Post on 29-Dec-2015
Essential QuestionEssential Question:–How did the “Second Industrial
Revolution” transform the U.S. during the Gilded Age?
Warm-Up Question:Warm-Up Question:–To what extent had the United
States developed a “national market economy” by the outbreak of the Civil War (1860)?
–What developments were still needed to improve America’s national market economy?
Gilded Age IndustrializationDuring the Gilded Age, American
businesses were transformed:–Massive corporations replaced
small, family businesses–New technology, transportation,
marketing, labor relations, & efficient mass-production
–By 1900, the U.S. was the most industrialized country in the world
The Business of Invention19th-century inventors led to an
“Age of Invention”:–Cyrus Field’s telegraph cable–Business typewriters, cash
registers, adding machines–High-speed textile spindles,
auto looms, sewing machines–George Eastman’s Kodak camera–Alexander G. Bell’s telephone
By 1905, 10 million Americans had phones; (Bell Telephone Co became AT&T)
The Business of InventionThomas Edison, the “Wizard of
Menlo Park,” created the 1st research lab in New York–Edison Illuminating Co was the
to 1st use electric light in 1882–Tesla’s alternating current (AC)
allowed electricity to travel over longer distances & to power streetcars & factories
The Business of InventionNew technologies allowed for
increased industrial production–New machines were incorporated
into the first assembly lines which allowed for continuous & faster production of goods
–The railroad linked every region of America & allowed for a mass consumption of goods
The Midwest Made Meat for America A new-and-improved “market revolution”:A new-and-improved “market revolution”: More regional specialization made mass
production & mass consumption possible
New Methods of Marketing Marketing became a “science”:
–Advertising firms boomed–Department stores like Macy’s
& Marshall Field’s allowed customers to browse & buy
–Chain stores like A&P Grocery & Woolworth’s “Five & Ten”
–Mail-order catalogues, like Montgomery Ward sold to all parts of America
New Forms of Business OrganizationNew types of business organization
were used to increase profits:–“Trusts” & “holding companies”
integrated various businesses under 1 board of directors
–Vertical & horizontal integration maximized corporate profits
–Frederick Taylor’s “scientific management” emphasized time efficiency & mid-level managers
“Trusts” use a board of trustees to
manage a company
“Holding companies” oversee & manage other
subsidiary companies
Vertical & Horizontal IntegrationU. S. Corporate MergersU. S. Corporate Mergers
By 1900, 1% of U.S. companies controlled 33% of all industry
New Forms of Business OrganizationBusiness leaders used a variety
of ideas to justify their wealth:–The “Gospel of WealthGospel of Wealth” argued
that it is God's will that some men attained great wealth
– Social DarwinismSocial Darwinism taught that natural competition weeds out the weak & the strong survive
–Were monopolists “captains of industry” or “robber barons”?
The Industrialization of America
The Second Industrial Revolution was fueled
by 3 industries: railroads, steel, & oil
The Railroad Industry America’s first “big business” was
the railroad industry:–Railroads stimulated the coal,
petroleum, & iron/steel industries–Large companies bought small
railroads, standardized gauges & schedules, & pooled cars
–Small lines in the east acted as tributaries to the 4 great trunk trunk lineslines into the West
Cornelius “the Commodore”
Vanderbilt was the most powerful figure in
the railroad industry
Problems of GrowthBut, the railroad industry faced
problems due to overbuilding in the 1870s & 1880s:–Mass competition among RRs–RR lines offered special rates &
rebates (secret discounts) to lure passengers & freight on their lines
–Pooling & consolidation failed to help over-speculation
Speculators like Jay Gould built & bought rail lines to profit with
little concern for efficient use
Problems of GrowthRR bosses asked bank financier
J.P. MorganJ.P. Morgan to save their industry:–Morgan created a traffic-sharing
plan to end wasteful competition–“MorganizationMorganization” fixed costs,
cut debt, stabilized rates, issued new stock, & ended rebates
–Created a “board of trustees” By 1900, 7 giant (centralized &
efficient) rail systems dominated
The Steel Industry Steel transformed world industry:
–Allowed for taller buildings, longer bridges, stronger railroad lines, & heavier machinery
– Andrew CarnegieAndrew Carnegie’s company made more steel than England
–Carnegie converted his steel plants to the Bessemer process & was able to out-produce his competition & offer lower prices
Andrew Carnegiewas the great
example of the “American Dream” & social mobility
International Steel
Production, 1880-1914
The U.S. was ideal for steel
production because it had lots of coal,
iron, & railroads
Rockefeller and OilPetroleum also changed industry
–New industrial machines needed kerosene for lighting & lubricants
– JohnJohn D.D. RockefellerRockefeller monopolized the oil industry, lowered oil costs & improved the quality of oil
–By 1879, Standard Oil ruled 90% of all U.S. oil & sold to Asia, Africa, & South America
Standard OilStandard Oil: The Monster Monopoly?
