages of“Big Business?”
Methods they used to get “Big”forcing competitors out of businessRaising prices / bribing public
officialsDestruction of the environment
CORPORATE EXPANSION HORIZONTAL
INTEGRATION: SEVERAL FIRMS IN
THE SAME KIND OF BUSINESS JOINED TOGETHER
Best example: ROCKEFELLER
and his Standard Oil Co.e
VERTICAL INTEGRATION
BUSINESSES IN DIFFERENT BUT RELATED ACTIVITIES JOINED TOGETHER
Vertical supply & distribution line
Best example: CARNEGIE
JOHN D. ROCKEFELLEROIL REFINING
(Standard Oil Co.)Consolidated 40 oil
refining companies – a nationwide monopoly
Used rebates (discounts) & secret info from RR to learn about competitors & force them out of business
The Octopus, 1904
Gave away dimes to children on the street
Retired at age 40 Spent rest of his life
giving away money Gave away over $520
million to charities $78 million to colleges $60 million to
medicine $18 million to African
American education Lots more to
education & research
Died at age 98
at Ormond Beach , FL
Henry FlaglerAn American tycoon who worked with John D. Rockefeller to establish Standard Oil. He helped develop Florida as the vacation land it is today.
Moves to St. Augustine Founder of Palm Beach “Father of Miami” Founds the Florida East Coast
Railway By 1912 Florida Overseas
Railroad was completed to Key West
Flagler County, Flagler Beach, Flagler College
Flagler Resort
Flagler College
Whitehall - 1st big mansion in West Palm –--- history museum there now
ANDREW CARNEGIESTEEL (U.S. Steel
Corporation)Hired the best
technical & scientific experts
Used new process & made steel so cheaply it forced competitors into bankruptcy & then he bought them
Did not treat his workers as well as Rockefeller
Drove wages down & hours up for the common laborers & constantly fought unionization
But, made upper level management & experts partners in the business
Poor Scottish immigrant who went from “rags to riches”
Ambitious, energetic, a “gambler”
Deeply believed that if one worked hard, saved $ & invested wisely, anyone could become wealthy
“The first man gets the oyster,The second man gets the shell.” Andrew Carnegie
“Gospel of Wealth” - Felt the wealthy had a duty to help those who would try to help themselves; needed to give back to society
Retired at 66 (sold business to J.P. Morgan – U.S. Steel)
Lived to be 84 Gave away over $350
million to charities Mostly to libraries Carnegie Hall & Museum,
NY
“The man who dies rich, dies disgraced.”
CONSOLIDATION:
J.P. MORGAN “Banker’s banker” Consolidated many
different businesses into major corporations
Made millions financing reorganization of RRs, banks, insurance companies
Regulating the Monopolies (Trusts)Regulating the Monopolies (Trusts)1887 Interstate Commerce Act
Law passed to regulate unfair practices by railroads Railroads can no longer give rebates (discounts) All businesses had to pay same rate – should be
reasonable and fair
Sets up Interstate Commerce Commission
1890 Sherman Antitrust Act Forbids all business combinations that limit or
restrict interstate trade Very vague language though No real means of enforcement provided First lawsuits under this Act were all decided in favor
of the trusts & against labor unions
1887 Interstate Commerce Act Law passed to regulate unfair practices by railroads Railroads can no longer give rebates (discounts) All businesses had to pay same rate – should be
reasonable and fair
Sets up Interstate Commerce Commission
1890 Sherman Antitrust Act Forbids all business combinations that limit or
restrict interstate trade Very vague language though No real means of enforcement provided First lawsuits under this Act were all decided in favor
of the trusts & against labor unions
A competitive work ethic, American culture, and individualism helped to encourage the philosophy of SOCIAL DARWINISM.
Based on the evolutionary theory of Charles Darwin: Social Darwinists believed that the most successful individuals were those endowed with superior talents who had the ability to adapt, survive, and thrive.
• The poor are only poor because of their laziness and lack of initiative
• Rev. Russell Conwell • Christian duty to accumulate
wealth• Should not help the poor.• “Acres of Diamonds” speech:
• “There is not a poor person in the U.S. who was not made poor by his own shortcomings.”
• 1/10 of people own 9/10 of all the wealth by 1900
Workers began to face many problems in the new Industrial Age such as….?
As a result of these problems, workers began to look to labor unions for relief:
LABOR UNIONS
Had difficulty organizing: Extreme opposition from Employers Courts & police favored Employers over
workers Too many immigrant laborers
Three major unions form in late 1800s: Knights of Labor American Federation of Labor American Railway Union
UNION EMPLOYERTACTICS RESISTANCE
StrikePicket LineBoycott
Lockout Blacklisting Hiring of Scabs Company unions Yellow-dog contracts Injunctions Government’s view of
unions? courts, law enforcement all
on side of management in early days
KNIGHTS OF LABOR
Led by Terence PowderlyALL workers welcome:
unskilled and skilledRecruited women and
blacksSought broad reforms –
end to child labor, etc.Used negotiation first;
preferred NOT to use strikes
Association with violence (Haymarket Square Riot) causes end of Knights by 1890s
AFL – American Federation of Labor
Led by Samuel Gompers A CRAFT Union (trade union)
ONLY skilled workers Kept out blacks and women Sought “bread and butter” reforms:
Higher Wages Shorter Hours – 8 HOUR WORKDAY! Better/safer working conditions
Relied on economic pressure: strikes and boycotts
The only one of the early unions that has lasted into current times
AMERICAN RAILWAY UNIONLed by Eugene V. Debs
Later became a socialist while in jail after his arrest in the Pullman Strike
“INDUSTRIAL” union All workers in same
industry, regardless of their craft or skill level, join in the same union
Sought less violence/confrontations but winds up in it anyway
THE MAJOR STRIKES:Great RR Strike of 1877
Baltimore & Ohio RR – cut wages during a depression
Striking & violence spread – 1st nationwide strike!
Employers called on federal gov’t for help Pres. Hayes sent in troops to restore order
HAYMARKET SQUARE RIOT1886 On May 1, 1886, unions called for national
strike in support of an 8 hour work day Thousands of workers demonstrated in U.S.
cities but Chicago was the center, with 40,000 demonstrators
After bomb thrown into crowd, police fired upon strikers killing an unknown number of workers – 12?
Several anarchist labor leaders arrested and tried and hanged without supporting evidence
Association between unions & violence leads to demise of Knights of Labor
Images from Haymarket Riots, May 3, 1886
Haymarket Memorial, Chicago
HOMESTEAD STRIKE, 1892Carnegie Steel – Homestead PlantCarnegie’s partner (Frick) cut
wages, added hours; STRIKE!Pinkerton Detectives called in to
break strike Led to deaths of 9 strikers & 7 detectives
Anarchist tried and failed to assassinate Frick
Strike called off – state cops called in - management wins
Unions’ association with violence continues
Pullman Strike, 1894
US cavalry breaks up 1894 Pullman Car workers strike
Pullman Strike, 1894 Pullman Palace Car Company Company Town Laid off workers & cut wages after Panic of
1893 BUT didn’t cut rent & food prices Refused to bargain; shut down plant First nationwide strike Caused interference with mail delivery Pres. Cleveland got court order to force
end to strike and sent in troops to enforce it – sets a precedent