America’s resources As America grew it had major advantages over it’s European competition. Abundant natural resources like timber, coal, copper, Iron. New resources like oil. Massive growth in labor or work force Labor: refers to people who are able to work.

Laissez-Faire In French it meant “Let the people do as the choose.” In other words companies just had to make the right product. The people will choose the best product, and the best business will survive. It became the understanding that government would it involve itself in the affairs of business. Government would only protect the property and peace of each business.

Entrepreneur With this understanding on how the market should operate many entrepreneurs flooded the market with their ideas and businesses. An entrepreneurship, is someone who owns the and controls their own business. They also have 100% of the risk if their business fails.

Alexander Graham Bell This Scottish immigrant invented the first telephone. He would go on to create the Bell telephone company, which would become AT&T.

Thomas Alva Edison Was a well known inventor that had hundred of patents to his name. His most notable invention the creation of light bulb, and the foundation of his company General Electric or GE. He also improved on the telegraph and created the Phonograph, a device used to record sound.

The transcontinental railroad The Pacific Rail way act Was a bill passed under Abraham Lincoln. The plan behind the bill was to connect the east and west coast of America using one railroad line Smaller railroad would split from the major line.

Union Pacific Owen by Grenville dodge The union Pacific Railroad pushed west from Omaha Nebraska.

Central Pacific Railroad Originally four companies merge into one the Central Pacific Railroad ran from California to meet the Union pacific side. The company was owned by Leland Sanford. Due to a labor shortage the company employed 10,000 Chinese works to help finish the line.

Quiz You have the next five minutes to study the following terms which will be on your quiz: GNP, what does it measure, why is it important? What is Laisseze faire, how does explain the relationship between businesses and government? Entrepreneur Thomas Edison, what company did he create, what did he invent Alexander Graham bell, what company did he create, what did he invent Name three inventors and their inventions Transcontinental Railroad,

Land Grants Lincoln ordered the building of the transcontinental Rail Road The two companies to build it were the union and central pacific railroad companies. In order for the rail roads to gain money to build railroad the government would issue the companies land grants The companies could sell these land grants to virtually anyone at any price.

Land Grant Corruption Those in the railroads took notice how easy it was to make money off of land grants. The companies begin to bribe government officials for the grants. Jay Gould was the most well known for owning a rail road and corrupting the grant system.

Credit Mobile Scandal A construction company Credit Mobiler became a major investor in the Union Pacific Railroad. By doing so they were able to choose the construction company for the rail road. They charged a large construction knowing that the railroad would have to pay no matter what.

The Rise of Big Business Where there a lot of big businesses before the civil war? No Its during this industrial period that we find the rise of industry Corporations begin to take shape during this period Corporation: An organization owned by many people but treated by law as though it were one person. Stock also develops at this period which allows people to invest in a company Why is stock important? Stock allows a company to raise money while sharing the risk.

Pools Many large businesses did not like competing with each other. Businesses began to come together and develop the idea of pooling. Pools: Agreements to between companies to keep prices at a certain level When taken to court though pools were hard to defend.

Read pages Who are the people that take advantage of this period of economic growth? What kind of techniques do companies us to grow during this period? What is a Monopoly? What is a trust? How are the two different?

Carnegie What was Carnegie’s background before he started his company Carnegie came to the U.S. with very little money. He slowly worked his way up to place of power in the Pennsylvania Railroad. He began to invest in companies that were part of the rail road industry

Carnegie’s efficiency idea As his wealth grew Carnegie began to trips to Europe where he found a way to make cheap steel. Using this idea Carnegie opened his own steel company, which grew strength through the use of vertical integration Vertical integration: The company owns all the different businesses that it depends on for its operation.

John D. Rockefeller What is Rockefeller known for? Rockefeller founded standard oil the largest oil refiner. Rockefeller worked at making his company efficient through horizontal integration Horizontal integration: The idea of combining firms in same business into one large corporation. In other words he swallowed up his competition.

What happens when a company takes control Monopoly: When a single company achieves control of an entire market. Why are people afraid of monopolies? The company in control can charge whatever they want. How does the Government handle monopolies? States made it illegal for companies to stock in other businesses.

Trust Once the government made it illegal for monopolies to form businesses developed a new system around merging businesses. Trusts A Trust is a way to merge businesses. It is a legal agreement that allows on person to manage another person’s property.

Mining conditions

Manufacturing Conditions

Why do we need unions Poor working conditions. A period of deflation occurred where the prices on general goods and services fell. Increasing buying power the average worker. When prices returned to normal the average worker returned to a life of poverty. Builds resentment between workers and company owners

Unions in General Split unions into two groups in the beginning Trade Unions: consist of craft workers Craft workers: Had special training and were paid better then most workers. Industrial Unions: All workers in a particular industry Which was feared more by employers? Industrial

Company opposition How did companies oppose the formation of unions? Oaths and contracts not join unions Those forming unions were black listed to keep them from being hired by other companies after being fired. Lock outs: Actually keep union members out of work to keep them from working. Companies would hire other workers.

Political Opposition Overall were companies successful in stopping unions? Why? Yes Unions suffered from the aspect that they were viewed as un-American Some unions were painted as Marxists

New Union Development The Knights of Labor: Developed in 1869 The union itself did not believe in striking. There belief was that they could achieve their goals by boycotting items. They also supported arbitration Arbitration: Process in which a third party helps workers and owners reach an agreement. Fought specifically for the rights of female workers, and preventing child labor.

STRIKE When negotiations over labor do not work we tend to see unions go on strike. What was the Homestead strike and who did it involve: Owner: Carnegie, and Henry k. Flick Frick attempted to cut wages by twenty percent and locked strikers out. The government sent agents known as Pinkertons and strike breakers were sent leading to a number of deaths.

Strike Who was involved in the Pullman strike and what was it about Owner George Pullman of the Pullman rail company Pullman paid his employees in a coin only minted by the rail road company which could only be used in the railroad’s company store. Eugene V. Debs a popular labor leader at the time joined with the American Railway Union strike to deal with the company store issue. The strike shut down the countries railroad system including stopping government postal trains. Eventually an injunction was filed by government in attempt to end the strike. Debs did not end the strike and went to prison.

AFL AFL: American Federation of Labor Several trade unions come together to form it. The union pushed for an eight hour work day It also wanted factory owners to only hire union members It continued the knights of labor trend of arbitration Samuel Gompers was the leader of the AFL and the first President of the union