INDUSTRIALIZATION Dawes Act Assimilate Native Americans Homestead Act

INDUSTRIALIZATION

Dawes Act – Assimilate Native Americans Homestead Act – Develop the land of the Great Plains

Factors for the rise of Industry • Natural Resources –water, timber, coal, iron, and copper • Located in the West • Railroads bring resources to the East

Factors for the rise of Industry Cont. • A large workforce – 1860 -1910 population tripled • Larger workforce greater demand for goods • Caused by: • Large Families • Flood of Immigrants (20 million between 1870 -1910)

Notion of Free Enterprise • Laissez-Faire – Belief that the government should not interfere in the economy. • Greater efficiency and wealth for everyone • Rise of Entrepreneurs – People who risk their capital in organizing and running a business.

THE RAILROADS

Linking the Nation • Railroad boom began in 1862 • Lincoln signed the Pacific Railway Act • Provided for the construction of a transcontinental railroad by two corporations: • The Union Pacific and the Central Pacific • To encourage rapid construction • Offered land for each mile of track laid

Who Built the Railroads? • Civil War veterans • Miners • Farmers • Ex-Convicts • New Immigrants from: • Ireland • China • Each crew had about 10, 000 employees each

Railroads Spur Growth • By linking the nation, railroads helped increase the size of markets for many products • Railroads stimulated the economy by spending a large sum of money on: • Steel • Coal • Timber

Land Grant System • To encourage railroad construction • Railroads sold the land they were given to settlers, real estate companies, and other businesses

Robber Barons • Great wealth • Accusations that they had built their fortunes by swindling investors and taxpayers, bribing government officials, and cheating on their contracts or debts • Robber Baron - a wealthy person who tries to get land, businesses, or more money in a way that is dishonest or wrong

Captain of Industry • Captain of Industry - a business leader that benefits the nation in a positive way

BIG BUSINESS

The Rise of Big Business • Dominated the economy, operating vast complexes of factories, warehouses, offices, and distribution facilities • Corporation - An organization owned by many people but treated by law as though it were a single person.

Trusts • Government became suspicious of large corporations • 1882 – Standard Oil (John D. Rockefeller) became first Trust • Trust – A new way of merging businesses that did not violate the laws against owning other companies

UNIONS

Working in the United States • Life was difficult for workers • Machines replaced skilled labor • Workers performed highly specific, repetitive tasks • Working conditions were unhealthy and dangerous • Breathed in lint, dust, and toxic fumes • In 1900 the average industrial worker made 22 cents per hour and worked an average of 59 hours a week. THAT IS ONLY $12. 98 PER WEEK!

Early Unions • Two types of Industrial Workers: • Craft workers – machinists, iron molders, glassblowers, shoemakers, printers • Common laborers – few skills, low wages • Craftworkers began to form Trade Unions • Unions limited to people with specific skills • Industry opposed unions • Companies would use a lockout to lock workers out of the property and refuse to pay them

The Struggle to Organize • Knights of Labor – The first nationwide industrial union. • In response to the railroad strike • 8 hour workday, a government bureau of labor statistics, equal pay for women, abolition of child labor creation of worker-owned factories

American Federation of Labor • Combination of Trade Unions • founded by Samuel Gompers • Belief that unions should stay out of politics • Higher wages, better working conditions in the American system

“Bread and Butter” • Bread and butter objectives • Better wages, better working conditions, shorter working hours