Industrialization Module 3. CRASH COURSE: Industrial Age

Transcription

1 Industrialization Module 3 CRASH COURSE: Industrial Age

2 Section 1:The Expansion of Industry: Main Idea: At the end of the 19 th century, natural resources, creative ideas, and growing markets fueled an industrial boom. Why it Matters Now: Technological developments of the late 19 th century paved the way for the continued growth of American Industry. Key Terms: Bessemer Process Key Names: Edwin L. Drake Thomas Alva Edison Christopher Sholes Alexander Graham Bell

3 Section 1: The Expansion of Industry: As the settlers continued to push west, America was still largely agricultural that will all change 1920 s leading industrial power in the world 1) Natural Resources Oil, coal, iron, streams, farmland Coal was cheap resource Cleveland + Pittsburg 2) Governmental support Free Market Economy Coin money, tariff on imports, patents Laissez Faire government leaves the business sector alone 3) Urbanization Million people Million 4) Technological innovations Inventions, transportation, communication, factory systems

4 A Favorable Climate The U.S. economy welcome entrepreneurs willing to work hard to create wealth Belief in Free Markets U.S. economy based on free enterprise, driven by competition and consumer demand Laissez-faire capitalism, government takes a hands off approach with business Business leaders in favor of protective tariffs, though Social Darwinism Social Darwinism, or social evolution, based on Darwin s theory Economists use Social Darwinism to justify doctrine of laissez faire» Idea of survival, success of the most capable appeals to wealthy Notion of individual responsibility in line with Protestant ethic See riches as sign of God s favor; poor must be lazy, inferior 4

5 Black Gold & Steel In 1859, Edwin Drake used a steam engine to drill for oil Titusville, PA This started an oil boom throughout the Midwest and Southern States Ohio, Kentucky, Illinois, Texas Steel Henry Bessemer Bessemer Process removed the carbon from iron, the result was a lighter, more flexible and rust resistant compound

6 New Uses For Steel: Steel will change the construction industry and America s economy Growth of cities Jobs, urban society/culture Increase trade Rest of the world look to America for trade Skyscrapers Vertical expansion Railroads Bridges

7 Inventions Promote Change Electricity Thomas Alva Edison perfected the incandescent light bulb in 1880 Later he invented an entire system for producing and distributing electricity Thomas Edison: History.com Typewriter Christopher Sholes invented the typewriter in 1867 His invention forever affected office work and paperwork It also opened many new jobs for women Mostly stayed at home to take care of the family Telephone: Alexander Graham Bell Thomas Watson unveiled their invention in 1876 We are still using their invention today

8 Section 2: The Age of the Railroads: Main Idea: The growth and consolidation of railroads benefited the nation but also led to corruption and required government regulation. Why it Matters Now: Railroads made possible the expansion of industry across the United States. Key Terms: Transcontinental Railroad Munn vs. Illinois Interstate Commerce Act

9 The Age of Railroads h?v=kl0lximmb9e As railroad companies continued to grow, their influence over others became out of control charge what the traffic will bear Had a monopoly over their area High Prices Pooling Agreements secret agreements between companies to raise prices Government began to loan money and grant land to Railroad Companies. Politicians were bribed Campaign contributions Free RR passes New reforms will be needed to keep the railroad companies in check

10 A National Network: The transcontinental Railroad - cross country route, connecting many cities. Union Pacific and Central Pacific RR Companies Promontory, Utah May Railroad and Time zones Before 1883, each city still operated on its own time The U.S. would be divided into 4 zones: the eastern, Central, Mountain, and Pacific Impact Tied nation together Increase trade and travel

11 THE UNITED STATES IS DIVIDED INTO 4 TIME ZONES

12 C. Opportunities and Opportunist 1.Supply and Demand Railroads require great supply of materials, parts Iron, coal, steel, lumber industries grow to meet demand 2. New Towns and Markets Railroads link isolated towns, promote trade, interdependence Nationwide network of suppliers, markets develops Towns specialize, sell large quantities of their product nationally New towns grow along railroad lines

13 Pullman and the Sleeper car George M. Pullman Factory owner Pullman Palace Car Company Built Sleeper/ dinning / parlor cars Pullman built a town for his employees Housing, parks, factory Provided his employees with basic needs Doctor offices, shops and athletic fields Pullman Company controlled the town No loitering on front steps, no alcohol. Violent strike due to low pay and high rent Slashed wages, outlawed saloons

14 Business owners desired control and profit Credit Mobilier Construction company formed in 1864 by Union Pacific RR Company Dummy Company Stock holders gave contact to lay track 2 to 3 times the cost profited and paid congressmen Bribe Congress to pass RR Laws/Acts Vice President Congress investigated Public figures kept profit, but Republican party took a hit.

