Transcript of The Gilded Age The Rise of Big Business. Essential QuestionEssential Question: What factors led to...
- Slide 1
- The Gilded Age The Rise of Big Business
- Slide 2
- Essential QuestionEssential Question: What factors led to the
rise of the American Industrial Revolution from 1870 to 1900?
Warm-Up Question:Warm-Up Question: Examine the image on the next
slide & answer the question: What important changes took place
during the Gilded Age?
- Slide 3
- What important changes took place during the Gilded Age? Were
these changes good or bad for America? Explain
- Slide 4
- A Brassy, Flamboyant Age Gilded Age: {Reconstruction (1877) - -
Progressive Era (1901)} brassy, flamboyant age dominated by big
business values, political corruption, and extremes of wealth and
poverty
- Slide 5
- From Agriculture to Industry During Gilded Age, U.S.
experienced rapid shift from an agricultural economy to an
industrial one
- Slide 6
- Major Developments Major developments: 1.Industrialization
2.Urbanization 3.Immigration
- Slide 7
- New Types of Organization New types of organization: 1.the
corporation 2.labor unions 3. Ethnic neighborhoods
- Slide 8
- Essential Question Industrialization increased the standard of
living and the opportunities of most Americans, but at what
cost?
- Slide 9
- Relative Share of World Manufacturing
- Slide 10
- U.S. becomes an economic power (GNP) Gross National Product
Total value of all goods and services produced
- Slide 11
- USA in the Gilded Age: 1870-1900 The North: Experienced an
industrial revolution, mass immigration, & urbanization
- Slide 12
- Gilded Age Industrialization During the Gilded Age (1870-1900),
the United States experienced an Industrial Revolution: New
technology, transportation, efficient mass-production spread ideas
& industrial products By 1900, the U.S. was the U.S. the most
industrialized country in the world
- Slide 13
- An Age of Invention The Gilded Age was an Age of Invention U.S.
Patents Issued (1850-1899)
- Slide 14
- An Age of Invention The Gilded Age was an Age of Invention Cash
registers, adding machines, business typewriters Alexander Graham
Bell invented the first telephone The Bessemer process transformed
iron into stronger, lighter steel What is it?
- Slide 15
- An Age of Invention The Gilded Age was an Age of Invention
Thomas Edison (Wizard of Menlo Park) was the greatest inventor of
the 1800s In his research lab in New York, he created the 1 st
audio recorder, phonograph, and batteries His most influential
invention was the 1 st electric light bulb What is it?
- Slide 16
- The Business of Invention New innovations allowed for increased
industrial production New machines were incorporated into the 1 st
assembly lines which allowed for faster mass production Railroads
linked all regions Americas wealth of iron, oil, coal, immigrant
labor, & investment capital (money) supplied factories
- Slide 17
- The Industrial Revolution was fueled by 4 industries (R.O.S.E.)
Railroads, Oil, Steel, Electricity
- Slide 18
- The Rust Belt Industrial Resources: Iron, Coal, Railroads,
& Steel Plants
- Slide 19
- The Railroad Industry Americas first big business was the
railroad industry: Railroads stimulated the coal, petroleum, iron,
steel industries Railroad expansion into the West allowed the
antebellum market revolution to grow Large companies bought small
railroads, standardized gauges & schedules, & pooled cars
Eastern RRs were connected to the West by 4 great trunk lines
- Slide 20
- Railroad growth fueled industrial development 100,000 miles of
track laid between 1877 - 1893 standardization of gauge width of
tracks (4 feet, 8 1/2 inches) [encouraged development] time zone
adoption allowed U.S. divided into four zones massive grants of
American land 131 million acres -- federal 49 million acres --
states
- Slide 21
- Cornelius the Commodore Vanderbilt was the most powerful figure
in the railroad industry Jim Fisk
- Slide 22
- Railroad Construction in the Gilded Age
- Slide 23
- Oil provided kerosene lighting & lubrication for industrial
machinery
- Slide 24
- Steel Production
- Slide 25
- Wadsworth Building, NYC Steel transformed world industry:
Allowed for taller buildings, longer bridges, stronger railroad
lines, & heavier machinery
- Slide 26
- International Steel Production, 1880-1914
- Slide 27
- Efficiency & Mass Production in Factories
- Slide 28
- Causes of Rapid Industrialization 1.The Railroad fueled the
growing US economy: * First big business in the US. * A magnet for
financial investment. * Aided the development of other
industries.
- Slide 29
- Causes of Rapid Industrialization 2.Technological innovations.
* Bessemer and open hearth process * Refrigerated cars * Edison
Wizard of Menlo Park light bulb, phonograph, motion pictures.
