The Rise of Big Business US History. Quality Core Standards QC-C1B - Identify and evaluate the influences on business and industry in the late nineteenth.

The Rise of Big Business

US History

Quality Core Standards

• QC-C1B - Identify and evaluate the influences on business and industry in the late nineteenth and early twentieth centuries.

• QC-C1C - Identify labor and workforce issues of the late nineteenth century, including perspectives of owners/managers and Social Darwinists.

• QC-C1D - Explain the challenges and contributions of immigrants of the late nineteenth century

• QC-C1E - Explain the causes and impact of urbanization in the late nineteenth century

I. US Industrializes

A. Industrial Revolution1. Although the industrial revolution began in the

early 1800’s, much of the US was primarily agricultural until the end of the Civil War.

2. By the early 1900’s, the US had become the leading industrial nation.

I. US Industrializes

B. Reasons1. Natural Resources

A. Abundance of resources led to American industrial success.

2. New Inventions and TechnologyA. Led to the new founding of corporations which

produced wealth and jobs

3. Large WorkforceA. Large families and Influx of immigrants helped

factories to increase their production

New Technology

II. Government

A. Free Enterprise1. Laissez – Faire

A. The idea that the government does not interfere in the economy.

B. Government regulations cause problemsC. Profit Motive

2. EntrepreneursA. Those who risk their own capital to run a business.

Entrepreneurs

III. Big Business

A. Corporation1. An organization owned by many people but

treated by law as if it were a single person. A. Stakeholders – people who own the corporation

because they own shares of stockB. With the money they raised from the sale of stock,

corporations would invest in new technologies.

III. Big Business

B. Monopolies and Trusts1. Vertical integration – owning all of the

businesses in which a company depends for its operation.

2. Horizontal integration – combining many firms engaged in the same type of business into one large corporation.

3. Monopoly – when a single company achieves control of an entire market.

III. Big Business

B. Monopolies and Trusts4. Soon Americans became leery of large

corporations and monopolies, many states began passing laws against them.

5. Trusts – Allows one person to manage another person’s property.

A. Instead of stockholders, investors were known as trustees.

IV. Social Darwinism

A. Opinion1. Many people criticized the industrialists and

their supporters.2. They believed they were just the best men for

the job3. Social Darwinism – the idea that these men

were “fittest” for success and that others were just weaker.

IV. Social Darwinism

B. Gospel of Wealth1. Not all industrialists believed taking and not

giving.

A. The idea that the rich had a responsibility to put their money to good use.

B. Rich people should give back to society.

V. Immigration

A. Old vs. New (Page 337)1. Old Immigrants – Mid 1800’s

A. Northern and Western EuropeB. Mostly farmers who spoke EnglishC. Easy to assimilate

2. New Immigrants – Late 1800’s Early 1900’sA. Southern and Eastern EuropeB. Varying religions, laborers, who spoke little to no

English.C. Difficult to assimilate

V. Immigration

B. Reasons1. Push Factors –

A. Population Growth led to overcrowded cities, lack of jobs and food shortagesB. Scarcity of LandC. Religious Persecution

V. Immigration

B. Reasons2. . Pull Factors

A. Democratic SocietyB. Ample FarmlandC. Booming IndustryD. American Letters- helped to persuade many people

to come to America.

V. Immigration

B. Reasons3. Improvements in Transportation

A. Steamships allowed for faster travel1. Steerage – Many immigrants could only afford the bottom

rooms which were unsanitary and lacked space

V. Immigration

C. Immigration Station1. Port of entry for most European immigrants2. Most would face medical exams and legal interviews 3. Those with incurable diseases would be deported.4. After leaving Ellis Island, most immigrants found

their way to major cities surrounding themselves with those with common interests.

Ellis Island

V. Immigration

D. Asian Immigration1. Severe unemployment, poverty and famine led

several Chinese immigrants to arrive in the US in the mid 1800’s

2. Japanese immigrants began to arrive in the early 1900’s

3. Most worked as laborers, servants, or on the railroads

V. Immigration

D. Asian Immigration1. To accommodate Asian immigrants, Angel Island

was opened in San Francisco2. Not nearly as “pleasant” as Ellis Island.

V. Immigration

E. Nativism1. New wave of immigrants led to an increase

feeling of nativism.A. Nativism – preference for native born people and

desire to limit immigration

2. Opposition of new immigrants for many reasonsA. Fear of the Catholic churchB. Labor unions disliked immigrants who they feared

would be “scab” labor.

VI. Impacts of Urbanization

A. New Urban Environment1. Skyscrapers and Mass Transit–

A. Owners began expanding their businesses upward instead of outward.

B. Louis Sullivan – skyscraper architectC. To transport large people, several types of mass transit

emerged.1. Electric trolleys2. Elevated railroads

VI. Impacts of Urbanization

B. Separation by Class1. High Society – wealthy families established

fashionable districts in the hearts of cities. 2. Middle Class – doctors, lawyers, engineers,

managers, social workers, etc. Created “suburbs”3. The Working Class – Most of Americas city

dwellers were extremely poorA. Tenements – dark, crowded multi family apartments.

VI. Impacts of Urbanization

C. Urban Problems1. Rise in crime, violence and disease2. Nativism – Americans blamed immigrants for this

crime. 3. Pollution and Poverty – improper sewage

disposal and contaminated water caused epidemics of contagious disease.

VI. Impacts of Urbanization

D. Politics1. Cities began to grow much faster than their

governments. This led to the rise of political machines.

A. In exchange for votes, political machines and the Party bosses that ran them provided necessities to the poor.

B. Machines controlled city finances, as a result many bosses grew rich as a result of graft. 1. Graft – getting money through dishonest means2. Many corrupt bosses had city officials on their pay rolls.

VI. Impacts of Urbanization

D. Politics2. Tammany Hall

A. The most famous political machine, NYC. B. William M. “Boss” Tweed – the corrupt leader of

Tammany Hall. 1. Thomas Nast – blasted bosses through political cartoons for their corrupt behavior.

VI. Impacts of Urbanization

E. Federal Government Scandals1. Credit Mobilier

A. Corruption in which investors signed contracts with themselves, making millions off of work done by the Union Pacific.

2. Whiskey Ring – Conspiracy of distillers to defraud the federal government of excise tax.

VI. Impacts of Urbanization

E. Federal Government 3. Many people felt as though the spoils system

prevented the government from addressing the nation’s issues.

4. Pendleton Act – allowed the president to decide federal jobs based upon merit or civil service.