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INDUSTR
IALIZ
ATIO
N AND
THE “G
ILDED A
GE”
Identify the following:
Bessemer Process
Alexander Graham Bell
Telephone
Thomas Edison
Elias Howe
Elisha Otis
Christopher Sholes
Orville and Wilbur Wright
Transcontinental Railroad
Free Enterprise System
National Market
Corporation
Shareholder
TECHNOLOGICAL INNOVATIONS
AMERICAN INDUSTRIALIZATION PROCEEDED AT A RAPID PACE IN THE YEARS AFTER THE CIVIL WAR.
• Steam and electricity replaced human and animal strength
• Iron replaced wood and steel replaced iron
BESSEMER PROCESS
Bessemer Process made the production of steel ore economical.
Before 1 Day =5 tonsAfter 15 minutes = 5 tons
STEAM POWER
• Powered textile mills• Pneumatic drills were able to cut
deeper into the earth• Coal mining• 1860 – 14 million tons • 1884 – 100 million tons
OIL
Petroleum products were first used for lighting and lubrication.
Internal combustion engine developed at the end of the nineteenth century was used gasoline to run cars and the first airplanes.
COMMERCIAL USE OF ELECTRICITY
First used as means of communication.Thomas Edison developed the first light bulb
Electricity would be used to power streetcars, subway trains, refrigerators and elevators
GROWTH OF RAILROADS
• During the Civil War a northern route for the transcontinental railroad was agreed on.
• Two groups of laborers worked on the rail line
• One from California to the East and the other from the Missouri to the West
Built by Chinese immigrants Paid $26 – 35$ a month Met at Promontory Point, Utah
Other routes soon followed.
DEVELOPMENT OF A NATIONAL MARKET
• Linking railroads, canals, telegraphs and telephones led to the creation of a national market.
• Shipping was much less expensive
• New methods of selling were developed•Department stores•Chain stores•Mail-order houses.•More advertising.
POPULATION GROWTH
• Statistics1850 – 23 million Americans•1900 - 76 million.
• Caused by birth rate and constant stream of Europeans•Demand for goods increased•No shortage of labor• But also placed increasing demands on resources.
NEW TYPES OF BUSINESS ORGANIZATION• Before the Civil War most businesses
were owned by individuals.
• After the Civil War corporations were formed
• Corporations are charted by the government and recognized as an individual person
• Corporations issue stocks to individual investors making them share holders.
FREE ENTERPRISE SYSTEM
Read the section on the Free Enterprise System on p. 66. Be prepared to discuss.
REVIEW DISCUSSION
To what extent did technology, railroads, the free enterprise system, the rise of national markets, and population each play a role in making the United States an industrial giant. Support your answer with historical evidence.
Create a chart or Venn diagram listing the advantages and disadvantages of the corporate form of business organization.
ENTREPRENEURSHIP AND PHILANTHROPYTerms:
Entrepreneur
“Gilded Age”
“Captains of Industry”
Robber Barons”
Andrew Carnegie
John D. Rockefeller
Monopoly
ENTREPRENEUR
• Person or group that forms a business in order to make a profit.
• Large scale production let to lower prices and improved quality.
• Many entrepreneurs during the period amassed a large amount of wealth
• Because of their lavish lifestyles, the period became known as the “Gilded Age”.
“CAPTAINS OF INDUSTRY” VS “ROBBER BARONS”
• Supporters called them “Captains of Industry”.
• Opponents called them “Robber Barons”.
ANDREW CARNEGIE
• Started as poor Irish immigrant• Became head of the Carnegie Steel Corporation in
1892• Developed a monopoly by undercutting the
competition.• Owned all the methods of production (Vertical
Consolidation)• Spent his later days in acts of philanthropy and
gave away $350 million to build libraries and endow universities.
