1. Goal 5.01: Influence of immigration and rapid industrialization on urban life Goal 5.02: How business and industrial leaders accumulated wealth & political/economic power Chapter 9: pages 304-317 Pages 318-325 Industrial Revolution

2. Big Business Gilded Age, 1865-1896 Huge growth in US…creation of industrial economy Gilding = covering with gold, over-the-top displays of wealth/power/influence Gilded Age, Horatio Alger

3. Causes of Economic Growth  Cheap labor  More raw materials  New technology  New business organization

4. Drake and Bessemer Edwin Drake – one of 1 st to drill for oil using a steam engine Henry Bessemer – purified iron to make steel cheaply and efficiently Bessemer Process – new way to create steel Stronger than iron and more flexible; won’t rust Steel production leads to more railroads, suspension bridges, and skyscrapers

6.  Perfected the incandescent light bulb  Patented over 1000 inventions, including the phonograph, microphone, and motion picture camera Thomas Edison

7. Industrial Inventions Typewriter: invented by Christopher Scholes, provided more jobs for women Telephone: invented by Alexander Graham Bell, created more jobs for women Elevator: necessary due to higher buildings/skyscrapers Electric trolleys: provided transportation for people across the cities!

8. Big Business Corporation: Perfect model for big business/industry Corp is its own legal entity, separate from owners/shareholders – provided LIMITED LIABILITY

9. Big Business Horatio Alger Wrote “rags to riches” stories Plot: anyone can be successful in America, if you work hard enough

10. Big Business Social Darwinism: Charles Darwin believed in “survival of the fittest” Social Darwinism applied idea to human society Father of Social Darwinism: Herbert Spencer KEY IDEA: Some people worked harder, did better, were more fit to survive and succeed

11. Big Business Successful business men were seen as either: 1. Robber barons (focused on negative) 2. Captains of Industry (focused on positive)

12. Robber Barons v. Captains of Industry

13. Big Business Andrew Carnegie Industrialist & philanthropist Made $ in steel industry Carnegie Steel Company, later U.S. Steel Wrote Gospel of Wealth (book in which he encourage the rich to give $ to needy)

14. Big Business John D. Rockefeller Head of the American oil industry Created Standard Oil Company Became world’s richest man/world’s first billionaire

17. Big Business J.P. Morgan American banker/businessman Created U.S. Steel Vanderbilt Family Railroad/shipping empire Leaders of high society

18. Big Business Monopoly One company controls an industry Cartel Businessmen agree to fix prices Trust Stepping stone to create a monopoly

19. Big Business Vertical integration Way to create a monopoly Tactic: control all supplies needed to create product Horizontal integration Way to create a monopoly Tactic: Buy out all your competitors

21. Labor Sherman Anti-Trust Act, 1890 Law that outlawed monopolies Bigger companies had to break up into smaller companies Later resulted in many Supreme Court cases, but would not be enforced until Teddy Roosevelt!

22. Labor Industrial economy expands, needs millions of new workers…between 1890-1917, over 200,000 workers were killed/2 million injured on the job. How do workers get fair pay & safe working conditions from employers? Socialism: political theory believes in sharing resources – opposite of laissez-faire capitalism

23. Labor Unions use technique of collective bargaining to get what they want Collective bargaining: negotiations between unions/employers

24. Labor Unions: Group of workers that organize to achieve a common goal (better pay, safer working conditions…) 1. Trade Union: Includes workers from different industries 2. Craft Union: Only includes workers from a particular craft/job

25. Labor Unions Knights of Labor Union founded 1869 Open to skilled & unskilled workers, also minorities American Federation of Labor Founded 1886 by Samuel Gompers Opened only to skilled workers, no minorities Helped raise pay/shorten work week

27. Labor Haymarket Riot, 1886 Large union protest in Chicago, many were in Knights of Labor Police show up, bomb thrown into crowd Links K of L to anarchists Public turns against the K of L

29. Labor How do workers and companies work out differences? Examples of collective bargaining: 1. Mediation: Third party sits in and helps come up with an agreement 2. Arbitration: Third party listens to both sides and MAKES A FINAL DECISION

30. Labor When collective bargaining fails… Workers might strike! Stop work until demands are met

31. Labor Great Strike of 1877 Strike against the railroads, protesting long hours/low pay First national strike Federal troops sent in to stop strikers

33. Labor Homestead Strike, 1892 Steel plant cuts pay 20%, workers strike Workers locked out by plant manager Strike fails

34. Labor Pullman Strike, 1894 Luxury travel – “Pullman” railway cars George Pullman cuts wages Striking workers asked passengers to boycott trains using Pullman cars Pullman asked Prez Cleveland to keep trains moving Cleveland sends in federal troops, strike ends

36. Labor Eugene V. Debs Socialist union leader Wanted unions for skilled and unskilled workers Member of the International Workers of the World (IWW)

37. Labor How do businesses respond to striking workers? 1. Lockout: workers locked out of factory 2. Scabs: outside workers brought in (usually immigrants & African-Americans) 3. Blacklist: List of troublemakers not allowed to work 4. Yellow dog contract: workers had to sign a pledge that they would NOT join a union Closed shop: business agrees to only hire union members

38. Labor Other company/union tactics: 1. Injunction: court order (usually required strikers to go back to work)