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