Essential QuestionEssential Question:–What role did the business
leaders play in stabilizing the chaotic business cycles of the Gilded Age?
Reading Quiz Ch 18 B (625—639)Reading Quiz Ch 18 B (625—639)
The Industrial Workers
Industrial WorkersIndustrial work was hard:
–Laborers worked long hours & received low wages but had expensive living costs
– Industrial work was unskilled, dangerous, & monotonous
–Gender, religious, & racial biases led to different pay scales
These conditions led to a small, but significant union movement
Early American Labor UnionsIn 1868, Knights of LaborKnights of Labor formed
to help all type of workers escape the “wage system”
The most successful union, the American Federation of LaborAmerican Federation of Labor (1886) led by Samuel Gompers:–Made up only of skilled labor &
sought practical objectives (better pay, hours, conditions)
– Included 1/3 of all U.S. laborers
The KoL lacked organization to survive
Membership regardless of skill, race, or sex
Excluded women, blacks, unskilled laborers
The U.S. experienced an “era of strikes” from 1870-1890
The Great RR StrikeGreat RR Strike of 1877 shut down railroads from
WV to CA & resulted in hundreds of deaths
During the Chicago Haymarket StrikeChicago Haymarket Strike (1886), unionists demanded an 8-hr day; led to mob violence & the death of the Knights of Labor
The Homestead StrikeHomestead Strike (1892) resulted from a 20% pay cut at one of Carnegie’s steel plants
Essential QuestionEssential Question:–How did the industrialization of
the Gilded Age transform cities & immigration in America?
Reading Quiz Ch 19 A (648—663)Reading Quiz Ch 19 A (648—663)
Urbanization: 1870-1900
Gilded Age UrbanizationFrom 1870 to 1900, American
cities grew 700% due to new job opportunities in factories:–European, Latin American, &
Asian immigrants flooded cities–Blacks migrated into the North–Rural farmers moved from the
countryside to cities
The Lure of the City
By 1920, for the 1st time in U.S. history, more than 50% of the American
population lived in cities
Skyscrapers and SuburbsBy the 1880s, steel allowed cities
to build skyscrapersThe Chicago fire of 1871 allowed
for rebuilding with new designs: –John Root & Louis Sullivan
were the “fathers of modern urban architecture”
–New York & other cities used Chicago as their model
Louis Sullivan “Form follows function”
John Root “Simple & Dignified”
Skyscrapers and SuburbsCities developed distinct zones:
–Central business district with working- & upper-class residents
–Middle-class in the suburbsElectric
streetcars & elevated rapid transit made travel easy
Tenements & Overcrowding½ of NYC’s buildings were
tenements which housed the poor working class –“Dumbbell” tenements were
popular but were cramped & plagued by firetraps
–Slums had poor sanitation, polluted water & air, tuberculosis
–Homicide, suicide, & alcoholism rates all increased in U.S. cities
Jacob Riis’ “How the Other Half Lives” (1890) exposed the poverty of the urban poor
Strangers in a New LandFrom 1880-1920, 23 million
immigrants came looking for jobs:–These “new” immigrants“new” immigrants were
from eastern & southern Europe; Catholics & Jews, not Protestant
–Kept their language & religion; created ethnic newspapers, schools, & social associations
–Led to a resurgence in Nativism & attempts to limit immigration
Immigration to the U.S., 1870-1900
Foreign-born Population, 1890The influx of ethnic nationalities led to a new “melting potmelting pot” (“salad bowl”?) national image
Urban Political MachinesUrban “political machinespolitical machines” were
loose networks of party precinct captains led by a “boss”–Tammany Hall was the most
famous machine; Boss Tweed led the corrupt “Tweed Ring”
–Political machines were not all corrupt (“honest graft”); helped the urban poor & built public works like the Brooklyn Bridge
Boss Tweed
Tweed CourthouseTweed Courthouse——NY County Courthouse was Courthouse was supposed to cost $250,000 but cost $13 million. supposed to cost $250,000 but cost $13 million.
But the Tweed Ring catered to immigrants by building the Brooklyn Bridge & hosting holiday barbeques
Social Changes in the Gilded AgeUrbanization changed society:
–The U.S. saw an increase in self-sufficient female workers
–Most states had compulsory education laws & kindergartens
–150 new public & private colleges were formed
–Cities set aside land for parks & American workers found time for vaudeville & baseball
People of all races married later & had fewer children
“Family time” disappeared for working class
Women made up 40% of university students
Private philanthropy led to Stanford, Tulane, Vanderbilt, Cornell, & the Univ of Chicago
Land Grant Act (1862) led to the Universities of WI, CA, MN, IL
Conclusions:Industrialization’s Benefits & Costs
American IndustrializationBenefits of rapid industrialization:
–The U.S. became the world’s #1 industrial power
–Per capita wealth doubled – Improving standard of living
Human cost of industrialization:–Exploitation of workers; growing
gap between rich & poor–Rise of giant monopolies