Part 1: The Age of Industrialism and Industry

Was the rise of industry good for the US?

New Inventions & Technologies Capitalists provide financial backing for scientific research new inventions

funds to build rr, mills with new machines Telegraph lines change communication messages sent quickly across country

Telephone led to commercial lines to businesses then homes

Bessemer Process and Carnegie Steel Electricity lights up cities across the US

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Explosion of Industrial Growth Frederick Taylor’s time-and-motion

studies determine efficient way to perform task on production line

Industrialists apply methods to

factories assembly lines created with 1 person

completing 1 task ALL day = boring

Explosion of Industrial Growth increased productivity = Cheaper goods Fewer workers

As business grows Need for factors of production grow Land, labor, capital Capital = any asset that can

be used to produce income

Industrial Growth/Organizing Businesses

Corporations formed Company that is legally separate

from the owners Sell stocks to raise capital

Competition between corporations Lower prices for goods= harder to

make money Try to eliminate the competition

Eliminate the Competition Activity Devise a strategy to become and

industry leader

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Integration Horizontal = larger companies by owning

as many of the SAME step within an industry as possible Own all the railroads

Vertical = larger companies by owing as

many steps in an industry as possible Own a coal mine, an iron mine, a steel factory, a

steel refinery, and a shipping yard

Financing and Organizing Businesses

monopolies formed company that dominates an industry Raise prices = higher profits Rockefeller’s Standard Oil

trusts formed groups of companies that work together

to prevent companies not in trust from competing in the market

Big Business New big businesses different than traditional

companies size & profitability impersonal & profit driven owners rarely know workers responsive to investors entrepreneurs philanthropists

Government’s Role in Business most politicians favor laissez-faire

policy the market through supply and

demand will regulate itself Social Darwinism = business was a

matter of survival of the fittest; strongest businesses naturally survive and prosper without involvement

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The Gilded Age (looks like gold but only on the outside)

Industrialists: Robber barons or captains of industry?

Robber barons the way gained

wealth ruthless, shady

business practices that harm workers

corrupted officials damage

environment

Captains of Industry hard workers took advantage of new

technology and forms of business organization

make companies more productive

created millions of jobs improved working

conditions over time

Patents Issued for Inventions, 1845-1900 LINE GRAPH

Year Total Patents

Year Total Patents

1845 473 1875 13,291 1850 883 1880 12,903 1855 1,881 1885 23,285 1860 4,357 1890 25,313 1865 6,088 1895 20,856 1870 12,137 1900 24,644

Total Number of Workers, 1870-1920 (in thousands) LINE GRAPH

Year Agricultural Workers

Non- Agricultural Workers

1870 6,850 6,075

1880 8,585 8,807

1890 9,938 13,380

1900 10,912 18,161

1910 11,592 25,779

1920 11,449 30,985

Value of US Exports 1850-1905 (in millions) LINE GRAPH

Year Total Exports

Year Total Exports

1850 $152 1880 $853 1855 $275 1885 $784 1860 $400 1890 $910 1865 $234 1895 $921 1870 $451 1900 $1,499 1875 $606 1905 $1,660

Average Annual Income, 1890 BAR GRAPH

Person or Group

Avg. Annual Income

Andrew Carnegie $25,000,000 Postal Employees $ 878 Clerical Workers $ 848 Ministers $ 794 Gas & Electric $ 687 Railroad Workers $ 560 Manufacturing $439 Coal Miners $406 School Teachers $256

Part 2: Labor’s Response to Industrialism

Was the rise of industry good for US workers?

Conditions of the Working Class The Haves and the Have-nots

Living Conditions tenements slums unsanitary cramped hazardous disease fire

Conditions of the Working Class The Haves and the Have-nots

Working Conditions long hours (6 days/week 10+ hrs/day little pay $1.00/day hazardous toxic gasses, dust—coal & cotton disease—tuberculosis fire

no workman’s compensation child labor protest= loss of job

Labor Movement 1870s began, but not successful American Federation of Labor IWW Knights of Labor

Unions or Not?

Improve workers lives by: threatening to strike join with other unions nationwide collective bargaining

Unions or Not?

Employers undermine unions by: threatening to fine workers who join unions circulate blacklists refuse to hire blacklisted workers Yellow-dog contracts hire scabs government sided with employers

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Strikes Erupt in late 1800s 1.Railroad Strike: 1877: Rail workers across US strike after

railroad companies cut wages during a depression of in 1870s. President Hayes used federal troops to restore order and break the strike.

2.Haymarket Affair, Chicago 1886: Workers fought with scabs. Police fired into the crowd trying to break up the fight. The next day, a peaceful protest was held in Haymarket Square where speakers addressed the crowd; police stormed into the meeting. Bomb thrown at police. In the end five protesters and seven police officers were dead and bomber never caught. The nation was divided over the labor movement.

Strikes continued 3.Homestead Strike, Pennsylvania 1892: Strike at Carnegie Steel

Plant. Pinkerton agents hired to protect plant from strikers. Pinkerton agents gave up after a day-long gun battle with strikers. Strikers took control of the town until Henry Frick, an assistant to Carnegie brought in scabs to run the plant after governor called in state militia to disperse strikers. The union didn’t exist for four decades.

4.Pullman Strike, 1894: Workers at Pullman Palace Car (railroad

car) factory went on strike after wages cut, but not rent and other charges. American Railway Union supported the strike. The strike interrupted delivery of the mail, President Cleveland sent in federal troops to break up the strike and after a violent encounter, strike collapsed.

Mixed Successes for Unions Successes working hours

decreased wages

increased won

recognition of workers’ rights

Failures Fed government

against unions Fed & state

governments sent in troops or issued injunctions

unions fail to gain support of US population