1. Unit 3: Industrialization, Immigration, and Urbanization

2. 3-1: Industrialization Industrialization occurred after Civil War
Many individuals risked all their capital (resources) to start businesses. Then, and now these people are entrepreneurs
These individuals almost always believed in laissez-faire capitalism
Keep government out of business, let supply and demand dictate prices

3. Cuban, Jobs, and Zuckerberg are all famous modern entrepreneurs.

4. 3-1: Industrialization
As businesses grew, they preferred high protective tariffs
Taxes on imports that would increase the cost of a foreign made good
Why do you think big business owners in America favored high tariffs?

5. 3-1: Industrialization
A corporation was how most big businesses were organized
A corporation is an organization owned by many people
Carnegie Steel was a dominant corporation in the late 19th-early 20th century
Andrew Carnegie used the Bessemer process to help mass produce (produce in high quantities) steel cheaply.

6. The Bessemer process allowed Carnegie to mass produce steel, cheaply
The Bessemer process allowed Carnegie to mass produce steel, cheaply. He became a multi-millionaire, and Pittsburgh, PA. became the industrial heart of America

7. 3-1: Industrialization
Carnegie used vertical integration to make business profitable, eliminate competition
Example: Carnegie owned iron ore mines, railroads, steel factories
Businesses also used horizontal integration (combining of all the same industries) to maximize profits.
When all of the same businesses combine, this leads to monopolies
When one business dominates an entire market

8. 3-1: Industrialization
Laws were passed against monopolies, but companies found ways around them
John D. Rockefeller bought out all competition in oil industry (Standard Oil) by forming a trust
Companies assigns stock to board of trustees who get dividends (profits)
Trustees would do what Rockefeller wanted in running company

9. John D. Rockefeller ruthlessly controlled the oil business in America due to laissez-faire capitalism.

10. 3-1: Industrialization
Most business owners favored buying out competitors, believed in Social Darwinism
the belief that those who were the best at running business would survive, other businesses die
Led to bad working conditions for laborers in factories.
Why would Social Darwinism lead to bad working conditions for workers?

11. 3-1: Industrialization
Labor movements arise from issues important to workers
Poor working conditions
Low wages
Long working hours
Triangle Shirtwaist Factory fire highlights problems for workers (over 160 women die in a crowded factory fire)
Unions arise, ideas motivated my Marxism
Economic idea that workers would revolt against business owners, and create a classless society (Communism)

13. 3-1: Industrialization Different unions serve different workers
Knights of Labor: unskilled workers led by Terence Powderly
Wanted 8 hour workday, no child labor, wanted government to track labor data
AFL (American Federation of Labor): skilled workers led by Samuel Gompers
Wanted same things as K.O.L., but wanted to keep labor out of politics

14. Terence Powederly (left), Samuel Gompers (right), and Eugene Debs (below), were all well known leaders of workers (labor).

15. 3-1: Industrialization
Labor conflicts occurred during late 19th, early 20th centuries
Pullman Strike (1894): 300k railway workers strike, led by Eugene Debs, troops sent in by President Cleveland to break it up.
Homestead Strike (1892): steelworkers union barricades themselves in Homestead Plant, Pinkerton detectives forcibly take back plant, 9 workers killed.
Haymarket Riot (1886): anarchists protesting businesses throw a bomb into a crowd at Haymarket square in Chicago, dozens are killed, support for unions drops.

16. Note Quiz
Name 1 well known labor conflict in the late 19th century, and EXPLAIN what happened.
What was the name of the labor union that united skilled workers throughout the U.S.?
What business organization technique did Andrew Carnegie use to make his business profitable?
What economic idea says that workers will revolt, overthrow business owners, and create a classless society?
What did American business owners get the government to impose in order to protect their industries and companies from foreign competition?

17. 3-2: Immigration and Urbanization
Millions of immigrants began flooding into the United States from southern and eastern Europe (Italians and Slavic ethnicity)
Most ended their journey from Europe at Ellis Island in New York Harbor, that processed the new immigrants
Immigrants contributed to population boom of cities

19. 3-2: Immigration and Urbanization
Discrimination towards immigrants emerged again in late 19th century
This discrimination took the form of nativism
a strong dislike of foreigners by native born Americans who wanted to limit immigration
Were suspicious of Asians, Jews, Eastern Europeans
Nativists got Congress to pass the Chinese Exclusion Act
Stopped Chinese immigration for 10 years
Barred Chinese in country from becoming citizens

20. 3-2: Immigration and Urbanization
Most Asian immigrants came into U.S. through Angel Island in California
Division of classes could be seen according to where people lived
Wealthy in heart of the city in fancy homes
Middle class in surrounding suburbs
Working poor in tenements
Dark, dirty, multi-family apartments with little or no indoor plumbing

21. Asian immigrants disembarking at Angel Island in San Francisco Bay.

22. 3-2: Immigration and Urbanization
Andrew Carnegie wrote about a Gospel of Wealth--his philosophy that rich should accumulate wealth to give it back to society
When wealthy give money back to the public for the benefit of society, it is called philanthropy
Other reformers tried to ease problems of the poor
Jacob Riis used his camera to capture hopelessness of life in tenements, make the rich aware of the crushing poverty
Jane Addams started Hull House—a settlement house to help poor get on their feet, find work

23. 3-2: Immigration and Urbanization
Interstate Trade was government issue of late 19th century
Farmers (Populists) were mad at high prices charged by railroads for shipping, states tried to regulate prices
Federal government said only they could regulate interstate trade
President Cleveland created interstate commerce commission (ICC) to regulate trade

24. Note Quiz What was Nativism? Define “philanthropy”
Nativists succeeded in getting what law passed through Congress? What did it do?
Who wrote about the “Gospel of Wealth?” What beliefs did he talk about in this work?
What were the dirty, dark one room, multi family apartments in big cities called?