Goal 5 Part 1 Industry Expansion & Big Business / Labor.

Goal 5 Part 1 Industry Expansion & Big Business / Labor

Why an INDUSTRIAL BOOM? ___________________________

(oil, coal, iron ore, water)

Without these: Slower growth for America Government support for Business Growing population that provided cheap labor

and new markets for products

*__________________________“BLACK GOLD” FIRST to successfully use a ________to drill

________ near ________________ Who invented the “steam engine?”

FIRST “oil well” in America

________________/ “___________”

Problem – ________ (which is turned into steel) has other elements (__________________)

In order to make a profit with efficient iron….get the carbon out!!!

Developed by ____________________ POINT: remove the imperfect elements out of the iron Successful – __________ of the nation’s steel was

produced this way! First used by ____________________________

New Uses of Steel

_________ (linked _________________) Who did most of the work?

_____________ All innovative construction

(Brooklyn Bridge -1883)

(Skyscrapers…etc.)

Innovations promote change…leads to inventions – boosts the economy!

Inventions promote change

___________– Light bulb _________________– Typewriter

(women in the workforce) _______________– Telephone

(provides communication

& connection)

T.Q. The work of which American inventor had the GREATEST effect on the growth of industry?

A. George WestinghouseB. Alexander Graham BellC. Christopher SholesD. Henry Bessemer

How did the railroads both benefit from and contribute to the industrialization of the United States?

a. the railroads needed government protection and their development helped the government grow

b. the R.R. used new inventions and brought people to see the invention

c. the R.R. used steel and coal and delivered both to new markets

d. the R.R. needed passengers, and passengers needed to get to new markets

_______________

Railroad Mogul (railcars) Provided a “_______________”

homes, schools, hospitals for his workers Problem: You constantly were in _______ / Very controlling! ____________________(later)

- raised the rent, but DID NOT give out raises! = leads to violent strike in 1894!

Monopoly

One business that “___________” the market over a particular product or service

Characteristics:(1) ___________________________________________________________________(1) can charge _____________________(2) makes ________________because of NO

competition(3) Restrict ____________________________

Industrial Moguls

Examples of Industrialists / Monopolists / Tycoons or

“____________________”

(1) __________________

(2) John D. ___________

(3) __________________

(4) Cornelius __________

Andrew CarnegieWHY HE WAS SUCCESSFUL -

(1) ______________________* (younger = poor, older = rich), supported charities*creates the

(2) ***_____________________________*** - the Monopolist or industrialist millionaires “______________” to charities!• “_____________________” – the act of giving

back to the community (Carnegie – responsibility)(3) Carnegie “STEEL” Company” (1899)

(4) _____________________________(5) _____________________________Integration

(business strategies)(6) ___________________________________

** Vertical Integration **** Horizontal Integration** Practiced by Andrew Carnegie

Vertical Integration: process in which Carnegie “______________________” (iron mines, railroad systems) WHY????

Horizontal Integration: process in which Carnegie “_____________________________”

smaller companies merge into Carnegie Steel Company

Vertical and Horizontal Integration

Resources Resources Resources

Farms / Forrests

Manufacturing Manufacturing ManufacturingProduction / Processing

Distribution Distribution Distribution Shipping and Transportation

SOCIAL DARWINISM (Social Philosophy)“__________________________________” - Trying to apply biological reasoning to society• Some individuals of a species “_____________-” and pass their traits to

their next generation, while others do not flourish. • 1859 English naturalist _____________: ___________________________• “________________________”• Can explain the success of _____________________________________

Why does Laissez Faire SUPPORT Social Darwinism (vice versa)?• “___________________________” government

• “allow to do” – NO government regulation of business / economy / “Pure / fair Competition” “___________________________________” –

Answer: to allow the “fittest to survive” NATURALLY without government intervention.

What explains Andrew Carnegie’s Success Rags to Riches Gospel of Wealth Bessemer Process Vertical Integration Horizontal Integration Social Darwinism

John D. Rockefeller

creates the “______________________” “______________________” (RUTHLESS)

Sold his oil at a very LOW price to make people buy the product from him, while other companies had HIGH prices / once you control the market….hike the prices back up!

Richest man in history Philanthropist

John D. Rockefeller

Cornelius Vanderbilt

Captain of Industry Hated Philanthropy Railroad Tycoon

_____________ (1880s-early 1900s)- Stockholders from numerous companies

would hand over / coerced their shares / stocks to the a board of trustees (TRUST).

- In return, the stockholders make a profit from the “offer” of the trust

- Money is fed into monopoly- Dictate prices and charge whatever they want!- (PRICE FIXING)

MAIN POINT of a TRUST: _______________________

________________________________________

1899publication

JP MORGAN

Influence of “Trusts” over Congress

_______________________(1890) - Purpose: an attempt by the federal government to

“____________________” businesses & to promote ________________________ First legislation to attempt to limit trusts by claiming

unfair trading options Result of Sherman Anti-Trust Act __________________(until Teddy Roosevelt and

Woodrow Wilson years = _________________________________)

(Language too vague to enforce / pressure from fed. gov’t = trusts will get around it and SPLIT!!!!!)

Granger Laws through Sherman Anti - Trust Act

- against railroad abuses

- More power to the “STATES” and uphold

Granger law

- “interstate commerce”

- Interstate Commerce Commission –

Enforce federal control of Interstate commerce

- Prohibited monopolies / trusts

Business Boom “___________” the South

Reason:South is still ___________________(economic

stagnation)Only thing that offered hope – tobacco, textiles,

furniture, etc.(Cotton is no longer King! = tobacco)*Result of consolidation of monopolies - _______________________ are emerging & _____________________

Address how each topic / person / theme below expressed a “positive and negative” impact on America during the industrial agep. 436-450 / Goal 5 part 1 Natural Resources Inventions Bessemer Process Railroads George Pullman Munn V. Illinois Granger Laws Interstate Commerce Act Andrew Carnegie Vertical and Horizontal Integration Social Darwinism John Rockefeller Monopoly / Trusts Sherman Antitrust Act Consolidation of Monopolies