U.S. INDUSTRIALISM Chap 9. How did the US industrialize? Plenty of raw materials needed for industry: water, wood, coal, iron, copper Large workforce:

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Presentation transcript:

U.S. INDUSTRIALISM Chap 9

How did the US industrialize? Plenty of raw materials needed for industry: water, wood, coal, iron, copper Large workforce: population tripled between Technology and Innovation: new inventions and new ways of doing business

What is FREE ENTERPRISE? An economic system that functions without gov’t interference (laissez-faire) SUPPLY AND DEMAND determine wages and prices This system encouraged foreign investment in the US.

What did the gov’t do to help the US industrialize? Kept taxes low which encouraged investment Little gov’t regulation of industry Gave land grants to spur RR growth

What was the impact of new inventions? Bell’s telephone revolutionized communication Edison’s lightbulb transformed whole cities and industries Swift’s refrigerated railcar meant fresh food all over the country Mechanization increased production Mass production brought cheaper prices

What linked the nation together?

Transcontinental Railroad — P a c i f i c R a i l w a y A c t — p r o v i d e d f o r a n a t i o n - w i d e r a i l r o a d S p u r s w e r e b u i l t t o c o n n e c t t h e l i n e s t o c r e a t e a n a t i o n a l n e t w o r k T i m e i n t h e U S w a s s t a n d a r d i z e d w h e n r a i l r o a d s a d o p t e d t i m e z o n e s. R a i l r o a d s h e l p e d h o m o g e n i z e o u r c o u n t r y 1862—Pacific Railway Act—provided for a nation-wide railroad Spurs were built to connect the lines to create a national network Time in the US was standardized when railroads adopted time zones. Railroads helped homogenize our country

What does that mean? How did RR’s homogenize American culture?

Who were the “Robber Barons”? These were entrepreneurs (businessmen, investors) who made their fortunes in industry. They used bribery, insider-trading, cheating, and ruthlessness to make those fortunes.

Credit Mobilier Scandal What was it? It was a RR construction company formed by Union Pacific owners that contracted themselves to build the new RR at highly inflated prices. It gave or sold stock at cheap prices to politicians to influence legislation. Showed the corruption and power of the Robber Barons. Who was involved? Many politicians in Washington including Speaker of the House Blaine and future president Garfield

Describe the roles of corporations and economies of scale in the rise of big business. Who was Andrew Carnegie? How does he revolutionize the steel industry? How did big business leaders eliminate competition? How is a trust different from a monopoly? Page 322: What is the new “labor-saving device”? Does it make life easier?

What was factory work like in the late 1800’s? Repetitive, boring Unhealthy fumes and dust Dangerous—few safety regulations and no insurance or workers’ compensation Made less than a quarter an hour and worked about 60 hours a week!!

Why were unions formed? There is power in numbers-- collective bargaining for better conditions and higher wages.

How did companies prevent unions from forming? Required workers to sign an oath that they would not join a union Kept blacklists of troublemakers who would not be hired Used lockouts to keep out union employees and not pay them.

Labor’s Response: the STRIKE

Great Railroad Strike

1877 US in recession; suffering from deflation Wages cut again and again. RR workers across the country went on strike. Militia called in to crush the strikes. Result: 100 dead and millions of dollars of damage. No gains for workers.

Knights of Labor Were the first nation-wide industrial union Wanted an 8-hr day; equal pay for women, and an end to child labor (what was the real motivation to end child labor?) They used boycotts, strikes, and arbitration to improve conditions. (What is arbitration? What is a boycott?)

What was the Haymarket Riot?

May, 1886 A rally was held at the Haymarket Square in Chicago to protest police brutality at the nearby McCormick strike people gathered to support the strikers; radical speakers addressed the crowd. As police tried to disperse the crowd, a bomb was thrown.

Then what….? Police fired blindly into the crowd in panic. Some reports say the police fired their revolvers a full 2 minutes. 7 policemen and 4 civilians were killed; 100 were injured. The deaths were most likely from police fire. The Knights of Labor, and specifically, anarchists were blamed for the riot.

And then….? Arrests were made, men were convicted, and most were hanged. There are many doubts as to the guilt of the accused. The hysteria of the time probably led to innocent men being executed. It was a huge setback for labor. The Knights of Labor never recovered.

Pullman Strike 1893 Rail workers strike. Pres. Cleveland forced to send in troops. US postal cars are attached to the Pullman cars. Court ruled that strike was illegal; workers were interfering with the US mail.

Who are the AFL and how did they help unions become more accepted in the US? Led by Samuel Gompers who urged union members to stay out of politics. (Earlier unions were tainted by their association with communism and anarchism) Pushed for closed shops Try to negotiate before striking Made reasonable demands such as an 8-hr day.