The Second Industrial Revolution

Spectacular economic growth after the Civil War

Create concept map with FACTORS LEADING TO ECONOMIC GROWTH in the middle and 8 outer circles, leaving room to add information to those 8 outer circles on the outside of them

Directions for first section of notes

Example of Concept Map

Abundant Natural Resources Fertile soil Swift-flowing streams Vast quantities of timber Rich deposits of coal, iron ore, oil,

phosphates, and copper

Factors leading to economic growth

The Free-Enterprise System Capitalist system – factors of production

are privately owned People are free to buy and sell goods

and labor on an open market Market acts to eliminate less efficient

producers Producers of better and cheaper goods

are generally able to compete more effectively and stay in business

Factors leading to economic growth

Laissez-faire policy (government “hands-off” economic matters)

Patent system – encouraged inventiveness by guarantee

-ing an inventor exclusive rights to the use of his or her invention for a limited period

Factors leading to economic growth

Tariffs Protected American manufacturing from

foreign competition by imposing customs duties on foreign-made goods

Factors leading to economic growth

Δ Federal Land PoliciesGrants to railroad companies encouraged construction

Legacy of First Industrial Revolution Use of steamboats and railroads began

linking the country In the South, led to the expansion of the

“Cotton Belt” Midwest produced livestock and wheat

for both the NE and the South

Factors leading to economic growth

Economic stimulus provided by the Civil War Northern manufacturing grew from the needs of the

war The passing of the following federal laws:

Morrill Tariff (1861) – protect American manufacturing from European competition

National Banking Act (1863&1864) – created national banking system and currency

Homestead Act (1862) – offered free land to settlers occupying farms in the West

Morrill Act (1862) – gave land grants to states to support technical and agricultural colleges

Pacific Railway Act (1862) – gave federal loans and land grants to railroad companies to complete transcontinental railroad

Factors leading to economic growth

PLEASE USE YOUR NOTE OUTLINE AND MATRIX

Gilded Age and Second Industrial Revolution

Spread of Railways By the end of the Civil War, the U.S. had

35,000 miles of railroad track. 25 years later, it had more than 5X that

mileage – more than all of Europe Steel rails replaced iron ones Refrigerated cars were invented to haul

meat long distances

Second Industrial Revolution – Spread of Railways

George Pullman Invented the sleeping car so passengers

would be more comfortable

Second Industrial Revolution

Steel Bessemer Process made producing steel

more economical Cheaper steel allowed Americans to

produce thousands of miles of railroad track, build giant steamships, suspension bridges, turbines and engines, and skyscrapers

Andrew Carnegie brings the Bessemer Process to America and begins Carnegie Steel

2nd Industrial Revolution - Steel

Andrew Carnegie

Bessemer Process

The Gilded Age Historians sometimes refer to the

Second Industrial Revolution as the “Gilded Age”

A gilded surface has a thin layer of gold on top concealing a less expensive metal beneath

Phrase taken from Mark Twain Humorously criticized greed and

corruption in American society

The Gilded Age

Philosophy that the most successful individuals were those endowed with superior talents who had the ability to adapt, survive, and thrive

Wealthy people often viewed poverty as the fault of the poor themselves rather than as the product of circumstances or of injustices in the social system

Social Darwinism

Andrew Carnegie Scottish Immigrant Adopted Bessemer Process of making

steel and brought it back to America Bought out competing local companies

in the 1870s Vertical Integration – having complete

control of all stages of production and distribution

Andrew Carnegie

Gospel of Wealth Wrote a book that stated that rich men

should not die with their wealth but should give it away, especially to institutions that promoted self-improvement

Andrew Carnegie – Gospel of Wealth

Carnegie Hall – New York

Carnegie Library - Pittsburgh

Telegraph Samuel Morse invented the telegraph

using electromagnetism and using a code of long and short spaces capable of transmitting the alphabet.

By breaking and closing the circuit, the telegraph operator communicate over a long distance

2nd Industrial Revolution – Communication Innovations

Transatlantic Cable In 1865, Cyrus Field made a heavy and

durable cable to be able to send and receive telegraphic messages between America and Europe

2nd Industrial Revolution – Communication Innovation

Telephone Alexander Graham Bell began

investigating how to reproduce the sounds of speech electronically to help the deaf since his mother and wife were both deaf

In 1875, he patented the telephone which made it possible to communicate over long distances using natural speech instead of Morse code

2nd Industrial Revolution – Communication Innovation

Electricity Edison worked with electricity for several

years before he patented the phonograph (record player)

Continuing his research in Menlo Park, NJ, he invented a practical electric light bulb in 1879

Continued inventing things like motion pictures, improved battery, first electric power station

He filed more than 1,000 patents

2nd Industrial Revolution – Electricity

Phonograph

Young Edison

Edison’s Light Bulb

Older Edison

Nicola Tesla – Serbian immigrant who came to the U.S. to work with Edison.

