Unit 1 : A Growing Nation Chapter 14: An Industrial Nation.

Unit 1 : A Growing NationUnit 1 : A Growing Nation Chapter 14: An Industrial NationChapter 14: An Industrial Nation

I. Big BusinessI. Big BusinessCorporations – companies sell shares of ownership called Corporations – companies sell shares of ownership called stocks to raise moneystocks to raise money

Entrepreneurs – people who take risks & organize new Entrepreneurs – people who take risks & organize new businessesbusinesses

Capitalism – private businesses dominate the economy & Capitalism – private businesses dominate the economy & promote competitionpromote competition

Laissez Fairre – govt. does not interfere in economic Laissez Fairre – govt. does not interfere in economic affairs (hands off big business)affairs (hands off big business)

Patent – exclusive right to manufacture or sell an Patent – exclusive right to manufacture or sell an inventioninvention

II. Age of SteelII. Age of SteelBessemer process - improved efficiency of Bessemer process - improved efficiency of steel production steel production

used a blast of hot air to purify molten iron and used a blast of hot air to purify molten iron and convert it to steel convert it to steel

Railroads grew fast – steel had to keep up w/ Railroads grew fast – steel had to keep up w/ demand demand

Second Industrial Revolution Second Industrial Revolution Late 1800s, early 1900sLate 1800s, early 1900s

New technologies helped industry grow to New technologies helped industry grow to new heights new heights

Electric power replaced steam & water power Electric power replaced steam & water power

Steel (cont.) Steel (cont.)

Used to build railroads, construct Used to build railroads, construct bridges and buildings bridges and buildings

Andrew Carnegie - moved from Andrew Carnegie - moved from Scotland, dominated the steel Scotland, dominated the steel industryindustry Believed the wealthy had a duty to Believed the wealthy had a duty to

societysociety Gave away over $350 million to charity Gave away over $350 million to charity

III. Monopolies and III. Monopolies and TrustsTrusts

Monopolies - characterized by a lack of Monopolies - characterized by a lack of competition to produce a good or service competition to produce a good or service

- Goal is to control the market for a product - Goal is to control the market for a product by destroying the competitionby destroying the competition

- Achieved by controlling production and - Achieved by controlling production and distribution of a good or servicedistribution of a good or service

Trust – consolidate corporations under Trust – consolidate corporations under a Board of Trustees to control the marketa Board of Trustees to control the market

IV. Robber BaronsIV. Robber BaronsPowerful industrialists who amassed huge personal Powerful industrialists who amassed huge personal fortunesfortunes

- Used unethical business practices such as - Used unethical business practices such as monopolizingmonopolizing

Carnegie

Ford VanderbiltMorgan

Rockefeller

IV. Robber BaronsIV. Robber BaronsCarnegie and steel - 1873 inspired by Bessemer Carnegie and steel - 1873 inspired by Bessemer Process; focused on steelmakingProcess; focused on steelmaking

- By 1900, US Steel produced more steel than all of - By 1900, US Steel produced more steel than all of BritainBritain

- Vertical integration: buy companies involved in - Vertical integration: buy companies involved in

each step of productioneach step of production

Rockefeller & oil - formed Standard Oil Co. (refined Rockefeller & oil - formed Standard Oil Co. (refined oil) - controlled 90% of oil industryoil) - controlled 90% of oil industry

- Horizontal integration: buy out the competition to - Horizontal integration: buy out the competition to

own all businesses in the fieldown all businesses in the field

John D. Rockefeller BioJohn D. Rockefeller BioEntered oil business in 1863Entered oil business in 1863Oil was important as a fuel source and Oil was important as a fuel source and a lubricant for factory machinery a lubricant for factory machinery Created the Standard Oil Co. Created the Standard Oil Co. Practiced vertical integrationPracticed vertical integration- oil fields- oil fields - storage facilities - storage facilities- pipelines- pipelines - railroads - railroadsAlso practiced horizontal integration Also practiced horizontal integration Refineries Refineries refineries refineries refineries refineries

