Industrial Revolution Notes Immigration Urbanization Industry Key Factors
Industrial Revolution Notes
Immigration Urbanization Industry
Key Factors in Industrial Growth • Vast amounts of coal, iron, oil (Black Gold) and ore are discovered throughout the U. S. • Improved transportation methods expanded trade from coast to coast • Labor Supply – immigrants and people who moved to cities from rural areas
Great Texas Oil Boom
Impact of Railroads • Connected all parts of the United States – increased trade • Standardized Time Zones – – Problem – before standardized time – a passenger riding from Maine to California might reset their watches as many as 20 times. – Solution: 1883 – time zones were established thus synchronizing time throughout the U. S. • Fostered the growth of towns – linked previously isolated cities
The Spirit of Innovation • Between 1860 – 1900 the U. S. Patent Office granted over 676, 000 patents. • Bessemer Process – cold air pressure method – made the production of steel both easy and cost-effective • Electricity is introduced for both commercial an domestic use • Introduction of machines led to increased production and the use of the assembly line. • New inventions impacted the way people lived and worked.
The Power of Electricity Thomas Alva Edison
Alexander Graham Bell
Christopher Sholes Typewriter
Government Support for Industry • The U. S. government offered loans and minimal regulation to industries. • Government maintained a “laissez-faire” or “hands off” approach to industry.
Social Darwinism • Herbert Spencer – English philosopher used Charles Darwin’s theories to explain the evolution of human society. • Riches=sign of God’s favor; the poor must be lazy/inferior people who deserved what they have • Survival of the fittest
Vertical Integration • A company’s taking over its suppliers and distributors to gain total control over the quality and cost of its product. • Example: Orange Juice Industry Oranges Juicing Equip. Packaging Trucks
Horizontal Consolidation • The purchasing of competing companies that sell the same product. • Example: Nike Athletic Shoes Reebok Puma New Balance Result = MONOPOLY Sketchers
Trusts • Industrial giants consolidated smaller companies and reshaped U. S. businesses into massive corporations. • As they became rich and powerful, owners of trusts manipulated the government at all levels.
John D. Rockefeller • Rockefeller and the Standard Oil Company came to control 90% of the oil industry in the U. S. • He attempted to monopolize the oil industry, arguing that monopolies and trusts ensured economic stability and high quality goods. J. D. Rockefeller
Taking Control of the Market • Industrialists like Rockefeller reaped huge profits by paying their employees extremely low wages. • They drove their competitors out of business by selling their products for less that it cost to produce them. • Once they controlled the market, they hiked up the prices.
Wealthy Americans Face Criticism • At the turn of the century Americans began to disapprove of the fact that so few individuals controlled the vast majority of America’s natural resources, industries and utilities. • In 1900 the material wealth of 1% of the population was greater than that of the other 99% combined.
Robber Barons • Because of their cut -throat tactics, industrialists were called Robber Barons. • Despite this title many were also great philanthropists. – Rockefeller gave away $500 million + – Carnegie donated 90% of his wealth
Industrialists Defend Big Business • Andrew Carnegie wrote the “Gospel of Wealth” which argued that wealth was a sign of divine (God’s) approval. • Wealthy industrialists have the responsibility to give back to their community.
Sherman Anti-Trust Act • Made it illegal to form a trust that interfered with free trade between states or with other countries. • Problem: it was very difficult to prosecute companies because the act was not clearly defined. • Supreme Court threw out most of the cases and the government stopped trying to enforce the act.
Impact of Industrialization • Brought many middle-class Americans greater comforts and conveniences to their daily lives.
The Gilded Age • Mark Twain labeled this period in history “The Gilded Age”, because the open displays of wealth among American elite society seemed like a… Cheap picture frame; golden on the outside but rotten on the inside. • When new-money titans lived lavishly while the poor suffered.
QUESTION • IN WHAT WAYS DOES THE METAPHOR FIT? How was American Society like a gilded picture frame with rotting wood underneath?
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