Chapter 6, Section 1: Technology and Industrial Growth

Causes of the Industrialization 1. Natural Resources– Edwin Drake: Drilled first oil well in U.S. History in

Titusville, Pennsylvania– Oil: Before: used to boil whale blubber/After: Kerosene

and gasoline (after automobile)2. Large Workforce- Immigration increased (Asia and Europe)3. Capitalism and Entrepreneurs- Entrepreneur: One who risks (invests) money in order to

make money - Horatio Alger: Wrote: “Rags to Riches” novels about

“entrepreneurial spirit”4. Government Policy-Laissez-Faire: “Free Enterprise” Government took “hand’s-

off” approach to business (Supply/Demand) with little regulation (rules)

-Protective Tariffs: Taxes on imports aimed at protecting local business

“Rags to Riches” Novels: Horatio Alger

Innovation Drives the Nation• Patent: Exclusive permission

to develop and sell an Invention for a certain period of time

• Thomas Edison: Inventor who set up Menlo Park Research Laboratory in New Jersey: Invented Light Bulb (1880)

• Alexander Graham Bell: 1876: Patented Telephone

• Gugliemo Marconi: Wireless Telegraph: “Father of Radio”

• http://www.history.com/topics/alexander-graham-bell/videos#the-telegraph-and-telephone

STEEL• Bessemer ProcessBessemer Process: :

Henry Bessemer: Henry Bessemer: Purifying Iron by Purifying Iron by “Blasting” it with “Blasting” it with intense heatintense heat

• Suspension BridgesSuspension Bridges: : Roadway suspended in Roadway suspended in air w/ steel cables.air w/ steel cables.

• --Brooklyn BridgeBrooklyn Bridge: : 1883: First of its kind1883: First of its kind

• SkyscraperSkyscraper: Used steel : Used steel frames for height: frames for height: Home Insurance Home Insurance Building: Chicago: First Building: Chicago: First Skyscraper ever builtSkyscraper ever built

Technology and Transportation• RailroadsRailroads• George WestinghouseGeorge Westinghouse: 1869: Invented Air : 1869: Invented Air

BrakesBrakes• Granville WoodsGranville Woods: 1887: Train Telegraph: 1887: Train Telegraph• Gustavus SwiftGustavus Swift: Refrigerated Rail Car: Refrigerated Rail Car• BIG ProblemBIG Problem: Times were set independently : Times were set independently

(Usually using sun) Scheduling Became (Usually using sun) Scheduling Became ImpossibleImpossible

• SOLUTIONSOLUTION: 1884: 27 Countries created 24 : 1884: 27 Countries created 24 “Time-Zones”“Time-Zones”

• AirplaneAirplane: 1903: Orville and Wilbur Wright: : 1903: Orville and Wilbur Wright: Kitty Hawk, N.C. First Successful FlightKitty Hawk, N.C. First Successful Flight

• http://www.history.com/topics/wright-brothers/videos#wright-brothershttp://www.history.com/topics/wright-brothers/videos#wright-brothers

Spiral of Growth• Railroads stimulated

(Sped up/helped) innovation and industrialization

• -Brought Natural Resources from Western U.S.

• Mass Production: Factories turned out large numbers of product in short amount of time.

Impact of Industrialization• 1. Linked World Markets:

Food…etc.• 2. Changed American

Society: Growth of Cities• 3. Environmental Problems:

Pollution• -National Park Service:

1872: Formed to protect environment against abuses of business.

• *Yellowstone National Park: 1872: First National Park in U.S. History

• *Indiana Dunes National Lakeshore: 1966

Chapter 6, Section 2: Rise of Big Business

The Corporation• Corporation: Many people “share” ownership of

ONE company• Monopoly: Complete control of a product or service• Cartel: Businesses agree to make same product and

limit supply to drive up prices. (OPEC-oil, De Beers-diamonds)

• J.D. Rockefeller: Standard Oil/ Controlled Railroads to “corner” oil market

• J.P. Morgan: Developed research labs• Cornelius Vanderbilt: Railroad tycoon: N.Y. to

Chicago direct rail line.

