3.  Big businesses exist because they can produce goods more cheaply and efficiently than small businesses  This forced many small companies out of business  Think Wal-Mart vs. a local store, what do you sacrifice in order to buy something for less money?

4.  Andrew Carnegie › emigrated to the US from Scotland in 1848  Worked his way from bobbin boy in a textile factory making $1.20 a week to making $50,000 a year with a railroad company and creating his own business investing in the steel industry

5. Vertical Integration Horizontal Integration  Buying all of the different businesses that the operation of a company depends upon  Example: › A clothing company would own the trucks to distribute, the factory, the cotton farm, etc.  Buying several small businesses to create one large business  Example: › Independent oil companies combine to create the US Oil Company  When a single company controls an entire market it becomes a monopoly  Many Americans feared monopolies because they could charge whatever price they wanted to

6.  Working conditions were not very regulated › Workers breathed in toxic fumes, lint, and dust › Average industrial worker in 1900 made 22 ¢ per hour and worked 59 hours per week ($12.98 per week, $51.92 per month)

7.  Many workers wanted to form unions › What do unions ALWAYS want?  Better working conditions (safety)  Better pay  Better hours  Company owners didn’t like unions because they thought they interfered with their property rights  Companies required workers to sign contracts against unions, hired detectives to identify union organizers, and blacklisted workers who tried to unionize › Companies would lock workers out of their property and refuse to pay them until they broke up the union

8.  Marxism (a set of ideas of Karl Marx) started to scare people in the capitalist US › Believed that workers could eventually revolt and seize control of factories  Many European immigrants had heard the ideas of Marx and when they came to the US nativism (anti- immigrant feelings) started to spread

9.  The recession that started in 1873 continued into 1877 › Railroad workers across the country walked onto the tracks and refused to move › After property had been destroyed and people killed, President Hayes sent the army out to stop the strike

10.  Haymarket Riot › Movement for 8 hour workday › Nationwide strike on May 1, 1886 › Chicago: clash between strikers and police left one striker dead. › Next day a protest was organized in Haymarket Square › Police entered the square and someone threw a bomb › Police opened fire and workers shot back › 8 German men were arrested › Evidence was weak but 4 were executed  Pullman Strike › Pullman (railroad cars) Factory workers had been required to live in a company town  Get paid, pay rent to company, buy food from company, nothing left to save › Went on strike because of slashed wages and the firing of 3 workers who complained › Workers across the U.S. boycotted Pullman cars and refused to handle them, tying up railroads and threatening to paralyze the economy › Railroad managers had US mail cars attached to Pullman cars so the workers would be interfering with the US mail (violation of federal law) › President Cleveland sent in troops