Daily Writing 9/21

What were some of the problems of industrialization?

Robber Barons or Captains of Industry?

Industrialization in America

Industrial Boom in America

• Factors driving growth:– Lots of raw materials– Large and growing labor supply– Surge in technological advancement – Growth of entrepreneur population– Protection of federal government– Expanding domestic market

Technology

• Iron and steel production• Bessemer process makes steel production

possible– Stronger, easier to use– Used to build trains, rails, and construct buildings

• Rise of the oil industry– Needed to help lubricate machines– Eventually used for gas

New Forms of Transportation

• Automobile– Rapid innovations in engines– 1895: 4 automobiles, 1917: 5 million

• Airplane– Wilbur and Orville Wright, 1903 - Kitty Hawk NC– Would be used in WWI, commercially in 1920s

Science of Production

• Scientific Management – “Taylorism” – Manage human labor, make it work with machines– Subdivides tasks– Need less skilled workers

• Moving Assembly line– Cuts time to make cars, reduces prices, raises

wages

Railroad Expansion

• Main method of transportation• Nation’s largest business, were a model for

other industries. • Railroad tracks increase dramatically • Subsidies from the federal government

Growth of the Corporation

• Increased interest in buying stocks• Changes to management structure• Horizontal and Vertical Integration– Horizontal: combining firms doing the same thing– Vertical: combining firms involved in various

stages of an industry– Standard Oil: started as oil business, but

Rockefeller bought all parts of production

New Social Theories

• Old theory: Self-made man, pulling up by bootstraps

• Social Darwinism: Survival of the fittest – rich are wealthy because they are stronger– Appeals to businessmen – Invisible hand guides market

• Gospel of Wealth: with great power comes great responsibility– Use money for good

Problems with Monopolies

• High prices/unstable economy– No competition

• Abuse of workers

• Flashy wealth– Growing gap between rich and poor