The Expansion of Industry. 19 th Century America US became industrialized Industrialism –A change...
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Transcript of The Expansion of Industry. 19 th Century America US became industrialized Industrialism –A change...
The Expansion of Industry
19th Century America
• US became industrialized
• Industrialism– A change in production from hand
craftsmanship to machine manufacturing– More goods are produced from machines
Technological developments
• Bring about major change• Bessemer process (1855)
– Make steel from iron– Take out the carbon– Stronger, more flexible, rust
resistant
• Industrial age not possible with out the invention of steel
Black Gold
• Edwin F. Drake• Used steam engine to drill
for oil• This method became
practical• Started the oil boom• Transform oil into kerosene • Gasoline (a byproduct) later
becomes important
Electricity
• Edison– Came up with a way to produce/distribute
electrical power– Changed businesses
• Ran machine– Factories can locate where ever they want
• Contributed to electrical run inventions– Electric street car
» Leads to growth of cities
• Westinghouse made home use available
Telephone
• Alexander Bell– Communication
possible– Invention of the
telephone– New jobs for
women– Easier to do
business
Typewriter
• Christopher Sholes
• Helps to get women in the work force by created new jobs for women
Key factors needed for growth
• Abundant supple of natural resources– Discovery of coal, oil, and iron ore
• Improved transportation – Railroad made with steel– Transcontinental railroad built in 1869
• Labor force– Population shifted from rural to urban centers– Immigration
• Government support – Minimal regulations– No taxes on personal income– Tariff was high– No environmental control
• Explosion of inventions
Skyscraper
• First one built in New York City in 1901
• First one in Chicago– The Home Insurance
Building• No single innovation
affected change more than the development of steel
• Steel becomes king!• Easy and cost effective• Replaces iron
Entrepreneur
• John D. Rockefeller– Oil baron
• Andrew Carnegie– Steel
• J. Pierpont Morgan– Banker took over Carnegie Steel– First billion dollar company
• Cornelius Vanderbelt– Railroad giant
Significance• Helped to industrialize the United States• Used their genius to gain advantage over their
competition• Helped to make big business what it is today• Used new management techniques to improve
quality and cut cost• One of the new strategies was to create a
monopoly• Supported the idea of Social Darwinism
– Wealthy was a measurement of ones worth– Supported laissez – faire economic system– Only way to grow strong is to allow talent members to
rise to the top – No public aid or assistance to the poor
Vertical integration
• Bought out all suppliers• Controlled all levels of production• Example = Carnegie Steel
– His miners got the ore from the earth– His ships floated it across the Great Lakes– His railroads delivered it to the factories in Pittsburgh– His employees poured in into the mold
Goal: to improve efficiency by making the supplies more reliable and controlling the production at all stages
Horizontal Consolidation
• all the same companies
• Consolidate with the competitors to monopolies market
Rockefeller developed a trust• A business combination in which management
and control of the member corporations are in a single board of trustees– You do not own the companies BUT you control them
because you have a majority of their stocks– Not a merger because companies are run as separate
companies– Convinced stockholders in various smaller companies
to give their stocks to the board of Directors
Government Answer
• Sherman anti-Trust Act in 1890– To protect free competition– Outlawed combinations which would restrain free
trade– Not effective not enforced– No teeth– No resources to enforce it– Government was pro business at the
time– Created “holding companies”
• Holds companies in either parts or whole• May or may not be related• Buy out the stocks of competing companies
Bosses of the Senate
• From Puck Magazine
• Senate of the Monopolies, by the Monopolies for the Monopolies
Industrialization benefited the Middle Class
• National wealth and income grew• Middle class Americans experience greater
comfort and conveniences in daily life– Talk on the phone– Drive cars – later on– Buy ready made clothes
• Department stores grew which created new types of jobs– Marshall Field’s – Sears catalog starts in 1907
Captains of Industry
or
Robber Barons
Life for the average American
• Jobs moved from home to factory
• Majority still used candlepower
• Had no indoor plumbing or heating
• Cooked on wood-fed stove
• Could not afford telephones
• Unequal distribution of wealth
Laboring in a factory
• 10-12 hours a day• Unhealthy conditions
– Poorly lit, overheated and badly ventilated, noisty
• $5 a week / 8cents a day• Constant threat of being fired/replaced
– Lots of immigrant easily replaces• Well below poverty line• Lived in dumbbell tenement in crowed urban centers• Child labor 1/5 were working and not in school• Injured on job = fired
– Accidents were common from bad equipment and no training
• Treated with lack of respect
Strikes
Joined Labor Unions to demand better working condition and an 8 hour day!
Result of discontent among workers
The Great Strike of 1877The Haymarket StrikeThe Homestead Strike
The Pullman Strike
The Great Strike
• Railroad workers went on strike to protest wage cut
• Lasted about a week• Gov steps in because
lack of rail transportation was interfering with interstate trade
The Haymarket Strike• Wanted changes in labor
– 8 hours work day• Many strikes took place
throughout country• Police called in – brutally
put strike down• 3,000 gather in Chicago• Protesting police brutality
that took place earlier• Police arrive• Crowds begins to leave• Bomb went off• Police fired = several
deaths• We will never know• Public opinion turns against
labor movements
The Homestead Strike
• Carnegie Steel Company• Guards from Pinkerton Detective
Agency– Hire to protect plant when they hired
the scabs• Violence breaks out• Nine dead workers• Forced Pinkerton Agencies out• Closed plant• National guard put down the
strike• Steel workers and miners across
nation strike– Each time troops and local militia
call in to put the strike down
The Pullman Strike
• Pullman Town• Company lays off workers• Cut wages w/out cutting rest
and costs at the general store
• Workers were getting about 2 cents a day = 40 cents today
• Pullman refused arbitration• Strike breaks out due to his
mis-treatment of the workers• Hired strike-breakers• Strike turns violence• President sends in troops
(12,000 sent in – 30 deaths)• Strike over
– Strikers fired/blacklisted
ImpactStrikes are associated with violence
Employers began to rely on the government for protection against strikes
Employers use the courts to get order against unions citing the Sherman Anti-Trust Act
Labor movement becomes fractionalized