United States Industrializes

The US Industrializes After the Civil War, the United States saw a rapid growth in industrialization. A wealth of natural resources in the country contributed to the ability of the country to industrialize. Timber, coal, iron, copper petroleum

The US Industrializes An increase in the population added to the workforce and helped businesses grow rapidly. Nearly triples from 1860-1910 Large families and flood of immigrants By the late 1800s the nation’s gross national product had increased quickly.

New Inventions New inventions and technology helped fuel the industrialization of the nation. Communication and transportation innovations changed the way people lived. Production of technological goods provided many jobs and allowed the growth of large businesses.

New Inventions Electricity improvements- Thomas Edison AC Currents- George Westinghouse Underwater telegraph wire- Cyrus Field Telephone- Alexander Graham Bell Others include typewriter, camera, dishwasher, refrigerated RR car

Free Enterprise Industrialization grew, in part, by the promotion of laissez-faire economics. An economic system with little or no government regulation is called a free enterprise system. The free enterprise system promoted entrepreneurism and the growth of new businesses.

Free Enterprise Northern and Southern states disagreed on the use of tariffs and subsidies in businesses. Tariff- Tax on imports Subsidy- money granted by the government to assist an industry or business so that the price of a commodity or service may remain low or competitive. After the Civil War, supporters of laissez-faire systems contributed to the nation’s economic growth.

Free Enterprise High tariffs were inconsistent with the laissez-faire concept of the free market and hurt U.S. exports. By the early 1900s, the United States was one of the largest free- trade areas in the world.

Linking the Nation The construction of the Transcontinental Railroad transformed the American West. The Union and Central Pacific railroads were the first of many railroad lines to connect the country.

Linking the Nation The transportation system meant an expansion of industry because of improved delivery of goods. Ease of transportation spurred tourist industries and the need for multiple time zones.

Robber Barons The money to build the railroads came from government land grants. Railroad entrepreneurs accumulated great wealth while raising money for construction. Scandals and bribery were common among railroad entrepreneurs.

Robber Barons People who grew wealthy from the railroad in unethical ways were called robber barons. Jay Gould– owned over 15,000 miles of track Cornelius Vanderbilt– first to offer NYC to Chicago train travel The Great Northern RR did not use government land grants

Rise of Big Business As industrialization and technology progressed, the 20th century brought the rise of the corporation. There are different classifications of corporations, based on the type of business. Stockholders own some corporations through shares of ownership, called stock. There are advantages to big corporations, such as the ability to make more goods at a lower cost.

Consolidating Industry New business strategies in the early 20th century allowed businesses to compete and grow. Some corporations eliminated their competition through business models and business organization structures. Oil and steel John D. Rockefeller & Andrew Carnegie

Consolidating Industry Steel and oil companies grew to be large corporations, nearly monopolizing their industries. New types of business organizations developed, such as trusts, holding companies, and investment banking industries. Advertising developed as a way to attract customers and sell products.

Consider… Classes can extend beyond school hours. Lunch periods are 5 minutes. All tests are unannounced. Student council is prohibited. Any absence results in grade loss. Protest results in expulsion.

Unions Working conditions became difficult and unsafe for many laborers. Inflation caused worker wages to fall, and workers and laborers organized to demand better pay and working conditions. Unions used strikes to try to get higher pay and improved conditions. Three main goals of unions Higher wages, shorter hours, benefits

Unions Some companies opposed unions and locked out workers who joined them. yellow-dog contracts Unions struggled to grow and be accepted on a large scale Large strikes occurred, making the work of unions more well known across the country.

The Great Railroad Strike July 1877 Baltimore & Ohio RR cuts wages for 3rd time Thousands walk off jobs 80,000 workers affect 2/3 of nation’s railways Destroy equipment Major cities without rail service New York City, Baltimore, Chicago, St Louis, Pittsburgh

The Great Railroad Strike Gun fights erupt between militia and workers President Hayes sends in federal troops 12 bloody days of battle ensue 100 dead, over $10 million in RR property destroyed

Haymarket Riot 1886 Chicago– supporters of 8 hour work day strike on May 1st May 3rd- police try to break up fight in picket line, shoot on strikers killing four May 4th- 3,000 people gather to protest shooting Bomb thrown into crowd, police open fire, workers shoot back 170 injured, 10 police killed 8 arrested and convicted of bombing, four executed

Unions Some unions tried to bargain with employers to reach agreements. arbitration Unions and corporations often clashed, courts sometime step in injunction Jimmy Hoffa

Unions New industrial unions emerged to support different kinds of workers. Specialized unions focused on the needs of different types of workers. Although unions fought for workers’ rights, most excluded women. Specialized unions for women emerged.