1. The Industrial Revolution

2. Questions?
Which products were introduced to the consumers of the United States after the Civil War that helped re-start the US economy?
How do you market a new product?
Who were the important business leaders of the Industrial Revolution, and how did they run their businesses?

3. Questions? How should businesses be regulated?
What were the conditions like in the factories that produced these new products, and how were workers treated?
How did workers and owners balance power in the workplace?

4. New Products of the Industrial Revolution

5. Patents 1790-1860 36,000 issued 1860-1890 500,000 issued
License to make, use, or sell an invention
,000 issued
,000 issued

6. Drilling for Oil
Needed for factories to run efficiently
Drilling was quicker. cheaper, and created a much larger supply than digging ditches or melting animal fat

7. By 1900, there were 1.5 million telephones in use all over the country, and Western Union Telegraph was sending roughly 63 million messages.

8. Thomas A. Edison Setup research lab
Created a system for producing and distributing electrical power

9. Edison
Perfected the light bulb

10. Edison
Developed the phonograph

11. Developed the motion picture camera
Edison
Developed the motion picture camera

12. Developed a way to transmit it long distances (Transformers)
George Westinghouse
Made electricity safer and less expensive (AC Current)
Developed a way to transmit it long distances (Transformers)
More effective air brakes for trains

13. Electric sewing machine
Other Inventions
Electric sewing machine
Cameras
Refrigerator

14. Meanwhile on the farm… Mechanical Reapers Sod busting plows
Mechanized tractors

15. The Bessemer Process
In 1856, Henry Bessemer receives a patent on a process that made steel production easier and less expensive.
The Bessemer process made possible the mass production of steel.

16. The Brooklyn Bridge, designed with steel cables suspended from high towers, was made possible by mass production.

17. It took another innovation to begin the transformation of cities
Elevators

18. Early Skyscrapers
Strong steel plus elevators mean that America’s teeming cities can now grow upwards!

19. The Railroads
On May 10, 1869, the Transcontinental Railroad, extending from coast to coast, was finished with the hammering of a golden spike at Promontory Point, Utah.

20. Industrial Revolution
Business Leaders
Business Practices
Business Regulations

21. “Robber Baron” or a “Captain of Industry” 1. Business Leaders
Generally classified as either a
“Robber Baron”
or a
“Captain of Industry”

22. I. Robber Barons
Business leaders who made their fortunes by taking advantage of the public
They drained natural resources and charged high prices

23. They persuaded public officials to interpret laws in their favor.
They ruthlessly drove their competitors to ruin.
They paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions.

24. Adhered to a policy of “Social Darwinism”, as it applied to business practices

25. Social Darwinism or, Laissez-Faire
Based on Darwin’s Theory of Evolution (1859) regarding natural selection and the survival of the fittest
Businessmen are justified in using any means necessary to become rich and powerful, and the government should stay out!

26. Three business practices exemplified the philosophy of Social Darwinism
Monopolies
Cartels
Trusts

27. Monopoly
(Vertical Consolidation)
One company completely controls a product or a service, from the means of production, to manufacturing, to transportation, and sales

28. Controlling the Market
Using Vertical Integration, Bob could control the Pizza market in town by controlling many of the costs associated with making his pizza!
Bob’s Pizza
Bob’s Trucking Company
Bob’s Cheese Factory
Bob’s Farm

29. Monopoly
(Horizontal Consolidation)
One company buys out each of their competitors, and therefore owns every outlet for a certain product

30. Controlling the Market
Bob’s Pizza
Delaware
Pizza
Happy Time
Pizza
Pizza Pizza
Using Horizontal Integration, Bob could control the Pizza market in town by buying the other Pizza shops!
Bob’s Pizza
Bob’s Pizza
Bob’s Pizza
Bob’s Pizza

31. Cartel – a loose association of businesses in a similar field or that make the same product and agree to limit supply to drive up prices

32. Trust
Multiple company’s selling the same product agreed that rather than compete with each other over prices and profits, they would agree to set their prices, and then split the profits evenly

33. II. Captains of Industry
Still practiced the theory of Social Darwinism to a certain extent to increase their fortunes, but:
They increased the supply of goods by building factories.
They raised productivity and expanded markets, further lowering prices

34. They created jobs at decent wages and in safe factories that enabled many Americans to buy new goods and raise their standard of living.
They also funded museums, libraries, and universities, many of which still serve the public today.
Carnegie Hall

35. III. A Compromise? “The Gospel of Wealth”
Philosophy that states a person should be able to make as much money as they can, BUT they should also use their wealth to improve society.

36. While big business urged the federal government to adopt a Laissez-Faire attitude, many consumers and workers called for a “Social Welfare” policy to be enforced

37. Social Welfare
It is the government’s responsibility to control big businesses in order guarantee quality products at fair prices for consumers, and fair pay and decent hours for workers

39. Laborers
Between 1860 and 1900, almost 14 million immigrants came to the United States
Each needed a job, and without knowing the language, having a permanent residence, no wealth, or having the initial skills to succeed in the American economy, most worked in factories doing simple, repetitive tasks

40. Laborers
After the Civil War ended, more than million people left the agricultural business and headed to the cities looking for jobs
Without the technical skills needed for higher paying jobs, they competed for the same factory jobs as immigrants

41. Laborers
The rising costs of living in the cities, the increased desire for new goods, and the low paying salaries caused many families to employ everyone, including their children.
By 1900, nearly 20% of all children between the ages of 10 and 16 worked in a factory, with most starting around the age of 13 (though as young as 6).

42. Owners
Factory owners needed laborers to work in their factories. The growing supply and demand for new products created the potential for unlimited profits.
Since there were millions of potential workers all vying for the same jobs, owners could offer low wages, long hours, and poor conditions, knowing that someone would be willing to take the job.

43. Owners
Owners saved millions of dollars in worker costs, adding to their profits.
Strict rules applied, and even stricter overseers were employed to keep workers on task.

44. Government Regulation of Big Business
Gibbons v. Ogden (1824)
Asserted that Congress, not the states, has the power to regulate commerce (even interstate commerce), and that Federal law takes precedence over state laws

45. Government Regulation of Big Business
Interstate Commerce Act (1887)
Based on the railroad monopolies, the Supreme Court ruled in favor of:
Just and reasonable rate changes
Prohibiting special rates or rebates for individual shippers
Prohibiting preference rates for particular localities, shippers, or products

46. Government Regulation of Big Business
Sherman Anti-Trust Act (1890)
Dissolved trusts by making it illegal for businesses to associate in any combination in the form of a trust or otherwise that is in the restraint of trade or commerce among states

47. Government Regulation of Big Business
Keating-Owen Child Labor Act (1916)
By 1900, approx. 2 million children were working in mills, mines, fields, factories, stores, on city streets in the United States
This act banned the sale of products from any factory, shop, or cannery that employed children under the age of 14
… from any mine employing children under the age 16
…from any facility employing children under the age of 16 at night, or for more than 8 hours a day

48. The bill was eventually ruled unconstitutional, but was finally passed into law as part of the Fair Labor Standards Act (1938).