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UNIT 1 NOTES

UNIT 1 NOTES. The growth of American cities and industry. Chapter 13. The Expansion of American Industry (1850–1900). Chapter 13: The Expansion of American Industry (1850–1900). Section 1: A Technological Revolution. Section 2: The Growth of Big Business.

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UNIT 1 NOTES

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  1. UNIT 1 NOTES The growth of American cities and industry

  2. Chapter 13 The Expansion of American Industry (1850–1900)

  3. Chapter 13: The Expansion of American Industry (1850–1900) Section 1: A Technological Revolution Section 2: The Growth of Big Business Section 3: Industrialization and Workers Section 4: The Great Strikes

  4. Presidents of the United States • #21 - … • Andrew Johnson; Democrat (1865) • Ulysses S. Grant; Republican (1868) • Rutherford B. Hayes; Republican (1876) • James Garfield; Republican (1880) • Chester A. Arthur; Republican (1881) • Grover Cleveland; Democrat (1884) • Benjamin Harrison; Republican (1888) • Grover Cleveland; Democrat (1892) # 1 - 16 • George Washington; Federalist (1788) • John Adams; Federalist (1796) • Thomas Jefferson (1800) • James Madison (1808) • James Monroe (1816) • John Quincy Adams (1824) • Andrew Jackson; Democrat (1828) • Martin Van Buren; Democrat (1836) • William Henry Harrison; Whig (1840) • John Tyler; Whig (1841) • James K. Polk; Democrat (1844) • Zachary Taylor; Whig (1848) • Millard Fillmore; Whig (1850) • Franklin Pierce; Democrat (1852) • James Buchanan; Democrat (1856) • Abraham Lincoln; Republican (1860)

  5. OBJECTIVES • CORE OBJECTIVE: Explain the changes in late 1800’s urban life relating to Immigration, Industrialization, and Politics in the Gilded Age. • Objective 1.1: How did advances in electric power and communication affect people and business in this era? • Objective 1.2: Why were industrialists of the era called both “Captains of Industry” and “Robber Barons”? • Objective 1.3: How did industrialization impact the growing work force between 1880 and 1900? • Objective 1.4: In what ways did government reform the spoils system and regulate railroads? • THEME:American Industry will grow with positive and negative consequences

  6. A NEW ERA • Sectionalism, Civil War, and Reconstruction had hidden many of the serious economic issues facing the United States • In the 15 years between economic depressions of 1878 and 1893 the American economy grew at one of the fastest rates in history • By the 1890’s however, America could no longer ignore the growing gap between the rich and the poor

  7. SECTION 1 – A TECHNOLOGICAL REVOLUTION Technology change and the Inventors who accomplished it

  8. Changes in Daily Life Life in the 1860s • No indoor electric lights • No refrigeration • In 1860, most mail from the East Coast took ten days to reach the Midwest and three weeks to get to the West Coast. A letter from Europe to a person on the frontier could take several months to reach its destination. Life in the 1900s • Between 1860 and 1890 the government issued almost 500,000 patents–licenses that gave an inventor the exclusive right to make, use, or sell an invention. • Patents were issued for inventions such as the typewriter and the telephone. These inventions increased productivity–the amount of goods and services created in a given period of time. • Power stations across the country provided electricity for lamps, fans, printing presses, and many other appliances. • By 1900, there were 1.5 million telephones in use all over the country, and Western Union Telegraph was sending roughly 63 million messages.

  9. Edwin L. Drake Struck oil in Pennsylvania in 1859. New uses for oil grew rapidly. Oil refineries sprang up around the country as oil became a big business. Thomas A. Edison An inventor from New Jersey who experimented with electric light. Developed a workable filament for the light bulb and the idea of a central power station to make electric power widely available. Lewis Latimer Worked in Edison’s lab and patented an improved method for producing the filament in light bulbs George Westinghouse Experimented with a form of electricity called alternating current, which was less expensive and more practical than direct current, which Edison had used. By using a transformer, he improved the capabilities of power stations to make home use of electricity more practical. People Develop New Forms of Energy WRITE THIS DOWN! WRITE THIS DOWN!

  10. STEEL AND RAILROADS

  11. The Bessemer Process • In 1856, Henry Bessemer received the first patent for the Bessemer process, which made steel production easier and less expensive. • The Bessemer process made possible the mass production, or production in great amounts, of steel. • As a result, a new age of building began. The Brooklyn Bridge, designed with steel cables suspended from high towers, was one important project that was made possible by the mass production of steel.

  12. The Railroads • On May 10, 1869, the transcontinental railroad, extending from coast to coast, was finished with the hammering of a golden spike at Promontory Point, Utah. • The growth of railroads led to the development of many towns throughout the western part of the United States. • In 1883, the railroads adopted a national system of time zones to improve scheduling. As a result, the clocks in broad regions of the country showed the same time, a system we still use today.

  13. Railroads and Industry • Railroads played a key role in revolutionizing business and industry in the United States in several key ways. • They provided a faster, more practical means of transporting goods. • They lowered the costs of production. • They created national markets. • They provided a model for big business. • They encouraged innovation in other industries. • They created time zones WRITE THIS DOWN!

