The Rise of American Business, Industry, and Labor (1865 - 1920) Civil War changed everything! North...
Embed Size (px)
Transcript of The Rise of American Business, Industry, and Labor (1865 - 1920) Civil War changed everything! North...
The Rise of American Business, Industry, and Labor (1865 - 1920)Civil War changed everything!North was already industrializing (bullets, railroads, etc)South was ruined!(NEW SOUTH)
Before the Civil War.most businesses were sole proprietorships (single owners). Factories need more start-up capital($$) then a single person business. The birth of corporations! What is a corporation?
What do these terms mean? (homework) 1) Monopoly2) Conglomerate3) Merger4) Trust5) Holding Company6) Capitalism7) Communism8) Entrepreneurs9) Laissez-Faire10) Social Darwinism11) Robber Barons12) Philanthropists13) Labor Union14) Collective Bargaining15 Sherman Antitrust Act
John D. Rockefeller
Entrepreneurs!Andrew CarnegieScottish Immigrant who started working in a factory at age 12.Invested wisely and entered the steel industry at age 38.By 1901 sold his steel company for $250,000,000!Gave hundreds of millions to charities (libraries)Wrote the book: Gospel of Wealth
Entrepreneurs!John D. RockefellerEntered the oil-refining business during the Civil War.Used ruthless means to eliminate his competition. By 1882 his company, Standard Oil Company, controlled 90% of all American oil refining. Created the Standard Oil Trust to control more aspects of oil production.
Gave hundreds of millions to charities.Rockefeller Center
Entrepreneurs!J.P MorganBanker who made many loans to up and coming businesses.Purchased and reorganized many bankrupt businesses (profit).Bought Carnegie Steel and reorganized it into the United States Steel Corporation (the worlds largest).
Entrepreneurs!Henry FordFord Motor Corp (cars)
Created the assembly line
Paid laborers a good wage
Laissez-Faire (hands off)The government largely kept hands off towards American business.Businesses were booming! The economy was doing well. Foreign trade reached new heights.Why did this change around the end of the 1800s?
HANDS ONWhy?1) The economy took a turn for the worse
2) Growing criticism that big business made profits on the backs of the American poor/immigrant
3) Growing political pressure for change
RAILROADS!!! (again)In the late 1800s, railroads developed a number of business practices that hurt farmers and small businesses (pricing).These small business lobbied to have the government change these policies.Railroads lobbied to allow them to stay the same
Please research the following Supreme Court Cases from this era: (homework)Munn v. Illinois (1877)
Wabash, St. Louis & Pacific Railway v. Illinois (1886)
United States v. E.C. Knight Company (1895)
In re Debs (1895)
RAILROADS!!! (again)List several reasons why railroads were so important to so many people.
What was it about railroads? How did they effect American society?
How did railroads effect other businesses? Did railroads create a market for other businesses? Like what?
Public Pressure: ICCPublic pressure forced Congress to pass the Interstate Commerce ActCreated the ICC which regulated railroads and ended abuses like rebates.(precedent)
Public Pressure: ShermanLate 1800s: some business had no competition (monopoly)Public outcry was significantPoliticians passed the Sherman Antitrust Act (see vocabulary)Business combination Illegal: in restraint of trade or commerce US v. E.C. Knight CompanyPrecedent
Labor RisingConditions for working people had slowly improved with timeHowever, wages were still low,unemployment was uncertain and could end suddenly.Business owners had tremendous power over employees!
Labor RisingUnion Tools:Collective BargainingStrikesPickets
Knights of LaborFormed in 1869 - Terence PowderlyHaymaker Riot ended their influence in 1886Welcome skilled, unskilled, and African-AmericansFought for broad social reforms 8 hour work dayend to child laborequal opportunities for women
American Federation of LaborAFL - Samuel Gompers1886 A collection of craft unions. Fought for bread and butter issuesHigher wages, better hours, better working conditions
Extremely powerful with over 1,000,000 members by 1900
Labor ConflictDescribe the following events for homework:
Great Railway Strike of 1877Haymaker RiotHomestead StrikePullman StrikeGive details, who - what - when - why - results?
Great Railway Strike of 1877Great Railway Strike of 1877Railroad workers went on strike after several pay cuts. (several states)President Rutherford B. Hayes sent federal troops to end the strikeWorkers got very little
Haymaker Riot Haymaker RiotLabor Rally (organized by Knights of Labor) that ended in a bomb blast7 police diedChicago1886Public blamed Knights of Labor despite the fact they had nothing to do with the violence.
Homestead Strike Homestead Strike1892 - Union members went on strike (pay cuts) at the Carnegie steel plantHomestead, PennsylvaniaViolence ensued16 people died- fewer then 25% of the strikers got their jobs backSet the steel labor movement back 20 years
Pullman Strike Pullman Strike1894 - Railroad workers went on strike in IllinoisTied up other rail lines.President Grover Cleveland sent in troops to end the strikeIn re Debs