Unit 3: Industrialization, Immigration, and Urbanization
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3-1: Industrialization Industrialization occurred after Civil
War Many individuals risked all their capital (resources) to start
businesses. Then, and now these people are entrepreneurs These
individuals almost always believed in laissez-faire capitalism Keep
government out of business, let supply and demand dictate
prices
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Cuban, Jobs, and Zuckerberg are all famous modern
entrepreneurs.
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3-1: Industrialization As businesses grew, they preferred high
protective tariffs Taxes on imports that would increase the cost of
a foreign made good Why do you think big business owners in America
favored high tariffs?
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3-1: Industrialization A corporation was how most big
businesses were organized A corporation is an organization owned by
many people Carnegie Steel was a dominant corporation in the late
19 th -early 20 th century Andrew Carnegie used the Bessemer
process to help mass produce (produce in high quantities) steel
cheaply.
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The Bessemer process allowed Carnegie to mass produce steel,
cheaply. He became a multi- millionaire, and Pittsburgh, PA. became
the industrial heart of America
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3-1: Industrialization Carnegie used vertical integration to
make business profitable, eliminate competition Example: Carnegie
owned iron ore mines, railroads, steel factories Businesses also
used horizontal integration (combining of all the same industries)
to maximize profits. When all of the same businesses combine, this
leads to monopolies When one business dominates an entire
market
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3-1: Industrialization Laws were passed against monopolies, but
companies found ways around them John D. Rockefeller bought out all
competition in oil industry (Standard Oil) by forming a trust
Companies assigns stock to board of trustees who get dividends
(profits) Trustees would do what Rockefeller wanted in running
company
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John D. Rockefeller ruthlessly controlled the oil business in
America due to laissez-faire capitalism.
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3-1: Industrialization Most business owners favored buying out
competitors, believed in Social Darwinism the belief that those who
were the best at running business would survive, other businesses
die Led to bad working conditions for laborers in factories. Why
would Social Darwinism lead to bad working conditions for
workers?
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3-1: Industrialization Labor movements arise from issues
important to workers 1.Poor working conditions 2.Low wages 3.Long
working hours Triangle Shirtwaist Factory fire highlights problems
for workers (over 160 women die in a crowded factory fire) Unions
arise, ideas motivated my Marxism Economic idea that workers would
revolt against business owners, and create a classless society
(Communism)
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3-1: Industrialization Different unions serve different workers
Knights of Labor: unskilled workers led by Terence Powderly Wanted
8 hour workday, no child labor, wanted government to track labor
data AFL (American Federation of Labor): skilled workers led by
Samuel Gompers Wanted same things as K.O.L., but wanted to keep
labor out of politics
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Terence Powederly (left), Samuel Gompers (right), and Eugene
Debs (below), were all well known leaders of workers (labor).
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3-1: Industrialization Labor conflicts occurred during late 19
th, early 20 th centuries Pullman Strike (1894): 300k railway
workers strike, led by Eugene Debs, troops sent in by President
Cleveland to break it up. Homestead Strike (1892): steelworkers
union barricades themselves in Homestead Plant, Pinkerton
detectives forcibly take back plant, 9 workers killed. Haymarket
Riot (1886): anarchists protesting businesses throw a bomb into a
crowd at Haymarket square in Chicago, dozens are killed, support
for unions drops.
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Note Quiz 1.Name 1 well known labor conflict in the late 19 th
century, and EXPLAIN what happened. 2.What was the name of the
labor union that united skilled workers throughout the U.S.? 3.
What business organization technique did Andrew Carnegie use to
make his business profitable? 4.What economic idea says that
workers will revolt, overthrow business owners, and create a
classless society? 5.What did American business owners get the
government to impose in order to protect their industries and
companies from foreign competition?
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3-2: Immigration and Urbanization Millions of immigrants began
flooding into the United States from southern and eastern Europe
(Italians and Slavic ethnicity) Most ended their journey from
Europe at Ellis Island in New York Harbor, that processed the new
immigrants Immigrants contributed to population boom of cities
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3-2: Immigration and Urbanization Discrimination towards
immigrants emerged again in late 19 th century This discrimination
took the form of nativism a strong dislike of foreigners by native
born Americans who wanted to limit immigration Were suspicious of
Asians, Jews, Eastern Europeans Nativists got Congress to pass the
Chinese Exclusion Act Stopped Chinese immigration for 10 years
Barred Chinese in country from becoming citizens
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3-2: Immigration and Urbanization Most Asian immigrants came
into U.S. through Angel Island in California Division of classes
could be seen according to where people lived Wealthy in heart of
the city in fancy homes Middle class in surrounding suburbs Working
poor in tenements Dark, dirty, multi-family apartments with little
or no indoor plumbing
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Asian immigrants disembarking at Angel Island in San Francisco
Bay.
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3-2: Immigration and Urbanization Andrew Carnegie wrote about a
Gospel of Wealth--his philosophy that rich should accumulate wealth
to give it back to society When wealthy give money back to the
public for the benefit of society, it is called philanthropy Other
reformers tried to ease problems of the poor Jacob Riis used his
camera to capture hopelessness of life in tenements, make the rich
aware of the crushing poverty Jane Addams started Hull Housea
settlement house to help poor get on their feet, find work
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3-2: Immigration and Urbanization Interstate Trade was
government issue of late 19 th century Farmers (Populists) were mad
at high prices charged by railroads for shipping, states tried to
regulate prices Federal government said only they could regulate
interstate trade President Cleveland created interstate commerce
commission (ICC) to regulate trade
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Note Quiz 1.What was Nativism? 2.Define philanthropy
3.Nativists succeeded in getting what law passed through Congress?
What did it do? 4.Who wrote about the Gospel of Wealth? What
beliefs did he talk about in this work? 5.What were the dirty, dark
one room, multi family apartments in big cities called?