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Industrialization & the "Gilded Age"

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Genna Duncan

on 25 September 2014

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Transcript of Industrialization & the "Gilded Age"

Industrialization & the "Gilded Age"
design by Dóri Sirály for Prezi
Railroads, canals, telegraphs, and telephones
link

together
different parts of the country
National producers could ship their goods
cheaper
and would dominate sales in the
West
.
National producers produce more
cheaply
than
local
producers
Take advantage of "economy of scale"
New methods of selling goods are developed
department stores, chain stores, mail-order businesses
Manufacturers advertise in magazines and newspapers and sell
same

goods
throughout the country
America Industrializes
Organized Labor Graphic Organizer
Development of a National Market
New Types of Business Organizations
The time when Captains of Industry ruled America
They amassed fabulous wealth and lavishly spent it while the
majority
of Americans were poor.
Robber barons were glorified and vilified and some became the richest men in the world.
Robber barons were accused of:
Unfair
business practices
Being
above
the law
Abusing
labor with low wages and long hours
Having too much
influence
on government
Simply not caring about the American
public
Gilded Age
Essential Questions
1. What factors encouraged American economic growth in the decades after the Civil War?

2. How did workers fare in the new industrial America?

3. Could workers have improved their working conditions without organizing labor unions?

4. How did industrialization bring both positive and negative changes?
Vocabulary
Corporation
Stock
Entrepreneur
Robber baron
Laissez-faire
Interstate Commerce Act
Sherman Anti-Trust Act
Terrence Powderly
Samuel Gompers
Closed Shop
Technological Improvements
After the Civil War new technologies and innovations helped start
economic growth
and
expansion
.
steam
and
electricity
replace animal and man power
Iron
replaced wood.
Steel
replaced iron.
Bessemer Process
Increased the
amount
and the
quality
of
steel
being produced.
Before - 5 tons = 1 day
After - 5 tons = 15 minutes
Steam Power
Powered textile mills, factories, and trains
Allowed more
coal
to be mined
coal burned to heat water and produce steam
Western Pennsylvania is the center of coal mining
Petroleum Refining
Used in lighting, lubricating machine parts, fuel internal combustion engines
Electricity
One of the era's most
important inventions
Used before as a way to
communicate
(telegraph)
Alexander Graham Bell - invented the
telephone
Thomas Edison - invented the first electrical
light bulb
phonograph (amplifies sound), mimeograph (copier), Dictaphone (phone for blind and deaf), moving picture.
Powered motors and
replaced
steam power in factories, street cars, subway trains, refrigeration
Miracles in Mechanization
Elias Howe
- sewing machine
Elisha Otis
- passenger elevator
Christopher Sholes
- typewriter
Orville & Wilbur Wright
-
airplane
Cyrus McCormick
- reaper (cut and bundled grain)
Each new technological innovation had a dramatic effect on raising people's
standard of living
and improving the nation's
economy
.
The Growth of Railroads
Before the Civil War, majority of railroad tracks were in the
Northeast
.
Gold

discovery
in the West led people to migrate there.
slow and difficult journey
wanted to build a
transcontinental railroad
to connect the
East
with the
West
Problem...no one could agree on a route.
So what route should the railway be built?
Because the South seceded, the route would be build in the North
Workers in California worked eastward and workers in the middle of the US worked westward
They met in the middle in 1869 at
Promontory Point, Utah
Travel from coast to coast now only lasted a few days
New lines were also built throughout the nation
Revolution by Railroads
Until the 1880s, every town in the US had it's own local time based on the sun's position
Made train schedules
complicated

November 18, 1882 - North America was divided into
4 time zones
based on the rising of the sun
Population Growth
Captains of Industry
Analyzing an Illustration
Captains of Industry
Labor and Economy
Conditions of Labor
The Rise of Unions
Government Intervention in the Economy
Workers Seek a National Voice
Government Attitude Towards Unions
Government Attitude Towards Unions
Labor and the Growth of Unions
Conditions of Industrial Workers
Reasons for the Rise of Unions
Samuel Gompers and the AFL
Knights of Labor
The USA experienced a
rapid

population
growth
Between 1850-1900 population more than
triples

1850 - 23 million people
1900 - 76 million people
High birthrates
and
immigrants
from
Europe
create a rising demand for goods
Growing population provided a
steady

supply
of
cheap

labor
Population Growth = good for business
expansion

Before Civil War = business were owned by
individuals

After Civil War = business were owned by
corporations
Corporate form of business becomes more common
Corporation - a
company
charted by a state and recognized in law a
separate
"person" from its
ownership
Issues shares of stock -
portions

of

ownership
The more stock a person owns =
larger
the share of
ownership

Owners share profits
Issue and sell 'stock' or shares of a company
Shareholder – a
partial

owner
who receives a portion of the corporations profits based on the
amount
of
stock
they
own
.
Makes it possible for large numbers of people to combine their money
Allows for the raising of large amounts of money
Helps fund the building of railroad lines, coal and iron mines, steel mills, and large mass-production factories
Successful entrepreneurs =
Captains of Industry
Aka: Robber Barons - used brutal tactics and methods to destroy their competition and keep workers wages low.
America's 1st oil well = Titusville, Pennsylvania in 1859
Refined
into kerosene for lighting
Impact of Population Growth
lumbering destroyed the forests
Sodbusters plowed the Great Plains to plant crops
Gold mining destroyed the land
Railroads and buffalo hunters wiped out the
buffalo
population
Rivers and lakes became
polluted
The Free Enterprise System
Success of America's industrialization =
free enterprise system
Free Enterprise System - when people have the
freedom
to make their own choices in what
to

