Industrial Revolution

How did industrialization affect the economy and society? America began a major transformation after the end of the Civil War marked by expanding business and industrialization. This “second industrial revolution,” led by scientists and inventors, turned the United States into an industrial powerhouse.

Many immigrants to the U.S. were “pushed” from their homelands by: political upheaval, religious discrimination, crop failures. They provided a willing workforce to industry. 3

American entrepreneurs invested money in products in order to make profits. Entrepreneurs fueled industrialization and helped spur innovation in the late 1800s. They benefited from laissez-faire policies, which allowed businesses to work under minimal government regulation. Congress enacted protective tariffs to encourage the buying of American goods. 4

Thomas Edison was the most prolific inventor of the era. He and his team of workers developed the light bulb, the phonograph, and hundreds of other new products.

Daily life changed dramatically as a result of new technologies. Morse’s telegraph gave rise to a communications revolution. The Bessemer process, which purified iron to create steel, changed construction. Steel made skyscrapers and suspension bridges possible.

This led to the physical and economic growth of cities. Railroads expanded. This led to the physical and economic growth of cities. 7

Business Practices of the Industrial Revolution

How did big business shape the American economy in the late 1800s and early 1900s? The rise of business empires turned the United States into one of the most economically powerful countries in the modern world.

Competitors forced out of business Corporations used strategies to eliminate competition and decrease costs. monopolies Competitors forced out of business Better control of production, reduced costs horizontal integration vertical integration 10

Tycoons of the Late 1800s John D. Rockefeller Oil Andrew Carnegie Business leader Industry John D. Rockefeller Oil Andrew Carnegie Steel Cornelius Vanderbilt Railroads

Were the tycoons “robber barons” who swindled the poor and drove small businesses under . . . or “captains of industry” who served the nation and lowered the prices of goods?

Darwin’s Theory of Evolution applied to American capitalism becomes Social Darwinism Wealth was accumulated by those who were the most “fit” to survive in society.

Social Darwinists believed government should stay out of private business and thought it was wrong to use public funds to assist the poor. Americans who worried about the methods of industrialists called for federal regulation of business practices. 14

The ICC and the Sherman Antitrust Act began a trend toward government limits on corporate power. Interstate Commerce Commission oversaw railroad operations Sherman Antitrust Act Passed by the Senate in 1890 Outlawed trusts that operated “in restraint of trade or commerce among the several states”

Organized Labor After 1865

Industrial workers faced hardships. • Factory owners employed people who would work for low wages. Many of these people were immigrants and children. • They often labored in hot, dark, dirty workhouses known as sweatshops. • Laborers often had to live in company towns and buy goods at high interest at company stores.

Labor unions formed. Workers tried collective bargaining to gain more power against employers. One form was the strike, in which workers stopped working until their demands were met. 18

American Federation of Labor (AFL) Labor Unions Labor Union Industry and Activity Knights of Labor included workers from any trade devoted to reform Terence V. Powderly encouraged boycotts and negotiation. American Federation of Labor (AFL) included skilled workers focused on specific issues founded by Samuel Gompers 19

As membership in unions grew in the 1870s, a wave of confrontations between labor and management rocked the country. In 1877 the federal government sent in troops to restore order after a major strike by railroad workers.

Across the nation, workers mounted demonstrations for more rights Across the nation, workers mounted demonstrations for more rights. One such protest in Chicago turned violent. The 1886 Haymarket Riot made many Americans fearful of labor unions.

Homestead Strike - Private police were called in to stop fighting between workers and Carnegie Steel. One year later, the Pullman Palace Car Company laid off rail workers and cut wages. This touched off the Pullman Strike, which halted nationwide railroad traffic and mail delivery.

Troops were called in to end the strike. The government ordered strike organizers, led by Eugene V. Debs, to end the strike. Troops were called in to end the strike. 23

Effects on the Labor Movement Government supported employers against unions. Violence and strikes continued as American industry grew. 24