15 The Grange and the Railroads: Farmers upset Misuse of government land Sold to other businesses and not settlers Fixed the prices Charged customers differently Farmers had no alternative method of shipping Farmers create and join the Grange Farmers (with the help from the Grange) continued to push for fairness in the railroad industry and they got political! Granger Laws prohibit discrimination in Railroad shipping They got the Supreme Court to pass.. Munn vs. Illinois: States were given regulation control of railroads by the Courts

16 The Grange and the Railroads (continued) Interstate Commerce Act 1886, Supreme Court: states cannot set rates on interstate commerce Public outrage leads to Interstate Commerce Act of 1887 federal government can supervise railroads establishes Interstate Commerce Commission (ICC) Legal battle with railroads; difficult for ICC to take action Panic and Consolidation Abuses, mismanagement, competition almost bankrupt many railroads Railroad problems contribute to panic of 1893, depression By mid-1894, 25% of railroads taken over by financial companies

17 Section 3: Objectives By the end of the lesson, I will be able to: 1. Identify management and business strategies that contributed to the success of business tycoons such as Andrew Carnegie. 2. Explain Social Darwinism and its effects on society. 3. Summarize the emergence and growth of unions. 4. Explain the violent reactions of industry and government to union strikes.

18 Section 3: Big Business and Labor Carnegie Mellon University Andrew Carnegie was one of the first industrial tycoon Owned the entire steel industry rags to riches Supported charities Immigrated to USA when he was 12. At 18 he was local superintendent of the Pennsylvania RR company His boss, Thomas, Scott gave Carnegie the opportunity to buy stock in the company. He entered the steel industry in 1873 after making BIG $ with the railroad industry Carnegie attempted to control as much of the steel industry as possible

19 A Favorable Climate The U.S. economy welcome entrepreneurs willing to work hard to create wealth Belief in Free Markets U.S. economy based on free enterprise, driven by competition and consumer demand Laissez-faire capitalism, government takes a hands off approach with business Business leaders in favor of protective tariffs, though Social Darwinism Social Darwinism, or social evolution, based on Darwin s theory Economists use Social Darwinism to justify doctrine of laissez faire» Idea of survival, success of the most capable appeals to wealthy Notion of individual responsibility in line with Protestant ethic See riches as sign of God s favor; poor must be lazy, inferior 19

20 Industrial Robber Barons (owners) John D. Rockefeller: OIL --- controlled everything w/ oil: crude, refining, transport Andrew Carnegie: STEEL --- very important for I.R, (railroads, machines); $480 mil, 1901 Cornelius Vanderbilt: RAILROAD --- transportation of goods; also gain land J.P Morgan - Industrialist and financier who started U.S. Steel from Carnegie Steel Many gave to charities while paying very little to workers (philanthropy)

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22 Carnegie s Smart Plan: Vertical integration - buying out his suppliers coal fields, iron mines, ore freighters, and rail lines Horizontal Integration buying out companies that produce similar products

23 Social & Political Discontent Railroad Trusts and Other Monopolies Trusts = competing companies work together to set high prices Railroad trusts most famous; demanded high RR rates, hurt farmers; trusts in sugar, tools, grain depot industries Monopoly = 1 company controls 1 part of market Standard Oil most famous monopoly; controlled all aspects of oil manufacturing and sales

24 New Business Strategies (continued) Fewer Choices Pools, trusts, and holding companies help create monopolies to control production, wages, prices Monopolies hurt consumers and workers A Mixed Legacy Many Americans admired captains of industry made economy more productive supported philanthropy Critics call industrialists robber barons taking advantage of consumers, workers unfairly squeezing out competition Copyright by Houghton Mifflin Harcourt Publishing Company