Complete control over an industry = Complete control over an industry = monopolymonopolyControlled 90% of oil in USControlled 90% of oil in US

V. Social Darwinism (SD)V. Social Darwinism (SD)SD - idea that “survival of the fittest” SD - idea that “survival of the fittest” determines success of people in determines success of people in society & marketplace society & marketplace Strong survive & the weak failStrong survive & the weak fail ““Survival of the fittest” Survival of the fittest”

strengthens society as a wholestrengthens society as a whole Justification for industrialists Justification for industrialists

Social Darwinists and capitalists Social Darwinists and capitalists agree that competition promotes agree that competition promotes progressprogress

Chapter 14.1 Review Chapter 14.1 Review 1. Describe laissez-faire economic policies.1. Describe laissez-faire economic policies.

2. A monopoly can best be characterized as ________2. A monopoly can best be characterized as ________

3. Horizontal integration is _______________________3. Horizontal integration is _______________________

4. Vertical integration is _________________________4. Vertical integration is _________________________

5. Describe three aspects of a monopoly.5. Describe three aspects of a monopoly.

6. What is a trust?6. What is a trust?

7. Describe “Robber Barons.” 7. Describe “Robber Barons.”

8. Social Darwinists believed in the idea that _________8. Social Darwinists believed in the idea that _________

VI. VI. Labor UnionsLabor UnionsAdvantages of unionsAdvantages of unions Greater bargaining power (pay, hours & conditions) Greater bargaining power (pay, hours & conditions) Strength in numbersStrength in numbers

Main purpose of a union is collective bargainingMain purpose of a union is collective bargaining Negotiations between management and a union Negotiations between management and a union

about pay and work conditions on behalf of all the about pay and work conditions on behalf of all the workers in the unionworkers in the union

2011: NFL & NBA2011: NFL & NBA

Knights of LaborKnights of Labor

Welcomed unskilled laborers Welcomed unskilled laborers including blacks, immigrants & including blacks, immigrants & women women 1869 first major national 1869 first major national

labor organizationlabor organization Opened to all who “toiled”Opened to all who “toiled” Accepted all workers Accepted all workers Encouraged collective Encouraged collective

bargaining bargaining

American Federation of American Federation of LaborLabor

Represented skilled labor only; most Represented skilled labor only; most effective & enduring unioneffective & enduring union Main purpose was collective Main purpose was collective

bargainingbargaining Negotiated for better pay, fewer hours Negotiated for better pay, fewer hours

& safer conditions& safer conditions

1886-present: most powerful leader 1886-present: most powerful leader was Samuel Gompers & strike was was Samuel Gompers & strike was a ready toola ready tool

VII. StrikesVII. Strikes Haymarket Square Riot (Chicago, IL 1886) strikers Haymarket Square Riot (Chicago, IL 1886) strikers clashed w/ police: several killed, 100's hurtclashed w/ police: several killed, 100's hurt

- - May 1, 1886May 1, 1886 – Strikes & demonstrations were held nationwide, – Strikes & demonstrations were held nationwide, to to

demand an demand an eight-hour workday eight-hour workday for industrial workersfor industrial workers- May 3, 1886- May 3, 1886 -- McCormick Reaper Works factory went on -- McCormick Reaper Works factory went on

strike; strike; unarmed strikers, police clash; several strikers were killedunarmed strikers, police clash; several strikers were killed

- Evening of May 4, 1886- Evening of May 4, 1886 -- A meeting of workingmen is held -- A meeting of workingmen is held near near Haymarket Square, Chicago. Police arrived to disperse the Haymarket Square, Chicago. Police arrived to disperse the

peaceful assembly; a bomb is thrown into the ranks of peaceful assembly; a bomb is thrown into the ranks of the police; the police; the police open fire; workingmen evidently return fire; the police open fire; workingmen evidently return fire; police and police and an unknown number of workingmen killed; the bomb an unknown number of workingmen killed; the bomb thrower is thrower is not identified not identified

Significance: Americans linked unions w/ radicalsSignificance: Americans linked unions w/ radicals