- Slide 30
- Causes of Rapid Industrialization 3.Unskilled &
semi-skilled labor in abundance. U.S. population 3x from 1860 -
1910 4.Government aid at all levels to stimulate economic growth
High tariffs {hurt exporters (farmers)} 5.Abundant natural
resources H 2 O, timber, coal, iron, copper, and oil
- Slide 31
- New Business Culture Individuals should compete freely in the
marketplace. No room for government in the market! French -- "let
it be" Laissez Faire an ideology of the Industrial Age
- Slide 32
- New Business Culture People who risk their $$$ in organizing
and running a business French -- "to undertake" Entrepreneurs
(another) ideology of the Industrial Age
- Slide 33
- New Forms of Business Organization Corporation: an organization
owned by many people, treated (by law) as a single person People
who own the corporation are called shareholders The share of
ownership is a stock Limited liability
- Slide 34
- New Forms of Business Organization During the Gilded Age,
business & industry were transformed: Massive corporations
replaced small, family businesses Managers were hired to make
factories run more efficiently New business models, such as trusts
& holding companies, integrated various businesses under 1
board of directors
- Slide 35
- New Business Organization Combinations of Corporations (WHY?)
increases efficiency and profits destroyed healthy competition that
often makes capitalism a viable economic model
- Slide 36
- New Business Organization: Board of Trustees (Trust) Board of
Trustees Company Manager Employees Trusts use a board of trustees
to manage a company
- Slide 37
- New Business Organization: The Holding Company Holding Company
Company A Company D Company E Company B Company F Company C Company
G Company H Holding companies oversee & manage other subsidiary
companies
- Slide 38
- New Forms of Business Organization Corporations in the Gilded
Age used mergers to increase profits Companies used horizontal
integration to buy similar companies to reduce competition Vertical
integration allowed companies to buy companies that supply raw
materials or transportation for their products
- Slide 39
- Vertical & Horizontal Integration
- Slide 40
- Monopolies Corporate mergers led to giant companies called
monopolies: Companies that control nearly all of a particular
industry Because most monopolies of the Gilded Age were run by
boards of trustees, monopolies became known as trusts Monopolies
led to a new generation of U.S. millionaires
- Slide 41
- U.S. Corporate Mergers By 1900, 1% of U.S. companies controlled
33% of all industry
- Slide 42
- The Monopolists Andrew Carnegie created the Carnegie Steel
Company: He converted to the Bessemer process & was able to
out-produce his competition & offer better quality steel at
lower prices He mastered vertical integration to lower his
production costs His company made more steel than all the factories
of Great Britain
- Slide 43
- U. S. Steel Corporation When he retired in 1901, he sold
Carnegie Steel to financier J. P. Morgan for over $400 million
dollars. Morgan subsequently reorganized the company into the
United States Steel Corporation. U S S
- Slide 44
- Andrew Carnegie s rise from a poor Scottish immigrant to one of
the richest men in the world was the great example of the American
Dream Carnegie did not pay his employees very much & did not
allow unions in his factories but he was a philanthropist who gave
money to New York City libraries, colleges, & performing arts
institutions
- Slide 45
- The Monopolists John Rockefeller created the Standard Oil
Company He used horizontal integration to create a petroleum
company that monopolized the oil industry, lowered costs &
improved quality By 1879, Standard Oil sold 90% of all U.S. oil
& sold to Asia, Africa, & South America
- Slide 46
- Rockefeller was labeled a robber baron who took advantage of
immigrant workers, driving his competition out of business, &
used his fortune to influence the national gov t but Rockefeller
gave away $500 million to charities, created the Rockefeller
Foundation, & founded the University of Chicago
- Slide 47
- Captains of Industry Entrepreneurs were able to achieve
unprecedented wealth and power.
- Slide 48
- The Robber Barons of the Past Robber Barons of the Gilded
Age
- Slide 49
- Slide 50
- Giant Corporations By 1900, 2/3 of all manufactured goods were
being produced by giant corporations Swift and Armour dominated
meat packing Duke family controlled tobacco Andrew Carnegie took
over every aspect of steel production. Swift arm our 1889 Duke
Tobacco Advertisement Swift arm our
- Slide 51
- Distant Corporations Needs once met by self-sufficient rural
folk now met by large corporations usually located in the
Northeast
- Slide 52
- Life Profoundly Changed Allan Nevins & Henry Steele
Commanger provide a vivid description of the impact of corporations
on these rural folk: The life of the average man, especially if he
was a city dweller, was profoundly changed by this development....
When he sat down to breakfast he ate bacon packed by the beef
trusts, seasoned his eggs with salt made by the Michigan salt
trust, sweetened his coffee with sugar refined by the American
Sugar trust, lit his American Tobacco Company cigar with a Diamond
Match Company match.
- Slide 53
- The Way We Were in The Gilded Age: 1877-1901 Who We WereHow We
Lived 188018901900188018901900 Population (millions) 50.263.0 76.0
Gallon of milk $0.16$0.17$0.30 Pop. per sq. mile 16.921.225.6 Loaf
of bread $0.02 $0.03 Percent rural71.8%64.9%60.4% New auto N/A $500
Percent urban28.2%35.1%39.6% Gallon of gas N/A $0.05 Percent native
born 94.4%87.1%84.4% New house $4,500$5,800$4,000 Percent immigrant
5.6%12.9%15.6% Average income $480$660$637
- Slide 54
- Conclusions Due to the Industrial Revolution: The United States
led the world in industry, innovation, & wealth Laissez-faire
govt policies & new business tactics led to monopolies However,
the gap between the wealthy monopolists & their poor immigrant
workers grew wider