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Industrialization 1865 – 1901. Industrialization. Causes. Natural Resources. The United States Becomes an Industrial Nation. Large Workforce. Free Enterprise. New Inventions. Natural Resources. Water, timber, coal, iron & copper Transcontinental Railroad played a part - PowerPoint PPT Presentation
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Industrialization 1865 – 1901
The United States
Becomes an Industrial
Nation
CausesNatural Resources
Large Workforce
Free Enterprise
New Inventions
Industrialization
Natural Resources Water, timber, coal,
iron & copper– Transcontinental Railroad
played a part 1859 – Edwin Drake
drills first oil well in Titusville, Pennsylvania
Large Workforce US population
triples between 1860-1910– 30 million to 90
million– Increased demand
for goods and services
Immigration– 1870 to 1910 20
million immigrants
Free Enterprise Laissez-faire – “let people do as they
choose”– No government intervention– Free Markets
Entrepreneurs – risk takers and innovators– In late 1800’s invested in manufacturing
Railroads Pacific Railway Act (1862) –
construction of transcontinental railroad– Union Pacific
10,000 workers – Civil War vets, Irish Immigrants, farmers, miners, ex-cons
– Central Pacific 10,000 Chinese workers
– Met at Promontory, Utah
Railroads (cont)
Railroads linked the nation– Larger markets for goods– Stimulated the economy
Spent money on steel, coal, timber, etc.
Railroads (cont)
1883 – American Railway Association divided country into four time zones
Railroad Abuses (Corruption)
Land Grants – free land given to railroad companies to encourage construction– Railroads sold the land to settlers, real estate
agencies, and others Price Fixing – agreements between
companies to set prices– Kept farmers in debt
Railroad Abuses (cont)
Credit Mobilier – owned by Union Pacific– Awarded UP’s contracts, then overcharged
UP Money went into the pockets of the UP investors
– Union Pacific almost went bankrupt Congress gave more land grants
– Investigation implicates many members of congress
Railroad Abuses (cont)
Interstate Commerce Act– Tried to stop railroad abuses and
corruption– Federal govt oversees railroads
Rise of Big Business By 1900 big businesses dominated
economy– Corporation –organization owned by many
people, but treated by law as if a single person
– Owners buy shares of stock and are called stockholders
Allows a corp. to raise large sums of money
Corporations vs. Small Manufacturing Companies
Small Manufacturing Companies
• Low Fixed Costs• High Operating Costs• Shut down during poor
economies
Corporations• High Fixed Costs• Low Operating Costs• Lots of money to maintain
factories during poor economies
The Shoe Cobbler
Versus
Nike Shoe Corp.
Consolidation of Industry
Small companies were forced out of business-designed to eliminate or reduce competition, so are Corporations unethical?
Monopoly – when a single company controls an entire market
Consolidation of Industry (cont)
Vertical Integration– company that owns all
the different businesses it depends on for operation
Consolidation of Industry (cont)
Horizontal Integration– combining many firms doing the same type
of business into one large corporation
Consolidation of Industry (to eliminate or reduce competition)
Trusts – allows one person to manage another’s property– Standard Oil forms first trust– Controlled 90% of refining
Holding Company – Owns stock of other companies, does not produce anything
Robber Baron – Capitalist who became wealthy through exploitation or Captains of Industry…i.e. Andrew Carnegie -Steel/John D. Rockefeller-Oil
Consolidation of Industry (cont)
Andrew Carnegie– Poor Scottish immigrant
who became very rich– Made early money in
railroad– Invested in Carnegie Steel
company in 1873– Known for his work in the
steel industry– Donated 90% of his total
wealth to charity and the arts, “The Gospel of Wealth”
Consolidation of Industry (cont)
Sherman Antitrust Act – made it illegal to interfere with free trade
Labor Unions Between 1865 – 1897, the U.S.
experienced deflation – rise in the value of money– Prices fell– Companies cut wages
Workers begin to organize labor unions
Labor Unions (organize)
Reasons for Unions– Long hours, 12+ hours/day, 6 days/week– Low Wages– Poor, Unsafe conditions– No job security
Labor Unions (cont)
Child Labor– Long hours, Less pay– More Danger
Labor Unions (cont)
Trade Unions – formed by craft workers limited to those with a specific skill– By 1873, there were 32 trade
unions Industrial Unions –united
craft and common laborers– Companies outwardly opposed
them
Labor Unions (cont)
Strategies vs. Unions– Contracts promising not to join a union– Hiring private detectives (Pinkertons)– Blacklists – preventing troublemakers from
getting new jobs in their industry– Lockouts – Workers were locked out of the
worksite and not paid– Strikebreakers – workers hired to replace
strikers Also called “scabs”
Labor Unions (cont)
Karl Marx “The Communist Manifesto”– World history was a class
struggle between the oppressing owners and the oppressed workers
– The proletariat (working-class oppressed) would overthrow the bourgeoisie (middle-class oppressors) in a violent revolution and set up a dictatorship
Produce a society without classes
Labor Unions (cont)
American Federation of Labor– Large trade union– Samuel Gompers was first
leader Wanted to have unions
accepted in America– Three goals:
Have companies recognize unions
Closed shops – can only hire union workers
8 hour workday
Labor Unions (cont)
Knights of Labor– 8 hour workday– Equal pay for women– End of child labor– Worker-owned factories– Favored arbitration –
third party helps workers and management come to an agreement
Labor Unions (cont)
By 1900, women were 18% of workforce– Paid less than men– Not allowed in unions
Women’s Trade Union League (WTUL) – first union dedicated to women’s labor issues– Created by Mary Kennedy
O’Sullivan & Leonora O’Reilly
Labor Unions (cont)
Great Railroad Strike– 1877-Railroad workers
strike to protest wages being cut
80,000 workers in 11 states
Destroyed railroads and trains
Violence erupted– President Hayes
forced to call out the army to stop it
Labor Unions (cont)
Haymarket Riot– 1886-Chicago-Protest against police brutality– Clash between strikers and police involving a
bomb and gunfire– 7 police and 4 workers killed
Labor Unions (cont)
Homestead Strike-”The River Ran Red”– The Homestead Strike was an industrial
lockout and strike which began on June 30, 1892, culminating in a battle between strikers and private security agents on July 6, 1892.
– The dispute occurred at the Homestead Steel Works in the town of Homestead, Pennsylvania, between the Amalgamated Association of Iron and Steel Workers (the AA) and the Carnegie Steel Company.
– The final result was a major defeat for the union and a setback for efforts to unionize steelworkers.
Labor Unions (cont)
Pullman Strike– 1894-The American Railway Union (ARU) led
by socialist Eugene Debs strikes against the Pullman Palace Car Company
– Turned violent after company hired strikebreakers
Effects of Industrialization
Growth of large corporations New and plentiful manufacturing
goods Poor working conditions in factories
and sweatshops Increased labor activism