  14. THE GROWTH OF BIG BUSINESS CHAPTER 13 SECTION 2

  15. GREED • WHAT IS GREED? • An excessive desire to acquire or possess more than what one needs or deserves, especially with respect to material wealth • DOES GREED = POWER? Can it be a good thing? • http://www.youtube.com/watch?v=_TV_Q37cKfo • CAN GREED LOSE YOU POWER?

  16. How do you grow a business? • What is capital?

  17. Business on a Larger Scale Many factors combined to make a new kind of business in the United States. • Larger pools of capital — Entrepreneurs had to invest massive amounts of capital or borrow from investors. • Wider geographic span — Railroads and the telegraph aided in the geographic expansion of businesses. • Broader range of operations — Big businesses often combined multiple operations and were responsible for all stages of production. • Revised role of ownership — Owners had less connection to all aspects of their businesses because the businesses were too large. “Professional managers” were hired to run their business. • New methods of management — Innovations were also necessary for controlling resources. Big businesses developed new systems of formal, written rules and created specialized departments. Is there a cost of expansion – what do people give up?

  18. Coke fields Coke fields Coke fields Coke fields Coke fields purchased by Carnegie purchased by Carnegie purchased by Carnegie purchased by Carnegie purchased by Carnegie Iron ore deposits Iron ore deposits Iron ore deposits Iron ore deposits purchased by Carnegie purchased by Carnegie purchased by Carnegie purchased by Carnegie Steel mills Steel mills Steel mills purchased by Carnegie purchased by Carnegie purchased by Carnegie Ships Ships purchased by Carnegie purchased by Carnegie Railroads purchased by Carnegie Horizontal and Vertical Consolidation

  19. Robber Barons or Captains of Industry? Just know the difference “Robber Barons” • Business leaders built their fortunes by stealing from the public. • They drained the country of its natural resources. • They persuaded public officials to interpret laws in their favor. • They ruthlessly drove their competitors to ruin. • They paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions. “Captains of Industry” • The business leaders served their nation in a positive way. • They increased the supply of goods by building factories. • They raised productivity and expanded markets. • They created jobs that enabled many Americans to buy new goods and raise their standard of living. • They also created museums, libraries, and universities, many of which still serve the public today.

  20. WRITE THIS DOWN! NEW MARKET STRUCTURES • An oligopolyis an industry that is dominated by only a few large firms. • Some companies set out to gain a monopoly, or complete control of a product or service. • Some industrialists prospered by taking steps to limit competition with other firms. One way was to form a cartel— a loose association of businesses that make the same product. • Companies such as Carnegie Steel were able to maintain very low production costs. One reason Carnegie Steel could charge less for its product was a phenomenon known as economies of scale. • That is, as production increases, the cost of each item produced is lower. As Carnegie Steel expanded, its cost per item went down.

  21. EXAMPLES: Mergers (Corp. Consolidation) • Mergers soon emerged as the favorite instrument of economic control • In the 1890’s investors like J.P. Morgan enlarged their business through complicated stock transfers to merge companies • James Duke and four competitors merged in 1890 to form the American Tobacco Company • In 1901 Andrew Carnegie and J.P. Morgan combined more than 200 separate companies to form U.S. Steel • John D. Rockefeller created Standard oil in 1870 • By 1872, Rockefeller had absorbed 22 or his 26 Cleveland competitors • In 1882, Rockefeller's lawyers created an innovative form of corporation to centralize their holdings • He created Standard Oil Trust • The “trust" was a corporation of corporations • Companies turned their financial assets over to the trust • Nine trustees, including Rockefeller, ran the 41 companies in the trust

  22. Social Darwinism • According to Charles Darwin all animal life had evolved by “natural selection,” a process in which only the fittest survived to reproduce. • Social Darwinism applied Darwin’s theory to society as a whole. • It held that society and government should not interfere with relations between workers and employers and should stay out of affairs of business. • Those who were most “fit” in business would succeed and become rich. • Society as a whole would benefit from the success of the fit and the weeding out of the unfit. • Most Americans believed that government should not interfere with private businesses. • As a result, the government neither taxed profits nor regulated their relations with workers.

  23. PROBLEMS WITH BUSINESS • Many Americans who were skeptical of trusts and other large corporations began to demand government action to break up the industrial giants. • Many Americans feared the power wielded by these Tycoons • Their near monopolies seemed to violate the capitalistic ideal of fair competition • Despite questions about the practices of the “robber barons” many government officials did not want to interfere with the “captains of industry” and their contribution to the country’s rising levels of wealth.

  24. The Government Response • To curb that power, the “anti-trust” movement was born in the 1880s • Reformers turned to Congress to take action against these disguised monopolies • In 1890 the Sherman Anti-Trust Act is passed (Senator John Sherman) • outlawed any combination of companies that hurts commerce among several states • This law was vague in its wording and was often used in the courts to aid big business when applied against labor unions HOW CAN THEY USE THIS LAW AGAINST LABOR UNIONS?????

  25. HOMEWORK! • THOUGHTPIECE • Write a 1 page paper over the video • You can watch the video at home or in the library • You can watch the video before or after school in my class • 7:15 am or 2:50 pm • The paper is due on Friday • The Industrial Economy– CRASH COURSE • http://www.youtube.com/watch?v=r6tRp-zRUJs&list=PL8dPuuaLjXtMwmepBjTSG593eG7ObzO7s&index=24

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