1. By: Ms. Susan M. Pojer Horace Greeley HS Chappaqua, NY

2. Causes of Rapid Industrialization 1.Steam Revolution of the 1830s-1850s. 2.The Railroad fueled the growing US economy: * First big business in the US. * A magnet for financial investment. * The key to opening the West. * Aided the development of other industries. 1.Steam Revolution of the 1830s-1850s. 2.The Railroad fueled the growing US economy: * First big business in the US. * A magnet for financial investment. * The key to opening the West. * Aided the development of other industries.

3. Causes of Rapid Industrialization 3.Technological innovations. * Bessemer and open hearth process * Refrigerated cars * Edison --> “Wizard of Menlo Park” --> light bulb, phonograph, motion pictures. 3.Technological innovations. * Bessemer and open hearth process * Refrigerated cars * Edison --> “Wizard of Menlo Park” --> light bulb, phonograph, motion pictures.

4. Thomas Alva Edison “Wizard of Menlo Park”

5. The Light Bulb

6. The Phonograph (1877)

7. The Ediphone or Dictaphone

8. The Motion Picture Camera

9. Alexander Graham Bell Telephone (1876)

10. Alternate Current George Westinghouse

11. Alternate Current Westinghouse Lamp ad

12. The Airplane Wilbur Wright Orville Wright

13. Model T Automobile Henry Ford

14. “Model T” Prices & Sales

15. U. S. Patents Granted 1790s  276 patents issued. 1990s  1,119,220 patents issued.

16. 4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. 4.Unskilled & semi-skilled labor in abundance. 5.Abundant capital. 6.New, talented group of businessmen [entrepreneurs] and advisors. 7.Market growing as US population increased. 8.Government willing to help at all levels to stimulate economic growth. 9.Abundant natural resources. Causes of Rapid Industrialization

17. New Business Culture 1.Laissez Faire --> the ideology of the Industrial Age. * Individual as a moral and economic ideal. * Individuals should compete freely in the marketplace. * The market was not man-made or invented. * No room for government in the market but….. * Individual as a moral and economic ideal. * Individuals should compete freely in the marketplace. * The market was not man-made or invented. * No room for government in the market but…..

18. 2. Social Darwinism  Herbert Spencer  British economist.  Advocate of laissez-faire.  Adapted Darwin’s ideas from the “Origin of Species” to humans.  Notion of “Survival of the Fittest.”  Herbert Spencer  British economist.  Advocate of laissez-faire.  Adapted Darwin’s ideas from the “Origin of Species” to humans.  Notion of “Survival of the Fittest.”

19. 2. Social Darwinism William Graham Sumner

20. New Business Culture 3.Protestant (Puritan) “Work Ethic” * Horatio Alger

21. New Type of Business Entities 1.Pool railroads 1.Focus: organizing integrated systems by building feeder lines to bring business to main line 2.Vanderbilt- NY Central, Jay Gould in SW, James J. Hill in W 3.Trunk lines interconnect- standardization 4.Cooperative agreements between companies on rates 5.Positive effects 6.Negative effects 2.Trust --> John D. Rockefeller 1.Pool railroads 1.Focus: organizing integrated systems by building feeder lines to bring business to main line 2.Vanderbilt- NY Central, Jay Gould in SW, James J. Hill in W 3.Trunk lines interconnect- standardization 4.Cooperative agreements between companies on rates 5.Positive effects 6.Negative effects 2.Trust --> John D. Rockefeller * Standard Oil Co.

22. Standard Oil Co.

23. New Type of Business Entities 2.Trust: * Horizontal Integration --> John D. Rockefeller * Vertical Integration: A. Gustavus Swift--> Meat-packing B. Andrew Carnegie--> U. S. Steel

24. Iron & Steel Production

25. New Type of Business Entities

26. U. S. Corporate Mergers

27. Industrial Consolidation: Iron & Steel Firms

28. New Financial Businessman The Broker: * J. Pierpont Morgan

29. Wall Street – 1867 & 1900

30. The Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911) Frederick W. Taylor The Principles of Scientific Management (1911)

31. The Reorganization of Work The Assembly Line

32. Wealth Concentration Held by Top 1% of Households

33. % of Billionaires in 1900

34. % of Billionaires in 1918

35. “The Protectors of Our Industries”

36. The “Bosses” of the Senate

37. The “Robber Barons” of the Past

38. The Gospel of Wealth: Religion in the Era of Industrialization Russell H. Conwell  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.  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.

39. “On Wealth” Andrew Carnegie  The Anglo-Saxon race is superior.  “Gospel of Wealth” (1889).  Inequality is inevitable and good.  Wealthy should act as “trustees” for their “poorer brethren.”  The Anglo-Saxon race is superior.  “Gospel of Wealth” (1889).  Inequality is inevitable and good.  Wealthy should act as “trustees” for their “poorer brethren.”

40. World’s Industrial Output

41. R/R hurt small western farmers The Grange (1887)- Oliver H. Kelley –Social & cultural function –Political- state legislatures- “Granger Laws” –Munn v. IL. (1887) –Interstate Commerce Act (1887) Interstate Commerce Commission

42. Americans react: Social Labor Party Laurence Gronlund The Cooperative Commonwealth Daniel DeLeon “The People” newspaper

43. Americans react: Authors present radical new views Henry George Progress and Poverty Problems of the unequal distribution of wealth, advocated a “single tax” Edward Bellamy Looking Backward, 2000-1887 utopia = socialist America with planned economy Henry Damarest Lloyd Wealth Against Commonwealth Attacked Standard Oil, Social Darwinism, Laissez-Faire

44. Regulating the Trusts 1877 --> Munn. v. IL 1886 --> Wabash, St. Louis & Pacific RR Co. v. IL 1890 --> Sherman Antitrust Act * in “restraint of trade” * “rule of reason” loophole 1895 --> US v. E. C. Knight Co. 1877 --> Munn. v. IL 1886 --> Wabash, St. Louis & Pacific RR Co. v. IL 1890 --> Sherman Antitrust Act * in “restraint of trade” * “rule of reason” loophole 1895 --> US v. E. C. Knight Co.