1. Capital v. Labor Complete the Industrialist Poster

2. Warm Up  As students at Woodstock North High School what would be some things you would change about the school, and your freedoms?  Talk with a partner and jot down 5 items.  How would you get these demands that you are seeking?

3. Laissez Faire Economics  “Leave it alone”  Gov’t should stay out of business  Businesses benefit = society benefits

4. Social Darwinism (Herbert Spencer)  Charles Darwin’s theory of evolution applied to humans/society  “Only the strong survive”

5. Andrew Carnegie  Steel  “Gospel of wealth” – use wealth to help society "Millionaires are the bees that make the most honey and contribute most to the hive even after they have gorged themselves full.” --Andrew Carnegie *Entrepreneur A person who starts a business

6.  Vertical Consolidation = gain control of all phases of product development Andrew Carnegie (cont’d)

7. John D. Rockefeller  Standard Oil Co.  Horizontal Consolidation = creation of 1 giant business from buying many smaller ones

8. Monopolies, Cartels, and Trusts  Monopoly = the sole supplier of a product with no substitute  Cartel = secret associations of businesses making the same product  Trust = several businesses run by a board of trustees

9. Captains of Industry or Robber Barons? Captain of Industry  Positive view  Made U.S. great!  Improvements helped us all  Philanthropist = charitable person Robber Baron  Negative view  Wealth ONLY concern  Unfairly used power to cut our competition

10. Socialism  Socialism  a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole. -Webster’s dictionary  Founded by Karl Marx and German Philosopher  Why would people be interested in socialism, during this time?

11. Early Labor Unions  Initially - to help members in bad times  Soon -means to gain better working conditions  Collective bargaining – union negotiates with employers  Yellow dog contracts - signed by employees, promise to never join a union

12. Knights of Labor  1869  Goal to organize ALL workers into 1 union  Recruited women and Afr. Am.s Concerns:  Equal pay for equal work  8 hour day  End child labor

13. The American Federation of Labor (AFL)  1886 – Samuel Gompers  Goal - organize ONLY skilled workers  In practice opposed women and Afr. Ams.  Advocated “closed shop” Concerns  Wages/Hours  Working conditions

14. The Great Strike of 1877  B & O Railroad (July 1877)  Shut down 50,000 miles of track  Federal Government (Cleveland) sent in federal troops to end the strike

15. Haymarket Riot  May 4, 1886  3,000 strikers gathered in Haymarket Square in Chicago  Protesting police brutality from McCormick Harvester plant A bomb was thrown at the police A bomb was thrown at the police Police opened fire Police opened fire 7 police and several workers died 7 police and several workers died  After the event the public turned against the labor movement

16. Homestead (1892)  Carnegie Steel (U.S. Steel) Homestead, PA Laborers just settled a labor contract Laborers just settled a labor contract Henry Frick cut wages shortly after Henry Frick cut wages shortly after  Laborers Created Unions Created Unions Began a strike against Frick Began a strike against Frick  Frick’s reaction Pinkertons – a specialized strikebreaking private police force Pinkertons – a specialized strikebreaking private police force Gunfire broke out, police and strikers were killed Gunfire broke out, police and strikers were killed

17. Pullman (1894)  George Pullman – Railroad car producer  Created a factory town just outside of Chicago to house his workers  1893 – Depression 25 - 40% unemployment in the town 25 - 40% unemployment in the town wages bottom out. wages bottom out. Rent for housing remains the same. Rent for housing remains the same.  Eugene V. Debs – Labor organizer during the period  Pullman workers created a union they strike

18. Result of Pullman Strike  Pullman Strike Pullman went to the federal government and sighted the interference in the mail delivery Pullman went to the federal government and sighted the interference in the mail delivery Federal government ruled in favor of Pullman and sent U.S. troops Federal government ruled in favor of Pullman and sent U.S. troops  Final Result – twelve strikers lay dead and the strike was broken

19. Anarchy  Anarchy  a theory that regards the absence of all direct or coercive government as a political ideal and that proposes the cooperative and voluntary association of individuals and groups as the principal mode of organized society. - Webster’s Dictionary  Why would people be in favor of anarchy, during this time?