Rise of Industry

Introduction Profiles Andrew Carnegie John D. Rockefeller Thomas Edison Labor General Conditions Women and Children Unions Conclusion

Themes Leading Industrialists: Captains of Industry or Robber Barons? Working conditions and life for workers By 1900 the U.S. was a major industrial power, but was it worth the cost

Bellwork Which is more important: Large financial reward for the few or small financial reward for the many?

Factors of Economic Growth Workers – abundant workforce to produce and innovate

Factors of Economic Growth Workers Resources – Materials used to produce goods (Energy; Raw Materials)

Factors of Economic Growth Workers Resources Capital – Money to pay workers and purchase resources; Tools to produce goods

Factors of Economic Growth Workers Resources Capital Entrepreneurs – People who innovate and start businesses

Rise of Industry Introduction Profiles Andrew Carnegie John D. Rockefeller Thomas Edison Labor General Conditions Women and Children Unions Conclusion

Andrew Carnegie ( ) Founded U.S. Steel Vertical Integration: Control all portions of manufacturing process from raw materials to distribution Wealth: $300 Billion (2012 Dollars)

Vertical Integration Controlling each step in the production, disruption, and sale of a product.

John D. Rockefeller Founded Formed Standard Oil Undercut competition by lowering prices until competition went out of business, then raised prices Horizontal Integration: Controlled about 90% of U.S. oil refining capacity by 1879 Wealth: $320 Billion (2012 Dollars)

Horizontal Integration Controlling each all competition at a specific step in the production or distribution level

Check Up! Briefly explain the difference between Vertical Integration and Horizontal Integration. Provide an example for each one.

Cost of Industrialization U.S. became major industrial power by 1900

Industrial Power

Cost of Industrialization U.S. became major industrial power by 1900 Business leaders acted as Philanthropists: Gave money back to society

Philanthropist - Carnegie Helped establish 2,000 libraries Established $10 million dollar fund for teachers Gave away 90% of his fortune to charities and foundations Carnegie Endowment for International Peace

Cost of Industrialization U.S. became major industrial power by 1900 Business leaders acted as Philanthropists: Gave money back to society Environmental degradation Strip mining Pollution in rivers

Environmental degradation

Cost of Industrialization U.S. became major industrial power by 1900 Business leaders acted as Philanthropists: Gave money back to society Environmental degradation Strip mining Pollution in rivers Factory life was poor

Factory Life

Cost of Industrialization U.S. became major industrial power by 1900 Business leaders acted as Philanthropists: Gave money back to society Environmental degradation Strip mining Pollution in rivers Factory life was poor Corruption in government

Corruption in Government 75 out of 90 Senators in 1906 had accepted bribes from corporation or business leaders

Cost of Industrialization U.S. became major industrial power by 1900 Business leaders acted as Philanthropists: Gave money back to society Environmental degradation Strip mining Pollution in rivers Factory life was poor Corruption in government Social Darwinism Belief that individuals must be free to struggle, succeed or fail without government intervention

Captains of Industry or Robber Barons? Captain of Industry: a business leader whose means of amassing a fortune contributes positively to the country. Robber Baron: Modern-day businesspeople who engage in unethical business tactics to build large personal fortunes. Were the leaders of these companies Robber Barons or Captains of Industry? Why?

Check Up! Were the leaders of these companies Robber Barons or Captains of Industry? Why?

Rise of Industry Introduction Profiles Andrew Carnegie John D. Rockefeller Thomas Edison Labor General Conditions Women and Children Unions Conclusion

Bellwork What options do employees who work under harsh conditions have to improve their work place?

General Working Conditions in 1900 New: Large factories

General Working Conditions in 1900 New: Large factories repetitive tasks

General Working Conditions in 1900 New: Large factories repetitive tasks Average work week: hours

General Working Conditions in 1900 New: Large factories repetitive tasks Average work week: hours Dangerous Conditions ,000 work place fatalities 700,000 serious injury

Check Up! How does this testimony reflect the fundamental differences between the old and new factory system within the United State?

