Industrialization

1. Industrialization

2. The Rise of Industry • By 1914 the country’s GNP was eight times greater than it had been when the Civil War ended • Natural Resources – contained the resources necessary for industries: water, timber, coal, iron, and copper • A large workforce – Between 1860 and 1910 the population in the U.S. tripled • Large amount of workers • Greater demand for consumer goods

3. Reasons for Population Growth • Large Families • Flood of Immigrants – • Social and economic conditions in China and Europe were horrible • In search of a better life • Between 1870-1910, roughly 20 million immigrants arrived in the U.S.

4. Linking the Nation • Railroad boom began in 1862 • Lincoln signed the Pacific Railway Act • Provided for the construction of a transcontinental railroad by two corporations: • The Union Pacific and the Central Pacific • To encourage rapid construction • Offered land for each mile of track laid

5. Who Built the Railroads? • Civil War veterans • Miners • Farmers • Ex-Convicts • New Immigrants from: • Ireland • China • Each crew had about 10,000 employees each

6. Free Enterprise • Laissez-Faire – Belief that the government should not interfere in the economy other than to protect private property rights and maintain peace. • Greater efficiency and wealth for everyone • Based on Market Supply and Demand, not on government regulation of prices and wages • Rise of Entrepreneurs – People who risk their capital in organizing and running a business.

7. Government’s Role in Industrialism • Kept taxes and spending low • No costly regulations on industry • Northern – high tariffs, protect American industry • Southern – low tariffs, promote trade • Morrill Tariff – Reversed the years of declining tariffs

8. New Inventions • Alexander Graham Bell – Telephone, AT&T • Thomas Alva Edison – Invented the phonograph, the lightbulb, electric generator, the dictaphone, the motion picture • Impact

9. The Railroads

10. Railroads Spur Growth • By linking the nation, railroads helped increase the size of markets for many products • Railroads stimulated the economy by spending a large sum of money on: • Steel • Coal • Timber

11. Connection of lines in New York done by Cornelius Vanderbilt • Linked NYC to Chicago • Built New York’s Grand Central Terminal • Introduction of Time Zones to make the rail lines more reliable

13. Land Grant System • To encourage railroad construction • Railroads would then sell land to settlers, real estate companies, and other businesses to raise money to build the railroad

14. Robber Barons • Great wealth • Accusations that they had built their fortunes by swindling investors and taxpayers, bribing government officials, and cheating on their contracts or debts • Robber Baron - a wealthy person who tries to get land, businesses, or more money in a way that is dishonest or wrong

15. Captain of Industry • Captain of Industry - a business leader that benefits the nation in a positive way

16. Big Business

17. The Rise of Big Business • Dominated the economy, operating vast complexes of factories, warehouses, offices, and distribution facilities • Corporation - An organization owned by many people but treated by law as though it were a single person.

18. Consolidation of Industry • Corporate leaders who organized pools to stop prices from falling and maintain them at a certain level. • Vertical and Horizontal Integration

19. Vertical Integration • Andrew Carnegie

20. Horizontal Integration • Monopoly

21. Trusts • Government became suspicious of large corporations • 1882 – Standard Oil (John D. Rockefeller) became first Trust • Trust – A new way of merging businesses that did not violate the laws against owning other companies

22. Unions

23. Working in the United States • Life was difficult for workers • Machines replaced skilled labor • Workers performed highly specific, repetitive tasks • Working conditions were unhealthy and dangerous • Breathed in lint, dust, and toxic fumes • In 1900 the average industrial worker made 22 cents per hour and worked an average of 59 hours a week. THAT IS ONLY $12.98 PER WEEK!

24. Early Unions • Two types of Industrial Workers: • Craft workers – machinists, iron molders, glassblowers, shoemakers, printers • Common laborers – few skills, low wages • Craftworkers began to form Trade Unions • Unions limited to people with specific skills • Industry opposed unions • Companies would use a lockout to lock workers out of the property and refuse to pay them

25. The Struggle to Organize • Knights of Labor – The first nationwide industrial union. • In response to the railroad strike • 8 hour workday, a government bureau of labor statistics, equal pay for women, abolition of child labor creation of worker-owned factories

26. American Federation of Labor • Combination of Trade Unions • founded by Samuel Gompers • Belief that unions should stay out of politics • Higher wages, better working conditions in the American system

27. “Bread and Butter” • Bread and butter objectives • Better wages, better working conditions, shorter working hours

28. What was a major area of growth in business and industry?