3. Evaluate the impact of industrialization on the transformation of American society, economy, and politics.

Transcription

1 3. Evaluate the impact of industrialization on the transformation of American society, economy, and politics. A. Analyze the impact of leading industrialists as robber barons and as philanthropists including John D. Rockefeller and Andrew Carnegie and his Gospel of Wealth essay on American society. B. Identify the impact of new inventions and industrial production methods including new technologies by Thomas Edison, Alexander G. Bell, and the Bessemer process. E. Evaluate the significance of the Labor Movement on the organization of workers including the impact of the Pullman strikes, the Haymarket Riot, and the leadership of Eugene V. Debs. Day 1 Bell work: Identify all of the major people, events and terms in the C3 standards. 1

2 IMPACT OF INDUSTRIALIZATION Linking World Markets By 1880s, new technology allowed American grain, steel, and textiles to dominate world markets RRs allowed US to transport goods from where they were made/grown to where they could be shipped US economy greatly expanded and became a world economic power Changing American Society Farms became mechanized fewer farm laborers needed Former farmers moved to cities to find work, as did immigrants Cities exploded in size Mass production in factories meant people had more access to products they would have had to make by hand Negatives = higher cost of living, dependent upon cash wages, boring jobs Greater number of immigrants started pouring into the United States. Environment Industry created waste and pollution New agricultural practices created erosion and dust storms People became concerned w/ protecting natural resources National Park Service = set aside protected lands (1870s on) 2

3 IMPACT BY IMMIGRANTS DURING THE INDUSTRIAL REVOLUTION Immigrants came by the millions during the Industrial Revolution. They provided labor for many of the unskilled jobs needed by the newly formed factories. The large scale immigration led to negative feelings towards immigrants and policies aimed at keeping them out (Chinese Exclusion Act) 3

4 Steel Makes the Impossible Possible Elisha Otis invents the safety mechanism for elevators to prevent them from suddenly falling! 4

5 Capitalism Encourages Entrepreneurs Capitalism = free enterprise individuals/ groups of individuals own the majority of businesses, with limited government interference. Focus in on making $$$$. modern entrepreneur = Bill Gates Laissez faire economics = economic policy where government has very little role in business/ economy. Means "hands off" in French idea is that government keeps its "hands off" of business. Capitalism and government's laissez faire policies encourage entrepreneurs = people who invest money in a product or enterprise to make a profit Entrepreneurs fuel industrialization dominated the three basic industries railroads, steel, and petroleum (oil). entrepreneur = Cornelius Vanderbilt began working on his father's ferry boat started his own ferry service in NY, which turned into a shipping line. He went on to build a railroad empire; his family was one of the wealthiest in the world. Modern entrepreneurs = Bill Gates, Steve Jobs, etc. 5

6 Maximizing Profits by Forming Monopolies Through mid 19th century, businesses were run by a person/family, and were usually local Railroads provided businesses with access to raw materials and customers farther way businessmen found new ways to maximize profits. Businessmen would create huge corporations where they were able to maximize their profits! Corporation = group of people share ownership of a business. Each puts $ in, and if a corporation experiences problems, no investor loses more $ than they originally invested Corporations worked to maximize profits by decreasing the cost of making goods, paying workers the lowest possible wages, and by advertising Some tried to gain a monopoly = one company has complete control of a product or service, by buying out competitors or driving them out of business. Once consumers could only buy from one business, they would have to pay as much as the business wanted to charge. How do you form an monopoly? Two basic ways... 6

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10 Forms of Monopolies Cartel = businesses making the same product agree to limit their production and keep prices high. Modern example = oil/gas 10

11 Cartels are formed to gain control over competition. A group of similar business get together to set prices on their products and production levels. How would this affect those businesses not part of the cartel? To get around laws against monopolies, Rockefeller formed Trusts which is where his competitors assigned their stocks, thus control of their businesses, to a board of trustees who dictated operation. 11

