American Industrial Revolution, Again What created the modern industrial economy of the United States?

I. Natural Resources US had coal, iron ore, oil, gold, tin, and other resources There were many navigable rivers for shipping products from factories

II. Large labor supply Workers migrate from farms (mechanical farm equipment meant fewer workers needed) Increasing number of immigrants provided labor for factories

III. Inventions/Innovations Changed way people lived, worked, and played Technology: ▫Electricity became a source of power and light; used to make the light bulb work. Created by Thomas Edison.

III. Inventions/Innovations, con’t ▫Henry Ford makes assembly line manufacturing profitable ▫Henry Bessemer discovers a process of making steel cheaply, yet it is strong

III. Inventions/Innovations, con’t Transportation: ▫Wilbur and Orville Wright design a working airplane. ▫The Ford Model T and subway get people around faster

III. Inventions & Innovations, con’t Communication: ▫Alexander Graham Bell invents the telephone ▫The radio and typewriter also speed up communication for business

III. Inventions/Innovations, con’t Business: ▫The corporation is established as a means to encourage people to invest money. ▫If business fails, investors don’t lose all of the their money, only the money they put into the company ▫This is called limited liability

IV. Industrial Leaders Andrew Carnegie – Steel Cornelius Vanderbilt – Railroads John D. Rockefeller – Oil J. P. Morgan – Finance/banking

V. Government Policies Policy of laissez-faire capitalism which means the government does not interfere with economy Government gave land to railroad builders

Effects of Industrial Revolution I.Working Conditions *12 hour days, 6 days each week (avg. = 59 hours!) *high accident rate with no worker’s compensation due to dangerous working conditions

Effects of Industrial Revolution I.Working Conditions *high # of immigrants, women, and children working in factories or mines (1 out of every 6 kids) *limited education for kids; little play or family time *why?...maximize profits for owners

Effects of Industrial Revolution II. Rise of Labor Unions *formed to improve working conditions and increase wages *Knights of Labor was open to all laborers, want equal pay, led by Terrence Powderly

Effects of Industrial Revolution II. Rise of Labor Unions, con’t *American Federation of Labor was open to craft (skilled) workers only, led by Samuel Gompers, wanted equal wages, lower hours *American Railway Union was open to rail workers, led by Eugene Debs

Effects of Industrial Revolution II. Rise of Labor Unions, con’t *International Ladies Garment Workers Union, sued triangle Shirtwaist Company for fire and state improves safety laws

Effects of Industrial Revolution III. Labor Unions “strike” back *Haymarket Riot in Chicago; Knigts of Labor organize strike for an 8 hour workday; bomb thrown in crowd killing cops and crowd; K of Labor blamed and loses influence

Effects of Industrial Revolution III. Labor Unions *Pullman Strike in Chicago; American Railway Union strikes because Pullman Company cuts wages but not cut rent prices (Company Town); becomes national strike affecting all trains; federal troops called in

Effects of Industrial Revolution III. Labor Unions, con’t *Homestead Strike in Pittsburgh, PA; protesting 20% cut in wages; workers fight off replacement workers; state troops call in

Effects of Industrial Revolution III. Labor Unions, con’t *strikes frequently fail because government supports business and not laborers

America changes from an agricultural society to an industrial/urban society/nation.