1850 to 1900 Industrialization

Chapter 13 Section 1 Technological Revolution In the years following the Civil War, the United States would see a large increase in industry This would be due to the increasing number of inventions and technological improvements

Changes in Daily Life Lack of electricity or sufficient lighting Rustic methods of refrigeration Poor communications (standard post)

Investments Tremendous increase in patents Patent and Trademark office issues 500,000 patents from 1860 to 1890 New inventions seen as an opportunity to make a profit based on the increase in productivity Investors bought stock or funded the production of new inventions

New Forms of Energy Electricity and oil change the American lifestyle 1858, Pennsylvania Rock Oil Company sends Edwin Drake to drill for oil in Titusville, Pennsylvania Finally struck oil in 1859 Oil becomes a major industry Gasoline was a byproduct of oil and until automobiles were invented, was seen as useless and was discarded.

Thomas Edison “The Wizard of Menlo Park” A young genius, never had any formal training Biggest invention is the light bulb, which allowed all Americans to stay up later and to function better as a society after dark Later worked toward developing plants that could provide the electricity for this lighting

Improvement of Power George Westinghouse: develops an “alternative current” that allows electricity to travel farther Also worked with transformers to control the level of electricity General Electric and Westinghouse Electric are the two companies that control the electric business

Electricity and Business Boosts productivity Greatly decreased the cost of producing an item Increased production also created many jobs throughout the country Becomes a household necessity and completely changes the way of life in the United States

Communications The Telegraph: perfected by Samuel Morse, who was the first to devise a code for electrical impulses sent through sound waves Western Union Telegraph Company The Telephone 1871 Alexander Graham Bell: patented the “talking telegraph” and created the American Telephone and Telegraph Company

Booming Railroads Pre-Civil War conditions for railroads were awful (Standard Tracks, companies, times, signals) Transcontinental Railroad - when completed in 1869, it stretched from Omaha to Sacramento Built by two companies Central Pacific Railroad Union Pacific Railroad

Further Railroad Improvements Shift from iron to steel rails Standardized signaling Stronger breaks Telegraphs to prevent collision Time Zones Created standard times for the entire country, and increased the effectiveness of scheduling Also aided organization in business

Railroads and Industry 1. Faster and more practical 2. Lower costs of production 3. Create National markets 4. Model for Big Business 5. Stimulation of other industries

The Bessemer Process Developed by Henry Bessemer Creates a cheap and simple way to remove impurities during steel production Made it possible to mass produce steel products An example is the Brooklyn Bridge, which connects Manhattan to Brooklyn. The bridge was engineered by John Roebling and was completed in 1883

Chapter 17 Section 2 Growth of Big Business Robber Barrons Indicates that business leaders stole money from the public Captains of Industry Indicates that business leaders served the nation in a positive way

John D. Rockefeller Andrew Carnegie Developed the standard oil company in 1870 Gave over $500 million to charities Rockefeller Foundation – provided aid for public health, the arts, social research, and other ideas Andrew Carnegie Boomed in the steel business Gospel of Wealth: Carnegie preached that people should be free to make as much money as possible, but that they should also be responsible for donating it back to society

Social Darwinism Also suggested by Carnegie Wealthy are the most valuable to society This idea expands Darwin’s ideas of “survival of the fittest” into society Under this idea, power comes from success and money

Large Scale Business Larger need for capital Wider geographic span Performance of multiple operations Less connection between owner and business Higher level restrictions in the workplace

Competition in Business Industries used a variety of methods to maximize their profits Oligopoly – a market controlled by only a few large firms Monopoly – the market is controlled by only one business Cartel – a loose association of businesses that make the same product Consolidation – controlling all of the businesses that make up a products development Economies of Scale – production rising means a drop in the cost per item

The Standard Oil Trust Rockefeller begins by building an oil refinery in Cleveland, Ohio He later joins with several associates to create the Standard Oil Company of Ohio He was able to outsell competition because the size of the company cut production costs Practiced horizontal consolidation (bringing together firms in the same business)

Eventually able to buy out his competitors A Trust: a group of companies that are managed as one single unit. 1890, Sherman Antitrust Act Outlawed any combination of companies that restrained interstate trade or commerce Courts rarely upheld the act because it was worded vaguely and had no specific restrictions

Chapter 17 Section 3 Workers During Industrialization Growth in the workforce 14 million immigrate into the US between 1860 and 1900 Labor Act – 1964, allowed contracts to be made between employers and immigrants 8-9 million Americans moved into cities in the late 1800’s

Work in Factories Harsh working conditions Piecework – workers were paid by how much they produced rather than how long they worked Sweatshop – shops were employees worked long hard hours under extremely poor conditions Frederick Winslow Taylor – worked and studied to increase productivity through scientific management

Division of Labor: This divided workers into smaller more specific jobs, which would collectively result in a final product. Workers become separated from each other and from business management The Work Environment Workplace run by the clock Extremely dangerous conditions Many growing children in the workforce

Chapter 13 Section 4 The Great Strikes Large gaps develop between the rich and poor 9% of Americans hold 75% of the wealth in 1890 Some poor families tried to follow socialism They also played with the idea of Communism

Labor Unions The very first union was the National Trades Union, open to all, but it was destroyed during the Great Depression Knights of Labor Formed in 1869 in Philadelphia Lead by Terence Powderly They pursued equal pay, 8 hr workday, and the end of child labor Had some success with strikes, but disappeared by the 1890’s

American Federation of Labor 1866 – lead by Samuel Gompers Craft union: attempted to organize on skilled workers in a network of smaller unions Focused on wages Collective bargaining: when workers are allowed to negotiate their circumstances with the employer

Employer reactions : disliked and feared unions Wobblies – a group composed of AFL opposers. (Industrial Workers of the World) Employer reactions : disliked and feared unions Forbid union meetings Fired union organizers Yellow dog contracts Refusing to bargain collectively Refusing to recognize unions

Railroad Workers Great Railroad Strike of 1877 Workers strike because of a 10% pay decrease and a riot ensued in Pittsburg 20,000 angry men set fire to railroad property and federal troops were required to resolve the issue Eugene Debs: spoke out against the 1877 strike – advised an industrial union for workers of all tasks

Strikes Haymarket 8hrs work, 8hrs rest, 8 hrs whatever we want Clash between strikers and scabs Even anarchists joined the scabs At the demonstration, a bomb killed one police officer The Knights of Labor were blamed for the Haymarket Riot and unions were given a violent reputation

Homestead - 1892 Strike occurs while Andrew Carnegie is away however, many Americans sympathized with the striking workers Pullman 1894 – Pullman Cars Pullman Strike