Objective Describe characteristics of the Industrial Revolution Do
Objective: • Describe characteristics of the Industrial Revolution.
Do Now: (pg. 184 -185) • • Define: Industrial Revolution Laissez-faire Monopoly • Do Later/ H. W: pg. 168 #2.
Industrial Revolution (1865 -1900) • A time period of rapid economic expansion immediately following the Civil war. • The Industrial Revolution was characterized by an increase in factory production. Historians often refer to this time period as the “Gilded Age” because of the unequal distribution of wealth in the United States. As the rich got richer, the poor got poorer.
Industrialization (1865 -1900) • The United States became industrialized because of the following reasons: • 1) Goods were now produced by machine cheaply and efficiently. • 2) The growth of the railroad industry meant that goods could be delivered cheaply to major cities and mass markets. • 3)An abundance of Capital: tools, machinery, natural resources, labor (immigrants), money and factories • 4) New inventions, technologies and discoveries: oil, steel, railroads. • 5) Successful and creative business leaders: Andrew Carnegie, John D. Rockefeller, Cornelius Vanderbilt. • 6) The beginning of the corporate form of business structure. • 7) The government’s policy of Laissez-Faire Capitalism.
Industrial Revolution (1865 -1900) • A time period of massive economic growth immediately following the Civil War. • Most goods are now produced in factories in a cheap and efficient manor • An abundance of natural resources • New industries: Railroads, Oil, Iron, Banking and Steele. • New Source of Labor: Immigrants
Inventors of the Industrial Age • Alexander Graham Bell: Invented the telephone. By 1900, there were almost one million telephones in use in the U. S. • Henry Bessemer: Invented the Bessemer process for removing imperfections in Steele by blowing hot air through the molten as it cools • J. P. Morgan: A banking and railroad tycoon who was accused by many of being a Robber Barron.
Thomas Edison • Thomas A. Edison: “The Wizard of Menlow Park, ” invented the light bulb, phonograph, film projector, storage battery. • During his lifetime, Edison applied for over 1000 patents. • Created the Edison Illuminating Company and opened a power station in New York City that supplied power to organizations such as the New York Times and J. P. Morgan and Company
Thomas Alva Edison “Wizard of Menlo Park”
The Light Bulb
The Phonograph (1877)
The Ediphone or Dictaphone
The Motion Picture Camera
Alexander Graham Bell Telephone (1876)
Alternate Current George Westinghouse
Alternate Current Westinghouse Lamp ad
The Airplane Wilbur Wright Orville Wright Kitty Hawk, NC – December 7, 1903
Model T Automobile Henry Ford I want to pay my workers so that they can afford my product!
“Model T” Prices & Sales
U. S. Patents Granted 1790 s 276 patents issued. 1990 s 1, 119, 220 patents issued.
Laissez-Faire Capitalism The belief that the government should not interfere in the economy. The U. S. government followed this policy between 1865 -1900 and it led to the growth of monopolies, the elimination of competition and higher prices for consumer goods X
Social Darwinism • When companies compete in an un-regulated environment, only the strongest company will survive. • Economic success comes to those who work hard and out maneuver their competition. (“Survival of the fittest”)
Negative Side Effects of Industrialization (1865 -1900) • Elimination of competition • Formation of monopolies • High prices for consumer goods • Child Labor • Pollution • Unsafe working conditions • Urbanization and overcrowding of cities • Governmental corruption
THE TRUST GIANT’S POINT OF VIEW, “What a Funny Little Government”
What is the main idea of this political cartoon?
Objective: • Define the term “Robber Baron” and describe numerous examples. • Determine whether the business leaders of the Industrial Revolution deserved to be labeled as “Robber Barons” or “Captains of Industry. ”
Do Now: (pgs. 184 -185) • Define: • Robber Barons • Captain of Industry • Do Later/H. W. pg. 168 #3.
