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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.
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IMPACT OF INDUSTRIALIZATIONLinking 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 mechanizedfewer 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 jobsGreater 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)
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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)
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Steel Makes the Impossible Possible
Elisha Otis invents the safety mechanism for elevators to prevent them from suddenly falling!
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Capitalism = free enterprise individuals/groups of individuals own the majority ofbusinesses, with limited government interference. Focus in on making $$$$.
Laissezfaire economics = economic policywhere government has very little role in business/ economy. Means "hands off" in Frenchidea is that government keeps its "hands off" of business.
Capitalism and government's laissezfaire policies encourage entrepreneurs = people who invest money in a product or enterprise to make a profit
Entrepreneurs fuel industrialization dominatedthe three basic industriesrailroads, steel, andpetroleum (oil).
Modern entrepreneurs = Bill Gates, Steve Jobs,etc.
Capitalism Encourages Entrepreneursmodern entrepreneur = Bill Gates
entrepreneur =Cornelius Vanderbiltbegan working on his father's ferry boatstarted his own ferryservice in NY, whichturned into a shippingline.
He went on to build arailroad empire; hisfamily was one of thewealthiest in the world.
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Through mid19th century, businesses were run by a person/family, and were usually local
Railroads provided businesses with access to raw materials and customers farther waybusinessmen 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....
Maximizing Profits by Forming Monopolies
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Forms of Monopolies
Cartel = businesses making the same product agree to limit their production and keep prices high.
Modern example = oil/gas
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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.
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• · 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 theseveral 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
Government & Business
Who is in control? The Industrial Rev.
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Bellwork Day 2What 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?
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Characteristics of aCaptain of IndustryCharacteristics of aRobber Baron1. Increases availability of goods bybuilding factories1. Drains the country of its naturalresources2. Raises productivity 2. Corrupts public officials tointerpret laws in their favor3. Expands markets 3. Drives competitors to ruin4. Creates more jobs 4. Pays poor wages5. Funds many of the nation’s publicinstitutions: practices philanthropy(giving generously to charitablecauses)5. Forces workers to toil underdangerous and unhealthy conditions6. Organizes the factors ofproduction efficiently6. Exploits the factors of production
Individual men played key roles in making the US an industrial power and introducing new methods of business.
People debated whether or not they were greedy "robber barons" or "captains of industry" driving the US economy and turning the US into the most powerful nation in the world.
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?
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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.
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∙ Rockefeller built up a massive fortune in the oil industry by buying out other companies and building an oil empire.
Rockefeller first used horizontal integration = owning and combining all businesses that perform the samefunction.He bought out other oilrefining 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.
John D. Rockefeller & Standard Oil Company
Rockefeller then used vertical integration = controlling all steps of a product's manufacturingHe invested in industries related to oil productionthe pipelines, RRs that transported oil, etche took over the entire supply chain of oil, from drilling for it to getting it to consumers.
Rockefeller = Richest Man in the WorldROBBER BARON OR CAPTAIN
OF INDUSTRY? WHY?
RockefellerOil, $$, Power
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Andrew Carnegie and U.S. Steel∙ Andrew Carnegie, a Scottish immigrant, is known for being a truly selfmade 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
∙ Later dedicated his time and fortune to philanthropy (donating $$ to the arts, education, and other cultural interests).
∙ In his Gospel of Wealth, he famously wrote "the man who dies rich, dies disgraced."
SelfMade Man
ROBBER BARON OR CAPTAIN OF INDUSTRY? WHY?
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Andrew Carnegie on wealthWealth = good thingBUT should use your wealth to help uplift othersthrough education/resources
Gospel of WealthWealth = sign of God's approvalChristian duty to accumulate wealth, but need to give it away before you die!
Social Darwinism = survival of the fittest/evolutionapplied to humansUsed to justify why some were wealthy and someweren'tGovernments should practice laissezfaire to allow for "natural selection"Shouldn't necessarily help the poorJustify racismsome races "superior"/"more evolved" than others.
The Right to Wealth
The Myth of Success= "rags to riches"Made famous by author Horatio Alger and his Ragged Dick series of books
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http://www.youtube.com/watch?v=yb5CVJYJ1ZQ
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?
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Day 3 Bell work:
What does this cartoon tell you about Standard Oil? What does Standard Oil have control of?
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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.
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Skilled vs. Unskilled LaborSkilled = knowledge of a particular craft/skillexample: plumbers, electricians, etc.Unskilled = no knowledge necessary, routine tasks
Factory workers = usually immigrants
Worked long hours12 hours a day, 6 days a week, often in sweatshops
Factory work was dangerouspoorly lit, overheated, bad ventilation
Accidents were common
Despite the poor conditions, there were always more people than jobsfactoryowners had the upper hand.
Workers Endure Hardships
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Labor Unions FormLabor 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 SpreadsBeginning 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. CAPITALISMWhat 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.
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Section 3: The Organized Labor MovementF.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.
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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.
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Cause: May 1, 1886 National demonstration for 8 hour workday
Events:• Strikes in several cities, and fights broke outbetween 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 out8 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
Haymarket Riot, 1886
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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 23anarchist 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
Homestead Strike, 1892
WHOSE SIDE ARE YOU ON? READ THE DOCUMENTS AND FIND OUT!
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Pullman Palace Car Company made luxury railroad carsWorkers 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 negotiatewith 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 UnionARU = industrial union, included all railroad workers regardless of job
Government & Business Response:∙ Railroad owners claimed workers were illegallydisrupting free trade∙ President Grover Cleveland sent in federal troops to endthe strike Debs put in jail for refusing to stop strike andworking 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.
Pullman Strike, 189394
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Bell work Day 4Analyze the visual:
Do you see this as being a prolabor or antilabor political cartoon?
list and explain the components of the cartoon that support your opinion.
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Thomas Edison, "The Wizard of Menlo Park," created more than
1000 inventions. His most significant is the light bulb!
George Westinghouse developed AC current needed to send
electricity over long distancesto light city streets and power homes
and factories!
1844: Samuel Morse perfected the telegraph (sending messages over wire ...
1896: Guglielmo Marconi wireless telegraph!
1876: Alexander Graham Bell: telephone!
ELECTRICITY!!!
COMMUNICATION!!! TRANSPORTATION!!!Westinghouse (again): air brakes for trains! (safer)
Gustavus Swift: refrigerated RR cartransport food longer distances
Time zones! Put in place to keep trains on schedule.
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Innovations and inventionsPost 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.
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 airbrakes for train cars. Quick write:List 5 ways electricity changes society?
George Westinghouse
Nichola Tesla
Thomas Edison
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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 Processthe first inexpensive industrial process for the massproduction of steel from molten pig iron. The process is named after its inventor, Henry Bessemer, who took out a patent on the process in 1855.
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.1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
A. Bell
H. Bessemer
E. Otis
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