Unit 1, Lecture 1: Industrialization in America

Age of Progress Many new inventions are produced at once. – Light bulb, steam engine for trains, tractor New goods are produced, at a faster rate. – People can buy new things – Clothes, cars

Railroads are King Made travel reliable and movement westward a possibility. Transcontinental Railroad: Railroad line that goes across the continent (across the U.S.) Immigrants are hired to build railroads. – Harsh conditions – 1888: 2,000 employees killed and 20,000 injured Time zones are set up. – Helps standardize time across the country

Benefits and Problems Helps industry grow, also small towns – Iron, coal, steel, lumber, and glass – Small towns have more infrastructure Potential for abuse in the system – Pullman Railcar Company: new small towns – Credit Mobilier: Stockholders and company pocket profits illegally Growth of the Grange – Organization of farmers, protect their interests – Munn vs. Illinois: Upholds granger laws (laws governing railway treatment of farmers)

Interstate Commerce Act: Supreme Court rules that a state cannot set rates ( $ charges) on commerce between states. – Now the job of the federal government, and the ICC Vulnerable to economic crash of 1893 – Poorly managed, overbuilt, competition

Titans of Industry Andrew Carnegie – 1899: Carnegie Steel Company makes more steel than all of England combined – Makes new products cheaply – Uses new technology – Encourages competition in workers John D. Rockefeller – Oil tycoon who uses the trust system (agreements with other companies) to get total control of the oil industry in America

Social Darwinism vs. Gospel of Wealth Social Darwinism: Survival of the fittest for people. Rich are wealthy because they are better suited. Gospel of Wealth: Rich have a duty to make sure their money does good work in the world.

Quick Question: Turn to an elbow partner. Do you agree more with Social Darwinism or the Gospel of Wealth? Why? (Be ready to share.)

Vertical and Horizontal Integration Vertical Integration: Process of buying our suppliers, other parts of a production chain. Horizontal integration: Buying companies that make similar products. Both processes lead to dominance in industries, few people with lots of control

Labor Unions Debate over craft unions (for skilled workers) and industrial unions (for everyone in an industry). – Samuel Gompers (Craft Unionism) – Eugene Debs (Industrial Unionism) Socialism: economic and political system based on government control of business, property, and distribution of wealth. – Seen as threat. – IWW (Wobblies, union)

Strikes and Violence Haymarket Affair: A bomb is tossed into a crowd protesting police brutality against a striker. Several people are charged and hanged. Homestead Strike: Carnegie steel plant: battle between strikers and Pinkerton agents. Several die, and steel unions end for many years. Pullman Company Strike: Workers protest unfair living conditions/wages.