Technology and Industrial Growth Chapter 4

Chapter Focus How did the industrial growth of the late 1800’s shape American society and the economy

Standard and Objectives US 6 – Describe the changes in American life that resulted from the inventions and innovations of business leaders and entrepreneurs Analyze factors that led to the Industrialization of the United States Explain how new inventions and technologies changed Americans’ lives Describe the impact of Industrialization in the late 1800’s

Section Focus How did Industrialization and new technology affect the economy and society

Technology and Industrial Growth Industrial Revolution begins in Great Britain during the 1700’s 2 Phases: 1st – 1700’s 2nd -1850’s Instrumental in transforming the United States after the Civil War into a global economic and industrial power Tremendous impact on American Society

Encouraging Industrial Growth Analyze factors that led to industrialization Abundant natural resources Oil, Coal, Metals, Timber Civil War Large Workforce Immigrants, Rural People Capitalism (entrepreneurs) Govt policies – Laissez-faire RR expand

Innovation Drives the Nation Explain how new inventions and innovations changed American’s lives Inventions Light Bulb – Edison Telegraph – Morse Telephone – Bell Sewing Machine – Howe Safety Elevator - Otis Innovations Skyscraper Suspension Bridge Assembly Line Bessemer Process – Cheap Steel

Impact of Industrialization Describe the impact of Industrialization Mechanized farms Transportation improves Communication improves People move to cities Negative impact on environment Mass Production

Rise of Big Business Standard US.4 – Analyze the differences between wage earners and industrial capitalists Objective: Analyze different methods that businesses used to increase profits Objective: Describe the public debate over the impact of big business Objective: Explain how the govt. blocked abuses of corporate power

Key Terms Corporation Monopoly Cartel John D. Rockefeller Horizontal Integration Trust Andrew Carnegie Vertical Integration Social Darwinism

Section Focus Rise of big business turned the U.S. into one of the most economically powerful countries in the modern world. How did big business shape the American economy in the late 1800’s and early 1900’s?

Fighting for Profits Corporations created to take advantage of expanded markets Less risk for investors Opportunity for huge profits Had rights of individual (buy and sell property, etc) Could be involved in many regions Grew in number after 1870 Competitive Edge Decreased costs, increased profits Monopoly Cartel Horizontal Integration (John D. Rockefeller) Vertical Integration (Andrew Carnegie) Trust

Debating the Role of Big Business Powerful corporations and wealthy investors Smaller companies questioned their goals Smaller businesses and consumers harmed by “unfair” advantages Robber Baron Negative, greedy, dishonest, thieves Captain of Industry Positive, good for nation, innovative, philanthropists Social Darwinism Wealth was a measure to determine most “fit” Justifies success of corporations

Government Imposes Regulation Corporations abused their power RR’s charge unfair rates, conspired together ICC Created to oversee RR’s Monitors American business operations Turn RR records over to Congress to investigate Sherman Antitrust Act Outlaws any trust that operated in “restraint of trade or commerce among the several states” ICC and SAA are beginning of federal limitation of corporation’s power

Organized Labor Section Focus: How did the rise of labor unions shape relations among workers, big business and the government? Objectives: Assess the problems that workers faced (late 1800’s) Compare the goals and strategies of different labor organizations Analyze the causes and effects of strikes

Worker Hardships Industrial growth provided great wealth for _______ and a ________ standard of living The _______ struggled to survive, ________ faced discrimination Factory work in __________ ______ pay ______ hours _________ conditions Always more _______ than jobs _________ and ________ also worked in factories Workers would sometimes live in isolated communities called _______________ which were owned by the business

Labor Unions Form Workers did not make enough and took their complaints to their employers Some workers were __________ or forced to sign ____________ contracts Workers tried to gain more power against employers through the use of ______________ or going on _________ The first national labor union, ______________ was formed in ___________ Many labor unions believed in _________ and public control of property and income Knights of Labor Included workers of any _______, skilled or _________ In 1881, _________________ took over leadership and sought to lead workers out of ______ bondage, encouraged ________ and negotiation with __________ AFL Formed by ______________ _______ union Focused on wages, working ________ and working ___________

Strikes Rock the Nation Membership in unions _____ and labor activists became more ______ in organizing protests  More strikes 1st strike occurs in _______ industry in response to _________. _______________ were hired and _______ brought in to restore order Haymarket Riot – Anarchists blamed Homestead Strike – Henry Frick brings in Pinkertons Pullman Strike – Eugene Debs and ARU lead strike Employers appealed for _____________ against unions Govt. ________ these appeals and denied union ___________ Tension between workers, ___________ and ________ __________, ____________ and __________ became a way of life for American industry