Industrialization and Urbanization

1. Industrialization and Urbanization 1877-1900

2. Industrial Growth Common characteristics of industrial growth in America: Exploitation of coal as a cheap energy source Rapid spread of technological innovation Demand for labor Constant competition among industry rivals Pressure to eliminate rivals and form monopolies Consistent drop in price levels preventing inflation Inadequate money supply creating high interest rates

3. Reasons for Expansion Advances in technology/industry: Telegraph/Telephone (Bell) Improved steam engine (Fulton) Safely generated electricity Electric light bulbs Bessemer steel process Standardized railroad procedures Refrigerated railroad cars Modern assembly line (Ford) Abundance of raw materials Iron ore (steel), Coal, Petroleum Rapid transportation system (railroads) Abundance of capital for expansion Growing market economy

4. Why are railroads the most important industry during this period of time?

5. Corporate Consolidation Tremendous profits gave rise to tremendous competition Companies lowered prices to compete in the market Lower prices meant cutting costs Scientific management Eliminating competition prevented the need for better/cheaper methods Forming monopolies Vertical integration: acquiring companies in related industries to control all aspects of production Horizontal consolidation: acquiring multiple companies in the same industry to prevent competition Growth of trusts Large banking interests bought out multiple companies within many industries

6. Criticisms of consolidation Government response: government is officially laissez faire Very little government interference with massive trusts Monopolies allowed to operate at expense of consumer “Robber Barons” Title given to ruthless industrialists Business owners made huge profits in relation to wages paid to their workers Double standard: People both despised and idolized the industrial giants Myth of the “self made man” (Horatio Alger) Rockefeller vs. Carnegie Opposing strategies Similar results

9. How is the idea of a self made man used as a form of social control?

10. Labor Key component to industrialization: availability of cheap labor Sources: (in order of pay/status) Former artisans/farmers Immigrant population Free blacks Women Children Unskilled laborers faced numerous hardships Dangerous conditions Low pay Long hours Boring jobs Low wages rapidly widen the gap between rich and poor

11. Social Theory Social Darwinism Argued by Herbert Spencer and William Graham Sumner Application of natural selection and survival of the fittest to the working population In line with the laissez faire political ideology Promoted by wealthy industrialists Gospel of Wealth Originated with Andrew Carnegie Wealthy should give a substantial portion of their money back to charities and philanthropic causes Firmly opposed government redistribution of wealth Critics of industry Lester Frank Ward (Dynamic Sociology) Edward Bellamy, Looking Backward

12. Labor Unions Primary power of unions: collective bargaining Types of unions Trade unions Craft unions National labor unions National Unions Knights of Labor First major national union 1869 Included all laborers, believed in “cooperative system” AFL-American Federation of Labor Started by Samuel Gompers in 1886 Focused on uniting skilled labor trade unions Believers in capitalism

13. Labor Unions ARU American Railway Union Craft Union of railway workers Led by socialist Eugene V. Debs IWW Industrial Workers of the World 1905 Known as the wobblies Heavily socialist union Organized workers in Western states Lead by “Big Bill” Haywood

18. Labor Unions Demands of unions 8 hour work day abolition of child labor increased wages Massive number of strikes in the mid 1880’s-early 1890’s dramatically weaken major labor unions 1877 Rail Strike Haymarket Affair 1886 Homestead Strike 1892 Pullman Strike 1893 Violence in strikes grew dramatically as workers became more desperate U.S. Presidents consistently sided with business Use of Sherman Anti-Trust Act

22. Labor Unions Weaknesses of unions Only a small % in unionized (4% by 1900) Exclusion of women, blacks, and immigrants Tension between multiple groups Pressure from corporations Assistance to business from state/federal government Loss of public support

23. Without powerful unions is it possible for workers to improve their position in relation to business?

24. Urbanization Lure of the Cities Jobs as unskilled laborers Higher wages Wealth Culture Education Urban transportation networks (streetcars, commuter trains) allow large cities to continue to grow away from city centers Most people were highly mobile Movement of wealthy to suburban areas Immigration adds to urban population Early populations had moved West After 1880 most settle in large cities

27. Problems of the Cities Poor conditions in central cities Tenement housing Fire danger Overcrowding Poor sanitation Spread of disease Contaminated water Social problems Alcoholism Prostitution Crime Extreme nativism Competition for jobs leads to anti immigrant legislation Often bad feelings between ethnic groups

28. Which ethnic group was seen as the lowest by nativists?

30. Problems of the Cities Machine Politics Urban politics dominated by corruption Machine politics operates on patronage and graft Able to enlist immigrant groups Massive voter fraud in many cases Example: NYC Tammany Hall 1860-1880 William Marcy “Boss” Tweed Tweed Ring National politicians dependent on urban political machines to get elected results in increasing power of political machine

32. Urban Reformers Social Gospel Movement Launched by Protestant ministers Response to laissez faire and Social Darwinist policies Placed blame not on city dwellers but the upper class Settlement House Movement Led by women like Jane Addams Fought poverty by removing the individuals from it Run primarily by middle class women Beginning of increasing women’s role in reforms