Robber Barons • A negative view of the late nineteenth century business leaders because they used ruthless tactics to eliminate their competition and form monopolies. • Examples: • John D. Rockefeller: Standard Oil Trust • Andrew Carnegie: Carnegie Steel • J. P. Morgan: Banking • Cornelius Vanderbilt: Railroads J. P. Morgan Cornelius Vanderbilt
Cornelius Vanderbilt and Jay Gould • Cornelius Vanderbilt: established a railroad monopoly in New York by controlling over 4500 miles of track (New York Central). • Jay Gould: Owner of the Kansas Pacific and Michigan Pacific Railroad lines. He created a Railroad Monopoly in the central United States
Objective: • Describe five types of business organizations that were formed during the Industrial Revolution.
Define: (pg. 184 -185) • Monopoly • Pooling • Holding Company • Do Later/H. W. : Regents multiple choice questions.
Pools, Trusts & Monopolies • These are all examples of business combinations that were formed during the Industrialization Era (18651900). • These business combinations used ruthless tactics to eliminate their competition and form monopolies. I am Monopoly Man! No competition and I charge high prices for my goods.
Corporation A large company that raises capital (money) by selling shares of stock.
Monopoly • An economic situation in which one large business controls an entire industry. • In a monopoly, all competition is eliminated. • Monopolies harm consumers and are illegal.
Trust • A large company that takes over several small competing companies. • The purpose of a trust is to limit competition. • The most famous example of a trust was John D. Rockefeller’s Standard Oil Trust
Pooling • When two competing companies agree to charge the same high price for the same good or service. • This limits competition between businesses and harms consumers. • The Railroad companies were particularly noted for entering pooling arrangements.
Holding Company • An extremely large company that holds the majority of shares of stock in competing companies. • Holding companies limit competition and harm consumers.
Cornelius Vanderbilt and James Fisk are shown in a race for control of New York's railroads Vanderbilt Fisk
Morgan as the piper that people of various professions & nationalities, including some countries in the distance, are following.
Capitol White House Standard Oil State House
Anti-trust political cartoons
Morgan was famous for saying, "I can hire one half of the working class to kill the other half. " Morgan was viewed as a predator who looted companies. Dubbed "the Mephistopheles (devil) of Wall Street" in 1869 by the New York Times.
Captains of Industry • A positive view of the late 19 th century business leader. • “We live in a capitalist society where the number one goal is to accumulate as much wealth as possible”
Philanthropy • Many Captains of Industry, especially Andrew Carnegie, used their wealth to benefit society. • They built libraries, museums, concert halls, etc…(Carnegie Hall, Rockefeller Plaza) • This is called Philanthropy.
Carnegie attacks the rich, presumably because of his belief that the rich have a duty to help the poor, as he advocated in Gospel of Wealth.
Objective: • Describe the beliefs of three critics of the Industrial Revolution
Henry George • Author of “Progress and Poverty, ” a book that criticized the unequal distribution of wealth in the United States. • Argued that landowners should have to pay a “single tax” on their possessions which would eliminate the need for further taxation. • This would have shifted the burden of paying taxes from the poor to the rich.
Edward Bellamy • Author of “Looking Backward, ” a book that predicted that the United States would become a socialized government. • Bellamy was extremely critical of capitalism and argued that the central government should carefully plan all economic activities. • Eventually there would be a peaceful revolution in the United States where capitalism would be replaced by socialism.
Henry Demarest Lloyd • Author of “Wealth Against Commonwealth, ” a book that criticized the Standard Oil Company for the ruthless tactics that it used to eliminate its competition. • Lloyd was also critical of those who believed in Social Darwinism.
Objective: • Describe two efforts by the Federal Government to regulate the economy at the end of the Industrial Revolution.
Interstate Commerce Act (1887) • A Federal law passed to regulate the growth of the railroad industry. It stated that railroad rates must be “reasonable and just. ” • This illustrated that the federal government was going to abandon Laissezfaire capitalism and begin regulating the economy.
Munn V. Illionois • A court case that established that any business that served a public interest, such as a railroad, was subjected to state regulation. • This allowed the states to temporarily establish price ceilings for railroad fares.
