1. The Rise of Industry Chap 24

2. Improved Technology 1860’s RAPID growth of industrialization Machines replace hands Work at home replaced by work at factories RR connect customers with factories Result: Businesses grew and improved Daily life is easier

3. Age of Steel Andrew Carnegie: King of Steel Iron RR tracks replaced by steel Problem: Steel is expensive Enter: Henry Bessemer invents less expensive method, Carnegie brings it home. He makes LOTS OF MONEY!!!!! Steel is used for nails, needles, knives, etc

4. Ring, Ring Telephone introduced 1876 1915- over 9 million phones in use!!!! Result: American industry becomes even more efficient and competitive because communication is soooooo much easier

5. Assembly line Toot Toot Idea of interchangeable parts Allows for goods being made faster and at a lower cost. This makes lots of products more affordable

6. Big Business changes everything! Once upon a time, Employers knew all the worker personally. This made work one big happy family. But as businesses got big, few employees knew anything about their workers, this made it easier for employers to take advantage of the workers.

7. Raising $$$$$ for business start up: Corporations - business are owned by lots of investors. How do you get investors? You sell stock (a share of the business) now investors are stockholders Result ? Business does well…. Everyone makes money Business does poorly…. Everyone looses money It’s a gamble

8. Who is the watch dog or who makes sure the money is not wasted????? Board of Directors

9. Rockefeller's Oil Trust ( group of co operations run by a single board of directors) Oil trust are a result of the competition which came about from competing oil refineries. Problem: while it got rid of competition, it made for poor quality and very unstable prices. Now one trust controls: RR, pipelines, ships, storage warehouse, oil barrels Now owns 95% of market Standard Oil Trust

10. Robber Barons Owners of the company trust Extremely Rich Individuals!

11. SO, WHAT’S WRONG WITH ROBBER BARONS?? It threatened free enterprise system because now business has no reason to make a better product or to charge a reasonable price for the product With so much power, the Robber Barons could afford to “buy” elections. (give money to candidate in exchange for favorable votes)

12. URBANIZATION People looking for industrial jobs

13. Tenements (slums) More jobs means more work, more work means need for housing. Result: Lots of new, poorly built apartments

14. As the cost of land goes up, buildings begin to get taller. All this is made possible due to the new inventions resulting from electricity

15. Why put a factory at the top of a building?? Rent is cheaper There is more natural light ( electric cost will be lower) Insurance costs are lower (steel skyscrapers are less likely to catch fire)

16. Just move to the country where land is cheap!!! Yes, but cities offer a few advantages: More stuff to buy More stuff to do

17. Working Conditions: In a word …… Awful  Owner had so many workers that they no longer knew their employees  Too few jobs for the number of people who wanted the job  Wages so low that the entire family had to work  Jobs could change without notice  The pay was low and the work hours were long

18. Inside the factory Hot in summer cold in winter Crowded Fire hazards Fire escapes didn’t reach to the top of the building No sprinkler system Door often locked or open inward not outward

19. Labor Unions At first they were trade unions or unions for people that worked at the same trade join together for better pay and work conditions Grew into Labor Unions for all workers

20. Knights of Labor Over 700,000 members very powerful Used strikes to get shorter work days Riot Owners fire anyone associated with Knights of Labor in order to stop violence