Time Out History the Story of US: Heartland Minute 35:34 - end 17. What is the underlying conflict between Native Americans and western settlers? 18. Sitting Bull is a leader of the Sioux tribe. What are his goals? 19. Describe the impact of the Wounded Knee Massacre.

The Rise of Big Business “Survival of the Fittest”

Technology and Industrial Growth U.S. encourages industrial growth –Civil War challenged industries to be more efficient –European immigration fueled workforce –Gov’t policies encourage growth: imported goods too expensive! –Laissez faire: do what you want!

Innovation Drives the Nation Thomas Edison: CREATIVE GENIUS! –supported financially by banker JP Morgan –Research laboratory cranks out inventions Lightbulb: affordable lighting for homes, extended the work day Phonograph: early record player, able to record sound Motion Pictures: moving pictures, evolve into entertainment the 1 st sneeze!

Time Out 8. Explain how the light bulb impacted businesses and workers? 9. How did motion pictures impact American life? 10. What is the phonograph? And how does it impact American life?

Technology and Transportation Trains more efficient By 1883 there were 3 transcontinental railroads –Time zones created to organize arrivals and departures Electric streetcars, city trains, and subways change how people get around is

Capitalism: trade and industry are controlled by private owners for profit Laissez faire: gov’t keeps their “hands off” business

 Chinese and Irish immigrants built railroads  Travel is quicker = prices of goods go down = sell to market faster = need to produce more Railroads  Mass production to provide more for growing population and dense city populations –Higher cost of living –City growth: Chicago, Pittsburg, Vegas, Atlanta (pg. 441)

Time Out 2. How would railroads help businesses become more successful? 3. Who were the two groups of people that helped build the transcontinental RR? 4. Why were these groups of people picked to do this?

Cornelius Vanderbilt: known informally as "Commodore Vanderbilt” was an American business magnate and philanthropist who built his wealth in railroads and shipping Railroads “I don't care half so much about making money as I do about making my point, and coming out ahead.” Cornelius Vanderbilt vanderbilt

Atlanta, Ga., ca A view on the Atlanta and West Point Railroad looking towards the railroad depot, roundhouse and machine shops in Atlanta, Georgia, shortly before their destruction by Sherman's troops during the Civil War.

Peachtree Street -- Atlanta, GA, ca. late 1800’s

Oil: John D. Rockefeller: Standard Oil Controlled 90% of oil industry Legacy - $900 million** Richest man in the US “ Charity is injurious unless it helps the recipient to become independent of it.” John D. Rockefeller John D. Rockefeller

Gaining a Competitive Edge  Horizontal Integration: acquire the companies of your competitors to become a monopoly

Gaining a Competitive Edge  Vertical Integration: own all means of production from beginning to end

Trusts: separate companies controlled by a single board Monopoly: a trust that has exclusive control over an entire industry Captain of Industry: an innovative entrepreneur who positively influenced society Robber Baron: person who became wealthy by unethical means mpanies-business/six-enormous- monopolies-past-and-present/?view=all next-7-american-monopolies #1-streaming-movies-future- rental-monopoly-opportunity-in-the- making-1 Example: U.S. Steel, one company board controls many different steel companies

“Laissez faire capitalism, or pure competition, is the end of competition itself. It is the natural goal of any business to make as much profit as it can and to eliminate its competition. When a corporation eliminates its competition it becomes what is known as a "monopoly."

Changing American Society Better farming machinery = less farmers –Out of work farmers head where? Work efficiency leads to leisure time activities Environmental concerns/dust storms: create National Park Service 1872 Wall Street(New York City), ca Albumen print photograph. Albumen print

Steel Andrew Carnegie: US Steel Legacy: $400 million gave $350 million to charity a.Gospel of Wealth: book which advised people to make what they need  give the rest to the community i.Est free libraries – everyone = access to education “ And while the law of competition may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department.” Andrew Carnegie

What does the government say about these robber barons? Interstate Commerce Commission –oversee RR operations –1 st regulation of US businesses Sherman Antitrust Act –Outlaws monopolist trusts –Wants to break up dominance of Standard Oil monopoly

Do we have Robber Barons OR Captains of Industry today? Who?

Time Out 1.Explain the connection between Carnegie's steel industry and the railroads. 5. Describe how Rockefeller created a monopoly. 6. What’s the difference between a trust and a monopoly? 7. Explain the difference between a robber baron and a captain of industry?

Labor Unions form as a reaction to Big Business

What was life like in factories? -Everyone worked!!! (men, women, children)  Child Labor -Sweatshops = 12 hours a day, 6 days a week -Paid for each piece that was made = very demanding!!! -Company towns -Owned by business and rented out to the workers; forced to buy goods from the company store… this sounds like what???

Factory Horrors!! Child Labor Triangle Shirt Waist Company Unsanitary food from the factories

Labor Unions = organizations formed to protect workers’ interests American Federation of Labor (AFL) -Founded by Samuel Gompers -Organized skilled laborers -Want to: -Increase wages -Better hours -Better conditions

Background: -Railroad car company -Workers required to live in company town Cause: -Wages cut without a decrease in the cost of living in the company town During: -Shut down rail traffic -Stops trade in Chicago Pullman Strike

Effect: Employers used the courts to limit the influence of unions Sherman Anti-trust Act = no monopolies (interfere with trade) -Strike stopped trade in Chicago = Striking Unions are like monopolies ** Sherman Anti-Trust Act = no strikes = no unions **

Workers were treated like the pieces of meat that they produced. This will lead to the demand for ….

Time Out 14. What are the goals of labor unions? 15. Why did labor unions need to form? (what were the problems) 16. Who was the leader of the AFL? 20. Describe the 1894 Pullman strike.