Which situation brought about the rapid growth of industry between 1865 and 1900? high worker morale resulting from good wages and working conditions availability of investment capital establishment of western reservations for Native American Indians decline in the number of people attending schools

In the decades after the Civil War, the major result of the shift from single proprietorship to corporate organization was that business was able to make more efficient use of natural resources concentrate on improving the quality of manufactured goods provide workers with higher wages raise large sums of money

Businesses formed trusts, pools, and holding companies mainly to increase profits by eliminating competition offer a wide range of goods and services to consumers provide employment opportunities for minorities protect the interests of workers

A negative effect of holding companies (trusts), mergers, and pools on the United States during the late 19th century was that these combinations encouraged the Federal Government to spend more than its income reduced the need for labor unions decreased competition between businesses ended United States participation in inter-national trade

The 19th-century philosophy of Social Darwinism maintained that the government should have control over the means of production and the marketplace all social class distinctions in American society should be eliminated economic success comes to those who are the hardest working and most competent wealth and income should be more equally distributed

The American Beauty Rose can be produced in the splendor and fragrance which bring cheer to its beholder only by sacrificing the early buds which grow up around it. This is not an evil tendency in business. It is merely the working-out of a law of nature and a law of God. John D Rockefeller

Rise of big business in the Gilded Age (1870s- early 1900s) 1870s, 80s- Largest economic growth in history Pass Britain as world’s #1 RR- transform the economy Mechanized farming- massive production of food in the west Corporations become the dominate form of business By 1900 “trusts” dominate steel, oil, sugar, meat and farm machinery industries (horizontal, vertical integration) Millions employed- huge era of innovation and inventions (kerosene, steel, telephone, electricity, running water Rise of the middle class (wages increase 60%) and wealth (per capita income #1 in the world)

“Gospel of Wealth”- Industrialists become philanthropists Carnegie donates 90% of wealth to charity Rockefeller- $500,000,000 1000s of colleges, hospitals, museums, academies, schools, opera houses, public libraries, charities paid for by industrialists

“survival of the fittest” in business Social Darwinism “survival of the fittest” in business The most competent businesses would survive and society would benefit from fierce competition Laissez faire “allow to do” Gov’t should leave business alone to let this take place and not regulate big business Government actually supports big business: High tariffs No immigration restrictions Subsidizes the railroads

By the end of the 1800s, many began to be critical of the power of big business and the wealth of industrialists…

According to the cartoons… What was the problem with the rise of big business, formation of monopolies and trusts, and the growing power and wealth of industrialists…. (on back of your cartoon, write down at least three issues the cartoons are critical of)

“What a Funny Little Government”, by Horace Taylor for the September 25, 1899 issue of The Verdict THE TRUST GIANTS POINT OF VIEW “WHAT A FUNNY LITTLE GOVERNMENT”

Mark Hanna- iron and coal industrialist Philip Armour- meatpacking LABOR ONE SEES HIS FINISH UNLESS GOOD GOVERNMENT RETAKES THE SHIP Mark Hanna- iron and coal industrialist Philip Armour- meatpacking industrialist

“The Standard Oil Octopus”

Joseph Keppler - 1889 political cartoon "The Bosses of the Senate",

“The Protectors of our Industry” 1883 Russell Sage- financier and Railroad executive William Henry Vanderbilt- railroads Cyrus Field- American Telegraph Company Jay Gould- Railroad Developer And speculator

Samuel Ehrhardt, ‘History Repeats Itself: The Robber Barons of the Middle Ages and the Robber Barons of Today’, Puck, c. 1889

If you haven’t, please write down 3 specific problems the cartoonists saw with the rise of big business, formation of monopolies and trusts, and the growing power and wealth of industrialists…. For at least one, write down a possible solution to the problem….

Robber Barons or captains of industry? http://www.youtube.com/watch?v=D9vOUhkmtSw Robber Barons or captains of industry?

Labor Unions Emerge: Working Conditions: Dangers: Wages: child labor: Six or seven days a week 12+ hours No benefits (vacation, sick time, unemployment, injury) Dangers: injuries common; dangerous equipment 675 deaths a week in ’82 Wages: to survive, women and children often had to work  child labor: 20% of boys, 10% of girls work full time- no education sweatshops: done in tenement houses; women and children (27 cents for 14 hour day- children)

American Federation of Labor (craft unions) Types of workers it organized Tactics used (strikes, collective bargaining, arbitration) Goals- types of reforms sought Level of success? Knights of Labor ALL WORKERS (men, women, minorities, immigrants, skilled unskilled) Mostly arbitration- third party solves dispute 8-hour work day Equal pay for men and women Declines after failure of strikes American Federation of Labor (craft unions) Skilled workers LEADER: Samuel Gompers Collective bargaining- negotiation between labor and management Strikes used “bread and butter issues” Higher wages Shorter work weeks Quite successful American Railway Union (industrial union) All workers in a specific industry (railroad) Unskilled, semi-skilled, some skilled LEADER: Eugene V. Debs Strikes Declines after failure of a strike

Why was the AFL more successful than the Knights of Labor? too diverse a group of workers- different goals unskilled workers easy to replace American Federation of Labor- (AFL) workers in same craft- same goals skilled workers have more power

Collective Bargaining negotiation between labor and management to settle disputes

Homestead Strike http://www.history.com/videos/andrew-carnegie-and-the-homestead-strike Pullman Strike http://video.answers.com/impact-of-the-pullman-strike-300994006

In both the Homestead and Pullman Company Strike, what role did the government play? Did they support the workers or big business? Government sends in troops to end the strike, orders Debs to end the strike. ****supports business

In re debs The government does have the power to order Debs to stop strike Article one, Section 8 of Constitution- - interstate commerce; post office (RR strike interfered with commerce and the delivery of the mail)  

What is the ILGWU: International Ladies’ Garment Union   What was the “Uprising of 20,000”? What was the outcome? A successful seamstress strike in 1909 Describe the Triangle Shirtwaist Fire of 1911: 1911 fire- all doors locked; 146 women burn to death What positive result did the tragedy have in New York? New York sets up a task force to improve safety conditions

Homestead Strike: Conditions that led to the strike: Announcement to cut wages at Carnegie Steel. Tactics used by both sides (labor and management): Labor: go on strike; attack plant- occupy it and keep it closed Management: hires scabs, hires “Pinkertons” (armed guards) to protect plant Role of the state and/ or federal government: National Guard sent in to reopen plant Outcome of the strike: after 5 months, union gives in to company; loses public support; (45 years until steel workers unionize again)

Pullman Strike Conditions that led to the strike: Pullman lays off more than half of work force; cuts pay of rest Still charges the same for rent Tactics used by both sides (labor and management): Labor: strike called; Debs asks for arbitration; ARU boycotts Pullman trains; go after strikebreakers (scabs) Management: hires scabs; refuses arbitration Role of the state and/ or federal government: President Cleveland sends in federal troops to end strike Courts issue an “injunction” (order) to halt the strike Debs is arrested for refusing the injunction Outcome of the strike: Pullman fires strikers Strikers “blacklisted”- no RR company will hire them