POLITICAL, ECONOMIC, AND SOCIAL
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1 A GROWING NATION
2 POLITICAL, ECONOMIC, AND SOCIAL Political- relating to government or public affairs of a country Elections, War, Legislation (law) Economic- pertaining to the production, distribution, and use of income, wealth, and commodities Money, Business, Depression, Jobs Social- of or relating to the life, welfare, and relations of human beings in a community Civil Rights, Trends, Norms, Way of life, Technology
3 INDUSTRIAL REVOLUTION North- factory workers, urbanization, assembly line, mass production South- Spinning Jenny, Cotton Gin, trade with England, Slaves
4 SECOND INDUSTRIAL REVOLUTION CAUSES Increased immigration New Technologies Rise of Big Business Urban and rural poor EFFECTS Growth of cities and industry Explosion of railroads Hazardous working conditions Reform Movements MORE Effects: Anti immigrant movements Indian Wars settle the Frontier Labor Unions and labor strikes Public Education and populism
5 GROWTH OF BUSINESS Little government interference Development of trusts and monopolies Small businesses cannot compete with large businesses Practices of large businesses limits competition
6 FREE ENTERPRISE Businesses that are free from government involvement Promoted by government Businesses are corporations owned by stockholders Stock- a unit of ownership of a company Some corporations issues dividendspayment to stockholders from a corporation s profits
7 CORPORATION ADVANTAGES 1 The sale of stock raises capitalmoney needed to start and operate large businesses 2- Corporations can operate without a single owner. 3 There is less risk involved being a stockholder than being the sole owner of a company.
8 an economic system In which resources and means of production are privately owned and prices, production, and the distribution of goods are determined mainly by competition in a free market
9 an economy in which the production of goods and services is carried out by businesses owned and operated by people risking their investment in the hope of making a profit. I have a great business idea! I ll open up a store that sells only single socks so that people can make pairs again from all of the socks lost in the dryer!! All I need is enough money to pay rent on a store, hire employees, buy the socks,
10 I m going to be rich! My store, The Single Sock, will have no competition! the effort of persons or firms to attract business by offering the most favorable terms I-Pod Nano $ $ $147.88
11 Ahhh it s good to be rich! I own the local mall, and people love malls! ownership of property (or other assets) by individuals or corporations I m going to be a rich business owner, too!
12 the gain after all the expenses are subtracted from the amount received The Single Sock Monthly Expenses: Rent - $3,000 Merchandise - $2,000 Salaries - $3,000 Utilities - $1,000 Total Monthly Expenses - $9,000 Monthly Profits: $20 Monthly Expenses: - $9,000 Net Profit = - $8,980 Umm...maybe I should be charging more than $1 per sock!
13 Maybe I should sell specialty socks, like SpongeBob socks! Maybe I should sell better quality socks! Maybe I shouldn t stock as many socks! Maybe I should hire better salespeople! the principle that assumes that consumers dictate the types, quality, and quantity of the goods and services provided
14 freedom of private business to organize and operate for profit in a competitive system without interference by government beyond regulation necessary to protect public interest
15 BUSINESS VOCAB Entrepreneurs- People who organize new businesses; often with tremendous risk Trust- companies that merge and turn their stocks over to a board of trustees who run the group of companies as a single entity Monopolies- having complete control of an industry. With no competition, prices could be raised or lowered at will Lassiez Faire- hands off, no government involvement
16 THE GILDED AGE Coined by Mark Twain Sarcastic- the business world a mess, shielded by a thin veil of gold Robber Barons- derogatory term applied to powerful, wealthy industrialists, the captains of industry who monopolized the railroads, the steel industry, the tobacco industry, the oil industry and the financiers who controlled the banks and used unfair business practices
17 ANDREW CARNEGIE Scottish immigrant Focused on steelmaking By 1900 his mills were making more steel than all of England Used Vertical Integration- Owning businesses involved in each step of a manufacturing process Carnegie bought the iron ore mines, coal fields, and railroads needed to supply his mills
18 Raw Materials Example: Iron Ore 1 Steel: Vertical Integration Rolling The billets and slabs are heated and rolled into finished products. 4 Melting Hot air is pumped into a furnace, melting iron at 1600 degrees Celsius. (2,912 degrees F) Casting The liquid steel is cast into billets and slabs. 2 3 Refining Impurities are removed and alloys are added from the molten metal through the use of a ladle.
