- Slides: 23
Industrial Revolution Chapter 4
The Second Industrial Revolution Timeline: 1876 -1898 Key Terms: Second Industrial Revolution, Bessemer process, Thomas Edison, patents, Alexander Graham Bell, Henry Ford, Wilbur and Orville Wright Main Ideas: Breakthroughs in steel processing led to a boom in railroad construction. Advances in the use of oil and electricity improved communications and transportation. A rush of inventions changed Americans’ lives.
Factors Affecting Industrial Growth Large amount of natural resources (water, trees, minerals, etc) Growing population to provide workers Transportation advancements Rising immigration Inventions and innovations Increased business investments Government policies assisting businesses Ex: Hyundai in Montgomery, AL
Steel Processing Industrial revolution is a period of rapid growth in US manufacturing By 1890 s the US had become the world’s industrial leader Steel is iron and carbon combined in heat Henry Bessemer (Bessemer Process) invented a way to make steel quickly and cheaply- a days work turned into 10 -20 minutes- increased steel production (77 K tons to 1 M tons) More steel=steel price dropped (supply & demand) so more railroads were built Railroad and shipping increased meant more people were needed to work
Oil as Power Oil was used as a power source in the late 1800 s Chemists invented a way to convert unprocessed oil into fuel called kerosene which can be used to cook, heat, and light High demand on oil increased price of oil-oil became a big business Edwin Drake proved oil can be pumped from the ground so people began to drillworkers hired Refineries were built to make kerosene-workers hired Major oil states: Ohio, Pennsylvania, and West Virginia Watch Men That Built America-Rockefeller
Electricity Spreads Thomas Edison had over 1000 patents from his New Jersey research center Patents allow inventions from being manufactured by others 1878 Edison announced he would produce electric light (threatened oil investments that provided light) Edison light bulb (show example) produced in 1879 Edison built power plant to supply electricity to New York City but could not send it long distances-provided to major cities only George Westinghouse built power stations to send electricity many miles Two men competed as electricity spread rapidly
Advances in Communication Telegraph wires connecting East to West only carried written messages and was difficult for untrained people Alexander Graham Bell patented the telephone Companies raced to lay miles of phone lines – workers hired Increased phone owners from 55000 to 1. 5 million by 1900 (supply & demand)
Automobiles Engine powered by gasoline (made from oil) invented in 1876 Many cars began to be made – workers hired Wealthy owned cars until Henry Ford introduced Model T (photos) Ford was FIRST to implement the moving assembly line to manufacture Benefits: reduce cost of product making cars more affordable Watch Men That Built America-Henry Ford
Planes Wilbur and Orville Wright built a lightweight airplane using a small gas powered engine FIRST flight in Kitty Hawk, N Carolina in 1903 Changed the way Americans traveled and increased demand for oil production
Big Business Key Terms: corporations, Andrew Carnegie, vertical integration, John D Rockefeller, horizontal integration, trust, Leland Stanford, social Darwinism, monopoly, Sherman Antitrust Act Main Ideas: The rise of corporations and powerful business leaders led to the dominance of big business in the US. People and the government began to question the methods of big business.
Dominance of Big Business Corporation is a business that sells portions of ownership called stock shares Entrepreneurs formed first corporations in the late 1800 s Leaders of corporations very respected social and political leaders Praised for hard work, talent, risk taking, and success
Corporations generate wealth Corporations rewarded the founders and the investors (stockholders) Stockholders get % of profits based on the amount of stock they purchased Stockholders are not responsible for the business debt since they do not run the business but they can lose their money with bad decisions (risky) Stockholders can sell and exchange stocks By 1900 more than 100 M shares per year were traded on the New York Stock Exchange
Business Leaders Andrew Carnegie-Most admired business people of time due to building steel factories to make railroads-expanded business by purchasing competitors businesses Succeeded due to vertical integration-ownership of business involved in each step of manufacturing processing-he bought mines, coalfields, and railroads needed to supply and support his steel mills Watch Men That Built America - Carnegie
Business Leaders John D Rockefeller started an oil refinery at age 21 and consolidated businesses to make Standard Oil Company-FIRST corporation and largest oil refinery Used vertical integration along with horizontal integration-owning all businesses in a certain field Controlled 90% of U. S. oil Formed a trust-legal arrangement grouping together a number of companies under a single board of directors to get rid of competition Rockefeller Center in NYC named after John D Rockefeller Watch Men That Built America - Rockefeller
Business Leaders Leland Stanford, Governor of California made fortune selling equipment to miners Also owned Central Pacific Railroad (built half of transcontinental railroad) and founded Stanford University Argued that industries should be owned and managed cooperatively by workers to fulfill democracy (government by the people)
Questioning Big Business Many people saw big business as a problem-child labor, low wages, poor working conditions Darwin’s “survival of the fittest” was adopted to determine who would succeed in business Carnegie, Rockefeller, and Stanford were considered philanthropist-gave money to charities, aid the poor Example: Carnegie gave over $350 M and over $60 M built public libraries
Antitrust Movement People argued that leaders of big business earned fortune through unfair business practices-believed competition in a free market economy kept prices low and quality of goods and services high People worried about political power of large corporations Large corporations typically used their size and strength to drive smaller competitors out of business Trust gained monopolies-total ownership or a product (oil, steel, etc) 1890 Sherman Antitrust Act passed by Congress making it illegal to create monopolies or trusts that restrained trade-very difficult to enforce due to wording so corporations and trusts continued to grow
What about you? If you could create a new corporation, what would it be? How would you do it? Read p. 123 Why are these three men important figures in U. S. history?
Industrial Workers Key Terms: Frederick W Taylor, Knights of Labor, Terence V Powderly, American Federation of Labor, Samuel Gompers, collective bargaining, Mary Harris Jones, Haymarket Riot, Homestead strike, Pullman strike Main Ideas: The desire to maximize profits and become more efficient led to poor working conditions. Workers began to organize and demand improvements in working conditions and pay. Labor strikes often turned violent and failed to accomplish their goals.
Maximize Profits & Efficiency Machines began to replace skilled workers Factories focused on specialization-doing same task daily-production increased and costs decreased-tiring and boring Frederick W Taylor, efficiency engineer, published book that encouraged managers to view workers as interchangeable parts of the production process Managers paid less attention to working conditions which increased injuries Is maximizing profits and efficiency still important?
Workers Organize Labor unions formed to get better wages and working conditions Knights of Labor-FIRST national labor union that operated in secret-encouraged 8 hour workday, equal pay for equal work, and ending child labor Terence V Powderly led the Knights and ended all secrecy American Federation of Labor (AFL)-organized individual national labor unions (steelworkers, mineworkers, etc)-encouraged better wages, hours and conditions for skilled workers Samuel Gompers led AFL Collective bargaining was popular with unions-all workers act together so they had a much greater chance of success in negotiating Mary Harris Jones worked to educate workers and organize strikes
Labor Strikes FIRST major labor strike was in Chicago (major city) in 1886 to demand an 8 hour workday Haymarket Riot-in rebellion to workers killed by police during strike, someone threw bomb at officers and killed eight-police fired back wounding and killing strikers Others not attending strike were arrested and accused of conspiracy-one was a member of Knights of Labor so membership dropped quickly Homestead Strike was in Carnegie’s steel factory in Pennsylvania-over buying machines to replace workers-workers were locked out and unable to perform job or get paid-Union defeated Pullman Strike stopped railroad traffic until courts ordered workers to return to work. Union defeated Analyze map p. 126
Test time Study notes-especially key terms and main ideas Chapter Review p. 129 -130 Make an A!