The Best and Worst of America Unit 5

1. The Gilded Age The Best and Worst of America Unit 5

2. The Industrial Era • After the Civil War, America enters a period of….. WASTE, GREED, and CORRUPTION

3. Why Now? • Railroads established!!! • Settlement of West • Homestead Act – gives away land to settlers free • New Innovations • Rise of Entrepreneurs • Availability of raw materials in U.S. • Government favors business • Rise in immigration

4. NEW INDUSTRIES • Railroad • Marketing • Sewing Machine • Vacuums • Typewriters • Automobile • Salt • Coal • Agricultural • Oil • Mining • Sugar • Steel • Meatpacking • Beef/Cattle • Construction • Telegraph • Telephone

5. 1st TRANSCONTINENTAL RAILROAD • 1869 at Promontory, Utah • Central Pacific and Union Pacific

6. Transcontinental Railroad • Government supported, money and land given to companies for building and laying rails. 1. Union Pacific (East) a. Eastern terminus in Omaha, Nebraska.

7. b. 20 sq. miles land for each mile built. c. $16,000 flat land, $48,000 mountainous. d. Used Irish labor.

8. 2. Central Pacific (West) a. Western terminus in Sacramento. b. Big Four: 1. Leland Stanford 2. Mark Hopkins 3. Collis Huntington 4. Charles Crocker c. Used Chinese laborers d. Two lines met in Ogden, Utah

9. Effects of Railroad • Created largest integrated national market in the world. 1. Fresh produce 2. Raw materials to factories. B. Growth of cities: 1. Food to highly urban areas supporting larger populations. C. Immigration: new lands open for settlement.

10. Video Clip • Episode 6 • Impact of Railroads • Natives • 36 to 44 min.

11. Life in the 1860s No indoor electric lights No refrigeration No indoor plumbing Kerosene or wood to heat Wood stoves to cook with Horse and buggy 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 US Gov’tissued 500,000 patents—electricity Refrigerated railroad cars Sewer systems and sanitation Increased productivity made live easier and comfortable. Power stations, electricity for lamps, fans, printing presses, appliances, typewriters, etc. NY to SF in 10 days using railroad. 1.5 million telephones in use all over the country Western Union Telegraph was sending thousands of messages daily. Changes in Daily Life

12. OSTENTATIOUS WEALTH CONSPICUOUS CONSUMPTION

13. Two Different Worlds 1 TWO DIFFERENT WORLDS • The wealthy lived extravagant lifestyles and considered themselves elitists. • The common people resented their snobbish attitudes and wealth. • 1861---------3 millionaires----------1900--------3,800 • 1900, 90% of wealth, controlled by 10% of population.

14. The Emergence of Political Machines • Political Machine • controls a city’s political party • • Give services to voters (usually immigrants) in exchange for votes • • After Civil War, machines gain control of major cities • • Machine organization: precinct captains, ward bosses, city boss • * This is corrupt, this is NOT democracy

19. NEW SOUTH

20. With the Bessemer Process and Carnegie steel, Skyscrapers & large bridges are built

21. Thomas Alva Edison “Wizard of Menlo Park”

22. “Wizard of Menlo Park” • Edison Inventions helped to shape modern society • More than 1,000 inventions patented • Light bulb • Phonograph • Incandescent electric lamp • Starter for automobiles that eliminated hand crank • Batteries • Perfected stock ticker • New York City first city to powered by electricity • The motion picture camera and projector • First used “hello” as phone greeting • Helped Alexander G. Bell with the telephone

23. The Light Bulb

24. The Phonograph (1877)

25. The Ediphone or Dictaphone

27. Video Clip • Episode 7 • Edison & Electricity • 32:45-37

28. The Airplane Wilbur Wright Orville Wright

29. Model T Automobile Henry Ford

30. NEW STORES • BETWEEN 1860 TO 1900 • Specialty stores----sold single line of goods • Department stores---combined specialty stores • Chain stores---stores with branches in cities • Mail catalog stores • New ways to advertise Montgomery Wards, J.C. Penney, Macy’s, Sears and Roebuck and Woolworths

31. 1790s  276 patents issued. • 1990s  1,119,220 patents issued. • Gave an inventor the right to make and sell an invention.

32. BUSINESS ORGANIZATIONS • Trusts or Monopoly • Companies in related fields combine under the direction of a single board of trustees. • Shareholders had no say. • Outlawed today.

33. TRUSTS AND MONOPOLIES • BIGGER IS BETTER • A trust or monopoly controls an entire industry • make product cheaper • lower prices to customer

34. MONOPOLIES AND TRUSTS

35. Coke fields Coke fields Coke fields Coal 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 VERTICAL AND HORIZONTAL INTEGRATION Vertical Integration You control all phases of production from the raw material to the finished product Horizontal IntegrationBuy out your competition until you have control of a single area of industry MONOPOLY

36. Carneige Picture ANDREW CARNEGIE • Captain of Industry • Monopolized the steel industry • Rags to riches story---came from Scotland very poor. • Used Bessemer Process to produce steel cheaply. • Used Horizontal & vertical integration.

37. Video Clip • Episode 7 • “New Immigrants” • Carnegie and Bessemer Process • 9 – 18 min.

38. Cartoon Rockefeller JOHN ROCKEFELLER • Captain of Industry • Came from wealth • Formed the first modern corporations in the oil industry Standard Oil • The first billionaire in the U.S. by 1900. • Used Vertical Integration and Horizontal Integration to gain a monopoly in the oil business.

39. CORNELIUS VANDERBILT • After Civil War Vanderbilt bought most railroad lines from New York to Chicago • 1877, controlled 4,500 miles of railroads • Worth over $100 million • Philanthropist--donated $1 million to Vanderbilt University

40. Rockefeller/Control Govt Rockefeller was so wealthy, he dictated to the U.S. Government to protect big business---- laissez faire

41. Rockefeller would be hated by many because he had too much control over the oil industry and the government as viewed by the common man-----Some believed he was corrupt because he took away the right to compete---free enterprise

42. Trusts control govt Big business, monopolies controlled Congress through bribery. This is corruption

43. “History repeats itself-----The Robber Barons of the Middle Ages and the Robber Barons of Today…..”

44. Social Darwinism Belief that in the economic world the strongest companies will survive “The growth of a large business is merely a survival of the fittest.” J. Rockefeller

45. Cartoon Carnegie ANDREW CARNEGIE • Philanthropist • Gave millions to colleges and libraries. • It was the sacred duty of the wealthy to give back to society who has given to him. • Stressed education as a means to better one’s self. • Carnegie Hall

46. “Gospel of Wealth” • The Anglo-Saxon race is superior. • Inequality is inevitable and good. • Wealthy should act as “trustees” for their “poorer brethren.” Andrew Carnegie

48. INDUSTRALIZATION • Poor working conditions • Unfriendliness/impersonalization • Rise in Immigration • Machines replacing workers • Child labor • No Job security • Urbanization Picture: Workers vs Owner

49. WORKING FAMILIES No welfare, or public help. Social Darwinism held poor = weakness. Giving relief or aid will weaken work ethic • 1880 – 5% of industrial workers are kids. • Children began at 12 or 13 • Girls sometimes took jobs so their brothers could stay in school.