19 ANDREW CARNEGIE Believed in: Social Gospel of Wealth Wealth no longer looked upon as bad, viewed as a sign of God s approval Christian duty to accumulate wealth. Should not help the poor Carnegie philanthropy (generous donations to good causes): The first (library) was in his hometown, Dunfermline, Scotland, opened in By 1919, 2,811 libraries had been founded at a total cost of $56,704,188. U.S. libraries 1,946, British libraries 660 (England and Wales, 423; Scotland 147; Ireland 90), Canadian libraries 156, New Zealand 23, South Africa 13, West Indies 6, Australia 4, Seychelles, Mauritius, and Fiji 1 each
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21 CORNELIUS VANDERBUILT Railroads Horizontal Integration- Owning all the businesses in a particular field Bought smaller railroad companies to form one giant company ABUSES: - Railroad companies offered rebates, or discounts, in order to keep or win customers. - This forced many small railroad companies out of business. - In order to end competition and keep prices high, railroad companies agreed to divide up business in an area and set high prices. This was known as pooling
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23 Contemporary Application Mergers / Consolidation + =
24 JOHN D RCKEFELLER Said no future in oil, then bought as much as possible Formed the Standard Oil Company, trust, in 1870 By 1879 he owned 90% of the oil business Used vertical & horizontal integration The Standard Oil trust ended competition, forming a monopoly. The Sherman Antitrust Act was passed in 1890, banning the formation of trusts and monopolies.
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26 J. PIERPONT MORGAN Used profits earned as a banker to purchase other major corporations. By 1898, Morgan controlled most of the major rail lines in America. By 1901, Morgan became head of the U.S. Steel Company, which became the first U.S. company to be worth over $1 billion Interlocking director An individual who serves as a director of two or more corporations. If the corporations are competitors, interlocking directorates generally violate antitrust laws. JP Morgan- banking and railroads JP Morgan Chase Bank
27 CHARLES DARWIN Scientist Argued that species evolve by adapting to their environment The strongest survive- Survival of the fittest Social Darwinism- no government interferencesurvival of the fittest business- natural selection Many business leaders used this idea to justify child labor, low wages, and unsafe working conditions
28 IMMEDIATE EFFECTS OF INDUSTRIAL REVOLUTION Growth of new industries Expansion of cities Advances in transportation New jobs but poor working conditions
29 LONG TERM EFFECTS OF INDUSTRIAL REVOLUTION Spread of industry to other nations Expansion of the middle class Rise in class tensions Exploitation of less technologically advance countries and peoples Consumption of World Resources Pollution
30 LABOR WORKERS VS. MANAGMENT
31 LABOR UNIONS Many people working and living in cities, making incredibly low wages To improve working conditions workers formed labor unions. They wanted Better pay Shorter hours Better working conditions Collective bargaining- Union leaders negotiate for better wages & working conditions on behalf of all the workers
32 KNIGHTS OF LABOR Founded by Uriah Stephens Included: African Americans, Women, Skilled & Unskilled workers Wanted: equal pay 8 hour work day Regulate trusts No child labor
33 AMERICAN FEDERATION OF LABOR (AFL) Founded by Samuel Gompers The AFL organized skilled workers into national unions based on particular jobs. Screen Actors Guild, American Postal Workers Union, American Federation for Teachers, etc By 1900 had 500,000 members.
34 WORKERS TURN VIOLENT 1890s see two violent riots from labor unions, showed government sided with the businesses Homestead Strike Pullman Strike
35 HOMESTEAD STRIKE June Henry Frick becomes chairman of Andrew Carnegie s Homestead Steel works 1892 Frick announces plans to cut the work force Workers go on strike, seize control of Homestead (town) Frick hires the Pinkerton agency (security service) to break the strike A deadly gun battle takes place between the strikers & the detectives. Pennsylvania sends its state militia to restore order. Although the strike lasts four more months, the union is eventually defeated.
36 PULLMAN STRIKE May 1894 Struck because of wages cuts and the firing of Union representatives Wages were cut but the rent on their Pullman owned homes remained the same 50,000 men stopped working The Railroad company asked the government for support Troops were sent in Much bloodshed but eventually the strike ended
37 HAYMARKET SQUARE RIOT 1886 Chicago, May McCormick Harvesting Machine Company (farm tools) Workers go on strike for a shorter work day (8 hours) two men were killed by police The next day workers meet at Haymarket Square to protest the killings Police arrive to break up the crowd and a bomb was thrown- shooting breaks out Seven policemen and one civilian die as a result of the mayhem
38 HAYMARKET SQUARE RIOT Xenophobia- fear and dislike of those from foreign countries Many of the workers were foreign (poor and having no choice but to work at the factories) and were resentful towards the large companies who took advantage of their workers Because of the riots and death that resulted, the government grew scared of foreigners and those who felt communism and anarchy was a better option for government Many people were put on trial and given these labels even if they were untrue
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40 TRIANGLE SHIRTWAIST FIRE 1911 One hundred and fifty people, mostly young women, died in a fire at the Triangle Shirtwaist Factory in New York City. Sweat shop that employed young, immigrant, female workers. They worker 12 hour days, everyday. Building had two flights of stairs and four elevators- only one worked that day, carrying 12 at a time 600 people working in the building A fire starts in a rag bin, a broken hose does nothing to put it out. Doors locked at the bottom of the stairwell, doors open inwards (girls trapped behind the doors), many fall to their deaths, many others suffocate or are burned to death. Total of 145 killed from the fire Union march set up for two weeks later- 80,000 attended
41 TRIANGLE SHIRTWAIST FIRE Fire fighters arrived soon after the alarm was sounded but ladders only reached the 6th floor and pumps could not raise water to the highest floors of the 10-story building. Still the fire was quickly controlled and was essentially extinguished in half an hour. In this fire-proof building, 146 men, women, and children lost their lives and many others were seriously injured.
