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Bell Ringer. What invention is most valuable to your daily life? What invention do you think has done the most damage to our lives/society?. Industrialization. Industry Comes of Age. Industrial Review. Change from human labor to machines Development of new energy sources
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Bell Ringer What invention is most valuable to your daily life? What invention do you think has done the most damage to our lives/society?
Industry Comes of Age
Industrial Review • Change from human labor to machines • Development of new energy sources • Increased use of natural resources • Standardization of products • Effects on environment • Effects on politics and economics
Industry Comes of Age • The railroads were the first “big business” in America. • Standard gauge and Westinghouse air brakes increased efficiency and safety, Pullman Palace Cars increased comfort for travelers • Effects of the railroads • East and Western markets were now linked • Travel and shipping was now eased • Western cities boomed • Millionaires (and some Billionaires) were made
Problems of the Railroads • “stock watering” – railroads would artificially talk up the company so the stock would skyrocket • Bribes were given to governmental officials and major customers. • The formation of “pools” – where competitors agreed to cooperate as if they were one mega company • Rebates were given to large companies that shipped large quantities of goods; kept rates high for the little guy. • Free passes were given to members of the press to ensure good publicity.
Attempts to Fix Railroad Abuses • The National Grange of the Order of Patrons of Husbandry (The Grange) protested the inequalities in railroad prices • The Wabash case – the Supreme Court said that states cannot regulate interstate trade, only Congress can • Interstate Commerce Act/Commission (1887) – outlawed rebates and pools and requires rates to be openly published and banned charging low rates for high quantity shippers and high rates for low quantity shippers
Steamboat The main method of transportation of goods and passengers in the early and mid-nineteenth century. Vastly decreased the time needed to move goods, making them cheaper. Its reign was effectively ended by the creation of the locomotive.
Telegraph A long-distance transmitter of written messages using electric pulse, without physical transport of letters. First message by telegraph: "WHAT HATH GOD WROUGHT." Effectively ended the Pony Express.
Telephone Alexander Graham Bell was the first to be awarded a patent for the electric telephone by the United States Patent Office in March 1876. The first phrase over the telephone: “Mr. Watson, come here. I want to see you.” Would replace the telegraph as America’s main method of communication by the early 1900s.
Phonograph Invented by Thomas Edison, it was the most common device for playing recorded sound from the late 1870s until the late 1980s, when it was replaced by tape recorders and compact discs. It could both record and play sound.
Electric Motor Developed by Nikola Tesla, it uses electrical energy to produce mechanical energy, usually through the interaction of magnetic fields and current-carrying conductors. Was cleaner and more powerful than other forms of power.
Incandescent Lightbulb Invented by Thomas Edison, it was an electric light which produced light with a filament wire heated to a high temperature by an electric current through it, until it glowed. Allowed factories to stay open later, and removed the danger of fires.
Automobile A vehicle constructed principally for the transport of people rather than goods. Karl Benz generally is acknowledged as the inventor of the modern automobile. Would soon replace horse and carriage as the main form of human transportation.
Henry Ford and the Model T • Produced by Henry Ford's Ford Motor Company from 1908 through 1927. • It is generally regarded as the first affordable automobile, the car that "put America on wheels." • Some of this was because of Ford's innovations, including assembly line production, as well as the concept of paying the workers a wage proportionate to the cost of the car, so that they would provide a ready made market.
Free Enterprise • Companies compete for customers by making a better product at better prices.
Inventor of Alternating Current (AC), X-Rays, radio, RADAR, remote control, neon lighting, wireless communications, the electric motor, etc. etc. etc.
The White City
Free Enterprise Drink! You will be designing a drink that would appeal to high-schoolers. You will come up with a name, design the can, and come up with a slogan or catchphrase for your drink. You must make it clear what sets your drink apart from the rest, as well as come up with a competitive price for your drink. You will be “selling” this to your classmates, so make sure it’s creative and something you would buy! Free Enterprise: Companies compete to win customers by making the best products at the lowest prices.
