CHAPTER 16 Wonder and Woe The Rise of

CHAPTER 16 Wonder and Woe The Rise of Industrial America, 1865– 1900 Visions of America, AAHistory of of the United 1 Visions of America, United. States

2 Visions of America, A History of the United States

Wonder and Woe THE RISE OF INDUSTRIAL AMERICA, 1865– 1900 I. The Emergence of Big Business II. Creating a Mass Market III. The World of Work Transformed IV. Conflicting Visions of Industrial Capitalism 3 Visions of America, A History of the United States

The Emergence of Big Business A. Sources of the Industrial Revolution B. The Railroads C. Modern Business Practices D. Rising Concern over Corporate Power E. Andrew Carnegie: Making Steel and Transforming the Corporation F. Rockefeller and the Rise of the Trust 4 Visions of America, A History of the United States

Sources of the Industrial Revolution How did human migration foster American industrialization? How did government officials defend the practice of making huge land grants to the railroads? 5 Visions of America, A History of the United States

Sources of the Industrial Revolution Several Factors 1) Raw materials/Cheap labor 2) Development/Adoption of New Technology 3) Government Policy -Land & Loans -Laissez-faire 6 Visions of America, A History of the United States

7 Visions of America, A History of the United States

8 Visions of America, A History of the United States

9 Visions of America, A History of the United States

The Railroads Large Corporations Explosion of Railroads 10 Visions of America, A History of the United States

Modern Business Practices Incorporation & Stock Management/Standardization Work Hierarchy 11 Visions of America, A History of the United States

12 Visions of America, A History of the United States

Rising Concern over Corporate Power • Monopoly − The control of an industry or market by one corporation 13 Visions of America, A History of the United States

Andrew Carnegie: Making Steel and Transforming the Corporation Pauper to Power Reducing production cost $40 mil in 1900 14 Visions of America, A History of the United States

Rockefeller and the Rise of the Trust • John D. Rockefeller and the Standard Oil Company 15 Visions of America, A History of the United States

Rockefeller and the Rise of the Trust − A legally binding deal bringing many companies in the same industry under the direction of a board of “trustees” Robber Barons 16 Visions of America, A History of the United States

Rockefeller and the Rise of the Trust Sherman Anti-Trust Act − Authorized the Justice Department to prosecute any illegal contract, combination, or conspiracy among corporations that eliminated competition or restrained free trade 17 Visions of America, A History of the United States

Trusts and Market Power 18 Visions of America, A History of the United States

19 Visions of America, A History of the United States

Creating a Mass Market A. The Art of Selling B. Shopping as an Experience: The Department Store C. Bringing the Market to the Frontier D. Selling the World 20 Visions of America, A History of the United States

The Art of Selling Production and Consumption 21 Visions of America, A History of the United States

Shopping as an Experience: The Department Store Shoppers Ambience 22 Visions of America, A History of the United States

23 Visions of America, A History of the United States

Selling to the World 24 Visions of America, A History of the United States

The World of Work Transformed A. The Impact of New Technology B. Hard Times for Industrial Workers C. Exploitation, Intimidation, and Conflict D. New Roles and Opportunities for Women 25 Visions of America, A History of the United States

The Impact of New Technology Trade to Menial Labor 26 Visions of America, A History of the United States

Hard Times for Industrial Workers Long hours, low wage Danger 27 Visions of America, A History of the United States

28 Visions of America, A History of the United States

Exploitation, Intimidation, and Conflict Blacklist − A list of workers who employers in a particular town or industry refused to hire because they were considered troublemakers 29 Visions of America, A History of the United States

30 Visions of America, A History of the United States

Competing Visions THE LEGITIMACY OF UNIONS Trade unions and labor organizations are despotic toward their members, oppressive to the working class, impertinent, and meddling. They assume rights to control property that is not theirs to control. They are criminal and foolish. Trade unions are necessary for workers’ protection. They fight against unendurable wages and unjust conduct by employers. Strikes may fail, but things would be even worse if there were no unions to protest and warn against harsh actions. Why did labor activists argue that unions were defensive in nature? 31 Visions of America, A History of the United States

New Roles and Opportunities for Women 32 Visions of America, A History of the United States

33 Visions of America, A History of the United States

Conflicting Visions of Industrial Capitalism A. Capitalism Championed B. Capitalism Criticized C. Power in Numbers: Organized Labor D. The Great Upheaval of 1886 34 Visions of America, A History of the United States

Capitalism Championed Growth, Wealth, Employment 35 Visions of America, A History of the United States

Capitalism Championed Social Darwinism − The belief that the principles of evolution, which Darwin had observed in nature, also applied to society – Advocates argued that individuals or groups achieve advantage over others as the result of biological superiority, an idea expressed as “survival of the fittest. ” 36 Visions of America, A History of the United States

Capitalism Criticized 37 Visions of America, A History of the United States

Power in Numbers: Organized Labor What conditions led to rapid membership growth in the Knights of Labor? Why did so many workers find the Knights of Labor so appealing? What role did the press play in promoting a negative impression of labor unions? 38 Visions of America, A History of the United States

Power in Numbers: Organized Labor Knights of Labor − A labor organization founded in 1869 that in the 1880 s accepted workers of all trades and backgrounds and became the world’s largest industrial union 39 Visions of America, A History of the United States

40 Visions of America, A History of the United States

Images as History WHY FEAR BIG BUSINESS? Why did so many Americans come to fear big business in the Gilded Age? 41 Visions of America, A History of the United States

Images as History WHY FEAR BIG BUSINESS? The knight symbolizes aristocracy and anti -republicanism. The people vastly outnumber the capitalists. Capitalism is supported by “corruption of the legislature” and “subsidized press. ” 42 Visions of America, A History of the United States

Choices and Consequences TO STRIKE OR NOT TO STRIKE? • The Mundell Shoe Company reduced all workers’ wages, then rescinded the cut when male workers threatened action. • The company then imposed a wage cut on female workers only. 43 Visions of America, A History of the United States

Choices and Consequences TO STRIKE OR NOT TO STRIKE? Choices Regarding Striking No workers would strike 44 Visions of America, A History of the United States Men would remain on the job; women would strike Both men and women would strike

Choices and Consequences TO STRIKE OR NOT TO STRIKE? Decision and Consequences • • Both men and women agreed to strike. The strike lasted weeks. The company rescinded the wage cuts. The successful action boosted KOL membership and convinced the KOL to admit women. What made strikes so risky for workers? 45 Visions of America, A History of the United States

Choices and Consequences TO STRIKE OR NOT TO STRIKE? Continuing Controversies • How should organized labor deal with the rising number of women in the workforce? 46 Visions of America, A History of the United States

The Great Upheaval of 1886 Haymarket Riot − A violent incident touched off when a bomb exploded amid a group of policemen as they broke up a peaceful labor rally in Chicago’s Haymarket Square on May 4, 1886 47 Visions of America, A History of the United States

The Great Upheaval of 1886 What led to the rapid demise of the Knights of Labor? 48 Visions of America, A History of the United States

49 Visions of America, A History of the United States

Key Points • Railroads were the first big business – Set the standard for modern business practices • American Economy Boomed 1) 2) 3) Raw materials/Cheap labor Development/Adoption of New Technology Government Policy -Land & Loans -Laissez-faire • Rising Concern-trusts • Plight of the Workers 50 Visions of America, A History of the United States