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Published bySara Benson Modified over 9 years ago
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Industrial Development
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By 1880, U.S. is world’s leading producer of goods Reasons why? Unlimited labor force Abundant coal supply Iron mining Discovery of oil Railroad development
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Laissez-faire government policies Government was hands off in the market place Unlimited immigration supplied labor Nativist fears No competition for labor – decrease pay High tariff protected American business But farmers suffered Public financing of railroads Regulating prices
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Late 1800s saw and explosion of innovation Telephone – Graham Bell Light Bulb – Edison Electric Power – Edison (made it work long distances) Bessemer Process – made possible the mass production of steel Typewriter –Sholes Modern Media made possible because of electricity, telephone and the typewriter
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Photography – Wolcott Phonograph – Edison Motion Picture – Lemiere Radio – Tesla (Marconi) Retail Stores – Middle class, brought catalogs and window shopping Canned Food – Appert
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Rockefeller – Oil Carnegie – Steel Morgan – Financial Vanderbuilt – Railroads and Shipping Dupont – corporation Duke – Tobacco Westinghouse – air brake and switch tracks for Railroads
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“ironhorse” – slow initially but with new technological advances became more efficient Leading consumer or goods The main transit choice for all farmers and producers Trancontinental, 1869 Promotory Point Standardization of time 1884 created 24 time zones to standardize train schedules
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Growth of urban areas Development of Company Towns people worked and lived in the same town/factory (make money and spent money from same person) Pullman Illinois makes Railroad cars Cut salary and wouldn’t cut rates Clean towns Railroad scandals Credit Moblier – Pacific Railroad Gov’t land grants
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Railroad Abuses Long haul vs. short haul Rebates and Drawbacks Granger Laws Enacted to set maximum rates for shipping and storage Supreme Court Rulings Wabash and Munn Interstate Commerce Act, 1887 Attempt to regulate business Created the Interstate Commerce Commission
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Types of Businesses: Monopolies: company wipes out its competitors and controls the industry. John D. Rockefeller: OIL Created trusts to eliminate competition (trust is a legal body created to hold stock in many companies, often the same industry) Andrew Carnegie: STEEL Corporations: business owned by investors who buy part of the company through shares of stock e.g. Walmart, Best Buy Very few laws to regulate corporations Oil and steel industries dominated as corporations.
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Workers faced many hardships Business owners wanted to keep their profits high Workers had to buy their own tools or bring coal to heat the factories Workers (both adults & children) labored long hours under poor conditions for low wages. Workers discontent with their job formed labor unions
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Knights of LaborAmerican Federation of Labor (AFL) Federation of Workers from all different trades. Allowed women and African Americans members. Focused on improving working conditions. By using strikes, boycotts, and negotiation, the AFL won shorter working hours and better pay for workers.
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EventWhat happen?Results Railroad Strike of 1877Wages were cut Two-week strike Dozens of people killed Nothing the companies still cut the workers wages McCormick Harvester CompanyLocked out striking union members and hired strikebreakers to replace them. Nothing positive for the workers. Police scheduled a meeting with the workers. A person through a bomb in the crowd. Killed several police and wounded about 60—called the Haymarket Affair Homestead & Pullman Strike1892 Carnegie reduced wages at his steel mills. Union refused to accept the cuts. The company locked out the workers and hired nonunion member workers. A battle broke out between the former workers and the company. After 4 months the strike collapse. Pullman Strike: Strike on the rail industry in 1894. Nothing—the workers lost another battle. The Federal government stepped in to end the strike.
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