IndustrialismIndustrialism
1865 – 19051865 – 1905
The 2nd Industrial Revolution
Changes in Daily Life Changes in Daily Life 1865 – 19051865 – 1905
TRANSPORTATION
Airplanes – Wright Bros.
“Horseless Carriage”Transcontinental RR
Union Pacific Central Pacific
Charles & FrankDuryea
Kitty Hawk
Changes in Daily Life Changes in Daily Life 1865 – 19051865 – 1905
ELECTRICITY
Thomas Edison
Lightbulb
Central Power
Stations
General Electric “GE”
Westinghouse
Changes in Daily Life Changes in Daily Life 1865 – 19051865 – 1905
INVENTIONS
Bessemer Process
Steel
Patent
Exclusive rights given by the govt
to develop and sell an invention
Refined Oil
Fuel
Bessemer Process – a process for purifying iron that results in
stronger, but lightweight steel
Changes in Daily Life Changes in Daily Life 1865 – 19051865 – 1905
COMMUNICATION
Telegraph
Samuel Morse
Western Union
Telephone
Alexander G. Bell
Typewriter
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
ImmigrantsImmigrants Provided a huge workforce Provided a huge workforce that worked for low wagesthat worked for low wages
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
OilOil Kerosene & gas became Kerosene & gas became huge industrieshuge industries
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
Laissez-faire—Laissez-faire—
No gov’t rules No gov’t rules for businessesfor businesses
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
Steel—Steel—
Bridges aided Bridges aided with with transportation transportation and the and the skyscrapers skyscrapers gave the cities gave the cities room to grow.room to grow.
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
Electricity—Electricity—
Electric Electric products & products & machinesmachines
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
Entrepreneurs—Entrepreneurs—
Invest in new Invest in new inventions and inventions and build businessesbuild businesses
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
Time Zones—Time Zones—
Helped set train Helped set train schedulesschedules
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
Mass Production—Mass Production—
Producing a large amount of product Producing a large amount of product inexpensivelyinexpensively
Causes & Effects of Causes & Effects of IndustrializationIndustrialization
Railroads—Railroads—
Helped obtain raw materials faster & Helped obtain raw materials faster & ship finished goods.ship finished goods.
Built the Carnegie Built the Carnegie Steel Company after Steel Company after the Bessemer refined the Bessemer refined steel making processsteel making process
Philanthropist—Philanthropist—charitable givercharitable giver
The Gospel of WealthThe Gospel of Wealth Society needs wealthy Society needs wealthy
peoplepeople The wealthy have an The wealthy have an
obligation to give obligation to give Social Darwinism—survival of Social Darwinism—survival of
the fittest in businessthe fittest in business
Built his vast wealth Built his vast wealth through through Vertical Vertical IntegrationIntegration
Sold Carnegie Steel in Sold Carnegie Steel in 1901 for $500 million1901 for $500 million
Carnegie Steel = $11.4 Billion TodayCarnegie Steel = $11.4 Billion Today 22ndnd Richest Person in the History of Richest Person in the History of
the Worldthe World
Andrew Carnegie:Andrew Carnegie:SteelSteel
John D. Rockefeller: OilJohn D. Rockefeller: OilRichest Man in the History of the WorldRichest Man in the History of the World
Standard Oil Standard Oil CompanyCompany
Acquired (bought) Acquired (bought) smaller companies to smaller companies to eliminate competition – eliminate competition – MonopolyMonopoly
Expanded his business Expanded his business through through Horizontal Horizontal IntegrationIntegration
By 1880, the Standard By 1880, the Standard Oil Company Oil Company controlled 90% of all controlled 90% of all US petroleum-refining US petroleum-refining capacity.capacity.
Also a Philanthropist – Also a Philanthropist – Donated about $550 Donated about $550 million to charity million to charity throughout his lifethroughout his life
$13.8 Billion adjusted to today’s money
George Westinghouse: Train Brakes & ElectricityGeorge Westinghouse: Train Brakes & Electricity
Westinghouse Air Westinghouse Air Brake CompanyBrake Company built built the compressed-air the compressed-air brakebrake
Safety feature that Safety feature that became standard on became standard on ALL RR carsALL RR cars
Trains could pull more Trains could pull more cars & travel fastercars & travel faster
Developed A/C Developed A/C (Alternating Current) (Alternating Current) plugsplugs
Cornelius Vanderbilt: Railroad TycoonCornelius Vanderbilt: Railroad Tycoon
Controlled all RR travel Controlled all RR travel from NY and Ohiofrom NY and Ohio
In 1877, he owned over In 1877, he owned over 4,500 miles of RR track4,500 miles of RR track
Bought out smaller RR Bought out smaller RR companiescompanies
He was approximately He was approximately $100 million$100 million Donated $1 Million to
Central University in Nashville, TN, which was later named after him.
