Industrialization, Immigration, Urbanization. Outline The “Gilded Age” Corporate Structures...
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Transcript of Industrialization, Immigration, Urbanization. Outline The “Gilded Age” Corporate Structures...
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Industrialization, Immigration, Urbanization
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Outline
• The “Gilded Age”
• Corporate Structures
• Businesses and Technology
• Social Darwinism & Laissez Faire
• Labor and urbanization
• Immigration and “National Culture”
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“The Gilded Age”
• Cheap plastic painted gold
• Anti-competition & monopoly
• No government “Laissez Faire”
• Anti-union “Strikes vs. Lockouts”
• No liability, regulation– Corruption!!
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Industry & Mechanization
• Rise of Factories• Mass production
– Bessemer Process
• Low wages– Exploitation of women,
children, immigrants
• De-skilled labor– Work anyone could do
• Technology– Innovations, Inventions
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Corporations
• Monopolies – What are they?– Control supply of a particular product– Set prices (supply and demand)– Laissez Faire industrialization
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Corporations
• High fixed costs – Expensive to build and maintain factory
• Low operating cost– Wages
• This enabled corporations to stay open during slow economic times!
• Produce more goods at lower costs
• Very efficient! Invest in machinery, etc.
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The Railroad
• Vanderbilt’s industry– Government gave land grants
• Encourage rapid construction• RR’s allowed to sell land to raise $$ for
construction• Leads to scandals!!
– Credit Mobilier• Company set up by Union Pacific• overcharged itself for construction• Paid members of Congress for more land
grants!
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Standard Oil
• Rockefeller– Discovered that refining oil was more
profitable than finding it– Used HORIZONTAL integration to create a
Monopoly• By 1880’s, he owned 90% of all oil refineries in
U.S.• Made $1.5 Billion by any means necessary
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Standard Oil, 1906
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Carnegie’s US Steel
•Andrew Carnegie: Andrew Carnegie: U.S. Steel (1870s)U.S. Steel (1870s)•VERTICAL VERTICAL integrationintegration
•Bought all of the mines, quarries, Shipping companies, mills
•Created a monopoly
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Laissez Faire
• “Free markets” = no government intervention
• Prices set based on Consumer demand• Competition creates innovation and
keeps prices low• Monopolies eliminated competition to
keep prices high sometimes, low other times
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Laissez Faire
• No government regulation except to protect property rights and maintain peace.
• Let Supply and Demand regulate prices– If monopolies control supply, then they can fix
prices, right?
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Social Darwinism
• Herbert Spencer• Distorted Charles
Darwin’s “natural selection” and “survival of the fittest”
• Social & economic system was natural
• Poor were naturally poor, rich were naturally rich
• No gov’t intervention (Laissez Faire!)
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Problems with Philosophy
• Tariffs (high taxes on imported goods)
• Railroad Land Grants (Who’s controlling the grants)
• Laws written for & by rich elite men (bribery scandals galore)
• Force used to benefit corporations
• No competition– It’s not my fault I’m a billionaire, I’m just the
strongest to survive the game
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Survival of the fittest
So don’t tell me how much I can pay my Employees, don’t tell me how much I shouldSell my product for, and don’t tell me that I can’t eliminate the competition! I am the WINNER!!!
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Technological Innovations
• Alexander Graham Bell, 1876
• Thomas A. Edison (phonograph) 1877– Electric light bulb 1879
• Pressure sealed tin cans
• Bessemer Process, steel
• Replace workers with technology
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Thomas Edison & Alexander BellLight bulb Telephone
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Edison & Phonograph, 1870s
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Immigration, 1880-1920
• Italians, Polish, Greek, Hungarian, Slavic, Jewish, Russian, Mexican, Chinese
• Labor Compartmentalization
• Polish = Steel• Russian Jews = Street
Vendors
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Faces of America
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Urbanization• Growth of industries concentrated
people & power in cities
• Industrialization pulled people off the land
• Technological advances: elevators, sewage, piped water, electricity, subways, electric streetcar (1888), refrigeration increased urbanization
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Cities and Populations
• New York (40%)
• Chicago (42%)
• San Fran (45%)
• El Paso (31%)
• Foreign Born
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City Life
• Fast Growth• Few social services
or regulations• Tenement buildings• Settlement Houses• Multicultural &
ethnically organized
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Immigration and National Culture
• 1870-1910, 20 million immigrants
• Southern & eastern Europe
• Culture, language, religion, ethnicity
• Chinese, Japanese, Mexicans
• Chain Migration
• Assimilation stripped people of their cultures, attacked diversity, and tried to make them into WASPs
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Immigrant Life
• Ethnic enclaves– Immigrants felt more comfortable in their
own “towns”• Little Italy, Chinatown, etc.
• Employment – Industrialists exploit them– Pay them much less than American’s
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Urban Life
• Tenements– Low income housing– Creation of lower classes– Living conditions were just as bad as working
conditions– Several families living in small tenements– Couldn’t afford rent on wages– Terrible situation
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Chinese Immigration
• 1870: 63,000 Chinese, most in CAL
• 22% in Idaho
• 1930: 470,000 in U.S
• 90% in West
• Railroads, mining, service sector of cities
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Working Conditions
• Terrible– Dangerous, unhealthy environments– Workers breathed in lint,
dust, toxic fumes– Dull, repetitive tasks
(led to inattentiveness and injuries)
– Dangerous machines with no safety regulations
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Unions
• Organized workers in a particular craft to ensure better working conditions– Pipefitters, Electricians, steel workers, etc.
• Organized strikes for better wages– Strikes usually met with violence– Owners would “lock out” workers, hire new
ones
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Unions
• Immigrants were flooding the U.S.– Many joining unions– Marxists and anarchists– Unions associated with “radical European
ideas”
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Strikes
• Railroad Strike 1873– Workers wanted more pay, troops sent in, 12 days
later, 100 people dead
• Haymarket riot– Workers wanted 8 hour days, troops called in, bomb
goes off, 170 injured 10 police dead
• Pullman Strike– Employees had to live in Pullman apartments, shop
only at Pullman stores. Wages cut, employees strike, troops called in, boycott halted, gave industrialists advantage.
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Nativism
• Anti-immigrant fears – Because of these strikes – Because of massive amounts of
immigrants– 1882 Chinese Exclusion Act
• Violence towards immigrants– They’re just trying to survive, right?
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Conclusions
• Good & Bad impact of technology
• Rise of National Corporations
• New Business Structures
• Social Darwinism
• Immigration and Urbanization
• Racism and immigration policy