Unit 3: Industrialization, Immigration, and Urbanization

3-1: Industrialization Industrialization occurred after Civil War Many individuals risked all their capital (resources) to start businesses. Then, and now these people are entrepreneurs These individuals almost always believed in laissez-faire capitalism Keep government out of business, let supply and demand dictate prices

Cuban, Jobs, and Zuckerberg are all famous modern entrepreneurs.

3-1: Industrialization As businesses grew, they preferred high protective tariffs Taxes on imports that would increase the cost of a foreign made good Why do you think big business owners in America favored high tariffs?

3-1: Industrialization A corporation was how most big businesses were organized A corporation is an organization owned by many people Carnegie Steel was a dominant corporation in the late 19th-early 20th century Andrew Carnegie used the Bessemer process to help mass produce (produce in high quantities) steel cheaply.

The Bessemer process allowed Carnegie to mass produce steel, cheaply The Bessemer process allowed Carnegie to mass produce steel, cheaply. He became a multi-millionaire, and Pittsburgh, PA. became the industrial heart of America

3-1: Industrialization Carnegie used vertical integration to make business profitable, eliminate competition Example: Carnegie owned iron ore mines, railroads, steel factories Businesses also used horizontal integration (combining of all the same industries) to maximize profits. When all of the same businesses combine, this leads to monopolies When one business dominates an entire market

3-1: Industrialization Laws were passed against monopolies, but companies found ways around them John D. Rockefeller bought out all competition in oil industry (Standard Oil) by forming a trust Companies assigns stock to board of trustees who get dividends (profits) Trustees would do what Rockefeller wanted in running company

John D. Rockefeller ruthlessly controlled the oil business in America due to laissez-faire capitalism.

3-1: Industrialization Most business owners favored buying out competitors, believed in Social Darwinism the belief that those who were the best at running business would survive, other businesses die Led to bad working conditions for laborers in factories. Why would Social Darwinism lead to bad working conditions for workers?

3-1: Industrialization Labor movements arise from issues important to workers Poor working conditions Low wages Long working hours Triangle Shirtwaist Factory fire highlights problems for workers (over 160 women die in a crowded factory fire) Unions arise, ideas motivated my Marxism Economic idea that workers would revolt against business owners, and create a classless society (Communism)

3-1: Industrialization Different unions serve different workers Knights of Labor: unskilled workers led by Terence Powderly Wanted 8 hour workday, no child labor, wanted government to track labor data AFL (American Federation of Labor): skilled workers led by Samuel Gompers Wanted same things as K.O.L., but wanted to keep labor out of politics

Terence Powederly (left), Samuel Gompers (right), and Eugene Debs (below), were all well known leaders of workers (labor).

3-1: Industrialization Labor conflicts occurred during late 19th, early 20th centuries Pullman Strike (1894): 300k railway workers strike, led by Eugene Debs, troops sent in by President Cleveland to break it up. Homestead Strike (1892): steelworkers union barricades themselves in Homestead Plant, Pinkerton detectives forcibly take back plant, 9 workers killed. Haymarket Riot (1886): anarchists protesting businesses throw a bomb into a crowd at Haymarket square in Chicago, dozens are killed, support for unions drops.

Note Quiz Name 1 well known labor conflict in the late 19th century, and EXPLAIN what happened. What was the name of the labor union that united skilled workers throughout the U.S.? What business organization technique did Andrew Carnegie use to make his business profitable? What economic idea says that workers will revolt, overthrow business owners, and create a classless society? What did American business owners get the government to impose in order to protect their industries and companies from foreign competition?

3-2: Immigration and Urbanization Millions of immigrants began flooding into the United States from southern and eastern Europe (Italians and Slavic ethnicity) Most ended their journey from Europe at Ellis Island in New York Harbor, that processed the new immigrants Immigrants contributed to population boom of cities

3-2: Immigration and Urbanization Discrimination towards immigrants emerged again in late 19th century This discrimination took the form of nativism a strong dislike of foreigners by native born Americans who wanted to limit immigration Were suspicious of Asians, Jews, Eastern Europeans Nativists got Congress to pass the Chinese Exclusion Act Stopped Chinese immigration for 10 years Barred Chinese in country from becoming citizens

3-2: Immigration and Urbanization Most Asian immigrants came into U.S. through Angel Island in California Division of classes could be seen according to where people lived Wealthy in heart of the city in fancy homes Middle class in surrounding suburbs Working poor in tenements Dark, dirty, multi-family apartments with little or no indoor plumbing

Asian immigrants disembarking at Angel Island in San Francisco Bay.

3-2: Immigration and Urbanization Andrew Carnegie wrote about a Gospel of Wealth--his philosophy that rich should accumulate wealth to give it back to society When wealthy give money back to the public for the benefit of society, it is called philanthropy Other reformers tried to ease problems of the poor Jacob Riis used his camera to capture hopelessness of life in tenements, make the rich aware of the crushing poverty Jane Addams started Hull House—a settlement house to help poor get on their feet, find work

3-2: Immigration and Urbanization Interstate Trade was government issue of late 19th century Farmers (Populists) were mad at high prices charged by railroads for shipping, states tried to regulate prices Federal government said only they could regulate interstate trade President Cleveland created interstate commerce commission (ICC) to regulate trade

Note Quiz What was Nativism? Define “philanthropy” Nativists succeeded in getting what law passed through Congress? What did it do? Who wrote about the “Gospel of Wealth?” What beliefs did he talk about in this work? What were the dirty, dark one room, multi family apartments in big cities called?