1 / 39

Industrialization 1865 – 1901

Industrialization 1865 – 1901. Industrialization. Causes. Natural Resources. The United States Becomes an Industrial Nation. Large Workforce. Free Enterprise. New Inventions. Natural Resources. Water, timber, coal, iron & copper Transcontinental Railroad played a part

neo
Download Presentation

Industrialization 1865 – 1901

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Industrialization 1865 – 1901

  2. Industrialization Causes Natural Resources The United States Becomes an Industrial Nation Large Workforce Free Enterprise New Inventions

  3. Natural Resources • Water, timber, coal, iron & copper • Transcontinental Railroad played a part • 1859 – Edwin Drake drills first oil well in Titusville, Pennsylvania

  4. Large Workforce • US population triples between 1860-1910 • 30 million to 90 million • Increased demand for goods and services • Immigration • 1870 to 1910 20 million immigrants

  5. Free Enterprise • Laissez-faire – “let people do as they choose” • No government intervention • Free Markets • Entrepreneurs – risk takers and innovators • In late 1800’s invested in manufacturing

  6. Railroads • Pacific Railway Act (1862) – construction of transcontinental railroad • Union Pacific • 10,000 workers – Civil War vets, Irish Immigrants, farmers, miners, ex-cons • Central Pacific • 10,000 Chinese workers • Met at Promontory, Utah

  7. Railroads (cont) • Railroads linked the nation • Larger markets for goods • Stimulated the economy • Spent money on steel, coal, timber, etc.

  8. Railroads (cont) • 1883 – American Railway Association divided country into four time zones

  9. Railroad Abuses (Corruption) • Land Grants – free land given to railroad companies to encourage construction • Railroads sold the land to settlers, real estate agencies, and others • Price Fixing – agreements between companies to set prices • Kept farmers in debt

  10. Railroad Abuses (cont) • Credit Mobilier – owned by Union Pacific • Awarded UP’s contracts, then overcharged UP • Money went into the pockets of the UP investors • Union Pacific almost went bankrupt • Congress gave more land grants • Investigation implicates many members of congress

  11. Railroad Abuses (cont) • Interstate Commerce Act • Tried to stop railroad abuses and corruption • Federal govt oversees railroads

  12. Rise of Big Business • By 1900 big businesses dominated economy • Corporation –organization owned by many people, but treated by law as if a single person • Owners buy shares of stock and are called stockholders • Allows a corp. to raise large sums of money

  13. Corporations vs. Small Manufacturing Companies • Small Manufacturing Companies • Low Fixed Costs • High Operating Costs • Shut down during poor economies • Corporations • High Fixed Costs • Low Operating Costs • Lots of money to maintain factories during poor economies The Shoe Cobbler Versus Nike Shoe Corp.

  14. Consolidation of Industry • Small companies were forced out of business-designed to eliminate or reduce competition, so are Corporations unethical? • Monopoly – when a single company controls an entire market

  15. Consolidation of Industry (cont) • Vertical Integration • company that owns all the different businesses it depends on for operation

  16. Consolidation of Industry (cont) • Horizontal Integration • combining many firms doing the same type of business into one large corporation

  17. Consolidation of Industry (to eliminate or reduce competition) • Trusts – allows one person to manage another’s property • Standard Oil forms first trust • Controlled 90% of refining • Holding Company – Owns stock of other companies, does not produce anything • Robber Baron – Capitalist who became wealthy through exploitation or Captains of Industry…i.e. Andrew Carnegie -Steel/John D. Rockefeller-Oil

  18. Consolidation of Industry (cont) • Andrew Carnegie • Poor Scottish immigrant who became very rich • Made early money in railroad • Invested in Carnegie Steel company in 1873 • Known for his work in the steel industry • Donated 90% of his total wealth to charity and the arts, “The Gospel of Wealth”

  19. Consolidation of Industry (cont) • Sherman Antitrust Act – made it illegal to interfere with free trade

  20. Between 1865 – 1897, the U.S. experienced deflation – rise in the value of money Prices fell Companies cut wages Workers begin to organize labor unions Labor Unions

  21. Labor Unions (organize) • Reasons for Unions • Long hours, 12+ hours/day, 6 days/week • Low Wages • Poor, Unsafe conditions • No job security

  22. Labor Unions (cont) • Child Labor • Long hours, Less pay • More Danger

  23. Labor Unions (cont) • Trade Unions – formed by craft workers limited to those with a specific skill • By 1873, there were 32 trade unions • Industrial Unions –united craft and common laborers • Companies outwardly opposed them

  24. Labor Unions (cont) • Strategies vs. Unions • Contracts promising not to join a union • Hiring private detectives (Pinkertons) • Blacklists – preventing troublemakers from getting new jobs in their industry • Lockouts – Workers were locked out of the worksite and not paid • Strikebreakers – workers hired to replace strikers • Also called “scabs”

  25. Labor Unions (cont) • Karl Marx “The Communist Manifesto” • World history was a class struggle between the oppressing owners and the oppressed workers • The proletariat (working-class oppressed) would overthrow the bourgeoisie (middle-class oppressors) in a violent revolution and set up a dictatorship • Produce a society without classes

  26. Labor Unions (cont) • American Federation of Labor • Large trade union • Samuel Gompers was first leader • Wanted to have unions accepted in America • Three goals: • Have companies recognize unions • Closed shops – can only hire union workers • 8 hour workday

  27. Labor Unions (cont) • Knights of Labor • 8 hour workday • Equal pay for women • End of child labor • Worker-owned factories • Favored arbitration – third party helps workers and management come to an agreement

  28. Labor Unions (cont) • By 1900, women were 18% of workforce • Paid less than men • Not allowed in unions • Women’s Trade Union League (WTUL) – first union dedicated to women’s labor issues • Created by Mary Kennedy O’Sullivan & Leonora O’Reilly

  29. Labor Unions (cont) • Great Railroad Strike • 1877-Railroad workers strike to protest wages being cut • 80,000 workers in 11 states • Destroyed railroads and trains • Violence erupted • President Hayes forced to call out the army to stop it

  30. Labor Unions (cont) • Haymarket Riot • 1886-Chicago-Protest against police brutality • Clash between strikers and police involving a bomb and gunfire • 7 police and 4 workers killed

  31. Labor Unions (cont) • Homestead Strike-”The River Ran Red” • The Homestead Strike was an industrial lockout and strike which began on June 30, 1892, culminating in a battle between strikers and private security agents on July 6, 1892. • The dispute occurred at the Homestead Steel Works in the town of Homestead, Pennsylvania, between the Amalgamated Association of Iron and Steel Workers (the AA) and the Carnegie Steel Company. • The final result was a major defeat for the union and a setback for efforts to unionize steelworkers.

  32. Labor Unions (cont) • Pullman Strike • 1894-The American Railway Union (ARU) led by socialist Eugene Debs strikes against the Pullman Palace Car Company • Turned violent after company hired strikebreakers

  33. Effects of Industrialization • Growth of large corporations • New and plentiful manufacturing goods • Poor working conditions in factories and sweatshops • Increased labor activism

More Related