Chapter 14

1. Chapter 14 The Expansion of American Industry (1850-1900)

2. Chapter 14 Section 1 • A Technological Revolution

3. I. Identify some of the changes in people’s daily lives in the decades following the Civil War. • Daily life in 1865 1) No electricity 2) No telephones • Daily life in 1900 1) Patents – licenses to make, use, or sell an invention 2) Productivity – the amount of goods and services created in a given period of time

4. II. Describe how advances in transportation, communication, and electric power affected people and businesses. • Transportation 1) Railroads a) Transcontinental railroad – coast to coast b) Steel replaced iron c) National system of time zones • Communication 1) Telegraph – Samuel F.B. Morse patented a) Western Union Telegraph Company 2) Telephone – Alexander Graham Bell a) American Telephone Company

5. II. Describe how advances in transportation, communication, and electric power affected people and businesses. C. Electric Power 1) Thomas A. Edison – Menlo Park, NJ a) DC – direct current 2) George Westinghouse a) AC – alternating current b) Transformer c) GE – General Electric 3) Not in rural areas

6. III. Explain the effects of the development of the Bessemer Process. • Bessemer Process – Henry Bessemer 1) Steel is produced from melting iron, adding carbon, and removing impurities. 2) Mass production – production in great amounts • Brooklyn Bridge 1) Brooklyn and Manhattan 2) Symbol of success in America

7. Chapter 14 Section 2 The Growth of Big Business

8. I. Explain why American industrialists of the late 1800s were called both “robber barons” and “captains of industry”. • Robber baron – implies stealing from the public • Ruthless • Captain of Industry – served their nation in a positive way • Credit • Andrew Carnegie • Steel Industry – Pittsburg, PA • Cut prices – drove out competition • Vertical Consolidation • Gospel of wealth – give money away • Philanthropist

9. II. Describe the theory of Social Darwinism and its connection to big business. • Charles Darwin’s theory of evolution • Natural Selection • Social Darwinism • Society should do as little as possible to interfere with people’s pursuit of success

10. III. Summarize the ways that industrialists gained a competitive edge over rivals, and the effects that big business had on American society. • Monopoly • Complete control of a product or service • Control over price • Cartel • Loose association of businesses to make the same product. • Limits supply

11. III. Summarize the ways that industrialists gained a competitive edge over rivals, and the effects that big business had on American society. • Trust 1) A group of separate companies placed under the control of a single managing board. 2) John D. Rockefeller – Standard Oil Company a) Horizontal Consolidation 3) Sherman Antitrust Act a) Outlawed any combination of companies that restricted interstate trade or commerce

12. III. Summarize the ways that industrialists gained a competitive edge over rivals, and the effects that big business had on American society. • Methods of Control • Horizontal Consolidation – bringing together many firms that were in the same business • Vertical Consolidation – gaining control of the many different businesses that make up all phases of a product’s development. • Economies of Scale – production increases, costs decrease • Business Cycle 1) Expansion, peak, recession, trough, recovery

13. Chapter 14 Section 3 Industrialization and Workers

14. I. Identify the sources of the growing American work force and the reasons why entire families worked. • Immigrates • Federal gov’t encouraged foreign immigration • Shifts in population • 8 to 9 Million moved to cities • Shift from rural agrarian to urban industrial • Working families • Low wages • Child labor • No gov’t assistance

15. II. Describe factory work in the late 1800s. • Piecework • Those who worked fastest and produced the most pieces earned the most money • Increasing efficiency • Fredrick Winslow Taylor a) The Principles of Scientific Management • Strict Environment • Division of labor – work divided into separate tasks to be more efficient • Workers were treated like interchangeable parts

16. III. Explain the roles that women and children played in the work force. • Women • Low pay, no advances, low skills • Children • Unhealthy conditions • Stunted growth

17. Chapter 14 Section 4 The Great Strikes

18. I. Summarize the growing gulf between rich business owners and poor workers. • Socialism • An economic and political philosophy that favors public (or social) control of property and income • Karl Marx – Communist Manifesto • Most workers saw it as a threat to: • Private Property • Free Enterprise • Individual Liberty

19. II. List some of the early labor unions and their activities. • Early labor unions 1) Provide help for their members 2) Express workers’ demands to employers • Knights of Labor • Included men, women, skilled, unskilled • Equal pay for equal work • Eight-hour day • End child labor

20. II. List some of the early labor unions and their activities. • American Federation of Labor (AFL) 1) Only skilled workers 2) Samuel Gompers – cigar maker 3) Wages, hours, conditions 4) Collective bargaining – workers negotiate as a group • The Wobblies 1) Workers of the World 2) Radical socialists 3) Unskilled workers

21. II. List some of the early labor unions and their activities. • Reaction of Employers 1) Forbade union meetings 2) Fired union organizers 3) “Yellow dog” contracts 4) Refused collective bargaining 5) Refused to recognize unions

22. III. Describe the causes and outcomes of the major strikers of the late 1800s. • Haymarket Riot 1) Scab – workers called in by an employer to replace striking laborers. 2) Anarchists – radicals who oppose all government • Homestead Strike 1) Strike against Carnegie Steel over wages • Pullman Strike 1) Railway workers’ strike 2) Government sided with factory owners