Vertical/Horizontal Integration• Horizontal Integration:

Consolidate many firms into one business (Super Company)

** Was IllegalTrust: Companies assign stock

to board of TRUSTEES who get paid with stock profits (Made Horizontal Integration Legal)

Vertical Integration: Control ALL businesses involved in product development (Monopoly: Own the Board)

Andrew Carnegie: U.S. Steel/Pittsburgh, PA

The Big Business Debate

• Support: “Captains of Industry”

• 1. Efficient• 2. Lower Prices• 3. Provided Jobs• 4. Made U.S. Powerful• 5. Philanthropists:

Helped fellow man

• Against: “Robber Barons”

• 1. Unfair Advantages• 2. Drove Small

businesses out• 3. No Competition• 4. Monopolies would

RAISE prices• 5. “Swindle” Poor

Big Business Debate

Social Darwinism

• Charles Darwin: On the Origin of Species- Animals evolved through Natural Selection- “Survival of the fittest”- Social Darwinism: Wealth was a measure of one’s

value and those who had it were “fit” Those who do not should “adapt”

- * Many used theory as a way to discriminate against minorities and other “poverty-stricken” Americans and Immigrants because of their “unfitness”

Government Regulations

• Interstate Commerce Commission (ICC): Could monitor railroads that cross state lines. Then refer records to Congress to address “unfairness”

• Sherman Anti-trust Act: Outlawed Trusts/Monopolies that limited trade among several states

• Read Wealth: Page 113: Andrew Carnegie

Chapter 6, Section 3: Organized Labor Movement

Worker Hardships• Immigrants and poor exploited

by big business: (Low Wages)• Long Days: (12 Hour/ 6 Days

per week)• Unsafe conditions:

Sweatshops: Small, hot, dark, and dirty: Triangle Shirt waste Co. NYC (Top)

• Children exploited (20% 10-16 Employed 1890’s)

• Company Towns: Pullman Town-Chicago (Bottom) Isolated communities owned by company

• Company Stores: Workers forced to shop at company owned stores that overcharged them

Labor Unions Form• Collective Bargaining:

negotiating with employer as a group: Strikes used to force negotiation (Top Left)

• Socialism: Favors PUBLIC control of property/ Opposite of Capitalism (Private Ownership) (Karl Marx: Communist Manifesto)

• Knights of Labor: Industrial Union: Uriah Stephens

• 1881: Terence Powderly : Became president (Bottom)

• American Federation of Labor: Samuel Gompers: “Skilled worker” Union (Top)

Strikes Rock the Nation

• Railroad Strike of 1877: First major strike in U.S. History (Wages): Government sided w/ Business and Violence Erupted

• Haymarket Riot: 1886: Chicago: Knights of Labor (Fair Wages/ 8 HR Work Day)

• Anarchists: Anti-government: Joined protest: Bomb Exploded: Dozens Killed/ Including Police

Strikes Rock the Nation

• Homestead Strike: Pennsylvania: U.S. Steel (protest wage cuts during depression)

• Pinkerton: Private “Strike Breaking” Police Force (intimidate workers)

*Anarchist tried to assassinate Henry Frick: (Carnegie’s Partner)

*Government Sided w/ Business

Strikes Rock the Nation• Pullman Strike: 1893:

Pullman Palace Car Company: Chicago

• Eugene Debs: American Railway Union President

*Workers blocked trains from running during strike.

*Pullman attached MAIL CARS to his

*Grover Cleveland sent troops to end strike

*Eugene Debs arrested for “federal offense”

Effects on Labor Movement• Trend: general course

of events• Government trend was

to side with business• Socialism spread

through U.S.• Eugene Debs: Ran for

President in 1900• *Radical ideas

continued to spread because of Industrial worker’s “perception” of unfairness

DID YOU KNOW?• During a coal miner’s strike

in 1921, miners in West Virginia (Battle of Blair Mountain) wore red handkerchiefs around their necks to show unity.

• They were nicknamed “rednecks”!

• …Oh yeah… and the color red is usually associated with Communism (Marxism), too!