George Pullman – RR SuppliersGeorge Pullman – RR Suppliers
Pullman RR CarsPullman RR Cars Made long distance Made long distance
travel more travel more comfortablecomfortable
Sleeping Cars, Dining Sleeping Cars, Dining Cars, Luxury CarsCars, Luxury Cars
Pullman, Illinois – site Pullman, Illinois – site of his of his company towncompany town where the cars were where the cars were mademade
CapitalismCapitalism
Individuals—NOT the Individuals—NOT the government—own government—own mostmost industriesindustries
Free EnterpriseFree Enterprise
Same as laissez-faire—Same as laissez-faire—NO gov’t NO gov’t intervention in intervention in business.business.
MonopolyMonopoly
Complete control of an Complete control of an industryindustry
CorporationCorporation
Investors or Investors or stockholders own a stockholders own a companycompany
TrustTrust
A board of trustees runs A board of trustees runs a group of a group of companies. This companies. This reduces competition reduces competition & limits production. & limits production. Keeps costs high.Keeps costs high.
Vertical IntegrationVertical Integration
Buy the companies that you Buy the companies that you need to make your product. need to make your product. CARNEGIE CARNEGIE
Railroads
Coal Mines
Carnegie Steel Company
Iron Mines
Steamship Lines
CarnegieSteel
Company
Horizontal IntegrationHorizontal Integration
Similar to trusts and monopolies. BSimilar to trusts and monopolies. Businesses usinesses buy out other companies to exclude all buy out other companies to exclude all competition. competition. ROCKEFELLERROCKEFELLER
Balentine Oil Co.
Tabor Oil
Kane Oil Co.
WatsonPetroleum
StandardOil Company
Standard Oil CompanyStandard Oil
CompanyStandard Oil
Company
Stan
dard
Oil
Co
mpa
ny
Life for Factory Workers
FACTORY LABOR
Very long hours, physically
demanding, very low pay
CHILD LABOR
For many families, children had to work so their family could
survive.
WOMEN
Worked at simple machines, no
chance for advancement
SWEATSHOPS
Workers are overworked,
underpaid, horrible conditions. Many
died of malnutrition or disease.
PIECEWORK
Being paid by how much you can
produce—NOT time. The faster you
work—the more you get paid!
DIVISION OF LABOR
Performing the same task over and
over and over… Rarely see the
finished product.
Unions: organized to Unions: organized to secure better pay and secure better pay and conditions for workers. conditions for workers. Collective bargaining: Collective bargaining: workers negotiate as a workers negotiate as a group.group.
Closed Shop: a work Closed Shop: a work place where all place where all employees must belong employees must belong to a union.to a union.
Open Shop: a non-Open Shop: a non-union workplace. union workplace. (employees do not (employees do not recognize a union)recognize a union)
Yellow dog contract: Yellow dog contract: promise by employees promise by employees not to join a union.not to join a union.
Strike: refuse to work Strike: refuse to work until conditions until conditions change.change.
Knights of LaborKnights of Labor Terrence PowderlyTerrence Powderly Accepted skilled Accepted skilled
workers, unskilled workers, unskilled workers, Af. Amer., workers, Af. Amer., and women.and women.
Popular because of a Popular because of a successful railroad successful railroad strike.strike.
Became unpopular Became unpopular because of Haymarket because of Haymarket RiotRiot
American Federation of LaborAmerican Federation of Labor Samuel GompersSamuel Gompers ONLY accepted ONLY accepted
skilled, male workers.skilled, male workers.
Industrial Workers of the WorldIndustrial Workers of the World
1905 Union opposed to Capitalism1905 Union opposed to Capitalism Socialists – believes that workers should own Socialists – believes that workers should own
industries industries Eugene Debs & Mary Harris JonesEugene Debs & Mary Harris Jones
Haymarket RiotHaymarket Riot Why?Why?
Workers wanted an 8-hour Workers wanted an 8-hour workday.workday.
What?What?
Police showed up at a rally Police showed up at a rally & a bomb went off & a bomb went off killing 7 police & 1 killing 7 police & 1 civilian. Made people civilian. Made people afraid of unions because afraid of unions because they were so radical.they were so radical.
Homestead StrikeHomestead Strike Why?Why?
Wages were cutWages were cut What?What?
Fight broke out between Fight broke out between workers & Pinkertons (a workers & Pinkertons (a private police force hired private police force hired by Carnegie Steel).by Carnegie Steel).
16 were killed.16 were killed.
Henry Frick, Pres. of Henry Frick, Pres. of Homestead Steel, was shot Homestead Steel, was shot & stabbed.& stabbed.
Would it seem restrictive to live in a city like this, built around the
factory???
