The Rise of Industry Industrial Age

Focus America became a leading industrial power after the Civil War. This unit will focus on (4) key areas: Rise of industry - inventions lead to rise of factories & mass production. Rise of labor - as the demand for work increases the treatment of workers declines leading to development of labor unions. Growth of cities - people flooded into cities looking for jobs & a better life. Immigrants were one of these groups. Westward expansion - transcontinental railroad moves settlers further west.

Rise of Industry The origin of the Industrial Revolution began in Great Britain. New inventions & ideas led to new ways of producing goods & services. This led to the creation of factories. The invention of the steam engine gave power to the factories, which allowed the production of more goods cheaply. The demand for more goods lead to a demand for more workers.

Economic Growth The continued discovery of natural resources including fertile soil, timber, coal, iron ore, copper, and oil. The capitalist spirit of free enterprise helped Americans enjoy private ownership. It stressed individualism, thrift, & hard work. Towards the end of the 19th century, the govt had adopted the idea of “laissez-faire” which is a policy by which the govt keeps their hands-off American owned businesses. Govt did promote industrialization is key areas: Congress passed protective tariffs to protect American goods from outside competition of cheaper foreign-made products. Congress encouraged the use of patents to protect the inventor’s ideas from being stolen.

Modern Industrial Economy The expansion of the railroads was key to the rise of the industrial economy. Completed in 1869, the transcontinental railroad linked east & west coasts. Railroads helped raw material reach the factories, and finished products get to the consumer. The need for iron, steel, & coal to continue building railroads help to stimulate these industries. Railroads also promoted the settlement of the frontier. Now settlers were able to reach the cheap land up for grab quicker. Farmers could now get their goods to market faster & with the addition of refrigerated box cars, much fresher. Railroads needed workers & advertised in other countries for workers, thus stimulating more immigration, especially the Irish & Chinese who worked cheaply.

Modern Industrial Economy cont. Between 1860 - 1900 the population doubled which created an abundance of cheap labor & a growing demand for goods & services. Creation of a national market which resulted from a number of factories. The linking of the nation via railroad, telegraph, and eventually telephone added to this. Huge national factories could produce and ship goods more cheaply than the local factory, The addition of the department store, chain stores, and mail order catalogs also added to the national market. The progress of technological inventions helped the economy grow. One such invention was the Bessemer process which fueled the steel industry. Electricity revolutionized the business world. Oil was discovered.

The Gilded Age 1865 - 1900 This time period was also called the Gilded Age because those inventors & business owners who prospered greatly began living rich lifestyles. A debated waged as to whether these people where captains of industry or rather mere robber barons. Andrew Carnegie - leader in the steel industry, was a poor immigrant who became a self-made man in the steel industry. Ruthless business ethic kept him on top, he blocked attempts of his workers to form labor unions, worked his employees 12hours a day for low pay. John Rockefeller - creator of the Standard Oil Company 1870, forced railroads to give him special, secret rates, but charge his competitors higher prices. By 1900, he controlled almost 90% of oil refining.

Government Reform During the Gilded Age, big business is blamed for much abuse of the system. Govt truly believed in laissez-faire, & were unsure of the constituionality of regulating business. Eventually the abuse could not be ignored & Congress was forced to step in: Interstate Commerce Act - 1887 - attacked abuse by the railroads which had been overcharging for services. The Interstate Commerce Commission was created to enforce the act. Sherman Antitrust Act - 1890 - passed to attack the spread of monopolies making them illegal.

The Rise of Labor As the need for goods & services increased, the need for labor did too. But the plight of the worker was becoming a much overlooked issue. Unfavorable working conditions became the norm. Factories were unsafe and unsanitary. Thousands of accidents occurred each year. Workers were forced to work long hours (10-14 hours a day). The average pay was about $3 - $12 a week. Immigrants often worked for even less. Workers seldom had any personal contact w/employers. Less skill was required, even less training was given. Work became boring & repetitive. Child labor became a huge issue w/about 1/5 of all American children working in a factory by 1910.

The Need for Labor Unions Workers lost bargaining power w/their employers as big business rose. Because workers were mostly unskilled, they could easily be replaced. Workers soon realized there might be strength in numbers and w/the creation of unions they organize strikes & other protests to get better working conditions. The reaction from big business was to employ immigrants or to shut down the factories rather than strike a deal w/the unions.

The Unions 1869 - Knights of Labor - tried to unite one national union joining all skilled & unskilled workers together. In 1881 women were allowed to join. Demanded 8 hour work days, higher wages, safety codes, the end of child labor, & equal pay for women. Saw immigrants as competition & wanted restrictions place on them. 1881 - American Federation of Labor (AFL) founded by Samuel Gompers. It tried to create a powerful union by joining workers of similar economic interests. It was made up of separate unions of skilled workers. Focused on higher pay, 8 hour work days, better working conditions. Sought out job security by creating closed shops (places where only union members were hired). By 1900, a half million members belonged, but began to weaken by excluding unskilled workers.

Government & Unions Govt was opposed to unions because Business leaders contributed to campaign funds, and held a similar belief that big business was a huge reason for American prosperity, Feared that the disruption in production the unions caused w/things like strikes would hurt the economy. Backed the people’s belief in laissez-faire, also their fear that paying higher wages would drive up the prices. Union activities were considered violent & radical often involving the use of troops to put down the strikes.

A Change in Attitude After certain events that brought to light the horrors faced by the workers, govt began to change its views. One event was the Triangle Shirtwaist Factory which in 1911 caught fire, killing 146 workers because investigation found that the doors had been bolted from the outside. Congress created the Department of Labor in 1913 to study the problems of labor, & enforce labor laws. It passed the Clayton Antitrust Act in 1914 a law preventing the application of antitrust laws to unions, also banned the use of injuctions to stop strikes in labor disputes.