U.S. Labor Force Child Laborers 1900: 2 million children worked for wages Female workers Earned less money than male counterparts 1900: 17% of workforce was female

Example: Skilled vs. Unskilled Wages Bricklayer (skilled) 3.00 day General Laborer (unskilled) 1.30 day Southern Mill Worker (Unskilled) 0.84 day

Example: Skilled vs. Unskilled Wages Bricklayer (skilled) 3.00 day General Laborer (unskilled) 1.30 day Southern Mill Worker (Unskilled) 0.84 day It would take a mill worker 1.5 million years to make as much money as Carnegie made in his lifetime.

Example: Steel Workers Shifts: 7 days a week, 12 hours a day One day off per month Extremely dangerous work

Title: Unit 6 - Formative Formative Assessment: Complete the following chart by identifying at least three fact for each topic.

Rise of Industry Introduction Profiles Andrew Carnegie John D. Rockefeller Thomas Edison Labor General Conditions Women and Children Unions Conclusion

Labor Responds Union: an organization of workers that have banded together to achieve common goals Major U.S. Unions National Labor Union Knights of Labor American Federation of Labor (AFL) Industrial Workers of the World (Wobblies)

Check Up! Gompers was an advocate for workers rights and a leader of the American Federation of Labor (AFL). Why does he argue that workers should have the right to strike?

Union Busting Strike Breaking Bring in outside workers Army/militia

Union Busting Strike Breaking Bring in outside workers Army/militia Ban Unions through Contracts

Union Busting Strike Breaking Bring in outside workers Army/militia Ban Unions through Contracts Defame Unions Anarchists – Abolish gov. Socialists – Democratic movement to redistribute wealth Communists – Violent revolution to redistribute wealth

Check Up! How does this cartoon reflect the anti-union sentiments amongst some people within the United States?

Homework: Identify and describe each of the following events in labor history Railroad Strike of 1877 Haymarket AffairHomestead StrikePullman Strike

Labor Origins of modern unions are set in late 1800s Only included about 5% of all workforce by late 1880s, but numbers would rise dramatically in the 1900s Many employers, like Carnegie, fought to break unions

Knights of Labor Founded in 1869 Open to all laborers 1800: 700,000 members Goals: Equal pay for women End child labor Limit Chinese Immigration 8hr work day Graduated income tax

Knights of Labor Haymarket Square Riot (May 4, 1886) Background: Laborers in Chicago held a General strike Strike sympathizers held a rally near Chicago at Haymarket Square Event was attacked by bombing: 7 police, 4 demonstrators were killed Union lost support after bombing

American Federation of Labor (AFL) Formed in 1884 Union of skilled workers Goals Eight hour day Employers liability for injuries on the job 1.6 million members by 1904

Long Term Impact Labor unions had mixed success over the next century, with a peak in the 1950 and 60s.

Rise of Industry Introduction Profiles Andrew Carnegie John D. Rockefeller Thomas Edison Labor General Conditions Women and Children Unions Conclusion

U.S. became an industrial power and was led by powerful inventors and industrialists Progress was often on the backs of laborers who worked under difficult conditions Unions often achieved local success, but not national success The nation industrialized quickly, but was it worth the cost?

Check Up! In a complete paragraph explain how the development of Big Business led labor groups to organize

Websites of Interest Carnegie Rockefeller Edison Haymarket Affair Digital Collection Haymarket Affair Digital Collection Emergence of Advertising in America: Emergence of Advertising in America:

Source m/history/lecturepoints/i ndex.html m/history/lecturepoints/i ndex.html

Readings A Machinist Describes Specialization, 1883 p. 52 A French Economists Notes the Machine’s Impact on American Workers, 1897 p. 55 Dr. John B. Whitakers Explains the Impact of the Factory on Workers Health, 1871 p. 55 Terence V. Powderly Defines the Knights of Labor, 1878 p.59 An AFL Perspective on Women in the Work Force, 1897 p. 62