Chapter 17 APUSH Mrs. Price “Nothing is particularly hard if you divide it into small jobs.” - Henry Ford

Factors that led to Growth of US Industry Abundant raw materials Abundant raw materials Large labor supply Large labor supply Technological innovations Technological innovations Entrepreneurs Entrepreneurs Govt help to business Govt help to business Expanding domestic market Expanding domestic market

U. S. Patents Granted

Industrial Technology Steel Industry Steel Industry - spurred by growth of railroads railroads - Bessemer process

Oil Industry Spurred by steel industry Spurred by steel industry George Bissell George Bissell 1870s: 4 th largest export 1870s: 4 th largest export

Automobile Industry Due to 2 technologies: Due to 2 technologies: - Gasoline - Internal combustion engine Industry developed quickly Industry developed quickly : Charles & Frank Duryea : Henry Ford : 5 million cars

Airplane Industry Wright Brothers Wright Brothers Charles Lindbergh Charles Lindbergh

Research & Development General Electric: 1 st Corporate lab in 1900 General Electric: 1 st Corporate lab in 1900 Decline in govt support for research Decline in govt support for research Relationship developed between universities & corporations Relationship developed between universities & corporations

Changes in Production Scientific Management Scientific Management –Frederick Winslow Taylor –Reorganization production process by subdividing tasks –Workers were interchangeable interchangeable Mass production Mass production – moving assembly line – moving assembly line

The Corporation & Consolidation Organization used by railroads then spread to other industries Organization used by railroads then spread to other industries

Horizontal integration Combining firms in same industry Combining firms in same industry

Vertical integration Combining into one organization all phases of an industry Combining into one organization all phases of an industry Carnegie Steel Carnegie Steel

Standard Oil Company Created by John D. Rockefeller Created by John D. Rockefeller 1 st trust 1 st trust Controlled access to 90% of refined oil Controlled access to 90% of refined oil

Defenses of Capitalism Self-made Man Self-made Man Social Darwinism Social Darwinism Gospel of Wealth Gospel of Wealth Herbert Spencer

Problems of Monopoly Artificially high prices Artificially high prices Unstable economy Unstable economy Increasing gap between rich & poor Increasing gap between rich & poor

Industrial Workers More immigrants More immigrants Low wages ($ /yr) Low wages ($ /yr) No job security No job security Long hours ( hrs) Long hours ( hrs) Women & Child labor common Women & Child labor common

Unions National Labor Union National Labor Union by William Sylvis - 1 st attempt at national organization Molly Maguires Molly Maguires - Militant labor org in PA - Sometimes used violence

Knights of Labor 1869 by Uriah Stephens 1869 by Uriah Stephens Open membership Open membership Wanted to reform economy & give workers more control Wanted to reform economy & give workers more control

American Federation of Labor (AFL) Skilled workers only Skilled workers only Leader: Samuel Gompers Leader: Samuel Gompers Believed in collective bargaining & strikes Believed in collective bargaining & strikes Did not want to change economic system or get govt help Did not want to change economic system or get govt help

Haymarket Square, Chicago Demands for 8 hr day led to nationwide strikes & demonstrations Demands for 8 hr day led to nationwide strikes & demonstrations May 4, 1886 May 4, 1886 Bomb thrown at protest, kills 7 police Bomb thrown at protest, kills 7 police Police fire into crowd, kill 4 Police fire into crowd, kill 4

Homestead Strike, PA Carnegie Steel plant Carnegie Steel plant Amalgamated Assoc. of Iron & Steel Workers vs. Pinkerton Detective Agency Amalgamated Assoc. of Iron & Steel Workers vs. Pinkerton Detective Agency Strike broken after governor sends in National Guard Strike broken after governor sends in National Guard Leads to decline of union Leads to decline of union

Pullman Strike, IL Pullman Palace Car Co. vs. American Railway Union (led by Eugene Debs) Pullman Palace Car Co. vs. American Railway Union (led by Eugene Debs) Strike collapses when Debs & others are arrested & Pres. Cleveland sends in federal troops Strike collapses when Debs & others are arrested & Pres. Cleveland sends in federal troops