12 Government & Business Government generally supportive of big business and sided w/ business against labor throughout the late 1800s BUT, government did act against the most unjust business practices Railroads = especially corrupt, charging random and unfair rates 1887 Interstate Commerce Commission ICC set up the Interstate Commerce 1890 Sherman Antitrust Act outlawed any trust that "operated in restraint of trade or commerce among the several states" limited trade or business between states * Act was seldom enforced * Was often used by businesses against labor Although laws were seldom enforced, began a trend toward federal limitations on the power of big business Who is in control? The Industrial Rev. 12

13 Bellwork Day 2 What does this cartoon tell you about Cornelius Vanderbilt? (if you don't remember who he is, look on p. 188) Do you think this is a positive or a negative portrayal (view) of Vanderbilt? 13

14 Characteristics Individual men of a played key roles in making the US an industrial power and introducing new Captain of Industry methods of business. Characteristics of a Robber Baron 1. Increases People availability debated of whether goods by or not they were greedy "robber barons" or "captains of industry" building driving factoriesthe US economy and turning the US into the most powerful nation in the world. 1. Drains the country of its natural resources 2. Raises productivity 2. Corrupts public officials to interpret laws in their favor 3. Expands markets 3. Drives competitors to ruin 4. Creates more jobs 4. Pays poor wages 5. Funds many of the nation s public institutions: practices philanthropy (giving generously to charitable causes) 5. Forces workers to toil under dangerous and unhealthy conditions 6. Organizes the factors of production efficiently 6. Exploits the factors of production With every fact you learn about Vanderbilt, Rockefeller and Carnegie, ask yourself are these men robber barons or captain of industries. More importantly, WHY do you say that? 14

15 Different forms of business consolidation gives Rockefeller and Carnegie an edge over their competitors. Horizontal vs Vertical Consolidation Horizontal Consolidation is where a business gains control of one step of the production process of a product, thus controlling the output of the whole industry. J.D. Rockefeller's Standard Oil of Ohio gained control of the refineries and could set production levels and prices. Had the power to broker deals for shipping and crude cost. Vertical Consolidation is where a business controls every step in the process of production. Andrew Carnegie's U.S. Steel owned every step from the oar mines, shipping, coal mines, railroads... With this model, a business has total control and does not have to pay the profits of other businesses. This lowers production cost and product costs. 15

16 John D. Rockefeller & Standard Oil Company Rockefeller built up a massive fortune in the oil industry by buying out other companies and building an oil empire. Rockefeller Oil, $$, Power Rockefeller first used horizontal integration = owning and combining all businesses that perform the same function. He bought out other oil refining businesses in Ohio, Pennsylvania, and New York to gain control of the industry. When Ohio law kept him from buying out his competitors, he formed a trust, where a group of people control several companies. Rockefeller then used vertical integration = controlling all steps of a product's manufacturing He invested in industries related to oil production the pipelines, RRs that transported oil, etc he took over the entire supply chain of oil, from drilling for it to getting it to consumers. ROBBER BARON OR CAPTAIN Rockefeller = Richest Man in the World OF INDUSTRY? WHY? 16

17 Andrew Carnegie and U.S. Steel Andrew Carnegie, a Scottish immigrant, is known for being a truly self made man. Though brilliant in business, workers and labor unions found him dismissive of their concerns. Used vertical integration to gain control of steel industry At the turn of the century, he sold his steel company to JP Morgan, who combined it with other steel companies to create the U.S. Steel Empire Self Made Man Later dedicated his time and fortune to philanthropy (donating $$ to the arts, education, and other cultural interests). ROBBER BARON OR CAPTAIN OF INDUSTRY? WHY? In his Gospel of Wealth, he famously wrote "the man who dies rich, dies disgraced." 17

