The Rise of Big Business

1. The Rise of Big Business US History

2. Quality Core Standards • QC-C1B - Identify and evaluate the influences on business and industry in the late nineteenth and early twentieth centuries. • QC-C1C - Identify labor and workforce issues of the late nineteenth century, including perspectives of owners/managers and Social Darwinists. • QC-C1D - Explain the challenges and contributions of immigrants of the late nineteenth century • QC-C1E - Explain the causes and impact of urbanization in the late nineteenth century

3. I. US Industrializes • Industrial Revolution • Although the industrial revolution began in the early 1800’s, much of the US was primarily agricultural until the end of the Civil War. • By the early 1900’s, the US had become the leading industrial nation.

4. I. US Industrializes • Reasons • Natural Resources A. Abundance of resources led to American industrial success. • New Inventions and Technology A. Led to the new founding of corporations which produced wealth and jobs • Large Workforce A. Large families and Influx of immigrants helped factories to increase their production

5. New Technology

6. II. Government • Free Enterprise • Laissez – Faire • The idea that the government does not interfere in the economy. • Government regulations cause problems • Profit Motive • Entrepreneurs A. Those who risk their own capital to run a business.

7. Entrepreneurs

8. III. Big Business • Corporation • An organization owned by many people but treated by law as if it were a single person. • Stakeholders – people who own the corporation because they own shares of stock • With the money they raised from the sale of stock, corporations would invest in new technologies.

9. III. Big Business • Monopolies and Trusts • Vertical integration – owning all of the businesses in which a company depends for its operation. • Horizontal integration – combining many firms engaged in the same type of business into one large corporation. • Monopoly – when a single company achieves control of an entire market.

10. III. Big Business • Monopolies and Trusts • Soon Americans became leery of large corporations and monopolies, many states began passing laws against them. • Trusts – Allows one person to manage another person’s property. A. Instead of stockholders, investors were known as trustees.

11. IV. Social Darwinism • Opinion • Many people criticized the industrialists and their supporters. • They believed they were just the best men for the job • Social Darwinism – the idea that these men were “fittest” for success and that others were just weaker.

12. IV. Social Darwinism • Gospel of Wealth • Not all industrialists believed taking and not giving. • The idea that the rich had a responsibility to put their money to good use. • Rich people should give back to society.

13. V. Immigration A. Old vs. New (Page 337) • Old Immigrants – Mid 1800’s • Northern and Western Europe • Mostly farmers who spoke English • Easy to assimilate • New Immigrants – Late 1800’s Early 1900’s • Southern and Eastern Europe • Varying religions, laborers, who spoke little to no English. • Difficult to assimilate

14. V. Immigration • Reasons 1. Push Factors – A. Population Growth led to overcrowded cities, lack of jobs and food shortages B. Scarcity of Land C. Religious Persecution

15. V. Immigration • Reasons 2. . Pull Factors • Democratic Society • Ample Farmland • Booming Industry • American Letters- helped to persuade many people to come to America.

16. V. Immigration • Reasons 3. Improvements in Transportation • Steamships allowed for faster travel 1. Steerage – Many immigrants could only afford the bottom rooms which were unsanitary and lacked space

17. V. Immigration C. Immigration Station • Port of entry for most European immigrants • Most would face medical exams and legal interviews • Those with incurable diseases would be deported. • After leaving Ellis Island, most immigrants found their way to major cities surrounding themselves with those with common interests.

18. Ellis Island

19. V. Immigration • Asian Immigration • Severe unemployment, poverty and famine led several Chinese immigrants to arrive in the US in the mid 1800’s • Japanese immigrants began to arrive in the early 1900’s • Most worked as laborers, servants, or on the railroads

20. V. Immigration • Asian Immigration • To accommodate Asian immigrants, Angel Island was opened in San Francisco • Not nearly as “pleasant” as Ellis Island.

21. V. Immigration • Nativism • New wave of immigrants led to an increase feeling of nativism. A. Nativism – preference for native born people and desire to limit immigration • Opposition of new immigrants for many reasons • Fear of the Catholic church • Labor unions disliked immigrants who they feared would be “scab” labor.

22. VI. Impacts of Urbanization • New Urban Environment • Skyscrapers and Mass Transit– • Owners began expanding their businesses upward instead of outward. • Louis Sullivan – skyscraper architect • To transport large people, several types of mass transit emerged. • Electric trolleys • Elevated railroads

23. VI. Impacts of Urbanization • Separation by Class • High Society – wealthy families established fashionable districts in the hearts of cities. • Middle Class – doctors, lawyers, engineers, managers, social workers, etc. Created “suburbs” • The Working Class – Most of Americas city dwellers were extremely poor A. Tenements – dark, crowded multi family apartments.

24. VI. Impacts of Urbanization • Urban Problems • Rise in crime, violence and disease • Nativism – Americans blamed immigrants for this crime. • Pollution and Poverty – improper sewage disposal and contaminated water caused epidemics of contagious disease.

25. VI. Impacts of Urbanization • Politics • Cities began to grow much faster than their governments. This led to the rise of political machines. • In exchange for votes, political machines and the Party bosses that ran them provided necessities to the poor. • Machines controlled city finances, as a result many bosses grew rich as a result of graft. • Graft – getting money through dishonest means • Many corrupt bosses had city officials on their pay rolls.

26. VI. Impacts of Urbanization • Politics • Tammany Hall • The most famous political machine, NYC. • William M. “Boss” Tweed – the corrupt leader of Tammany Hall. 1. Thomas Nast – blasted bosses through political cartoons for their corrupt behavior.

27. VI. Impacts of Urbanization • Federal Government Scandals • Credit Mobilier A. Corruption in which investors signed contracts with themselves, making millions off of work done by the Union Pacific. • Whiskey Ring – Conspiracy of distillers to defraud the federal government of excise tax.

28. VI. Impacts of Urbanization • Federal Government • Many people felt as though the spoils system prevented the government from addressing the nation’s issues. • Pendleton Act – allowed the president to decide federal jobs based upon merit or civil service.