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The Expansion of Industry
Main Idea At the end of the 19th century, natural resources, creative ideas, and growing markets fueled an industrial boom Why it matters now Technological developments of the late 19th century paved the way for the continued growth of American Industry
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Natural Resources Fueled Industrialization
What led to the nation’s industrial boom? Wealth of natural resources, government support for business/new inventions, and a growing urban population that provided cheap labor.
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Video- Oil Industry
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Natural Resources Texas oil boom Spindletop, near Beaumont, TX.
Petroleum Refining Oil to Kerosene Oil to Gasoline
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Video- Steel Industry
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Inventions Promote Change
How did new inventions and products affect people at home and at work? Helped improve people’s standard of living. Freed people from backbreaking work. Factories could mass produce items.
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Video- Railroads
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Inventions & Change
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Resources, Ideas, Markets
Taking Notes Resources, Ideas, Markets Impact Oil Drill Oil Boom, Wealth Bessemer Process Bridge Construction, more Railroads Steel Frame buildings Electrical Power Artificial light widely available Telephone Faster communications
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The Age of Railroads Main Idea Why it Matters Now
The growth and consolidation of railroads benefited the nation but also led to corruption and required government regulation Why it Matters Now Railroads made possible the expansion of industry across the United States
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Railroads Span Time and Space
How did the government facilitate the expansion of the railroads? Government made huge land grants and loans to the railroad companies and set time zones to be set.
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Railroads Span Time and Space
National Network Union Pacific and Central Pacific Railroads Promontory, Utah on May 10, 1869 Transcontinental Railroad Romance and Reality Central Pacific- Chinese immigrants Union Pacific- Irish immigrants & Civil War veterans Harsh life;1888-2,000 killed,20,000 injured Railroad Time 1869-C.F. Dowd- 24 time zones 4 time zones in the U.S. Eastern, Central, Mountain, Pacific Nov. 18,1883- Synchronized time across country
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Opportunities and Opportunities
How would the growth of railroad lines promote the growth of cities and trade? It helped establish new markets, and offered rich opportunities for both visionaries and profiteers.
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Opportunities and Opportunities
The growth of railroads influenced the industries and businesses in which Americans worked. Iron, coal, steel, lumber, and glass industries grew rapidly.
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The Grange and the Railroads
How would Granger laws help farmers? Congress passed laws that would protect their interests. It established maximum freight and passenger rates and prohibit discrimination.
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The Grange and the Railroads
Farmers were especially affected by corruption in the railroads. The Grangers began demanding governmental control over the railroad industry.
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Taking Notes
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Big Business and Labor Main Idea
The expansion of Industry resulted in the growth of big business and prompted laborers to form unions to better their lives Why it Matters Now Many of the strategies used today in Industry and in the labor movement, such as consolidation and the strike, have their origins in the late 19th century
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Carnegie’s Innovations
What business did Andrew Carnegie dominate? Steel Business The Carnegie Steel Company.
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Carnegie’s Innovations
Earned his money first by buying stock in the Pennsylvania Railroads 1899- Carnegie Steel Company New Business Strategies Make better products more cheaply Attracted talented people by offering them stocks in the company. He encouraged competition. Carnegie looked to control as much of the steel industry Vertical Integration- process in which he bought out his suppliers. Control materials. Horizontal Integration- companies producing similar products merge. Limited competition.
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Carnegie Owns Owner X Carnegie Owns Owner Y Carnegie Owns Owner Z
Production Process Horizontal Integration Vertical Integration Raw Materials: Coal and Iron Mines Carnegie Owns Owner X Manufacturing the Steel: Steel Mills Carnegie Owns Owner Y Transportation to and From mill: Railroads Carnegie Owns Owner Z
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Social Darwinism What does the theory of Social Darwinism advocate?
The strongest will survive. What methods did ruthless business operators use to eliminate their competition? Big businesses form monopolies. They merged small companies into larger ones. They could fix their prices and wages to their advantage.
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Social Darwinism and Business
Andrew Carnegie explained his extraordinary success by pointing to his hard work, shrewd business investments, and innovative business practices.
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Fewer Control More
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“Robber Barons” 1880-Standard Oil controlled 90% of the refining business. Paid employees low wages and drove competitors out of business by lowering the price it cost to produce it. “Robber Barons” He eventually gave away over $500 million University of Chicago, Rockefeller Foundation, and Medical Foundation.
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Fewer Control More Sherman Antitrust Act
Made it illegal to form a trust that interfered with free trade between states or with other countries. Didn’t have much of an impact How did economic factors limit the industrialization in the South? The South had a devastated economy from the Civil War. It was at the mercy of the Northern railroad companies for transporting goods to markets. Business Boom Bypasses the South South still trying to recover from the Civil War. People didn’t want to take the risk.
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Labor Unions Emerge What conditions did many factory workers face in the late 19th century? Long hours(12), poor working conditions, No vacations, sick days. Worked six days a week.
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Early Labor Organizing
National Labor Union(NLU)- 1st large union 1866 William H. Sylvis 8 Hour workdays Colored National Labor Union(CNLU) Knights of Labor-Uriah Stephens “An injury to one is the concern of all.” Open to all workers Equal pay for equal work for both men and women 8 hour workday Strikes would be a last resort
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Union Movements Diverge
Two major types of unions made great gains under forceful leaders
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Union Characteristics Leader 8 hour work day. No blacks NLU
William Sylvis 8 hour work day. Isaac Meyers CNLU Individual workers. Open to All. Uriah Stephens Knights of Labor Collective bargaining or negotiation AFL Samuel Gompers Higher wages, skilled & unskilled workers Eugene V. Debs ARU Better working conditions; miners, dock workers, lumberers. IWW William “Big Bill” Haywood
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Strikes Turn Violent
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Strikes Turn Violent Women Organize
Mary Harris Jones UMW- United Mine Workers Child Labor Pauline Newman-16 yrs. old International Ladies’ Garment Workers’ Union (ILGWU) Triangle Shirtwaist Factory-NY City, March 28, 1911 Management & Government Pressure Unions “Yellow-Dog Contracts”
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