buy
, where to
work
, and what to
make
.
Producers
- People have the
freedom
to use their
money
and
time
to start a business and hopefully make a
profit
.
Consumers
- People have the
freedom
to choose what product they want to
buy
and
how much
they pay for it.
Unlimited wants =
Limited resources
Businesses use their resources to compete with each other by satisfying consumer desires.
Entrepreneurs
Entrepreneur – person that invests their
time
,
money
, and
skills
on the chance of making a
profit
.
1870s = dominated America's economic life.
Efficient large-scale production allowed them to sell goods at lower prices
Andrew Carnegie
John D. Rockefeller
Grew up poor
Fortune =
steel

mills
in Pittsburgh, Pennsylvania
Destroyed competition by:
buying his own iron ore fields
buying coal mines and ships
Allowed him to control all phases of steel production
Crushed attempts to form labor unions
Paid low wages
Forced laborers to work 12 hour work days
The labor strike on Carnegie's Homestead Steel Mill would be one of the era's most violent.
Grew up poor
Fortune =
oil
in Ohio
Made millions off kerosene and gasoline industry
Used brutal tactics to drive competition out of business buy them out.
His Standard Oil Co. became a trust with him owning most of the shares
Later it would be a monopoly = he controlled
90
% of all oil refined.
Pros and Cons of Big Business
Pros (Good Things)
Cons (Bad Things)
More efficient = leads to lower prices
Hire large numbers of workers
Produce goods in large quantities
Have the resources for expensive research and to invent new items.
Unfair competitive advantage
Often exploited workers
Often unconcerned about pollution they caused
Have an unfair influence on government rules that affect them.
Big businesses
grew
and workers lost their
bargaining
power
Most work was
unskilled
and workers could easily be
replaced
Workers began to form unions to act as a
group
and
not
as
individuals
.
Unions organized
strikes
and
protests
to get better working conditions and higher pay.
The exploitation of workers = reason for huge economic
growth
Long hours and low wages
Average work day:
10-14 hours per day
6 days a week
Pay: $3 - $12 weekly
Immigrants were
willing
to work for
less
Women and children were paid less
Chinese railroad workers:
Paid: $26 - $35 per month for,
12 hours per day, 6 days a week
Poor working conditions
Boring and repetitive tasks
"Take-it or leave-it", had to deal with it
Work became less skilled, more repetitive, monotonous, and boring.
Extremely dangerous working conditions
Thousands of workers were injured or killed on the job
Lack of security
Workers could be fired at
any time
for
any reason
Employers could stop production and fire all workers
Lacked benefits
Unemployment insurance, worker's compensation for injuries, paid sick days
Child Labor
Children used in coal mines and textile mills to perform special tasks
Move, clean, or fix large machines since they were
small
enough to fit into tight spaces
Children constantly surrounded by moving machine parts
Were constantly getting injured
About 1/5 of all children
under age of 15
worked outside the home in 1910
Missed out on their childhood - no play time, no fresh air, no school
Large businesses began
buying smaller ones
and driving them out of business
Rivals began to merge together
Producers wanted to
eliminate
competition by establishing a
monopoly
so they could control the prices
Before the government did little to regulate big business because of laissez-faire
Government established laws to protect property rights, enforce contracts, grant patents, enact tariffs, ect.
Businesses grew so large and powerful that some people believed it was necessary to start regulating business practices.
Interstate Commerce Act
(1887)
Prohibited railroads from charging
higher

rates
for
shorter

routes
and being unfair
Interstate

Commerce

Commission
– established to
enforce the law
Sherman Anti-Trust Act (1890)
Stop
monopolies
from engaging in
unfair
practices that
prevented
fair competition
Knights of Labor
Formed in 1869
Created as a single national union that
joined

together

skilled
and
unskilled
workers.
Demanded 8 hour work day, higher wagers, and safety codes in factories
Opposed
child
labor and supported equal pay for
women

Supported restrictions on
immigration
,
Why would they support immigration restriction?
Grew rapidly in the 1880s under leadership of Terrence Powderly
Unfortunately, they were loosely organized
skilled workers didn't like being in same union as unskilled workers
Fell apart after loosing a series of major strikes
American Federation of Labor (AFL)
Samuel Gompers created a powerful union by uniting workers with similar
economic

interests
Consisted of separate unions of skilled workers that had joined together into a federation
Membership limited to only
skilled

workers
carpenters & cigar makers
Union hoped to improve economic lives of workers, higher pay, 8 hour work day, and better working conditions
Sought
closed shops
- places where only
union

members
could be
hired
Emerged as the principle voice of
organized
labor
Weakened by excluding
unskilled
workers, who made up the majority of the workforce
Government leaders were critical of the early labor movement, supporting businesses over unions
Greater Influences of Business:
Business leaders contributed large amounts of money to
politicians
.
politicians thought
business

leaders
were the reason for America's success and saw workers as
greedy

people
.
Protection of the Economy:
1880-1900: more than 20,000 strikes
Government feared disruptive effect of strikes
1895 Supreme Court applied
Sherman

Anti-Trust
Act against Unions which encouraged leaders to use troops to
stop

strikes
and restore
order
.
Public Opinion
The public supported
laissez-faire
policies
People believed businesses had the right to
hire
and
fire
workers as they pleased
Thought union demands would cause higher prices
Union ideas were often associated with violence and radical ideas
Haymarket Affair
(1886)
Labor leaders were blamed for setting off an explosive bomb during a strike that killed 7 policemen and wounded 67.
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