The Industrial Revolution The US in the second half of the 19 th Century
Jan 17, 2015
2. WHAT ALLOWED THE US TO GROW AND BECOME THE INDUSTRIAL LEADER
OF THE WORLD BY THE 1880S?
The US Government invested in business and industry to encourage
economic growth.
Private Investment in Business
Liberal Immigration Laws
3. The US Government Invested in Business
Policy #1: Laissez-Faire:Government did not regulate or restrict
business.
Purpose: Wanted to encourage public investment in business which
would lead to the growth of industry and the economy.
Result:
Reduction of competition
Formation of Monopolies
Unfair business practices
Destruction of the environment
Unsafe working and living conditions
Low wages/long hours
4. Policy #2:High Protective Tariffs
Purpose:Made domestic goods more competitively priced.Encouraged
Americans to buy domestic products
Result:
Demand for American goods in the US rose. High protective tariffs
were placed on US goods in other countries.
If protective tariffs are too high, foreign demand and exports
decline.
The US Government Invested in Business
5. Policy #: Investment in Railroads
Purpose:
US government paid 1/3 of cost of building railroads in the
West.
US gave land equal to the size of Texas to the railroad
companies
The US government loaned $700 million to encourage railroad
expansion out West
Result:
Railroad system expanded across the West bringing more people to
Western States.Transcontinental Railroad connecting the East Coast
to the West Coast, was completed in 1869
The US Government Invested in Business
6. Private Invested in Business
7. Private Sector Invested in Business
Economies-of-Scalelarge factories benefit because they are able
tomass produce lowering their cost of production which allows them
to
sell their goods at alower cost than small businesses
Corporations:A large business organization owned by investors who
purchase stock in the company
Advantages to Corporations
minimum risk to investors
able to raise a large amount ofcapital (money)
Longevity able to exist for a long period of time
Types of Business Organizations
Monopolycontrol over a certain good or industry by one
company.
Trust a few companies that gain control of an industry to reduce
competition.
Horizontal Integrationjoining businesses involved similar
activities.Example:Rockefellers Standard Oil Company owned all of
the oil refineries in the US.
Vertical Integrationa business that controls all the phases of
production of a product. Example:Carnegies US Steel company owned
the materials, transportation, distribution and factories that went
into making steel.
8. John D. Rockefeller and the Standard Oil Company
Most successful example of horizontal integration
1870-controlled 2% of US oil by 1880 controlled 90% of it!!!!
Sold oil extremely low to destroy competition, then raised his
prices.
Private Sector Invested in Business
9. Andrew Carnegie led US Steel Corporation
Most successful example of vertical integration
Used the Bessemer process that revolutionized the Production of
steel.
Social Gospel: believed that it was the responsibility of the
wealthy to give money to charity.Donated hundreds of millions of
dollars to charities.
Private Sector Invested in Business
10. Private Sector Invested in Business
11. Liberal Immigration Laws
Provided cheap labor for industrial growth
Increasing population means an increase in demand for product,
increasing production, and increasing job positions.
Irish and Chinese immigrant built the railroads for low pay and
extremely dangerous conditions.
12. The Old Immigrants-1600-1850
Where they came from:
Northern and Western EuropeBritain, Ireland, Germany and
Scandinavia
Why they Came:
Escape religious persecution
Political conflict in home country such as revolutions
Jobs and new economic opportunities
Irish came as a result of massive potato famine in Ireland
13. The New Immigrants
Where they Came From:
Southern and Eastern Europe, AsiaItaly, Russia, Poland, Japan and
China
Why they came:
Better economic opportunities
Political freedom
Jews from Russia sought religious freedom
Where they came in:
Ellis Island: Most European immigrants entered through the
immigration center at Ellis Island in New York City
Angel Island:Most Asian immigrants came in on the West Coast
through Angel Island in California.
14. Americans Reaction Against Immigration
AMERICAN REACTION AGAINST IMMIGRATION
Know-Nothing Party: the partys members worked during the 1850s to
limit voting strength of immigrants, keep Catholics from public
office, and require a lengthy residence before citizenship.Also
known as the American Party
Chinese Exclusion Act of 1882: Some native-born Americans labeled
immigration from Asia a yellow peril.Under pressure from
California, Congress passed this act sharply limiting Chinese
immigration.
Gentlemens Agreement: In 1907 President Roosevelt reached an
informal agreement with Japan under which that nation nearly halted
the emigration of its people to the US.The Japanese who were
allowed to emigrate had to meet very specific standards.
Literacy Tests: 1917 Congress enacted a law barring any immigrant
who could not read or write.
Emergency Quota Act of 1921: This law sharply limited the number of
immigrants to the US each year to 350,000.
National Origins Act of 1924: This law further reduced immigration
from the countries of the New Immigrants and in favor of those from
northern and western Europe.
Copied from Regents review book:Briggs,Bonnie-Anne. United States
History and Government. 2008 ed. Catherine Fish Peterson. Boston:
Pearson Prentice Hall, 2008.
15. EFFECTS OF INDUSTRIALIZATION
AND THE FIGHT FOR CHANGE
16. Poor Working Conditions
1.Wages were low due to largesupply of workers
2.Long work days were 14-16 hours per day, 6days a week.
