The Industrial Age Chapter 5 Economy a system

The Industrial Age Chapter 5

Economy § a system of production, distribution, & consumption of goods and services

Capitalism § an economic system based on private ownership

Tycoon § A powerful businessman

GDP ► Gross (amount) Domestic (home) Product ► Total value of goods produced in a country every year

GDP 00 ►$14, 260, 000, 000.

union ► An organization of workers who represent them to improve working conditions

industries ►a type of business

Today’s American Economy

Today’s American Economy ► The U. S. is the largest economy in the world ► Capitalism - private ownership of capital ► GDP $14. 26 trillion ► Population of 307 million (estimate) ► 154. 4 million workers ► Median Household Income $50, 000 ($12 hour x 2) ► Major Industries farming, manufacturing, healthcare ► Oil Consumption 19. 5 million barrels a day (1 b gall) ► 12% of Americans live in poverty

► Largest “States” by economy: § California (8) § Texas (13) § New York (14) § Florida (20) § Illinois (21)

17941877

The Breakers in Newport, RI

►i The Biltmore in NC

I. Railroads ► A. Railroad Expansion § 1. New Technology ► a. Steam Engine Locomotive (p 113) ► b. iron track - standard gauge (4 ft ► c. air brakes ► d. couplers ► e. refrigerated cars ► f. sleeping car 8. 5 in width) § 2. More and more track… (NOT TODAY!) ► 1860 ► 1900 ► 2010 = 30, 000 miles of track = 193, 000 miles “ “ = 122, 000 miles § 3. Purpose of Trains: ► a. ► b. Distribution § move goods around the nation § move goods to ports such as NYC to ship to the world. Civil War – move troops and supplies rapidly

► Why is new technology important in an industry? ► Why is there less track today?

B. Railroad Barons ► Powerful businessmen (tycoons) who consolidated control of railroads in their region § 1. Fierce Competition between companies ►Larger companies attempted to put smaller companies out of business by offering rebates (lower prices) § 2. Famous Railroad Robber Barons ►a. . Cornelius Vanderbilt- Controls NYC to Great Lakes RR ►b. James J Hill - Controls Great Northern Route (Minn. to Washington State) § 3. Few laws control their business activity (no government regulation) § 4. Monopoly ► control all the tracks and ►Railroad Barons made secret you control the price deals called pools that divided business and set price

How do we set the time?

Who has the power to set time? ► Railroad Barons and Sir Sandford Fleming in 1884

Prime Meridian

► Time Zones in United States

► C. Economy Grows § 1. Transportation improves with RR ► raw materials (iron, coal, timber) shipped to factories § 2. Demand for iron/steel and lumber ► Railroads need materials to build more track ► Factories produce steel § 3. Jobs ► Thousands ► D. of jobs created in railroad Time Zones § 4 major time zones created to help schedule trains (p 144)

Why is communication important?

II. Inventions ► A. Communication § Improvements in making far away places closer 1. Telegraph ► a. ► b. Samuel Morse § 1844 telegraph & “Morse Code” invented (… --- … ) § 1860 thousands of miles of telegraph wires Transatlantic telegraph § 1866 Cyrus Field linked the U. S. & Europe by a telegraph cable on the Atlantic Ocean floor 2. Telephone ► Alexander Graham Bell § 1876 created the phone that transmitted speech § “Mr. Watson, come here. I want you!” § 1877 Bell Telephone Company created (AT&T) 3. Steps till modern today… ► (radio, wireless phones, cell phones, smart phones, texting etc…)

Why is transportation important?

►B. Transportation §The inventions allowed great distances to be covered in less time. 1. Railroad ► 1814 George Stephenson invented the first steam locomotive in England ► 1869 Transcontinental RR finished 2. Steamships 1836 first steamship The Great Western crosses the Atlantic by British ► 1862 Battle of the Ironclads in the Civil War ► 3. Automobile Several Europeans develop the “first” car ► 1903 Henry Ford establish his company ► § 1908 Model T introduced § Assembly line & mass production § 15 million Model Ts sold in 18 years (all black) 4. Airplane 1903 Wilbur and Orville Wright develop first “airplane” at Kitty Hawk, NC ► 1911 Military uses for airplane developed ► 5. Steps to the modern day?

