Part 1: The Age of Industrialism and Industry. Was the rise of industry good for the US?

Transcription

1 Part 1: The Age of Industrialism and Industry Was the rise of industry good for the US?

2 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

3 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 3

4 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

5 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

6 Eliminate the Competition Activity Devise a strategy to become and industry leader

7 7

8 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

9 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

10 Big Business New big businesses different than traditional companies size & profitability impersonal & profit driven owners rarely know workers responsive to investors entrepreneurs philanthropists

11 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

12 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 12

13 Patents Issued for Inventions, LINE GRAPH Year Total Patents Year Total Patents , , , , , , , , , ,644

14 Total Number of Workers, (in thousands) LINE GRAPH Year Agricultural Non- Workers Agricultural Workers ,850 6, ,585 8, ,938 13, ,912 18, ,592 25, ,449 30,985

15 Value of US Exports (in millions) LINE GRAPH Year Total Exports Year Total Exports 1850 $ $ $ $ $ $ $ $ $ $1, $ $1,660

16 Average Annual Income, 1890 BAR GRAPH Avg. Annual Person or Group 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

17 Part 2: Labor s Response to Industrialism Was the rise of industry good for US workers?

18 Conditions of the Working Class The Haves and the Have-nots Living Conditions tenements slums unsanitary cramped hazardous disease fire

19 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

20 Labor Movement 1870s began, but not successful American Federation of Labor IWW Knights of Labor

21 Unions or Not? Improve workers lives by: threatening to strike join with other unions nationwide collective bargaining

22 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

23 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 23

24 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.

25 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