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19 The Right to Wealth Andrew Carnegie on wealth Wealth = good thing BUT should use your wealth to help uplift others through education/resources Gospel of Wealth Wealth = sign of God's approval Christian duty to accumulate wealth, but need to give it away before you die! Social Darwinism = survival of the fittest/evolution applied to humans Used to justify why some were wealthy and some weren't Governments should practice laissez faire to allow for "natural selection" Shouldn't necessarily help the poor Justify racism some races "superior"/"more evolved" than others. The Myth of Success= "rags to riches" Made famous by author Horatio Alger and his Ragged Dick series of books 19

20 Philanthropist: a person who seeks to promote the welfare of others, especially by the generous donation of money to good causes. Social Darwinism: In society, only the "strongest will survive" and weak will die out. Discussion Question: After reading the handout and watching clip would you describe Rockefeller and Carnegie as philanthropist or Social Darwinists? Why? 20

21 Day 3 Bell work: What does this cartoon tell you about Standard Oil? What does Standard Oil have control of? 21

22 The debate over the actions of business tycoons is were they... Captains of Industry???? or Robber Barons???? Quick activity: 5 minutes to prep. (use your notes) Get with a partner and pick a side. Give at least 4 examples to support your answers. 22

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24 Skilled vs. Unskilled Labor Skilled = knowledge of a particular craft/skill example: plumbers, electricians, etc. Unskilled = no knowledge necessary, routine tasks Factory workers = usually immigrants Worked long hours 12 hours a day, 6 days a week, often in sweatshops Factory work was dangerous poorly lit, overheated, bad ventilation Accidents were common Workers Endure Hardships Despite the poor conditions, there were always more people than jobs factory owners had the upper hand. 24

25 Labor Unions Form Labor Unions = workers organized to bargain with their employers for better wages, better working conditions, and bigger social reforms Collective bargaining = negotiating as a group for higher wages, better working conditions, etc. One form of collective bargaining is the strike = workers agree to stop working until their demands are met; Late 1800s = As membership in labor unions rose and labor unions learned how to organize their protests effectively, strikes increased Socialism Spreads Beginning in 1830s, socialism spread throughout Europe and to American workers. Socialism = economic and political philosophy where public control property and income; socialists believe society, not individual people, should take charge of a nation's wealth, and distribute wealthy equally SOCIALISM vs. CAPITALISM What is the difference? Karl Marx and Friederich Engels wrote The Communist Manifesto, which expanded on ideas of socialism. Argued that workers would one day rise up against capitalism and overthrow it. 25

26 Section 3: The Organized Labor Movement F.Q. How did the rise of labor unions shape relations among workers, big business, and the government? During our industrial revolution workers faced many hardships for very little pay. These included; Long hours and days Minimal wages Unsafe working condition Sweatshops Child labor Company towns Lack of outside support (government) These conditions will lead to the formation of labor unions. They first formed in 1820's and introduced the concept of Collective Bargaining. That is when chosen few negotiate for the whole of a group for wages, hours, benefits... this is still used today in many industries. Socialism spreads to America through some unions. Socialism promotes public control of property and income along with an equal distribution of wealth. Karl Marx and Friedrich Engels wrote the Communist Manifesto that said free enterprise system would inevitably change into a communist one with a violent take over by the working class. 26

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29 New labor unions form as industries grow. Knights of Labor Founded by Uriah Stephens as a union for all workers, not just skilled workers. The union really gained membership and power under the leadership of Terence Powderly. They also granted membership to all races, sex, and ethnicity. The union addressed social issues and called for reform. The American Railway Union was founded by socialist, Eugene Debs. The union grouped all railroad workers together rather than separating them by jobs. This was to increase union strength. 29

30 Haymarket Riot, 1886 Cause: May 1, 1886 National demonstration for 8 hour workday Events: Strikes in several cities, and fights broke out between strikers and strikebreakers, and between strikers and police May 3 Chicago police shot two strikers May 4, 1886 Chicago's Haymarket Square: protesters gathered to demonstrate against police Bomb exploded and violence broke out 8 police officers and unknown # of civilians died Trial of 8 anarchists followed; four were executed for murder Government Response: Policemen involved, eight men tried, four executed for the bombing charged as a conspiracy Effects: People turned away from radical politics and unions as a result. Knights of Labor membership declined 30