JOHN D. ROCKEFELLER
• Monopolized the oil industry• Oil Refining (turns crude oil into useful
products) in Cleveland , Ohio• Used to make kerosene to burn in lamps in
place of whale oil.• Company became a “trust” and then a
monopoly that controlled the entire industry.• In 1892 government forced him to break his
company up into smaller units. • Like Carnegie gave much of his fortune away.
ANDREW CARNEGIE
Use your text book or your electronic devices to gather as much
information as you can about Andrew Carnegie. Create bullet points
of the facts that are relative to the industrialization of America. View and discuss the video: “Homestead
Strike” from the History Channel series 10 DAYS THAT UNEXPECTEDLY CHANGED AMERICA.
Study sheets will be provided.
BIG BUSINESS CONSOLIDATION
Terms: Economic Depression
Consolidate
Laissez-faire
Interstate Commerce Act (1887)
Interstate Commerce Commission
Sherman Anti-Trust Act (1890)
Free Enterprise
Trust / Monopoly
Conspiracy
Complete the handout on the Pros and Cons of Big Business
GOVERNMENT CONTROL OF THE ECONOMYAt first the government did little to regulate big
business (laissez-faire)
The government did:
• Provide laws to protect property and enforce contracts.
• Establish a system of patents to promote inventions.
• Enact tariffs to help manufacturers
Most people wanted as little interference as possible . Felt it destroyed the concept of “Free Enterprise”.
ANTI-COMPETITIVE PRACTICES
• Became so blatant that reformers called for legislation to remedy them.
• This increased the government control of business.
• For the first time business received rules.
INTERSTATE COMMERCE ACT (1887)
• Farmers felt rates were unfair. Larger companies had better rates.
• States had passed laws against it but the Supreme Court had declared them unconstitutional.
• Only the U.S. Congress has the write to regulate interstate commerce.
• Interstate Commerce Act Prohibits unfair practices by railroads Sets up the Interstate Commerce Commission to
enforce the law Landmark measure marks he first time that Congress
stepped in to regulate business in America.
SHERMAN ANTI-TRUST ACT
• Purpose was to stop monopolies engaging in unfair practices that
prevented fair competition.
• Marks a significant change in the attitude of Congress toward the abuses of big business.
Sherman Anti-Trust Act, Section 1:
“Every contract, combination in the form of a trust or otherwise a conspiracy, in restraint of trade or commerce among the states is declared to be illegal. Every person who shall engage in any combination or conspiracy declared to be illegal shall be deemed guilty of a felony.”
Do you think this legislation helped or hindered the American economy? Explain your answer with logical reasoning and historical evidence.
THE CONDITIONS OF LABOR
Terms:
Child Labor
Labor Unions
Knights of Labor
AFL
Samuel Gompers
Strikes
Homestead Strike, 1892
Terrence Powderly
Closed shop
Haymarket Affair
WORKING CONDITIONS WERE BAD
• Long Hours
• Low Wages
• Poor Conditions
• Boring and repetitive tasks
• Child Labor
• Lack of job security
RISE OF UNIONS
• As companies grew and the number of laborers increased, individual workers lost all bargaining power with employers.
• Unions were formed to speak for the group and not the individual.
• Strikes and other methods of protest were organized.
• Owners like Andrew Carnegie shut down factories of hired immigrants in order to “break “ the union. (Homestead,1892)
• Knights of Labor was first (Terrence Powderly) . Too loosely organized and fell apart.
• American Federation of Labor (AFL) founded by Samuel Gompers in 1881. United workers in similar economic interests. Skilled and unskilled workers were represented in different groups..
• AFL focused on changing the system to improve for workers.
• By 1910 less than 5% of American workers were unionized.
GOVERNMENT’S ATTITUDE TOWARD UNIONS• Most government leaders favored business and
opposed unions for a number of reasons:• Business leaders often contributed heavily to political campaign funds.• Felt that successful businesses resulted in economic prosperity.• Feared the disruptive effect of strikes on American economy.• Applied the Sherman Anti-trust Act against Labor Unions.• Public still believed in laissez-faire. Union activities were often associated with violence and radical ideas.