Industrial Boom in America,

Wealth of natural resourcesWealth of natural resources Government support of businessGovernment support of business Growing urban populationsGrowing urban populations Cheap laborCheap labor Markets for new productsMarkets for new products Due to…

Edwin L Drake Used the steam engine to remove oil from beneath the earth’s surfaceUsed the steam engine to remove oil from beneath the earth’s surface Started oil boom in AmericaStarted oil boom in America Gas started as waste by-productGas started as waste by-product

Henry Bessemer Created process which cleaned impurities from iron = creating steelCreated process which cleaned impurities from iron = creating steel This created materials for things like railroads, and…This created materials for things like railroads, and…

The Brooklyn Bridge Completed in 1883, it spanned 1595 feetCompleted in 1883, it spanned 1595 feet Called a wonder of the world due to its height and weight bearing structureCalled a wonder of the world due to its height and weight bearing structure

Skyscrapers Allowed buildings to be built to astronomical heights because of the steel beams used in constructionAllowed buildings to be built to astronomical heights because of the steel beams used in construction

Inventors Change the Landscape of America

Thomas Edison Patented the light bulb in 1876Patented the light bulb in 1876 Invented a system for producing and distributing electric power, which led to…Invented a system for producing and distributing electric power, which led to…

Invention of time saving appliances because energy was so cheap and efficientInvention of time saving appliances because energy was so cheap and efficient Electric streetcars spread cities outElectric streetcars spread cities out Plants and factories no longer had to be near waterPlants and factories no longer had to be near water

Inventions Change Lifestyles in America

Christopher Sholes In 1867 invented the typewriter, which changed the way many people workIn 1867 invented the typewriter, which changed the way many people work

Alexander Graham Bell Invention of the telephone in 1876 opened a worldwide communications networkInvention of the telephone in 1876 opened a worldwide communications network

Women became 40% of the clerical work forceWomen became 40% of the clerical work force Industrialization freed workers from back- breaking laborIndustrialization freed workers from back- breaking labor By 1890 work day reduced to about 10 hoursBy 1890 work day reduced to about 10 hours

Expansion of Industry Leads to Boom in Big Business

Andrew Carnegie One of 1 st Industrial moguls to make his own fortuneOne of 1 st Industrial moguls to make his own fortune Instituted new management practices such as…Instituted new management practices such as…

Vertical IntegrationVertical Integration –Bought out suppliers –Controlled Raw Materials and Transportation Horizontal IntegrationHorizontal Integration –Bought out companies producing similar products –Controlled the whole industry

Social Darwinism Success and failure in business governed by natural lawSuccess and failure in business governed by natural law Justifies “laissez-faire,” or “allow to do.” Keeps government out of marketplaceJustifies “laissez-faire,” or “allow to do.” Keeps government out of marketplace

Big business created more than 4000 millionaires since the Civil WarBig business created more than 4000 millionaires since the Civil War Appealed to Protestant work ethicAppealed to Protestant work ethic –Riches = God’s favor –Poor = Lazy and inferior

MergersMergers –Industrialists pursued buying out competitors MonopoliesMonopolies –When industries buy out all competitors and completely control industry –Allows them to set wages, prices, and production

Holding Companies Set up specifically to buy out stock of competitorsSet up specifically to buy out stock of competitors

John D Rockefeller Owned Standard Oil Co.Owned Standard Oil Co. Joined companies in trust agreementsJoined companies in trust agreements –Stocks in companies held by trustees and ran as one business –Not legal

Drove companies out of business by selling below production cost, then jacking up pricesDrove companies out of business by selling below production cost, then jacking up prices Called “Robber Barons” for such tacticsCalled “Robber Barons” for such tactics

Sherman Anti-Trust Act of 1890 Made it illegal to form trusts that interfered with tradeMade it illegal to form trusts that interfered with trade Hard to uphold because it didn’t define what a “trust” wasHard to uphold because it didn’t define what a “trust” was

Exploitation and Unsafe Working Conditions Draw People Together in Labor Movement

Statistics By 1882, and average 675 people killed in work- related accidentsBy 1882, and average 675 people killed in work- related accidents Wages so low, most families had to send everyone out to get jobsWages so low, most families had to send everyone out to get jobs

20% of boys and 10% of girls under age 15 held jobs20% of boys and 10% of girls under age 15 held jobs By 1899 women averaged $267 per year, men $498, and Carnegie $23 million not taxedBy 1899 women averaged $267 per year, men $498, and Carnegie $23 million not taxed Sweatshops were unregulatedSweatshops were unregulated –Paid about $.27 for a child’s 14 hour day

American Workers Start Organizing

Samuel Gompers Organized skilled workers in the American Federation of Labor (AFL)Organized skilled workers in the American Federation of Labor (AFL) Used strikes to get higher wages, and better hours and conditionsUsed strikes to get higher wages, and better hours and conditions

The AFL was successful in many waysThe AFL was successful in many ways –Over the course of 15 years, the average wages rose from $17.50 to $24.00 –Over the same time period, hours decreased from 54.5 hours to 49 per week

Eugene V Debs Organized skilled and unskilled workers into the American Railway Union (ARU)Organized skilled and unskilled workers into the American Railway Union (ARU) Had a huge membershipHad a huge membership

Socialism Labor activists like Debs wanted government control of industry and equal distribution of wealth – not the overthrow of capitalismLabor activists like Debs wanted government control of industry and equal distribution of wealth – not the overthrow of capitalism

Radicals The Industrial Workers of the World (IWW, or “Wobblies”) pushed for socialism including the downfall of capitalismThe Industrial Workers of the World (IWW, or “Wobblies”) pushed for socialism including the downfall of capitalism

Other Movements Immigrant workers such as Japanese and Mexicans organized as wellImmigrant workers such as Japanese and Mexicans organized as well –This increased labor movements –This increased tensions between management and labor

Women’s Roles Women were banned from most unionsWomen were banned from most unions They held a great deal of influence by backing specific labor leaders to demand wages, an end to child labor, and better working conditionsThey held a great deal of influence by backing specific labor leaders to demand wages, an end to child labor, and better working conditions

Mary Harris Jones Supported the Great Strike of 1877, as well as many othersSupported the Great Strike of 1877, as well as many others Endured threats and jailEndured threats and jail Nicknamed “Mother”Nicknamed “Mother”

“Mother” Jones led a march in 1903 of 80 mill children, many injured from factories, to the home of Theodore Roosevelt.“Mother” Jones led a march in 1903 of 80 mill children, many injured from factories, to the home of Theodore Roosevelt. Influenced passage of child labor lawsInfluenced passage of child labor laws

Triangle Shirtwaist Fire More than 146 women died in fireMore than 146 women died in fire Company had locked all doors to prevent theftCompany had locked all doors to prevent theft

When factory owners acquitted of the deaths, the public was outragedWhen factory owners acquitted of the deaths, the public was outraged This tragedy led to the establishment of a task force to study factory working conditionsThis tragedy led to the establishment of a task force to study factory working conditions

Management vs Unions Management tried to stop unionizing by:Management tried to stop unionizing by: –Forbidding union meetings –Firing union members –Forcing employees to sign “Yellowdog Contracts”

Courts vs Unions Courts punished unions using the Sherman Anti-Trust ActCourts punished unions using the Sherman Anti-Trust Act –Said unions were interrupting trade