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43 BISBEE DEPORTATION Mining conditions the worst Union comes to owner with list of demands- no physical examination at the end of each shift (prevented theft), no blasting while men in the mine, two men to operate various machinery, and higher wages. Company denied all demands Call for strike and 85% of all working miners in Bisbee joined the strike Over 2,000 men kidnapped and forced by gunpoint on to train cars. Men were released in New Mexico- having gone without food or water and warned never to return. Official decree that the acts were illegal and were given no authority from the government, however no one was ever convicted
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45 TAFT HARTLEY ACT 1947 Severely restricted activity and power of Unions in the United States Mandatory cool off time after contract expires before a strike can occur No contacting people at work No forcing people to join a union in order to work Union leaders must sign forms declaring they are not members of the Communist party
46 IMMIGRATION
47 OLD IMMIGRANTS In the 1800s millions of immigrants came to the United States in search of economic opportunity. People who arrived before the 1880s were called old immigrants. They usually came from northern Europe, spoke English, were Protestants, and had work skills. Old Immigrants come from countries such as: Ireland, Britain, Germany, and Scandinavia
48 NEW IMMIGRANTS 5 million immigrants came to the U.S. during the 1880 s. They were called new immigrants. They came from southern & eastern Europe & Asia and brought different cultures and religions with them New immigrants came from countries such as: Italy, Russia, Hungry, Greece, Poland
49 NEW IMMIGRANTS Most new immigrants came by ship in steerage, an area below the deck Many immigrants got sick or died during the voyage. Ellis Island served as the gateway to a new life for immigrants arriving in the United States after a long journey at sea. Ellis island funneled 12 million new arrivals into the country between 1892 and Landing cards were needed by anyone immigrating to America. Health inspectors at Ellis Island in New York checked the physical condition of immigrants before they were allowed to enter the United States. People with diseases were sent back to their home countries.
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51 NEW IMMIGRANTS Many immigrant families left their homelands in the hope of making a better life for their children. They often arrived carrying only a few possessions. Most immigrants lived in cities and found low-paying jobs. Overcrowding caused problems in many cities as the population grew too fast
52 NEW IMMIGRANTS Immigrants adjusted by settling in communities with people of their own ethnic group. Assimilation was a long and slow process Assimilation - The process whereby a minority group gradually adopts the customs and attitudes of the prevailing culture. LITTLE ITALY, NEW YORK CITY JEWISH VENDOR, NEW YORK
53 NOT ALL IMMIGRANTS WELCOME Many Americans feared that new immigrants would never assimilate. Asians were prohibited from buying land in California. Chinese immigrants were frequently attacked, and occasionally killed, by racist mobs.
54 ANGEL ISLAND Immigration station near San Francisco Detained many Chinese immigrants for interrogation- time varied from weeks to possibly years Ideal because it would keep any diseases away from the general public Often ask questions with no real answer to confuse Chinese immigrants Give reasons to deport them back to their country In operation for 30 years Word started getting back to China Many poems written on the walls of the misery of the people detained there Building burned down in the 40s
55 ANGEL ISLAND
56 CHINESE EXCLUSION ACT 1882 It barred the immigration of Chinese laborers for 10 years. It was renewed several times by Congress before being repealed in 1943 by the Supreme Court.
57 NOT ALL IMMIGRANTS WELCOME Emergency Quota Act May 1921 Limits immigration to 357,000 a year National Origins Act May 1924 Gives preference to northern European immigrants bans Asians 2% of the number of people that were living in the US in the 1890 census
58 YELLOW JOURNALISM Exaggerated news stories, often NOT based on hard facts Headlines are eye catching Sensationalized Used to sell newspapers
59 YELLOW JOURNALISM
60 POLITICAL CARTOONS illustrations or comic strips containing a political or social message that usually relates to current events or personalities
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