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