► C. Thomas Edison (Wizard of Menlo Park) §“Genius is one percent inspiration and ninetynine percent perspiration. ” §“Anything that won't sell, I don't want to invent. Its sale is proof of utility, and utility is success. ” ► 1876 - Workshop opens in NJ enters “invention business” ► 1876 -1877 - telephone transmitter (improves communication) ► 1877 - phonograph (record player) ► 1879 - Electric light bulb ► 1882 - Electric Power plants §(connects 85 buildings in NYC for using the lightbulb) ► 1888 -1891 - motion picture projector (movies) ► 1900 -1910 - Storage battery

III. Big Business ► A. Factors of Production § resources needed for industrial production ► 1. Land – farmland, mines, forests, etc… ► 2. Labor – workers ► 3. Capital – money to buy machines, tools, buildings, communication & transportation networks § The U. S. had an abundance of all the factors in the 19 th Century § The rise of the corporation (type of company) that sells stocks to raise capital

http: //www. nytimes. com/interactive/2007/11/06/ business/20071107_WINNERSLOSERS_GRAPHIC. html#

► B. Oil § 1. In the late 19 th C. , used to light and heat homes § 2. Edwin Drake discovers oil in Pennsylvania in 1859 and an “oil rush” begins § 3. John D. Rockefeller (1839 -1937) ► a. most famous “oil man” who is richest American in history ► b. forms Standard Oil in 1870 ► c. in 1882, forms a trust that is a group of companies that formed a monopoly in the oild business ► d. used horizontal integration (p 156 see chart)

Rockefeller

Standard Oil

C. Steel § 1. Bessemer Process & open hearth process – two new methods for making steel more cheaply and in large quantities § 2. Andrew Carnegie (1835 -1919) ► a. built a steel plant near Pittsburgh, PA ► b. used vertical integration to expand his business: (see p 156) § bought iron and coal mines § built warehouses, ships and factories § gained control of railroads ► c. Carnegie Steel Corp made 1/3 of all steel in U. S. ► d. sold his business to U. S. Steel in 1901 and made hundreds of millions

Captains of Industry (Andrew Carnegie in middle)

Robber Barons

► D. Captains of Industry or Robber Barons § 1. huge wealth in hands of a few people § 2. built successful businesses that employed millions of Americans § 3. unfair business practices – consolidation, pools, trusts, monopolies, strike breakers, and corruption (bribes) § 4. working conditions for employees § 5. philanthropy – donated millions to charities

► A. IV. Industrial Workers Working Conditions (sweatshops) § 1. long hours (6 days week, 10 -12 hour days) § 2. unsafe equipment § 3. unhealthy air § 4. no job security § 5. children and women paid less than men

► B. Growth of Labor Unions § Organization of workers that wanted improved working conditions such as an 8 hour work day, weekend off and safe conditions § 1. trade unions – represents skilled workers such as carpenters or plumbers § 2. American Federation of Labor (AFL) ► formed in 1881 to represent skilled workers in many crafts ► Samuel Gompers led AFL and used collective bargaining to improve conditions ► Strikes and Picket Lines used to protest ► 1904 1. 6 million workers have joined (today 11. 5 million members)

► C. Labor Leaders § 1. Samuel Gompers – created AFL in 1881 § 2. Mary Harris Jones - woman leader who helps organize unions for miners § 3. Eugene Debs - leader of union during Pullman Strike in Chicago in 1894

► D. Labor vs Big Business § During economic depressions of 1870 s and 1890 s, many companies cut wages § Unions respond with strikes: ► 1877 – railroad workers on strike § strike breakers hired and workers destroy tracks ► 1886 – Haymarket Square, Chicago § strike at Mc. Cormick Harvest Company and police sent in to end strike, bomb is thrown and many are killed in violence ► 1892 – Homestead Strike, Pennsylvania § Strike at Carnegies Steel Company and 300 guards hired to end picket line, violence leads to 10 deaths ► 1894 – Pullman Strike, Chicago § A general strike is ordered end by injunction of federal court, Eugene Debs is arrested, and federal troops sent in to end stirke

Lesson Plan ► http: //www. icsd. k 12. ny. us/legacy/acs/librar y/ushistory/laborwebquest/index. html