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26 Sherman Anti-Trust Act: The government had to respond the robber barons were getting way to powerful. Stifle competition = monopoly, bad for capitalism Sherman Anti-Trust Act made it illegal to form a monopoly (Trust) This was tough to govern big companies would just split up into smaller companies Standard Oil just formed one corporation Government couldn t enforce the Act North advanced during the industrial boom! South still recovering from the Civil War Southern farmers were at the mercy of Railroad companies Hope was in mining tobacco, furniture and cotton. South didn t have the capital to expand

27 Lesson 4 Rise of Labor Movement

28 Labor Unions Emerge Why?? Low wages, unsafe working conditions, drew workers together to try to improve conditions. No vacation, sick days, workers comp, etc. Working conditions bad dirty, poorly ventilated, led to injuries. Repetitive takes on sometimes faulty equipment. In workers killed. Low wages - whole families had to work, even children as young as 5.

29 Labor Unions Emerge: WORKING CONDITIONS Workers were working 6-7 days a week for more than 10 hours a day In 1882, an average of 675 workers were killed PER WEEK on the job Workers realized they needed to organize to get change to happen Workers created Unions to negotiate wages, hours, conditions, striking Everyone in the family had to work Wages were so low $3 for skilled work and $1.50 for unskilled work a Day Women and Children HAD to work Some children did not go to school and went to work 8 yr olds 27 cents for a 14hr day Andrew Carnegie earned 23$ million a year

30 The Growth of Labor Unions Collective Bargaining Negotiating as a group with their employers Higher wages, better conditions, lower rent Strike workers refuse to work Local, state, region, country, groups. Unions- National Trades Union 1833 Changes start 10 hr days, 6 days a week (mid 1800 s)

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32 Striking and Violence: Skilled workers started to organize NLU National Labor Union 1866 CNLU Colored National Labor Union Unions fought for a 8hr work day Knights of Labor open to all workers regardless of gender, race or skill level Equal pay for equal work AFL American Federation of Labor Collective bargaining Negotiations between workers and business owners Some strikes, turned deadly labor leaders and Eugene V. Debs labor leader that helped to organize unions Include all skilled and unskilled workers Outcomes 1. Companies learned to treat their employees better 2. Unions became more powerful

33 Labor Unions Knights of Labor 1869 Social gains for unskilled and skilled workers Uriah Stephens Recruited women + African Americans Terence V. Powderly took over Used collective bargaining, strikes, boycotts American Federation of Labor Samuel Gompers Skilled workers, 100 s of different specific crafts, Union Dues Wages, Hours and conditions Outcomes 1. Companies learned to treat their employees better 2. Unions became more powerful

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35 Haymarket Strike May 1886 Haymarket Square Chicago Strikers and police exchange violent attacks Protestor threw a bomb 8 anarchists tried for murder 4 executed Haymarket Riot People feared the Knights of Labor / Strikers Homestead Strike Homestead Penn. Andrew Carnegie steel plant workers strike Hires Henry Frick Pinkertons (private police force) Several workers killed. Public opinion turns against unions.

36 Labor Unrest Pullman strike (1894) Started in Chicago 3,000 railway workers were laid off and wages cut percent. President Cleveland sent in federal troops to protect interstate commerce. Eugene V. Debs and the Socialist Party Industrial Workers of the World Fought for Unskilled Workers Radical Unionists Miners, Foresters, dock workers

37 Strikes turn Violent Labor unrest ,000 strikes Yellow dog contracts promised not to strike or form unions Great Strike of 1877 Ohio and Baltimore RR workers struck Stopped interstate trade National Guard came in to put down the strike Haymarket Affair Chicago 1877 Worker was killed and several injured at the McCormick Harvester plant Rioters tossed a bomb at the police Police fired back Eight organizers were charged and one hung Police started to become Anti-Union Marry Harris Jones Most prominent female union organizer Led to expose and end child labor

38 Impact of Labor Unions Business owners backed by courts against unions Unions denied legal protection Collective bargaining, strikes became strategies