Honors American History Chapter 4 Honors American History Chapter 4

Which of the following do you most agree with? Industrial growth in the US improved conditions for workers. Industrial growth in the US created great wealth for both workers and entrepreneurs. Industrial growth in the US benefited only wealthy entrepreneurs. Industrial growth in the US caused tension between employers and labor unions.

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

New Business Culture 1.What is “Laissez Faire”  the ideology of the Industrial Age.  Individual as a moral and economic ideal.  Individuals should compete _______ in the marketplace.(Capitalism)  The market was not man-made or invented.  No room for __________ in the market!  Individual as a moral and economic ideal.  Individuals should compete _______ in the marketplace.(Capitalism)  The market was not man-made or invented.  No room for __________ in the market!

Basic Principles of Capitalism ________ ownership of business Individual economic freedom ______Market Supply and ________ What is the primary motivator = _______

Supply and Demand

Causes of Rapid Industrialization 1.Oil Boom-______ ______ 1859 Titusville Pennsylvania How did it change America? 2. Technological innovations.  Steel - _______ and open hearth process  Why important?  Refrigerated cars 1.Oil Boom-______ ______ 1859 Titusville Pennsylvania How did it change America? 2. Technological innovations.  Steel - _______ and open hearth process  Why important?  Refrigerated cars

1st oil well in Titusville Pa.

Causes of Rapid Industrialization 3. The ________ fueled the growing US economy:  First big business in the US.  A magnet for financial investment.  The key to opening the _____. How?  Aided the development of other industries. What major industry is tied to this industry?---____________ 3. The ________ fueled the growing US economy:  First big business in the US.  A magnet for financial investment.  The key to opening the _____. How?  Aided the development of other industries. What major industry is tied to this industry?---____________

Railroad Construction

4.Unskilled & semi-skilled ______ in abundance. 5.Abundant _______.(What is this?) 6.New, talented group of businessmen [___________] and advisors. (risk takers) 7.Market growing as US ________ increased. 8.______ willing to help at all levels to stimulate economic growth.(“______ _____”) 9.Abundant natural ________. 4.Unskilled & semi-skilled ______ in abundance. 5.Abundant _______.(What is this?) 6.New, talented group of businessmen [___________] and advisors. (risk takers) 7.Market growing as US ________ increased. 8.______ willing to help at all levels to stimulate economic growth.(“______ _____”) 9.Abundant natural ________. Causes of Rapid Industrialization

Thomas Alva Edison “_____ of ____ Park” What did he invent?

The Light Bulb

The Phonograph (1877)

The Ediphone or Dictaphone

The Motion Picture Camera

Communication Revolution Telegraph Who? When? What did it do? How did it change life?

Alexander Graham Bell Invented the __________ (1876)

Transportation Revolution What led to the development of mass transit systems? Streetcars Subways

Automobiles What invention was key to the development of the automobile? Who built the first practical American motorcar?

Model T Automobile Henry Ford -______ ______ of the automobile I want to pay my workers so that they can afford my product! Henry Ford -______ ______ of the automobile I want to pay my workers so that they can afford my product!

The Airplane Wilbur ______ Orville _______ Kitty Hawk, NC – December 7, 1903

The Rise of Big Business Section 4.2

New Type of Business Entities 1.Corporation – What is it? Who owns it? Who runs it? How does it raise money? 2.Trust  What is it? Who runs it? What can this lead to? 3.Partnership - 4.Sole Proprietorship - 1.Corporation – What is it? Who owns it? Who runs it? How does it raise money? 2.Trust  What is it? Who runs it? What can this lead to? 3.Partnership - 4.Sole Proprietorship -  Standard Oil Co.  John D. Rockefeller  Standard Oil Co.  John D. Rockefeller

The Corporation A business that is owned by a number of people (share profits and risks) Share of stock Why did the corporation emerge at this time?

New Type of Business Entities 2.Trust:  Horizontal Integration  John D. Rockefeller 2.Trust:  Horizontal Integration  John D. Rockefeller  Vertical Integration: o Gustavus Swift  Meat-packing o Andrew Carnegie  U. S. Steel  Vertical Integration: o Gustavus Swift  Meat-packing o Andrew Carnegie  U. S. Steel

Horizontal Integration

Vertical Integration Oil Wells Transportation Refineries Retail All owned by Standard Oil of Ohio

New Type of Business Entities

U. S. Corporate Mergers What does this graph illustrate?

Standard Oil Co. Rockefeller used both horizontal and vertical.