3.Workers Lacked Benefits:
a.NO Workers compensation
b.NO Holidays/sick days
c.NO Minimum Wage
d.NO Job Security
4.Dangerous Conditions
a.excessive temperatures in cotton mills
b.fumes and poor ventilation
c.coal mines:
1.cave-ins were common
2.unpredictable explosions and gas fumes
3. cramped quarters resultedin deformed bodies of children
4.unsafe machines led to bodily harm and loss of jobs
5.Women and Children as Workers:
a.low wages forced women and children to help support the
family.
b.both were paid lower wages than men
c.violated the moral conscious of many.
17. Life in the Cities
Cities Grew Quickly
As industry expanded and millions of immigrants poured into the US,
cities grew rapidly.
This rapid growth led to poorly built housing, overcrowded cities,
and deplorable conditions.
Tenements: multi-family apartments, poorly maintained, overcrowded,
lack of running water and sanitation.Health: Disease spread through
cities as a result of overcrowding, inadequate water supply, no
sanitation or garbage removal.
18. Excerpt from How the Other Half Lives, by Jacob Riis
Here is a door. Listen! That short hacking cough, that tiny,
helpless wail--what do they mean? They mean that the soiled bow of
white you saw on the door downstairs will have another story to
tell--Oh! a sadly familiar story--before the day is at an end. The
child is dying with measles. With half a chance it might have
lived; but it had none. That dark bedroom killed it.
Be a little careful, please! The hall is dark and you might stumble
over the children pitching pennies back there. Not that it would
hurt them; kicks and cuffs are their daily diet. They have little
else. Here where the hall turns and dives into utter darkness is a
step, and another, another. A flight of stairs. You can feel your
way, if you cannot see it. Close? Yes! What would you have? All the
fresh air that ever enters these stairs comes from the hall-door
that is forever slamming, and from the windows of dark bedrooms
that in turn receive from the stairs their sole supply of the
elements God meant to be free, but man deals out with such
niggardly hand. That was a woman filling her pail by the hydrant
you just bumped against. The sinks are in the hallway, that all the
tenants may have access--and all be poisoned alike by their summer
stenches. Hear the pump squeak! It is the lullaby of tenement-house
babes. In summer, when a thousand thirsty throats pant for a
cooling drink in this block, it is worked in vain. But the saloon,
whose open door you passed in the hall, is always there. The smell
of it has followed you up.
19. Growth of Labor Unions
Workers join together for change.
20. Workers advocated for higher wages, better workingconditions
and protection against job loss due to injury bymachines.
Issues
Tactics Used to Push for Change
LOW PAY
LONG HOURS
DANGEROUS WORKING CONDITIONS
WANTED BENEFITS ANDJOB SECURITY
STRIKE-refusal to work
BOYCOTT-refusal to buy products of a particular company
SLOW DOWN-decrease in productivity.
Joining LABOR UNIONS
21. Development of Labor Unions
1. KNIGHTS OF LABOR
a.began in 1869
b.led by Terence Powderly
c.welcomed all workers into the union including women and
AfricanAmericans
d.Membership declined after 1866 Haymarket Square Riot
2.AFLAMERICAN FEDERATION OF LABOR
a.began by Samuel Gompers
b.accepted only skilled labor
c.didnt accept _women, blacks, or immigrants.
3.Eugene V. Debs
a.created 1st large scale industrial union.
b.brought together all railroad workers: skilled and
unskilled.
4.Labor Unions faced harassment from law enforcement,
Managers and government.
22. Business Owners/Management
Issues
Tactics Against Labor
Granting any of the labors demands would cut into profits.
Large supply of labor meant workers could easily be replaced
The US government showed NO support for Labor.
LOCK-OUT-closed factory or place of employment
BLACK LIST-record kept by companies of employees who should not be
hired because they want changes.
HIRING SCABS-non-union, replacement workers hired during a
strike.
23. Unions and Management Clash
Great Railway Strike 1877Julyworkers at the B&O Railroad
stopped rail lines in several states.President Hayes intervened
calling on federal troops to end the strike.
The Haymarket Affair
May 6, 18663000 workers in
Chicago to protest police brutality againststrikers.Someone threw a
bomb in the police line,police opened fire.Several strikers and 7
police officerswere killed.Public turned against the union
movement
Pullman Strike
a.town built by George Pullman
b.company laid off several workers and cut the wagesof the
remaining employees.
c.President Grover Cleveland sent troops in.
d.Riots broke out and the union, led by Eugene V. Debs was blamed
for the strike.Debs was arrested and thestrike collapsed.
Homestead Strike: 1892 workers at Carnegie Steel Plant organized a
strike protesting reduced wages.Riots broke out between strikers
and security.16 people were killed and the National Guard was
brought in to end the strike.
DURING THE STRIKES OF THE LATE 1800S THE US GOVERNMENT CONSISTENTLY
SUPPORTED MANAGEMENT AND OWNERS OVER WORKERS.THE PROGRESSIVE ERA
EFFORTS WOULD HELP CHANGE THIS.