The Rise of Industrial America (1865 – 1900)

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  • The Rise of Industrial America (1865 1900)As we view the achievements of aggregated capital, we discover the existence of trusts, combinations and monopolies, while the citizen is struggling far in the rear or is trampled to death beneath an iron heel. Corporations which should be the carefully restrained creatures of the law and servants of the people, are fast becoming the masters of the people.

    President Grover Cleveland, 1888

  • What is the American Dream?James Truslow Adams, in his book The Epic of America, which was written in 1931, stated that the American Dream is "that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.Arnold Swarzenegger - To think that a once scrawny boy from Austria could grow up to become Governor of the State of California and stand here in Madison Square Garden to speak on behalf of the President of the United States that is an immigrant's dream. It is the American dream Paula Dean - I am living proof that the American Dream still exists. It is still alive and well. There is only one trick, you have to be willing to roll up your sleeves and work very, very hard.Martin Luther King - I say to you today, my friends, so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream. I have a dream that one day this nation will rise up and live out the true meaning of its creed: "We hold these truths to be self-evident: that all men are created equal." Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teaming shore, Send these, the homeless, the tempest-tossed, to me; I lift my lamp beside the golden door.Emma Lazarus, 1883

  • From Rags to RichesIn this model republic, this land of the free so our orators call it, and why should not we? Tis refreshing to know that without pedigree A man may still climb to the top of the tree.Horatio AlgerThe Pursuit of HappynessProtect Your Dreams

  • Gilded Age - MansionsAndrew CarnegieHenry FrickWilliam VanderbiltCaroline AstorThe Biltmore Estate, Asheville, N.C.The Breakers - Newport, Rhode Island

  • The Gilded AgeGilded adj. to be covered with a thin layer of gold; to falsely make something cheap and inexpensive look pretty and valuable.American society was covered with a thin layer of ultra-wealthy people who showed off their wealth (ostentatious), but most people struggled and suffered to survive in very unpleasant conditions.

  • Following the devastation of the Civil War and the turmoil of Reconstruction, Americans began to DREAM of happier times. In pursuit of their dreams, The American Dream, millions of people immigrated to America and migrated westward in search of financial success, political and religious freedom, and the hope of a better life. Though some people saw their dreams come true as the United States grew into a political, industrial, and economic giant, millions of Americans saw their dreams shattered as they suffered at the expense o f a few powerful people. For most, the American Dream became a Nightmare.

  • Industrialization

  • Explain how business and industrial leaders accumulated wealth and wielded political and economic power.On what inventions did the industrial growth of America depend? Thomas Edison was the most important inventor of the Industrial Age because he established Menlo Park where thousands of inventions were born.

    InventionInventorImportanceHenry BessemerCheap method of mass producing ________Edwin DrakeSteam engine to drill and pump oil from deep in groundIncandescent light bulbReplace kerosene as source of lightTelephoneReplaced _______ and opened worldwide communications networkLouis SullivanCities grew UP and OUT

    InventionInventorImportanceBessemer ProcessHenry BessemerCheap method of mass producing steelOil DrakeEdwin DrakeSteam engine to drill and pump oil from deep in groundIncandescent light bulbThomas EdisonReplace kerosene as source of lightTelephoneAlexander Graham BellReplaced telegraph and opened worldwide communications networkSkyscraperLouis Sullivan (p.483)Cities grew UP and OUT

  • Objective 5.2 Explain how business and industrial leaders accumulated wealth and wielded political and economic power.2. Who were the most prominent Captains of Industry and with what industries were they associated?