31 Homestead Strike, 1892 Cause: Summer 1892, Carnegie Steel Plant in Homestead, Pennsylvania cut workers' wages; union immediately struck Events: Union Struck Henry Frick, Carnegie's business parter, brought in the Pinkertons, private police force known for breaking strikes Pinkertons killed several strikers and wounded many more over two week period July 23 anarchist joined the protest and tried to assassinate Frick Not supported by union but public believed they were linked W/out public support, union ended the strike in November Business & Government Response: Frick called in the Pinkertons; in other steel strikes the federal government sent in troops Effects: Steelworkers union was weakened by lack of public support WHOSE SIDE ARE YOU ON? READ THE DOCUMENTS AND FIND OUT! 31

32 Pullman Strike, Pullman Palace Car Company made luxury railroad cars Workers had to live in Pullman Town, the company town outside Chicago Cause: May 1894 Pullman fired workers and reduced wages by 25% Events: May 1894, workers sent group to negotiate with Pullman Pullman fired group and shut down plant June 1894 With help from the American Railway Union, Pullman workers launched a nationwide strike W/ over 300,000 workers striking, railroad traffic stopped, including mail delivery Leaders: Eugene V. Debs, head of the American Railway Union ARU = industrial union, included all railroad workers regardless of job Government & Business Response: Railroad owners claimed workers were illegally disrupting free trade President Grover Cleveland sent in federal troops to end the strike Debs put in jail for refusing to stop strike and working against interstate commerce business Supreme Court upheld decision to imprison Debs In re Debs Debs became a Socialist while in jail. He helped to organize the American Socialist Party in 1897 and would run for President several times. He also helped found the IWW. 32

33 Bell work Day 4 Analyze the visual: Do you see this as being a pro labor or anti labor political cartoon? list and explain the components of the cartoon that support your opinion. 33

34 ELECTRICITY!!! Thomas Edison, "The Wizard of Menlo Park," created more than 1000 inventions. His most significant is the light bulb! COMMUNICATION!!! 1844: Samuel Morse perfected the telegraph (sending messages over wire : Guglielmo Marconi wireless telegraph! 1876: Alexander Graham Bell: telephone! George Westinghouse developed AC current needed to send electricity over long distances to light city streets and power homes and factories! TRANSPORTATION!!! Westinghouse (again): air brakes for trains! (safer) Gustavus Swift: refrigerated RR car transport food longer distances Time zones! Put in place to keep trains on schedule. 34

35 Innovations and inventions Post war industries benefit from a wave of inventions that will reach nearly all aspects of society and daily life. Thomas A. Edison... The master of invention known as the "Wizard of Menlo Park". Best known for inventing the incandescent light bulb. Thomas Edison George Westinghouse Nichola Tesla Electricity changes the lives of urban dwellers. Edison's 1st power plant used DC current which was ineffective but was later improved by George Westinghouse and Nichola Tesla who developed AC current which proved more efficient, reliable and allows electricity to be carried further distances. Westinghouse also invented air brakes for train cars. Quick write: List 5 ways electricity changes society? 35

36 Communication changes Samuel Morse perfected the telegraph and is credited with a standardize code what does that mean? Alexander Graham Bell patented the telephone and communications soon enter businesses and homes. Guglielmo Marconi invented the wireless telegraph which impacts the railroad industry and will lead to radio. Bessemer Process the first inexpensive industrial process for the mass production of steel from molten pig iron. The process is named after its inventor, Henry Bessemer, who took out a patent on the process in A. Bell H. Bessemer E. Otis Steel has been around but very slow and costly to produce until Henry Bessemer came up with a process which injected air and lowered the time and cost. Known as the blast furnace. This will lead to the building of suspension bridges and along with Elisha Otis' safety elevator, skyscrapers were built. Cities form skylines which become a matter of civic pride. Quick Activity: Identify the cities below a sheet of paper

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