1. Industry
Comes of Age
Chapter 24
Mr. Walters

2. Essential Question
Industrialization increased the standard of living and the opportunities of most Americans, but at what cost?

3. Causes of Rapid Industrialization
Steam Revolution of the 1830s-1850s.
The Railroad fueled the growing US economy:

4. The IRON HORSE First big business in the US.
A magnet for financial investment.
The key to opening the West.
Aided the development of other industries.

5. Causes of Rapid Industrialization
Technological innovations.
Bessemer Steel process
Refrigeration
Edison and electricity
“Wizard of Menlo Park”
Direct Current
light bulb, phonograph, motion pictures.

6. Thomas Alva Edison
“Wizard of Menlo Park”

7. The Light Bulb Light=Industrial Boom Light=Urbanization
Light=PRODUCTION
Which is more responsible for US growth:
- Light bulb or RR?

8. Alternate Current
Nikola Tesla
George Westinghouse

9. U. S. Patents Granted 1790s  276 patents issued.

10. Causes of Rapid Industrialization
Unskilled & semi-skilled labor in abundance.
Abundant capital.
New, talented group of businessmen [entrepreneurs] and advisors.
Market growing as US population increased.
Government willing to help at all levels to stimulate economic growth.
Abundant natural resources.

11. New Business Culture
Laissez Faire  the ideology of the Industrial Age.
Individuals should compete freely in the marketplace.
No room for government in the market!

12. New Business Culture: “The American Dream?”
2. Protestant “Work Ethic”
Horatio Alger [100+ novels]
Is the idea of the “self-made man” a MYTH?

13. New Business Culture Social Darwinism Survival of the fittest
The weak fade away as they should

14. New Type of Business Entities
Trust:
Horizontal Integration
John D. Rockefeller  Standard Oil
Vertical Integration:
Andrew Carnegie  U. S. Steel

15. New Type of Business Entities

16. Standard Oil Co.

17. Iron & Steel Production

18. U. S. Corporate Mergers

19. New Financial Businessman
The Broker:
J. Pierpont Morgan

20. % of Billionaires in 1900

21. The ‘Bosses’ of the Senate

22. The ‘Robber Barons

23. The Gospel of Wealth: Religion in the Era of Industrialization
Wealth no longer looked upon as bad.
Viewed as a sign of God’s approval.
Christian duty to accumulate wealth.
Should not help the poor.
Russell H. Conwell

24. “On Wealth” The Anglo-Saxon race is superior.
“Gospel of Wealth” (1901).
Inequality is inevitable and good.
Wealthy should act as “trustees” for their “poorer brethren.”
Andrew Carnegie

25. Regulating the Trusts 1877  Munn. v. IL
1886  Wabash, St. Louis & Pacific Railroad Company v. IL
1890  Sherman Antitrust Act
1895  US v. E. C. Knight Co.

26. Relative Share of World Manufacturing

27. Modern ‘Robber Barons’??