Industrialism1865 1905The 2nd Industrial Revolution
Changes in Daily Life 1865 1905TRANSPORTATIONAirplanes Wright Bros.Horseless CarriageTranscontinental RRUnion PacificCentral PacificCharles & FrankDuryeaKitty Hawk
Changes in Daily Life 1865 1905ELECTRICITYThomas EdisonLightbulbCentral Power StationsGeneral Electric GEWestinghouse
Changes in Daily Life 1865 1905INVENTIONSBessemer ProcessSteelPatentExclusive rights given by the govt to develop and sell an inventionRefined OilFuelBessemer Process a process for purifying iron that results in stronger, but lightweight steel
Changes in Daily Life 1865 1905COMMUNICATIONTelegraphSamuel MorseWestern UnionTelephoneAlexander G. BellTypewriter
Causes & Effects of Industrialization
Causes & Effects of IndustrializationImmigrantsProvided a huge workforce that worked for low wages
Causes & Effects of IndustrializationOilKerosene & gas became huge industries
Causes & Effects of IndustrializationLaissez-faireNo govt rules for businesses
Causes & Effects of IndustrializationSteelBridges aided with transportation and the skyscrapers gave the cities room to grow.
Causes & Effects of IndustrializationElectricityElectric products & machines
Causes & Effects of IndustrializationEntrepreneursInvest in new inventions and build businesses
Causes & Effects of IndustrializationTime ZonesHelped set train schedules
Causes & Effects of IndustrializationMass ProductionProducing a large amount of product inexpensively
Causes & Effects of IndustrializationRailroadsHelped obtain raw materials faster & ship finished goods.
Built the Carnegie Steel Company after the Bessemer refined steel making processPhilanthropistcharitable giver
The Gospel of WealthSociety needs wealthy peopleThe wealthy have an obligation to give Social Darwinismsurvival of the fittest in businessBuilt his vast wealth through Vertical Integration Sold Carnegie Steel in 1901 for $500 millionCarnegie Steel = $11.4 Billion Today2nd Richest Person in the History of the World
John D. Rockefeller: OilRichest Man in the History of the WorldStandard Oil CompanyAcquired (bought) smaller companies to eliminate competition MonopolyExpanded his business through Horizontal Integration
By 1880, the Standard Oil Company controlled 90% of all US petroleum-refining capacity.Also a Philanthropist Donated about $550 million to charity throughout his life$13.8 Billion adjusted to todays money
George Westinghouse: Train Brakes & ElectricityWestinghouse Air Brake Company built the compressed-air brakeSafety feature that became standard on ALL RR carsTrains could pull more cars & travel fasterDeveloped A/C (Alternating Current) plugs
Cornelius Vanderbilt: Railroad TycoonControlled all RR travel from NY and OhioIn 1877, he owned over 4,500 miles of RR trackBought out smaller RR companiesHe was approximately $100 million
Donated $1 Million to Central University in Nashville, TN, which was later named after him.
George Pullman RR SuppliersPullman RR CarsMade long distance travel more comfortableSleeping Cars, Dining Cars, Luxury CarsPullman, Illinois site of his company town where the cars were made
CapitalismIndividualsNOT the governmentown most industries
Free EnterpriseSame as laissez-faireNO govt intervention in business.
MonopolyComplete control of an industry
CorporationInvestors or stockholders own a company
TrustA board of trustees runs a group of companies. This reduces competition & limits production. Keeps costs high.
Vertical IntegrationBuy the companies that you need to make your product. CARNEGIERailroadsCoal Mines Carnegie Steel CompanyIron MinesSteamship LinesCarnegieSteelCompany
Horizontal IntegrationSimilar to trusts and monopolies. Businesses buy out other companies to exclude all competition. ROCKEFELLERBalentine Oil Co.Tabor OilKane Oil Co.WatsonPetroleumStandardOil CompanyStandard Oil CompanyStandard Oil CompanyStandard Oil CompanyStandard Oil Company
Life for Factory WorkersFACTORY LABORVery long hours, physically demanding, very low payCHILD LABORFor many families, children had to work so their family could survive. WOMENWorked at simple machines, no chance for advancementSWEATSHOPSWorkers are overworked, underpaid, horrible conditions. Many died of malnutrition or disease.PIECEWORKBeing paid by how much you can produceNOT time. The faster you workthe more you get paid!DIVISION OF LABORPerforming the same task over and over and over Rarely see the finished product.