Captains of Industry and Robber Barons The Gilded Age
LaissezFaire • French phrase meaning, “let do,” or “hands off” • Government keeps it’s hands off business, except to protect private property, allowing open competition.
Monopoly • When a single company achieves control over an entire market. • Benefits: • Makes the owner very rich • Consistency in products • Costs: • Prices go up • No competition, so no choice
How does a monopoly happen? • Vertical Integration The company owns all the different businesses on which it depends for its operation.
How does a monopoly happen? • Horizontal Integration Combining many firms engaged in the same type of business into one large corporation.
Social Darwinism • An ideology that applies Darwin’s evolutionary theory to society and politics. • Feel that conflict between groups in society leads to social progress as superior groups outcompete inferior ones.
You can see it two ways… 1.Captains of Industry: • Served USA positively, created jobs, increased productivity, expansion of markets, providing more jobs. • Philanthropists- giving to charities, founding libraries and museums • Built fortunes from exploiting workers, form anti-competitive trusts, and place the accumulation of wealth above all else • Engaged in some unethical and illegal business practices 2. Robber Barons:
The Wealthiest Americans EVER… and he’s not even #1!
THE Robber Baron Jay Gould is the archetype of the robber baron • He and his partner, James Fisk, joined with Tammany Hall and made Boss Tweed a director of the Erie Railroad, and Tweed, in return, arranged favorable legislation for them. • Gould boomed and busted railroad stock using “stock watering” • Gould and Fisk began to buy gold in an attempt to corner the market. These speculations in gold culminated in the panic of Black Friday, on September 24, 1869. • Gave rebates to large companies that shipped large quantities of goods; kept rates high for the little guy.
Masters of Business: The men who built America Carnegie Rockefeller Vanderbilt Morgan
Cornelius Vanderbilt – Railroad Baron I choo-choo- choose you! • Cornelius Vanderbilt began consolidating the New York Central line, which resulted in cheaper fares/rates and faster lines; started to use steel rails – stronger, lasted longer, and didn’t rust as fast.
Andrew Carnegie – Steel Baron • Carnegie became the master of the steel industry with the U.S. Steel Corporation • Located in Pittsburgh, Pennsylvania • In its first full year of operation, U.S. Steel made 67 percent of all the steel produced in the United States. • Today, over a century after its founding, U.S. Steel remains the largest integrated steel producer headquartered in the United States.
John D. Rockefeller –Oil Baron • The oil boom started with a gusher in Pennsylvania, and the desire for oil was enhanced by the creation of the internal combustion engine. • Rockefeller’s Standard Oil Company would either force a competitor out of business or buy them out to grow even larger • He controlled 90-95% of the oil in the U.S. • He used interlocking directorates to make his fortune: he would place his own men on the board-of-directors for “competitors”. Their decisions would be to cooperate, not compete. • Was aided by “economies of scale” where large companies produce a cheaper product and thus put even more pressure on the “little guy”
J. Pierpont Morgan • John Pierpont Morgan (1837-1913), the most powerful American banker of his time, helped build a credit bridge between Europe and America and financially rescued the United States government twice. • Bought Carnegie’s U.S. Steel and built it into the world’s first billion dollar company. • Also used interlocking directorates to gain power and influence
"Law? Who cares about the law. Hain't I got the power?"—Comment alleged to have been made by Cornelius Vanderbilt, when warned that he might be violating the law
“You have undertaken to cheat me. I won't sue you, for the law is too slow. I'll ruin you. “—Cornelius Vanderbilt
"I believe the power to make money is a gift of God. . . . I believe it is my duty to make money and still more money and to use the money I make for the good of my fellow man according to the dictates of my conscience.“ -John D. Rockefeller
Vanderbilt University Anderson Cooper
Gospel of Wealth • Gospel of Wealth: Andrew Carnegie stated that the rich have a moral obligation to give away their fortunes. • He asserted that all personal wealth beyond that required to supply the needs of one's family should be regarded as a trust fund to be administered for the benefit of the community. • Carnegie’s philanthropic interests centered around the goals of education and world peace. • He established thousands of free public libraries to make available to everyone a means of self-education • Carnegie gave away over $350 million during his lifetime
