The triumph of American Industry 1865 1900 Background

The triumph of American Industry! 1865 -1900…. . • Background: – Gilded Age – 2 nd American Revolution

Worried critics decry the similarities between the corruption-laden late 19 thcentury American Gilded Age and the crony capitalism of today.

Factors leading to industrialization • Civil War – First “modern war. ” • Steel, rails, cannons. • The war forces the North to Industrialize. • Industrialization receives support from the public, congress, the Supreme Court and the media!

Factors leading to industrialization • Agricultural Revolution – Productivity increases • Technology to make up for smaller workforce. – steel plow, mechanical reaper, grain elevators. » With this technology farmers can feed urban centers and a new market is opened up: • The farm implement market.

Factors leading to industrialization • Key natural resources located in convenient areas. – Coal, iron-ore, copper, timber

Factors leading to industrialization • Technological Advancements – Telephone, electric lights, internal combustion. .

Factors leading to industrialization • Large Labor Force – USA Population 1870: 38. 5 Million – USA Population 1890: 76 Million • Population increases through immigration and child bearing. – 12 million immigrants come to America between 1870 -1890!

Factors leading to industrialization • Rapidly Expanding Markets – Increased demand for industrial goods. • Domestic and Foreign Markets expand! • Steel is king!

Factors leading to industrialization • Capital – Capital is financial investment into an industry. • Capital is provided by: – Individuals—American and Foreign » Americans save and invest 13% of their income – US government – Banks

Factors leading to industrialization • Great Managerial Skills – Related to outstanding education and literacy* *as compared with the rest of the world

Factors leading to industrialization • America avoids any foreign war (1865 -1898) – Very little is spent on national defense. **All these factors come together at the right time leading to an explosion in national economic output! Now read pp. 169 -172. Be prepared for an open notes quiz tomorrow!

Open Notes Quiz. 1/29 • Create a poem, rap or song which identifies the significance of four of the 9 of the factors which led to American Industrialization (1865 -1900). • Work independently, quietly and using YOUR notes—no electronic devices • When you finish, start reading 169 -175. take notes, feel free to annotate in the book!

Open Notes Quiz-reading pp. 169 -175 Zinn • 1. Identify 4 inventions or innovations that occurred during this time period. • 2. What happened in Rock Springs Wyoming in 1885? • 3. Why were “efficient businessmen of the late nineteenth century sometimes called “Robber Barons? ”

Case Studies: • • • 1. Cornelius Vanderbilt 2. Gustavus Swift 3. James Duke 4. F. W. Woolworth 5. Gail Borden

Why Is Vanderbilt Significant? • • 1. “Rags to Riches” Story 2. Shipping—Ships and Railroads 3. minimize costs, maximize profits 4. Monopoly – Foreshadows new business ethic – Undersell, buy out, raise prices • 5. Established Vanderbilt University, 1877

SPLIT TODAY • SPLIT OPPOSITE OF YESTERDAY!

Why is Gustavus Swift Significant? • • 1. Meat Packing genius 2. Railroad 3. Industrialized meat packing 4 f. Known for 3 important trends: – Uniformity – Specialization – Integrated large scale industry • “economy of scale”

Why is Gail Borden Significant? • 1. Recognizes the need for portable “foodstuff” – Meat Biscuit #nasty • 2. Condensing – Borden Condensed Milk Company – Infant mortality • 3. Mobility

James Duke? • 1. 1880’s- American Tobacco Co. • 2. Cigarette – Ideal industrialzed society vice • 3. Advertizing – Cigarette cards – Green Stamps

F. W. WOOLWORTH • • 1. 1890’S-” 5 and Dime Store” 2. Display, Impulse, quantity over quality 3. 1913 -builds the tallest building in the world! 4. Creates the model for modern stores: – JC Penny's, Sears, Wal-mart

Significance of Industrialization • 1. Redefines supply and demand. – Excessive market power by corporations. • Monopolies (horizontal, vertical, bi-lateral) • 2. Destroys classical American Individualism. – Individual is deemphasized – Harder to break out of poverty

Significance, continued • 3. Creates new trends toward discipline and order. – Decrease in: • Leisure time, traditions, creativity, Pride in work, quality of products. – Increase in: • Discipline, Order, Inculcation education, Boredom, Alcoholism, Savings (economical and emotional), Middle Class* • John Harvey Kellogg

Significance continued… • 4. The Populist and Progressive movements – Organized labor movement – Push back on Industry…. .