Left to partner with Westinghouse because he believed “AC” was better than Edison’s “DC”

2nd Industrial Revolution – Electricity

Nicola Tesla George Westinghouse

John D. Rockefeller Early 19th century, people used whale fat

(blubber) to make oil for lighting 1st oil well was drilled by Edwin Drake in

Pennsylvania in 1859 Improvements in refining petroleum led

to gasoline and Rockefeller’s Standard Oil Company

2nd Industrial Revolution - Oil

Horizontal Integration – one owner controls all companies and facilities at one stage of production of a good

Standard Oil Trust bought 90% of all oil refining in the U.S.

Lowered the price of kerosene and other oil products by more than 80%, which his competitors could not do

Rockefeller’s Approach

THE TRUST GIANTS POINT OF VIEW – “What a funny little government”

Banker and backer of Edison until it was shown that Tesla’s “AC” system worked better

Companies – General Electric and J.P. Morgan & Company

Bought Carnegie Steel for $400 million and changed the name to U.S. Steel, which became the first billion-dollar company in America

2nd Industrial Revolution – J.P. Morgan

Internal Combustion Engine Henry Ford put the power of the internal

combustion engine into the automobile Revolutionized the labor aspect with the

assembly line and increased wages

2nd Industrial Revolution – Other Industries

First Airplane Wilbur and Orville Wright in Kittyhawk,

NC in 1903

2nd Industrial Revolution – Other Industries

2nd Industrial Revolution – Women and African American Inventors

Josephine Cochran and the 1st Automatic Dishwasher

John Albert Burr patent for new rotary blades

2nd Industrial Revolution – Women and African American Inventors

Granville T. Woods – patented a multiplex telegraph that could send signals between stations and moving trains

Elijah McCoy – Patented oil-drop cubs that automatically added oil to lubricate the engines of locomotives and steamships enabling them to run better

2nd Industrial Revolution – Women and African American Inventors

Madame C.J. Walker – Sold hair care and cosmetic products for African-American women. May have been the 1st African American millionaire

Sarah Goode received a patent for a fold-away bed that could be tucked into a desk

2nd Industrial Revolution – Women and African American Inventors

Jan Ernst Matzeliger – Born in S. America, he moved to U.S. at the age of 19

Invented a machine that attached the upper part of a leather shoe to its sole

By hand, an expert shoemaker could attach no more than 50 soles a day; with the new machine, a worker could attach 150 to 700 soles a day

Cut the price of shoes in half

Write an imaginary newspaper headline and article announcing the patenting of a new invention, such as the telephone or electric light bulb

Must be at least two paragraphs

Which invention from this period do you think had the greatest impact on society? Write at least two paragraphs stating which invention you have chose, why you have chosen it, and how it benefited/impacted society.

Activities (Choose One)

Eliminating competition leads to a monopoly – complete control over the production of a good or service

Disadvantages: Less incentive to improve products Could raise prices at any time.

Consumers had no choice because of the lack of alternative products

Monopolies

Under the laissez-faire ideology, government was not supposed to interfere

Series of Supreme Court decisions affirmed that government had no right to interfere

Business leaders often gave hefty campaign contributions and some even secretly bribed government officials

Governments Response to Monopolies

The first anti-trust laws were weakly enforced but they established that Congress could regulate business in some circumstances

Sherman Anti-Trust Act – combinations “in restraint of trade” are prohibited

Interstate Commerce Act – Congress regulates interstate railroads; sets up enforcement agency

Governments Response to Monopolies

Henry Morrison Flagler (1830-1913) Partner of John D. Rockefeller in the

creation of Standard Oil In 1887 and 1888, he built the Ponce de

Leon Hotel (now Flagler College) and other luxury hotels in Palm Beach and Miami, forming the basis for the tourism industry

“Father of Miami”

Florida History

Florida East Coast Railroad Flagler merged several smaller railroads His railroad brought tourists to fill his hotels,

but also made it possible for Floridians to export their agricultural products, including citrus fruits, vegetables, tobacco and cigars, cotton, beef, and cattle

Built a railroad connecting south of FL to Key West for shipping goods throughout the Caribbean (was destroyed by hurricane in 1935)

Henry M. Flagler

Henry Morrison Flagler