Relative Share of World Manufacturing

Essential Question Industrialization increased the standard of living and the opportunities of most Americans, but at what cost?

Causes of Rapid Industrialization 1.Huge Amount of Raw Materials

Causes of Rapid Industrialization 2. Technological innovations.  i.e.-Bessemer and open hearth process of steel production 2. Technological innovations.  i.e.-Bessemer and open hearth process of steel production

 With the Bessemer Process and Carnegie steel, Skyscrapers revolutionized the building industry…..  Major city skylines would be dotted with this new type of building as the 1900’s begin.

Thomas Alva Edison “Wizard of Menlo Park”

Telephone (1876)

Westinghouse Lamp ad

Wilbur Wright Orville Wright Kitty Hawk, NC – December 7, 1903

Henry Ford I want to pay my workers so that they can afford my product! Henry Ford I want to pay my workers so that they can afford my product!

3.Unskilled & semi-skilled labor in abundance. 4.New, talented group of businessmen. 5.US population increased=more customers. 6.Lack of Government regulation. 3.Unskilled & semi-skilled labor in abundance. 4.New, talented group of businessmen. 5.US population increased=more customers. 6.Lack of Government regulation. Causes of Rapid Industrialization

Ideas Matter — How the rich got richer 1. Laissez Faire  the ideology of the Industrial Age.  Individuals should compete freely in the marketplace.  No room for government intervention in business!  Individuals should compete freely in the marketplace.  No room for government intervention in business!

2. Social Darwinism × British economist. × Advocate of laissez-faire. × Adapted Darwin’s ideas from the “Origin of Species” to humans. × Notion of “Survival of the Fittest.” × British economist. × Advocate of laissez-faire. × Adapted Darwin’s ideas from the “Origin of Species” to humans. × Notion of “Survival of the Fittest.” Herbert Spencer

“The American Dream?” Is the idea of the “self-made man” a MYTH??

Monopoly –Single company achieves control of an entire market –Many states begin outlawing Trusts –Legal maneuver allowing trustee to control several companies & run them as one Holding Companies –Produce no product –Controls several companies, merging into one large enterprise Predatory Business Practices

Some Examples 2.Trust:  Horizontal Integration  John D. Rockefeller 2.Trust:  Horizontal Integration  John D. Rockefeller  Vertical Integration: o Gustavus Swift  Meat-packing o Andrew Carnegie  Carnegie Steel  Vertical Integration: o Gustavus Swift  Meat-packing o Andrew Carnegie  Carnegie Steel

Standard Oil Co.

The Gospel of Wealth: Religion in the Era of Industrialization Russell H. Conwell $ Wealth good. $ Viewed as a sign of God’s approval. $ Should not help the poor. To do so merely rewards failure $ Wealth good. $ Viewed as a sign of God’s approval. $ Should not help the poor. To do so merely rewards failure

Who were the richest Americans ever?

The Richest Americans Ever-#1 John D. Rockefeller Sr.-192 billion. Made his money in the oil industry. Started as a clerk, ended up controlling 95% of the oil industry in the United States Gave away billions to charity. Founded hospitals, universities, libraries, etc.

John D. Rockefeller Standard Oil later ruled a monopoly and broken up by the government

Standard Oil Of Ohio ChevronAmocoExxonMobil The Corporate Descendents of Standard Oil

The Richest Americans Ever-#2 Cornelius Vanderbilt-143 billion Made his money in the railroad industry. Started his own ferry service across the Hudson River at age 16. Expanded to railroads, owning most in the eastern US Again, gave away billions. Founded Vanderbilt University

The Richest Americans Ever-#3 John Jacob Astor-116 billion. Cornered the market on the fur trade in the early 1800’s. Later increased his fortune by buying N.Y.C. real estate.

The Richest Americans Ever-#4 Bill Gates-82 billion A Harvard drop-out, he and his business partner, Paul Allen, bought the MS- DOS operating system and created Windows. Nearly monopolized the PC market. Microsoft would become one of the most powerful companies in the world.

The Richest Americans Ever-#5 Andrew Carnegie-75 billion Rags to riches story-started as a messenger boy and became a steel baron in the 1870’s just as demand was skyrocketing. He almost completely controlled the American steel industry when he sold his company to J.P. Morgan in 1901.

Andrew Carnegie His “Gospel of Wealth” demanded that the rich give their fortunes away.

“Carnegie On Wealth” Andrew Carnegie $ The White race is superior. $ Rich people superior. $ Inequality is inevitable and good. $ Wealthy should give away most of their fortune to help others get wealthy $ The White race is superior. $ Rich people superior. $ Inequality is inevitable and good. $ Wealthy should give away most of their fortune to help others get wealthy

Carnegie Hall

Carnegie Library-Pittsburg

Carnegie-Mellon University

Other Big Shots

J.P. Morgan Made his money in banking. His bank still exists and is very profitable. When the US gov. ran out of gold in 1893, Morgan’s bank bailed it out.

How Rich Were These Guys? “The Breakers”, the Vanderbilt family mansion in Newport R.I.

“The Breakers “ dining room.

“The Breakers “ Lobby

The Vanderbilts “cottage”-The Marble House

The Marble House gold ballroom

“The Elms“ – belonged to a Pennsylvania Coal Baron

What about those who did the work? Where and how did they live?

Little Italy-N.Y.C.

Worker Family’s Apartment-NYC

On the Street-NYC

Women’s Boarding House-Chicago

Homeless Children

“Robber Barons”  Business leaders built their fortunes by stealing from the public.  They drained the country of its natural resources.  They persuaded public officials to interpret laws in their favor.  They ruthlessly drove their competitors to ruin.  They paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions. “Captains of Industry”  The business leaders served their nation in a positive way.  They increased the supply of goods by building factories.  They raised productivity and expanded markets.  They created jobs that enabled many Americans to buy new goods and raise their standard of living.  They also created museums, libraries, and universities, many of which still serve the public today. Heroes or Zeros?