Pullman Strike Pullman Strike (Pullman IL near Chicago)(Pullman IL near Chicago) Why?Why?
Cut wages but did not lower Cut wages but did not lower rent nor prices in “his” townrent nor prices in “his” town
What?What?
Other RR workers supported Other RR workers supported the strike & refused to the strike & refused to work. Gov’t stepped in to work. Gov’t stepped in to restore order & forced restore order & forced workers back to work b/c no workers back to work b/c no RRs mean no mail service—RRs mean no mail service—strikers were breaking the strikers were breaking the law.law.
Eugene V. Debs, head of the American Railway Union, (ARU) led the workers on strike.
The Great UpheavalThe Great Upheaval
the year of labor unrestthe year of labor unrest
Sherman Anti-Trust ActSherman Anti-Trust Act
Law passed in 1890 that prohibits Law passed in 1890 that prohibits monopolies & limits power of big business.monopolies & limits power of big business.
Is this laissez faire?
WhatWhat’’s the Difference Betweens the Difference BetweenCapitalism – Socialism – Communism???Capitalism – Socialism – Communism???
SocialismSocialism – Ownership of – Ownership of property and businesses is property and businesses is mixed between the govt mixed between the govt and private individualsand private individuals
Eugene V. DebsEugene V. Debs
The govt uses its power to The govt uses its power to attempt to manage the attempt to manage the economyeconomy..
WhatWhat’’s the Difference Betweens the Difference BetweenCapitalism – Socialism – Communism???Capitalism – Socialism – Communism???
Communism Communism – govt – govt ownership of all property ownership of all property and businessesand businesses
Classless society—Classless society—everybody is equaleverybody is equal
Karl Marx, Friedrich Karl Marx, Friedrich Engels, Vladimir LeninEngels, Vladimir Lenin
““Workers of the World, Workers of the World, Unite! You have nothing Unite! You have nothing to lose but your chains!to lose but your chains!””
Social DarwinismSocial Darwinism ““Survival of the FittestSurvival of the Fittest”” for businesses and for businesses and
people. Belief that some classes of people people. Belief that some classes of people are superior and rule over the rest.are superior and rule over the rest. English Social Philosophy developed by Herbert English Social Philosophy developed by Herbert
SpencerSpencer
Any attempts to help the poor or less Any attempts to help the poor or less capable actually slowed social progresscapable actually slowed social progress People who couldnPeople who couldn’’t survive the natural t survive the natural
competition in society would not last, thereby competition in society would not last, thereby making society stronger.making society stronger.
Richest People in HistoryRichest People in History
You remember this list from Populism…these are You remember this list from Populism…these are the richest people in the world today.the richest people in the world today.
Carlos Slim Helu, Mexico, - $69 Billion Carlos Slim Helu, Mexico, - $69 Billion Bill Gates, USA - $61 Billion Bill Gates, USA - $61 Billion Warren Buffett, USA, - $44 BillionWarren Buffett, USA, - $44 Billion Bernard Arnault, France - $41 BillionBernard Arnault, France - $41 Billion Amancio Ortega, Spain - $37.5 BillionAmancio Ortega, Spain - $37.5 Billion
When you adjust the incomes into todayWhen you adjust the incomes into today ’’s dollars, our s dollars, our Industrialists dwarf this list from last week. Industrialists dwarf this list from last week.
Cornelius Vanderbilt - $185 Billion
Andrew Carnegie - $309 Billion
John D. Rockefeller - $336 Billion
““Not evil, but good, has come to the race from Not evil, but good, has come to the race from the accumulation of wealth by those who have the accumulation of wealth by those who have the ability and energy that produces itthe ability and energy that produces it..””Industrialist Andrew Carnegie used which one Industrialist Andrew Carnegie used which one of the following terms to describe the economic of the following terms to describe the economic philosophy in the quotation above?philosophy in the quotation above?
A.A. SocialismSocialism
B.B. BimetallismBimetallism
C.C. Gospel of WealthGospel of Wealth
D.D. Social DarwinismSocial Darwinism
A Striker A Striker Confronts a Confronts a Scab!Scab!
Changes in Daily Life Changes in Daily Life 1865 – 19051865 – 1905
TRANSPORTATION
Airplanes – Wright Bros.
“Horseless Carriage”Transcontinental RR
Union Pacific Central Pacific
ELECTRICITY
Thomas Edison
Lightbulb
Central Power
Stations
General Electric “GE”
Westinghouse
COMMUNICATION
Telegraph
Samuel Morse
Western Union
Telephone
Alexander G. Bell
Typewriter INVENTIONS
Bessemer Process
Steel
Patent
Exclusive rights given by the govt
to develop and sell an invention
Refined Oil
Fuel
Bessemer Process – a process for purifying iron that results in
stronger, but lightweight steel