“On Wealth” Andrew Carnegie – What does the cartoon depict about Carnegie? $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.” $ What industry did he control? What company? $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.” $ What industry did he control? What company?

Cornelius [“Commodore”] Vanderbilt Can’t I do what I want with my money? George Pullman – sleeper cars (Why important?) He also built a company town near Chicago.

Pullman Cars A Pullman porter

New Financial Businessman The Broker:  J. Pierpont _______ (banker)  Bought Carnegie Steel for $480 million The Broker:  J. Pierpont _______ (banker)  Bought Carnegie Steel for $480 million

The Captains of Industry What does this term imply about these men? Cornelius Vanderbilt (Railroads, Steamships) John D. Rockefeller (Oil) J.P. Morgan (Finance) Andrew Carnegie (Steel)

Business Legacy Today Cornelius Vanderbilt (Railroads, Steamships) John D. Rockefeller (Oil) J.P. Morgan (Finance) Andrew Carnegie (Steel)

The ‘Robber Barons’ of the Past Are they “robber barons” or “captains of industry”?

Philanthropy Cornelius Vanderbilt (Railroads, Steamships) John D. Rockefeller (Oil) University of Chicago J.P. Morgan (Finance) NY Met. Mus. Of Art Andrew Carnegie (Steel)

Modern ‘Robber Barons’?? What company is the cartoon referring to? Why?

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

2. Social Darwinism in America William Graham Sumner Folkways (1906) $Individuals must have absolute freedom to struggle, succeed or fail. $Therefore, state intervention to reward society and the economy is futile! $Individuals must have absolute freedom to struggle, succeed or fail. $Therefore, state intervention to reward society and the economy is futile! Do you agree with this philosophy?

4.3 – Organized Labor Movement Workers Organize % of population has 75% of wealth Sherman Antitrust Act –What did it do? –Was it effective? ICC-1887 – What is this? Why was it important? Immigrants and children worked in factories Why did they begin to join unions?

Child Labor

A “Company Town”: Pullman, IL A “Company Town”: Pullman, IL

Labor Unions Prices lower, but workers still can’t afford consumer goods – start to organize Employers see labor movement as a threat COLLECTIVE BARGAINING – __________ Tactics – used _________ 1834 National Trades Union – didn’t last long

MMMMARXISM – refers to Marx’s ideas; adaptations & variations came later MMMMarxism was the dominant form of the 19th c. socialism MMMMarx collaborated w/ FRIEDRICH ENGELS – Both were German but lived and wrote in England, esp. in the industrial city of Birmingham 1111848 – “________ _ _ _ ________” is published for the Communist League MMMMarx chose the term “communist” since it sounded radical: it implied the abolition of _______ property & the reorg. of society based on a workers’ ___________

Marx’s Ideas  History advances through conflict – the Haves vs. the Have- Nots.  The Haves will not give up their wealth without revolution!!!  Workers of the World, UNITE!!!

 Marx thought history was cyclical and that the time for comm. had arrived – he advocated achieving comm. in a violent rev. where the workers (_________) would overthrow the capitalist/owners (_____________)

Knights of Labor Terence V. ________ An injury to one is the concern of all!

Knights of Labor Knights of Labor trade card Accepted unskilled, women, and African-Americans

Goals of the Knights of Labor ù Eight-hour workday. ù Workers’ cooperatives. ù Worker-owned factories. ù Abolition of _____ and prison labor. ù Increased circulation of greenbacks. ù Equal pay for men and women. ù _____ codes in the workplace. ù Prohibition of contract foreign labor. ù Abolition of the National Bank.

The American Federation of Labor: 1886 Samuel _______

How the AF of L Would Help the Workers ù Catered to the skilled worker. ù Represented workers in matters of national legislation. ù Maintained a national strike fund. ù Evangelized the cause of unionism. ù Prevented disputes among the many craft unions. ù Mediated disputes between management and labor.(won wage increases and shorter workweeks) ù Pushed for closed shops.

The Great Railroad Strike of 1877

Army sent in to end the strike

Haymarket Riot (1886) McCormick Harvesting Machine Co.

Haymarket Martyrs Who is blamed for the bombing? What was the result of the riot?

Homestead Steel Strike (1892) The Amalgamated Association of Iron & Steel Workers Homestead Steel Works What were the results of the strike?

The Pullman Strike of 1894

President Grover Cleveland If it takes the entire army and navy to deliver a postal card in Chicago, that card will be delivered!

The Pullman Strike of 1894 Government by injunction! What was the government reaction? What happened to the workers?

The Socialists Eugene V. Debs Head of American Railway Union