Effects of Industrialization ESSENTIAL QUESTION: How did workers fair in industrial America? Effects of Industrialization

TEKS and Objectives Evaluate entrepreneurs from the Gilded Age We will… I will… (3B) analyze economic issues such as industrialization, the growth of labor unions, the rise of entrepreneurship, and the pros and cons of big business (3c) analyze social issues affecting women, children, and immigrants and philanthropy of industrialists (15B) describe the changing relationship between the federal government and private business (24B) evaluate the contributions of Andrew Carnegie Evaluate entrepreneurs from the Gilded Age

Entrepreneurship and Philanthropy Person (or small group) who starts a business Lowered prices/increased quality of goods Made huge profits Captains of Industry: Because they forged the new modern industrial economy Robber Barons Because they destroyed competition and kept wages low

Social Darwinism Theory that some people are successful because they are superior to others Survival of the fittest

Andrew Carnegie Poor Scottish immigrant  rich/powerful American Carnegie Steel Corporation Undercut competition Low wages/long hours Crushed labor unions Philanthropist Gave millions to build libraries and endow universities

Gospel of Wealth In his Gospel of Wealth, Carnegie answered critics who attacked him for not paying workers more while using his wealth to build libraries and universities: “The problem our age is the proper administration of wealth. In bestowing charity, the main consideration should be to help those who will help themselves; to provide the means by which those who desire to improve may do so; to give those who desire to rise the aids by which they may rise; Neither the individual nor the race is improved by [charity]. Those worthy of assistance…seldom require assistance. The really valuable men never do…[M]ore injury is done rewarding vice than by relieving virtue…The best means of benefiting the community to place within its reach the ladders on which the aspiring can rise…by which men are helped in body and mind; their surplus wealth to the mass of their fellows is the form best calculated to do them lasting good…” According to Carnegie, what should the wealthy do with their money? How did Carnegie justify not giving his workers higher pay?

John D. Rockefeller Standard Oil Company Monopoly Philanthropist Became a trust (several companies come together to eliminate competition) Rockefeller controlled most shares Monopoly Company having complete control of a product/service Controlled 90% of oil refineries Forced RR companies to give special rates Philanthropist Donated to education and science Helped found University of Chicago and Rockefeller Foundation

Conditions of Labor Long Hours and Low Wages 10-14 hour days Six days/week Avg. $3-$12/week Immigrants, women, and children paid less Poor Conditions, Boring/Repetitive Tasks No personal contact with employer “Take-it or leave-it” jobs Work less skilled, more repetitive Extremely hazardous

Conditions of Labor Child Labor Lack of Security Textile mills and coal mines Exposed to moving parts of machines Lack of Security Workers fired at any time for any reason No unemployment insurance, worker’s comp, sick days, etc.

The Rise of Unions Unions: groups of workers from a particular industry Strikes: refusing to work as a form of protest against unfair practices

Labor Unions Knights of Labor (1869) Skilled and unskilled workers Demanded 8-hour day, higher wages, and safety codes Opposed child labor Supported equal pay for women Supported restrictions on immigration American Federation of Labor (AFL) (1881) Multiple unions of skilled laborers Demanded higher pay, 8-hour day, better conditions

Laws Against Anti-Competitive Practices Interstate Commerce Act (1887) Federal law prohibiting unfair practices by RR (i.e. higher rates for shorter routes) First time Congress regulated business Sherman Anti-Trust Act (1890) Federal law that stopped monopolies