Unions: organized to secure better pay and conditions for workers. Collective bargaining: workers negotiate as a group.Closed Shop: a work place where all employees must belong to a union.Open Shop: a non-union workplace. (employees do not recognize a union)Yellow dog contract: promise by employees not to join a union.
Strike: refuse to work until conditions change.
Knights of LaborTerrence PowderlyAccepted skilled workers, unskilled workers, Af. Amer., and women.Popular because of a successful railroad strike.Became unpopular because of Haymarket Riot
American Federation of LaborSamuel GompersONLY accepted skilled, male workers.
Industrial Workers of the World1905 Union opposed to CapitalismSocialists believes that workers should own industries Eugene Debs & Mary Harris Jones
Haymarket RiotWhy?Workers wanted an 8-hour workday.What?Police showed up at a rally & a bomb went off killing 7 police & 1 civilian. Made people afraid of unions because they were so radical.
Homestead StrikeWhy?Wages were cutWhat?Fight broke out between workers & Pinkertons (a private police force hired by Carnegie Steel).16 were killed.Henry Frick, Pres. of Homestead Steel, was shot & stabbed.
Would it seem restrictive to live in a city like this, built around the factory???
Pullman Strike (Pullman IL near Chicago)Why?Cut wages but did not lower rent nor prices in his townWhat?Other RR workers supported the strike & refused to work. Govt stepped in to restore order & forced workers back to work b/c no RRs mean no mail servicestrikers were breaking the law.Eugene V. Debs, head of the American Railway Union, (ARU) led the workers on strike.
The Great Upheavalthe year of labor unrest
Sherman Anti-Trust ActLaw passed in 1890 that prohibits monopolies & limits power of big business.Is this laissez faire?
Whats the Difference BetweenCapitalism Socialism Communism???Socialism Ownership of property and businesses is mixed between the govt and private individualsEugene V. DebsThe govt uses its power to attempt to manage the economy.
Whats the Difference BetweenCapitalism Socialism Communism???Communism govt ownership of all property and businessesClassless societyeverybody is equalKarl Marx, Friedrich Engels, Vladimir LeninWorkers of the World, Unite! You have nothing to lose but your chains!
Social DarwinismSurvival of the Fittest for businesses and people. Belief that some classes of people are superior and rule over the rest.English Social Philosophy developed by Herbert SpencerAny attempts to help the poor or less capable actually slowed social progressPeople who couldnt survive the natural competition in society would not last, thereby making society stronger.
Richest People in HistoryYou remember this list from Populismthese are the richest people in the world today.Carlos Slim Helu, Mexico, - $69 Billion Bill Gates, USA - $61 Billion Warren Buffett, USA, - $44 BillionBernard Arnault, France - $41 BillionAmancio Ortega, Spain - $37.5 BillionWhen you adjust the incomes into todays dollars, our Industrialists dwarf this list from last week.
Cornelius Vanderbilt - $185 BillionAndrew Carnegie - $309 BillionJohn D. Rockefeller - $336 Billion
Not evil, but good, has come to the race from the accumulation of wealth by those who have the ability and energy that produces it.Industrialist Andrew Carnegie used which one of the following terms to describe the economic philosophy in the quotation above?SocialismBimetallismGospel of WealthSocial Darwinism
A Striker Confronts a Scab!
Changes in Daily Life 1865 1905TRANSPORTATIONAirplanes Wright Bros.Horseless CarriageTranscontinental RRUnion PacificCentral PacificELECTRICITYThomas EdisonLightbulbCentral Power StationsGeneral Electric GEWestinghouseCOMMUNICATIONTelegraphSamuel MorseWestern UnionTelephoneAlexander G. BellTypewriterINVENTIONSBessemer ProcessSteelPatentExclusive rights given by the govt to develop and sell an inventionRefined OilFuelBessemer Process a process for purifying iron that results in stronger, but lightweight steel