Railroads and the Industrialization of America in the Gilded Age.

Railroads and the Industrialization of

America in the Gilded Age

Causes of Rapid IndustrializationCauses of Rapid Industrialization

Steam Revolution of the 1830s-1850s.

The Railroad fueled the growing US economy:

First big business in the US. A magnet for financial investment. The key to opening the West. Aided the development of other

industries.

Steam Revolution of the 1830s-1850s.

The Railroad fueled the growing US economy:

First big business in the US. A magnet for financial investment. The key to opening the West. Aided the development of other

industries.

Unskilled & semi-skilled labor in abundance.

Abundant financial capital ($$$).New, talented group of businessmen [entrepreneurs] and

advisors.Market growing as US population increased.Government willing to help at all levels to stimulate

economic growth.Abundant natural resources.

Unskilled & semi-skilled labor in abundance.

Abundant financial capital ($$$).New, talented group of businessmen [entrepreneurs] and

advisors.Market growing as US population increased.Government willing to help at all levels to stimulate

economic growth.Abundant natural resources.

Causes of Rapid IndustrializationCauses of Rapid Industrialization

Causes of Rapid IndustrializationCauses of Rapid Industrialization

Technological innovations. Bessemer and open

hearth process Refrigerated cars Edison

o “Wizard of Menlo Park”o light bulb, phonograph,

motion pictures.

Technological innovations. Bessemer and open

hearth process Refrigerated cars Edison

o “Wizard of Menlo Park”o light bulb, phonograph,

motion pictures.

Thomas Alva EdisonThomas Alva Edison

“Wizard of Menlo Park” “Wizard of Menlo Park”

The light bulbThe light bulbThe Phonograph (1877)

Moving Pictures

Stuff Edison Invented

Alexander Graham BellAlexander Graham Bell

Telephone (1876) First words on the phone: “Yes, I have Dr. Pepper in a can. Why?!”

Telephone (1876) First words on the phone: “Yes, I have Dr. Pepper in a can. Why?!”

Model T AutomobileModel T Automobile

Henry FordI want to pay my workers so that

they can afford my product!

Henry FordI want to pay my workers so that

they can afford my product!

“Model T” Prices & Sales“Model T” Prices & Sales

New Business CultureNew Business CultureLaissez Faire the ideology of

the Industrial Age.

Laissez Faire the ideology of the Industrial Age. Individual as a moral and economic

ideal. Individuals should compete freely in the

marketplace. The market was not man-made or

invented. No room for government in the market!

Individual as a moral and economic ideal.

Individuals should compete freely in the marketplace.

The market was not man-made or invented.

No room for government in the market!

The Building of the RailroadsPaid by the government with land grants; several

square miles per mile of track laid

The Building of the RailroadsUse of immigrant labor Irish in the Midwest

Chinese in California

The Building of the RailroadsImpact upon American economy:

Steel production

The Building of the RailroadsImpact upon American economy: Communications

The Building of the RailroadsImpact upon American economy: transportation of people/goods

The Building of the RailroadsImpact upon American economy: Related industries

mining

lumbermanufacturing

The Building of the RailroadsThe emergence of the Railroad Barons:

“The Commodore” Cornelius Vanderbilt

William VanderbiltLeland Stanford

James J. Hill

Jay Gould

Cornelius [“Commodore”] Vanderbilt

Cornelius [“Commodore”] Vanderbilt

Can’t I do what I want with my money?

Can’t I do what I want with my money?

The Power of the Railroads

William VanderbiltWilliam Vanderbilt$ The public be

d****d!

$ What do I care about the law? H’aint I got the power?

$ The public be d****d!

$ What do I care about the law? H’aint I got the power?

The Power of the RailroadsMore powerful than the government

The Power of the RailroadsEconomic Exploitation of America:

the “pool”: the division of railroad traffic among various “competitors”

Led to higher rates for farmers and lower wages for workers

The Transcontinental Railroad

Obstacles: Dangerous conditions, Indian attacks,mountain ranges, labor troubles, weather

The Trans-Continental RailroadMay, 10, 1869: meeting

of the Union and Central Pacific RRs.

THE ROBBER BARONS!

The ‘Robber Barons’ of the PastThe ‘Robber Barons’ of the Past