1. Effects of Industrialization
ESSENTIAL QUESTION: How did workers fair in industrial America?
Effects of Industrialization

2. TEKS and Objectives Evaluate entrepreneurs from the Gilded Age
We will…
I will…
(3B) analyze economic issues such as industrialization, the growth of labor unions, the rise of entrepreneurship, and the pros and cons of big business (3c) analyze social issues affecting women, children, and immigrants and philanthropy of industrialists (15B) describe the changing relationship between the federal government and private business (24B) evaluate the contributions of Andrew Carnegie
Evaluate entrepreneurs from the Gilded Age

3. Entrepreneurship and Philanthropy
Person (or small group) who starts a business
Lowered prices/increased quality of goods
Made huge profits
Captains of Industry:
Because they forged the new modern industrial economy
Robber Barons
Because they destroyed competition and kept wages low

4. Social Darwinism
Theory that some people are successful because they are superior to others
Survival of the fittest

5. Andrew Carnegie Poor Scottish immigrant  rich/powerful American
Carnegie Steel Corporation
Undercut competition
Low wages/long hours
Crushed labor unions
Philanthropist
Gave millions to build libraries and endow universities

6. Gospel of Wealth
In his Gospel of Wealth, Carnegie answered critics who attacked him for not paying workers more while using his wealth to build libraries and universities: “The problem our age is the proper administration of wealth. In bestowing charity, the main consideration should be to help those who will help themselves; to provide the means by which those who desire to improve may do so; to give those who desire to rise the aids by which they may rise; Neither the individual nor the race is improved by [charity]. Those worthy of assistance…seldom require assistance. The really valuable men never do…[M]ore injury is done rewarding vice than by relieving virtue…The best means of benefiting the community to place within its reach the ladders on which the aspiring can rise…by which men are helped in body and mind; their surplus wealth to the mass of their fellows is the form best calculated to do them lasting good…” According to Carnegie, what should the wealthy do with their money? How did Carnegie justify not giving his workers higher pay?

7. John D. Rockefeller Standard Oil Company Monopoly Philanthropist
Became a trust (several companies come together to eliminate competition)
Rockefeller controlled most shares
Monopoly
Company having complete control of a product/service
Controlled 90% of oil refineries
Forced RR companies to give special rates
Philanthropist
Donated to education and science
Helped found University of Chicago and Rockefeller Foundation

8. Conditions of Labor Long Hours and Low Wages
10-14 hour days
Six days/week
Avg. $3-$12/week
Immigrants, women, and children paid less
Poor Conditions, Boring/Repetitive Tasks
No personal contact with employer
“Take-it or leave-it” jobs
Work less skilled, more repetitive
Extremely hazardous

9. Conditions of Labor Child Labor Lack of Security
Textile mills and coal mines
Exposed to moving parts of machines
Lack of Security
Workers fired at any time for any reason
No unemployment insurance, worker’s comp, sick days, etc.

10. The Rise of Unions
Unions: groups of workers from a particular industry
Strikes: refusing to work as a form of protest against unfair practices

11. Labor Unions Knights of Labor (1869)
Skilled and unskilled workers
Demanded 8-hour day, higher wages, and safety codes
Opposed child labor
Supported equal pay for women
Supported restrictions on immigration
American Federation of Labor (AFL) (1881)
Multiple unions of skilled laborers
Demanded higher pay, 8-hour day, better conditions

12. Laws Against Anti-Competitive Practices
Interstate Commerce Act (1887)
Federal law prohibiting unfair practices by RR (i.e. higher rates for shorter routes)
First time Congress regulated business
Sherman Anti-Trust Act (1890)
Federal law that stopped monopolies