Industrial Supremacy Here We Go, Ready or Not

Essential Question What new form of production will be used during the late 1800’s and how will it revolutionize the manufacturing industry?

Industrial Supremacy Factors Contributing to the Growth of Industry in America Large and growing labor supply- From where???? Who were they???? Technological innovations-what were they??? Emergence of talented, ambitious, and ruthless entrepreneurs- Who were they????

Industrial Supremacy Federal government encouraging the start up of businesses- Why??? Laissez-Faire economics??? A domestic market for products of manufacturing-What does this mean?

Industrial Supremacy Communications- What innovations emerged in this era? Where did they take place? Energy? What innovations emerged in this era? Where did they take place? Hard Metal Industry? Where, How, Result?

Industrial Supremacy Transportation- What innovations emerged in this era? Where did they take place? What was the most important change in production technology in the industrial era? What was it’s advantages?

Industrial Supremacy How did big business come about? Selling stock Stock holders had limited liability Allowed for large sums of $$$ to be acquired to operate the projects and make the products.

Industrial Supremacy Who made these new innovations marketable? Andrew Carnegie-Steel Industry Operated out of Pittsburg, Pennsylvania Made Steel rails Bought Coal mines for fuel Operated fleet of ships to transport Coal

Industrial Supremacy Gustavo Swift– Chicago, Illinois Meatpacking Industry Isaac Singer- Sewing Machine, Singer and Company John D. Rockefeller-Standard Oil, Cleveland Ohio Refining oil he used horizontal and vertical integration?

Industrial Supremacy J.D. Rockefeller Bought out competing refineries Built is own barrel factories, terminal warehouses and pipelines Freight cars Marketing organization Feared too many competitors Control 90% of refined oil in U.S.-what is that called?

Industrial Supremacy J.P Morgan-Banker-New York City Invested and Loans Made a fortune in Railroad companies Bought out Carnegie Steel and created the U. S. Steel Company General Electric

Richest Men in American History Industrial Supremacy Cornelius Vanderbilt-Railroad industry Richest Men in American History (Take into account inflation) Rockefeller (3x Gates) Carnegie Vanderbilt Astor Gates Top Three are from the Gilded Age Astor is pre-Civil War

Robber Barons” Many of these businessmen formed monopolies and dominated their industries by using unfair/dirty business practices

Industrial Supremacy

Industrial Supremacy

Industrial Supremacy

Industrial Supremacy

Industrial Supremacy Social Darwinism- English philosopher, Henry Spencer In his Social Statistics (1851), he opposed welfare systems, compulsory sanitation, free public schools, mandatory vaccinations, and any form of ‘poor law’. Why? Because under ‘Social Darwinism’ human social order was the result of evolution—those on top of the heap deserved to be there. The rich were rich because they were more fit and so were entitled to benefit at the expense of the weak.

Industrial Supremacy Gospel of Wealth The advocates linked wealth with responsibility, arguing that those with great material possessions had equally great obligations to society. Supporters of this Philosophy were; Horatio Alger, Andrew Carnegie

Industrial Supremacy Gospel of Wealth Andrew Carnegie Carnegie practiced what he preached and spent his last years giving away his vast fortune. One of his many charitable ventures was the funding of more than 2,800 public libraries. Carnegie wrote, “The man who dies rich dies disgraced.”

Philanthropists Vanderbilt University Carnegie Melon University Many donated their huge fortunes to form colleges, museums, libraries, etc. Carnegie Hall

Sherman Anti-trust Act, 1890 Gov’t tried to control these men with this law Made it illegal to President Benjamin Harrison form a trust that interfered with free trade Hard to enforce Monopolies continued.

S E C T I O N 3 Big Business and Labor GRAPH HOME ASSESSMENT 2. Do you think that the tycoons of the late 19th century are best described as ruthless robber barons or as effective captains of industry? Think About: • their management tactics and business strategies • their contributions to the economy • their attitude toward competition ANSWER continued . . .

“Barons”—exploitation of workers; greed; personal gain “Captains”—philanthropy; national commerce; jobs

S E C T I O N 3 Big Business and Labor GRAPH HOME ASSESSMENT 3. Does the life of Andrew Carnegie support or counter the philosophy of Social Darwinism? ANSWER continued . . .

Support: Carnegie well-suited to his society; caused his success Counter: advantages beyond Carnegie’s personal qualities

Industrial Supremacy Immigration shifting of where it is coming from by 1880’s-1890’s. Eastern and Southern Europe. .

Industrial Supremacy Moving into the Northeast United States and being employed by the factories as unskilled labor.

Industrial Supremacy

Industrial Supremacy Why? Jobs (Chinese, Japanese, Italians, etc.) Escape Religious Persecution (Eastern European Jews)

Industrial Supremacy Where?

The Immigrant Experience in America Entering and Exiting at Ellis Island

Restricting Immigration and the Rise of Nativism

Reasons for Restrictions Job Competition, Poverty & Lower Wages Fear of Foreign Cultures, Language, Ideas & Religion

Chinese Exclusion Act (1882)

Decreased number of skilled workers Women and labor Increase in Women and children working in factories Decreased number of skilled workers

Labor Men who worked in manufacturing = approximately $1.34 a day in 1880 Men who worked in manufacturing = earned nearly $1.55 daily by 1890. Women who worked in manufacturing = $6.00- $8.00 a week

Labor Working conditions Young children working in unsafe environments ( minimum age 12- maximum work day 10 hours) High rate of injury at the job Occupational diseases-lead poisoning

Labor National Labor Union- First big union Unions- Unofficial were the Molly Maguires- intimidated company owners National Labor Union- First big union At Its’ Peak- 600,000 members Excluded Women

Labor 1869 -Noble and Holy Order of the Knights of Labor. Endorsed eight-hour workday, codes for safety and health and equal pay for equal work by men and women.

Labor American Federation of Labor (AFL) was established in 1886. Leader was Samuel Gompers Allowed only skilled workers Worked for liability, mine-safety laws, increased wages, and above all, a standard eight-hour workday

Labor Between 1881 and 1900, approximately 23,000 strikes occurred, involving over six million workers