1. Industrial Revolution

2. How did industrialization affect the economy and society?
America began a major transformation after the end of the Civil War marked by expanding business and industrialization.
This “second industrial revolution,” led by scientists and inventors, turned the United States into an industrial powerhouse.

3. Many immigrants to the U.S. were “pushed” from their homelands by:
political upheaval,
religious discrimination,
crop failures.
They provided a willing workforce
to industry. 3

4. American entrepreneurs invested money in products in order to make profits.
Entrepreneurs fueled industrialization and helped spur innovation in the late 1800s.
They benefited from laissez-faire policies, which allowed businesses to work under minimal government regulation.
Congress enacted protective tariffs to encourage the buying of American goods. 4

5. Thomas Edison was the most prolific inventor of the era.
He and his team of workers developed the light bulb, the phonograph, and hundreds of other new products.

6. Daily life changed dramatically as a result of new technologies.
Morse’s telegraph gave rise to a communications revolution.
The Bessemer process, which purified iron to create steel, changed construction. Steel made skyscrapers and suspension bridges possible.

7. This led to the physical and economic growth of cities.
Railroads expanded.
This led to the physical and economic growth of cities. 7

8. Business Practices of the Industrial Revolution

9. How did big business shape the American economy in the late 1800s and early 1900s?
The rise of business empires turned the United States into one of the most economically powerful countries in the modern world.

10. Competitors forced out of business
Corporations used strategies to eliminate competition and decrease costs.
monopolies
Competitors forced out of business
Better control of production, reduced costs
horizontal integration
vertical integration 10

11. Tycoons of the Late 1800s John D. Rockefeller Oil Andrew Carnegie
Business leader
Industry
John D. Rockefeller
Oil
Andrew Carnegie
Steel
Cornelius Vanderbilt
Railroads

12. Were the tycoons “robber barons” who swindled the poor and drove small businesses under . . .
or “captains of industry” who served the nation and lowered the prices of goods?

13. Darwin’s Theory of Evolution
applied to American capitalism
becomes Social Darwinism
Wealth was accumulated by those who were the most “fit” to survive in society.

14. Social Darwinists believed government should stay out of private business and thought it was wrong to use public funds to assist the poor.
Americans who worried about the methods of industrialists called for federal regulation of business practices. 14

15. The ICC and the Sherman Antitrust Act began a trend toward government limits on corporate power.
Interstate Commerce Commission
oversaw railroad operations
Sherman Antitrust Act
Passed by the Senate in 1890
Outlawed trusts that operated “in restraint of trade or commerce among the several states”

16. Organized Labor After 1865

17. Industrial workers faced hardships.
• Factory owners employed people who would work for low wages. Many of these people were immigrants and children.
• They often labored in hot, dark, dirty workhouses known as sweatshops.
• Laborers often had to live in company towns and buy goods at high interest at company stores.

18. Labor unions formed.
Workers tried collective bargaining to gain more power against employers.
One form was the strike, in which workers stopped working until their demands were met. 18

19. American Federation of Labor (AFL)
Labor Unions
Labor Union
Industry and Activity
Knights of Labor
included workers from any trade
devoted to reform
Terence V. Powderly encouraged boycotts and negotiation.
American Federation of Labor (AFL)
included skilled workers
focused on specific issues
founded by Samuel Gompers 19

20. As membership in unions grew in the 1870s, a wave of confrontations between labor and management rocked the country.
In 1877 the federal government sent in troops to restore order after a major strike by railroad workers.

21. Across the nation, workers mounted demonstrations for more rights
Across the nation, workers mounted demonstrations for more rights. One such protest in Chicago turned violent.
The 1886 Haymarket Riot made many Americans fearful of labor unions.

22. Homestead Strike - Private police were called in to stop fighting between workers and Carnegie Steel.
One year later, the Pullman Palace Car Company laid off rail workers and cut wages.
This touched off the Pullman Strike, which halted nationwide railroad traffic and mail delivery.

23. Troops were called in to end the strike.
The government ordered strike organizers, led by Eugene V. Debs, to end the strike.
Troops were called in to end the strike. 23

24. Effects on the Labor Movement
Government supported employers against unions.
Violence and strikes continued as American industry grew. 24