1. The
Incorporation
of America

2. Political Changes of the Gilded Age
Changes due to INDUSTRIALIZATION
Business corrupts politics

3. Social Darwinism 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

4. New Business Culture
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!

5. The “Bosses” of the Senate

6. Regulating the Trusts 1887  Interstate Commerce Act
* Creates Interstate Commerce Commission
* Attempts to regulate the Railroads
1890  Sherman Antitrust Act * in “restraint of trade” * “rule of reason” loophole

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

8. Causes of Rapid Industrialization
The Railroad fueled the growing US economy:
* First BIG business in the US.
* The key to opening the West.
* Moving raw materials and consumer products was much easier
* Increased demand for all products
*INCREASED DEMAND = INCREASED PRODUCTION

9. Thomas Alva Edison
“Wizard of Menlo Park”

10. Electricity George Westinghouse Reliable Energy Powered factories
Causes industrial Expansion through faster production
Creates lots of new factory jobs
George
Westinghouse

11. The Light Bulb - 1880 Greatest American Inventor
“Wizard of Menlo Park”
Thomas Edison

12. Alexander Graham Bell Telephone(1876)
Communication helps to speed the growth of business

13. 1866, CARNEGIE INVESTED IN THE
“BESSEMER PROCESS”.
JULY 1892 WITH $25,000,000 CREATED CARNEGIE STEEL CORPORATION
PRODUCED 1/4 OF THE WORLD’S STEEL.

14. Geography
The abundant natural resources of America fuel the growth of big business

15. Free Enterprise System
1. Unskilled & semi-skilled labor in abundance.
2. Abundant capital.
3. New, talented group of businessmen [entrepreneurs] and advisors.
Market growing as US population increased.
Government willing to help at all levels to stimulate economic growth.
Abundant natural resources.

16. John Jacob Astor – Fur Trading, Real Estate, and Opium…

17. Andrew Carnegie - Steel

18. William Vanderbilt The public be damned!
What do I care about the law? H’aint I got the power?

19. Cornelius [“Commodore”] Vanderbilt
Can’t I do what I want with my money?

20. Cornelius Vanderbilt – “The Biltmore” – Largest House in the U.S.

21. Wealth Concentration Held by Top 1% of Households

22. New Type of Business Entities
* Horizontal Consolidation  John D Rockefeller
* Vertical Consolidation:
Andrew Carnegie  U. S. Steel

23. New Type of Business Entities
Trust  (monopolies) Combining multiple companies to create larger companies
Trusts allow profits to skyrocket!
THE RICHEST MAN EVER

24. Because of increased profits, companies had money to invest in research, which leads to MORE technological advancements and greater efficiency
“Time Study Analysis

25. The Reorganization of Work
The Assembly Line

26. The Phonograph (1877)

27. The Ediphone or Dictaphone

28. The Motion Picture Camera

29. The Telegraph

30. The “Robber Barons” of the Past

31. B. Social Darwinism 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

32. 2. Social Darwinism in America
Individuals must have absolute freedom to struggle, succeed or fail.
Therefore, state intervention to reward society and the economy is futile!
William Graham Sumner Folkways (1906)

33. ANDREW CARNEGIE IMMIGRANT FROM GLASGOW, SCOTLAND
WORKED IN PITTSBURGH, BOBBIN BOY FOR $1.20 A WEEK.
SAVED MONEY; CHARMED INVESTORS TO ENTER THE RAILROAD BUSINESS.
1861 STARTED 1ST BUSINESS IN IRON.

34. “On Wealth” “Gospel of Wealth” (1901).
Inequality is inevitable and good.
Wealthy should act as “trustees” for their “poorer brethren.”
Gave away his vast Fortune
Education/Arts
Andrew Carnegie

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

36. E. JOHN D. ROCKEFELLER HARD WORKING GREAT MIND FOR #’S AND MATH
IRON NERVES, DECISIVE,
PRECISION, CAUTION,
GREAT STRATEGIST AND
FORECASTER

37. STARTED OWN BUSINESS AT 20. 1865 - ENTERS THE OIL BUSINESS;
HIRES HIS BROTHER
OPENS STANDARD WORKS.
ROCKEFELLER IS THE LARGEST
OIL REFINER IN THE WORLD
* CREATED
STANDARD OIL COMPANY

38. Standard Oil Co.

39. 1879 REFINED 90% OF THE OIL IN U.S. 70% EXPORTED OVERSEAS.
% OF AMERICAN TOWNS SERVICED BY
STANDARD OIL COMPANY
1912 ROCKEFELLER’S FORTUNE PEAKED AT $900,000,000 !!
DIED WITH $26,410,237 AND GAVE MOST AWAY TO FOUNDATIONS AND HEIRS.

40. “The Protectors of Our Industries”

41. The Work Force
Immigrants
Women
Children

42. Sweat shop
Long Hours, low wages, unsafe conditions

43. The Work Environment
Dirty
Dangerous
Long Hours

44. Children at Work Jacob Riis Work was very dangerous for kids
Dirty work environment led to health problems for kids

45. Kids couldn’t attend school
Families needed the money
Kids were paid less

47. Growing Gulf Between the Rich and the Poor
Socialism – redistribution of wealth

48. Rise of Labor Unions
Labor unions began to form to protest worker wages, safety and hours
American
Federation of Labor
(AFL)

49. Railroad Strike of 1877

50. Haymarket Riot

51. Homestead Strike – 1892

52. Public sympathize with the strikers until the anarchists arrive and attempt to assassinate Frick
The public begins to associate unions and strike with anarchists and violence

53. Pullman Strike – 1894
Government helps because the strikers are interfering with the mail.
This sets the pattern of government response to strikes for years to come.