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

Causes of Rapid Industrialization 1.Steam Revolution of the 1830s-1850s. 2.The Railroad fueled the growing US economy: * First big business in the US. * A magnet for financial investment. * The key to opening the West. * Aided the development of other industries. 1.Steam Revolution of the 1830s-1850s. 2.The Railroad fueled the growing US economy: * First big business in the US. * A magnet for financial investment. * The key to opening the West. * Aided the development of other industries.

Causes of Rapid Industrialization 3.Technological innovations. * Bessemer and open hearth process * Refrigerated cars * Edison Wizard of Menlo Park light bulb, phonograph, motion pictures. 3.Technological innovations. * Bessemer and open hearth process * Refrigerated cars * Edison Wizard of Menlo Park light bulb, phonograph, motion pictures.

Thomas Alva Edison Wizard of Menlo Park

The Light Bulb

The Phonograph (1877)

The Ediphone or Dictaphone

The Motion Picture Camera

Alexander Graham Bell Telephone (1876)

Alternate Current George Westinghouse

Alternate Current Westinghouse Lamp ad

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

Model T Automobile Henry Ford I want to pay my workers so that they can afford my product! Henry Ford I want to pay my workers so that they can afford my product!

Model T Prices & Sales

U. S. Patents Granted 1790s 276 patents issued. 1990s 1,119,220 patents issued.

4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. 4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. Causes of Rapid Industrialization

New Business Culture 1. Laissez Faire the ideology of the Industrial Age. * Individual as a moral and economic ideal. * Individuals should compete freely in the marketplace. * The market was not man-made or invented. * No room for government in the market! * Individual as a moral and economic ideal. * Individuals should compete freely in the marketplace. * The market was not man-made or invented. * No room for government in the market!

2. Social Darwinism × British economist. × Advocate of laissez-faire. × Adapted Darwins ideas from the Origin of Species to humans. × Notion of Survival of the Fittest. × British economist. × Advocate of laissez-faire. × Adapted Darwins ideas from the Origin of Species to humans. × Notion of Survival of the Fittest. 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!

New Business Culture: The American Dream? 3.Protestant (Puritan) Work Ethic * Horatio Alger [100+ novels] Is the idea of the self-made man a MYTH??

New Type of Business Entities 1.Pool 1887 Interstate Commerce Act Interstate Commerce Commission created. 2.Trust John D. Rockefeller 1.Pool 1887 Interstate Commerce Act Interstate Commerce Commission created. 2.Trust John D. Rockefeller * Standard Oil Co.

Standard Oil Co.

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

Iron & Steel Production

New Type of Business Entities

U. S. Corporate Mergers

Industrial Consolidation: Iron & Steel Firms

New Financial Businessman The Broker: * J. Pierpont Morgan

Wall Street – 1867 & 1900

The Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911) Frederick W. Taylor The Principles of Scientific Management (1911)

The Reorganization of Work The Assembly Line

Wealth Concentration Held by Top 1% of Households

% of Billionaires in 1900

% of Billionaires in 1918

The Protectors of Our Industries

The Bosses of the Senate

The Robber Barons of the Past

Cornelius [Commodore] Vanderbilt Cant I do what I want with my money?

William Vanderbilt $ The public be damned! $ What do I care about the law? Haint I got the power? $ The public be damned! $ What do I care about the law? Haint I got the power?

The Gospel of Wealth: Religion in the Era of Industrialization Russell H. Conwell $ Wealth no longer looked upon as bad. $ Viewed as a sign of Gods approval. $ Christian duty to accumulate wealth. $ Should not help the poor. $ Wealth no longer looked upon as bad. $ Viewed as a sign of Gods approval. $ Christian duty to accumulate wealth. $ Should not help the poor.

On Wealth Andrew 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. $ The Anglo-Saxon race is superior. $Gospel of Wealth (1901). $ Inequality is inevitable and good. $ Wealthy should act as trustees for their poorer brethren.

Regulating the Trusts 1877 Munn. v. IL 1886 Wabash, St. Louis & Pacific Railroad Company v. IL 1890 Sherman Antitrust Act * in restraint of trade * rule of reason loophole 1895 US v. E. C. Knight Co Munn. v. IL 1886 Wabash, St. Louis & Pacific Railroad Company v. IL 1890 Sherman Antitrust Act * in restraint of trade * rule of reason loophole 1895 US v. E. C. Knight Co.

The Changing American Labor Force

Child Labor

Labor Unrest:

The Molly Maguires (1875) James McParland

The Corporate Bully-Boys: Pinkerton Agents

Management vs. Labor Tools of Management Tools of Labor scabs scabs P. R. campaign P. R. campaign Pinkertons Pinkertons lockout lockout blacklisting blacklisting yellow-dog contracts yellow-dog contracts court injunctions court injunctions open shop open shop boycotts boycotts sympathy demonstrations sympathy demonstrations informational picketing informational picketing closed shops closed shops organized strikes organized strikes wildcat strikes wildcat strikes

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

The Great Railroad Strike of 1877

The Tournament of Today: A Set-to Between Labor and Monopoly

Haymarket Riot (1886) McCormick Harvesting Machine Co.

The American Federation of Labor: 1886 Samuel Gompers

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. ù Pushed for closed shops.

Homestead Steel Strike (1892) The Amalgamated Association of Iron & Steel Workers Homestead Steel Works

The Pullman Strike of 1894

Government by injunction!

The Socialists Eugene V. Debs

International Workers of the World (Wobblies)

Big Bill Haywood of the IWW Violence was justified to overthrow capitalism.

Mother Jones: The Miners Angel Mary Harris. Mary Harris. Organizer for the United Mine Workers. Organizer for the United Mine Workers. Founded the Social Democratic Party in Founded the Social Democratic Party in One of the founding members of the I. W. W. in One of the founding members of the I. W. W. in 1905.

Lawrence, MA Strike: 1912

Workers Benefits Today