    Captain of IndustryIndustry Oil RefineryAndrew CarnegieWilliam & Cornelius VanderbiltFinance / Banking

    Captain of IndustryIndustry John D. RockefellerOil RefineryAndrew CarnegieSteelWilliam & Cornelius VanderbiltRailroadJ.P. MorganFinance / Banking

  • Captains of IndustryAndrew Carnegie - SteelCornelius Vanderbilt - RailroadJ.P. Morgan - BankingJohn D. Rockefeller - OilWilliam Vanderbilt Railroad

  • 3. What methods did the Captains of Industry use to create their business empires and accumulate massive wealth?Corporations capital intensive businesses require large sums of $$$; stockholders pool $ together; economies of scale: higher profits from mass production, lower costs, less competitionCombination / Consolidation / Integration the combination of smaller businesses into larger ones to reduce competition; mergers and buy-outsHorizontal consolidation effort to eliminate competition by merging companies that produce similar products; Monopolies (John D. Rockefeller) Slide 27Vertical consolidation effort to cut costs by owning mines, farms, oil wells and railroads control raw materials and transportation (Andrew Carnegie)Trusts competing companies that agree not to compete; turn stock over to Board of Trustees who run separate companies as one corporationHolding Companies Corporation that buys up stock of competing companies until it owns majority share of all companies (J.P. Morgan and US Steel bought out Carnegie Steel)

  • Horizontal and Vertical ConsolidationJohn D. Rockefeller monopolized over 90% of oil refinery industryAndrew Carnegie built a company that was worth over $350 million when he sold it in 1901.

  • Horizontal and Vertical Consolidation

  • 4. Why did some people call big business owners Robber Barons?Business owners took home huge profits while paying their workers low wages.

  • Bosses of the Senate

  • 5. How did big business owners justify their wealth?Social Darwinism extension of Charles Darwins survival of the fittest theory of evolution; if left alone by govt. the best businesses will survive (natural selection); justification for laissez-faire economy.Gospel of Wealth Wealth was a sign of Gods favor, those who had it had a Christian duty to share it; give back to society; charity.Philanthropy Andrew Carnegie gave away $350,000,000 to est. Carnegie Foundation, libraries, colleges and universitiesJohn D. Rockefeller gave away $500,000,000 to est. Rockefeller Foundation, University of Chicago, medical instituteBill Gates Gates Foundation promotes world health research and educationWhy do they do it?

  • This, then, is held to be the duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance; to provide moderately for the legitimate wants of those dependent upon him; and after doing so to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer, and strictly bound as a matter of duty to administer in the manner which, in his Judgment, Is best calculated to produce the most beneficial results for the communitythe man of wealth thus becoming the mere agent and trustee for his poorer brethren, bringing to their service his superior wisdom, experience, and ability to administer, doing for them better than they would or could do for themselves. . . .Andrew Carnegie. "Wealth," North American Review, CXLVIII (June. 1889). 661-662.

  • Slide 21

  • The Bessemer Process

  • The Wizard of Menlo Park

  • The Railroad Industry drives economic growth

  • Carnegies Steel Empire

  • Rockefellers Standard Oil

  • Carnegie Sells his Empire

  • Oil Drakeback

  • Home Insurance Building 1885Chicago Louis Sullivanback

  • Biggest Mergers in US HistoryGTE & Bell AtlanticProctor & Gamble and GilletteJP Morgan Chase & Bank OneAT&T Broadband / ComcastBank of America & NationsBankAOL & Time Warnerback

  • What is the chief end (goal) of man? to get rich! In what way? dishonestly if we can; honestly if we must.Mark Twain, 1871

    my country, is of thee, Once land of liberty, Of thee I sing. Land of the millionaire; Farmers with pockets bare; Caused by the cursed snare The Money Ring.Alliance Songster, 1890

    There are many humorous things in the world, among them the white mans notion that he is less savage than the other savages.Mark Twain

    Its all a matter of perspective!!!

  • 5. How did big business owners justify their wealth?Social Darwinism extension of Charles Darwins survival of the fittest theory of evolution; if left alone by govt. the best businesses will survive (natural selection); justification for laissez-faire economy.Gospel of Wealth Wealth was a sign of Gods favor, those who had it had a Christian duty to share it; give back to society; charity.Philanthropy Andrew Carnegie gave away $350,000,000 to est. Carnegie Foundation, libraries, colleges and universitiesJohn D. Rockefeller gave away $500,000,000 to est. Rockefeller Foundation, University of Chicago, medical instituteBill Gates Gates Foundation promotes world health research and educationWhy do they do it?

  • This, then, is held to be the duty of the man o