Homestead StrikeHomestead Strike Wages were cut & workers went Wages were cut & workers went on strike in on strike in 18921892

Henry Clay Frick and Henry Clay Frick and CarnegieCarnegie

Amalgamated union workers Amalgamated union workers went on strikewent on strike

300 Pinkertons called in300 Pinkertons called in

- 3 guards & 10 strikers killed- 3 guards & 10 strikers killed

Significance: state govt. Significance: state govt. supported corporation (big supported corporation (big business)business)

State militia entered Homestead, PA to put down the strike of July 1892

Pullman Strike (1894)Pullman Strike (1894)

Pullman Palace Car Co. (Chicago) Pullman Palace Car Co. (Chicago) cut wages but did not reduce cut wages but did not reduce workers rentworkers rent

Largest strike in US history had Largest strike in US history had interrupted US mail serviceinterrupted US mail service

Eugene V. Debs (future Socialist Eugene V. Debs (future Socialist Party of America) got involvedParty of America) got involved

Significance: President Cleveland Significance: President Cleveland sent in the national guard & sided sent in the national guard & sided w/ corporationw/ corporation

***Govt. favored ***Govt. favored business in most business in most disputes w/ labor in late disputes w/ labor in late 19th century***19th century***

VIII. IndustryVIII. Industry

Advantages of US in world market - Raw Advantages of US in world market - Raw materials, expanding markets & favorable govt. materials, expanding markets & favorable govt. policies (LF)policies (LF)

Growth of manufacturing - Natural resources, Growth of manufacturing - Natural resources, investment capital and cheap laborinvestment capital and cheap labor

People left farms and moved to cities for jobs People left farms and moved to cities for jobs in industryin industry

IX. Frederick OlmstedIX. Frederick Olmsted Landscape architect - designed Central Park Landscape architect - designed Central Park (Manhattan) and Prospect Park (Brooklyn)(Manhattan) and Prospect Park (Brooklyn) also Boston, Chicago, Capital grounds in DC and also Boston, Chicago, Capital grounds in DC and

Stanford Univ.Stanford Univ.

Mass transitMass transit

Cities created forms of mass transit such as Cities created forms of mass transit such as the subway and cable car the subway and cable car

InventionsInventions Nikolaus Otto invented Nikolaus Otto invented the horseless carriage the horseless carriage by using an internal by using an internal combustion engine combustion engine

Orville & Wilbur Wright Orville & Wilbur Wright were bicycle makers were bicycle makers who invented the who invented the airplane after a 12 airplane after a 12 second flightsecond flight

InventionsInventionsAlexander Graham Bell invented the telephone which Alexander Graham Bell invented the telephone which transmitted voices using electricity transmitted voices using electricity

Thomas Edison-invented the light bulb and brought Thomas Edison-invented the light bulb and brought electricity to NYC electricity to NYC

Gold Standard - money was backed Gold Standard - money was backed by gold in the treasury (1882-1933) by gold in the treasury (1882-1933) Free Silver - some people wanted $ Free Silver - some people wanted $ to be backed by silver as well to get to be backed by silver as well to get more $ flowing in the economymore $ flowing in the economy

Chapter 14.2 Review Chapter 14.2 Review 9. The main purpose of a labor union is ________________. 9. The main purpose of a labor union is ________________. 10. Unions negotiate about _______ and ________________.10. Unions negotiate about _______ and ________________.11. The American Federation of Labor (AFL) represented 11. The American Federation of Labor (AFL) represented

______________ and was the most _________________. ______________ and was the most _________________. 12. What type of workers did the Knights of Labor accept? 12. What type of workers did the Knights of Labor accept? 13. What was the significance of the Homestead strike?13. What was the significance of the Homestead strike?14. The Pullman Strike ended when President Grover 14. The Pullman Strike ended when President Grover

Cleveland ____________________.Cleveland ____________________.15. What was the significance of the Haymarket bombing?15. What was the significance of the Haymarket bombing?16. The govt. would usually support (business / labor) during 16. The govt. would usually support (business / labor) during

strikes in the Industrial Revolution.strikes in the Industrial Revolution.