Wabash v. Illinois • A subsequent court case which limited the powers of the state governments to regulate the railroads. • This overturned Munn v. Illinois and created an opening for Congress to pass the Interstate Commerce Act.
Sherman Anti-Trust Act • A Federal law passed in 1890 which declared that any business combination that acts “in restraint of competition” is illegal. • Persons who violate this act were subject to a $5000 and a year in jail. Those who suffered losses were authorized to sue in federal court.
Sherman Anti-Trust Act (1890) • Any business combination (pool, trust, monopoly) that restricts competition is illegal. • This showed that the federal government was going to abandon Laissezfaire capitalism and become actively involved in the economy. The Sherman Anti. Trust ruined my business! Monopoly Man
United States v. E. C. Knight Company • A Supreme Court Case that showed the ineffectiveness of the Sherman Anti-Trust Act. • It ruled that the sugar company had not violated the law by taking over a number of competitors even though it now controlled an estimated 98% of the industry. • The Sherman Anti-Trust act was ineffective because of its loose wording and ambiguity.
Objective: • Define “Labor Union” and describe examples that were formed during the Industrial Revolution. • Do Now: Define (pgs. 184 -185) • Knights of Labor • American Federation of Labor • Do Later/H. W. : Multiple choice questions
Labor Union • An organization that fights for worker’s rights such as higher pay, improved benefits and shorter working hours • Terrence Powderly: founder of the Knights of Labor (unsuccessful) • Samuel Gompers: founder of the American Federation of Labor (successful) • The federal government often used violence to break up labor strikes and never supported labor unions
Knights of Labor • An unsuccessful labor union organized in 1869. • Membership was open to all: skilled and unskilled, men and women, African American workers and white workers. This caused numerous problems • Focused on politics, not the “bread and butter” goals of unionism. • Radical union members endorsed violence (Haymarket Strike). • The Knights of Labor disbanded during the 1890’s
American Federation of Labor (AFL) • • • Founded by Samuel Gompers in 1886 Membership was limited to skilled workers Used the strike very effectively Focused on the basic goals of unionism Today, the AFL/CIO is the largest and most successful labor union in the United States.
Federal Government v. Labor Unions • The Federal Government has traditionally sided against unions in labor disputes. • There have been numerous examples of the Federal Government using violence against striking workers: • Pullman Strike (railroad) • Haymarket Strike • Homestead Steel Strike
Homestead Steel Strike (1892) • The Union voted to go on strike after it refused to accept a wage reduction. • Carnegie hired the Pinkerton National Detective Agency to protect the Steel Plant and the new workers (scabs) who were hired to replace the strikers. • Fierce fighting broke out between the Pinkerton workers and Union workers. Hundreds were killed. • The governor then called in the state militia to break the strike and force the union employees to accept a cut in wages. The Steel Union was crushed!
Pullman Strike 1894 • George Pullman, owner of the Pullman Railway Company, announced a 25% cut in wages. • As a result, the workers at the Pullman Plant went on strike and their national union, the American Railway Union (A. R. U. ), refused to handle trains with Pullman cars. • In doing this, the A. R. U. stopped interstate commerce and disrupted mail delivery. • The Union refused and its leaders were jailed • President Cleveland then sent in troops to break the strike.
Objective: • Describe the goals of the Populist Party • Do Now: Define (pgs. 184 -185) • Grangers • Populist Party • Do Later: Multiple Choice Questions/Study for Exam on Labor Unions and Populist Party
Populist Party • An organization formed in 1890 that fought for farmers’ rights: • Governmental ownership and regulation of the railroads. Graduated income tax: the more money you make, the more you pay in taxes (16 th Amendment)
Direct Election of Senators: When the constitution was originally written, Senators were chosen by state governments. Today, senators are elected by direct popular vote (17 th Amendment) A switch from the gold standard to the silver standard to increase the amount of money in circulation The Populists were an extremely successful third party in U. S. politics because many of their ideas were eventually included in the constitution.
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