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The Rise of Industrial America (1865 – 1900).
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The Rise of Industrial America (1865 – 1900) “As we view the achievements of aggregated capital, we discover the existence of trusts, combinations and monopolies, while the citizen is struggling far in the rear or is trampled to death beneath an iron heel. Corporations which should be the carefully restrained creatures of the law and servants of the people, are fast becoming the masters of the people.” President Grover Cleveland, 1888
What is the “American Dream”? “Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teaming shore, Send these, the homeless, the tempest-tossed, to me; I lift my lamp beside the golden door.” Emma Lazarus, 1883 • James Truslow Adams, in his book The Epic of America, which was written in 1931, stated that the American Dream is "that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement. • Arnold Swarzenegger - To think that a once scrawny boy from Austria could grow up to become Governor of the State of California and stand here in Madison Square Garden to speak on behalf of the President of the United States that is an immigrant's dream. It is the American dream… • Paula Dean - I am living proof that the American Dream still exists. It is still alive and well. There is only one trick, you have to be willing to roll up your sleeves and work very, very hard. • Martin Luther King - I say to you today, my friends, so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream. I have a dream that one day this nation will rise up and live out the true meaning of its creed: "We hold these truths to be self-evident: that all men are created equal."
“From Rags to Riches” “In this model republic, this land of the free – so our orators call it, and why should not we? ‘Tis refreshing to know that without pedigree A man may still climb to the top of the tree.” Horatio Alger The Pursuit of Happyness Protect Your Dreams
Gilded Age - Mansions Andrew Carnegie Henry Frick “The Biltmore Estate”, Asheville, N.C. William Vanderbilt Caroline Astor “The Breakers” - Newport, Rhode Island
The “Gilded Age” • Gilded – adj. – to be covered with a thin layer of gold; to falsely make something cheap and inexpensive look pretty and valuable. • American society was covered with a thin layer of ultra-wealthy people who showed off their wealth (ostentatious), but most people struggled and suffered to survive in very unpleasant conditions.
Following the devastation of the Civil War and the turmoil of Reconstruction, Americans began to DREAM of happier times. In pursuit of their dreams, “The American Dream”, millions of people immigrated to America and migrated westward in search of financial success, political and religious freedom, and the hope of a better life. Though some people saw their dreams come true as the United States grew into a political, industrial, and economic giant, millions of Americans saw their dreams shattered as they suffered at the expense o f a few powerful people. For most, the “American Dream” became a “Nightmare”.
Explain how business and industrial leaders accumulated wealth and wielded political and economic power. • On what inventions did the industrial growth of America depend? Thomas Edison was the most important inventor of the Industrial Age because he established Menlo Parkwhere thousands of inventions were born.
Objective 5.2 – Explain how business and industrial leaders accumulated wealth and wielded political and economic power. 2. Who were the most prominent “Captains of Industry” and with what industries were they associated?
“Captains of Industry” J.P. Morgan - Banking Andrew Carnegie - Steel John D. Rockefeller - Oil Cornelius Vanderbilt - Railroad William Vanderbilt – Railroad
3. What methods did the “Captains of Industry” use to create their business empires and accumulate massive wealth? • Corporations – capital intensive businesses require large sums of $$$; stockholders pool $ together; “economies of scale”: higher profits from mass production, lower costs, less competition • Combination / Consolidation / Integration – the combination of smaller businesses into larger ones to reduce competition; mergers and buy-outs • Horizontal consolidation – effort to eliminate competition by merging companies that produce similar products; Monopolies (John D. Rockefeller) Slide 27 • Vertical consolidation – effort to cut costs by owning mines, farms, oil wells and railroads – control raw materials and transportation (Andrew Carnegie) • Trusts – competing companies that agree not to compete; turn stock over to Board of Trustees who run separate companies as one corporation • Holding Companies – Corporation that buys up stock of competing companies until it owns majority share of all companies (J.P. Morgan and US Steel bought out Carnegie Steel)
Horizontal and Vertical Consolidation John D. Rockefeller monopolized over 90% of oil refinery industry Andrew Carnegie built a company that was worth over $350 million when he sold it in 1901.
4. Why did some people call big business owners “Robber Barons”? Business owners took home huge profits while paying their workers low wages.
5. How did big business owners justify their wealth? • Social Darwinism – extension of Charles Darwin’s “survival of the fittest” theory of evolution; if left alone by govt. the best businesses will survive (natural selection); justification for laissez-faire economy. • “Gospel of Wealth” – Wealth was a sign of God’s favor, those who had it had a Christian duty to share it; give back to society; charity. • Philanthropy – • Andrew Carnegiegave away $350,000,000 to est. Carnegie Foundation, libraries, colleges and universities • John D. Rockefeller gave away $500,000,000 to est. Rockefeller Foundation, University of Chicago, medical institute • Bill Gates – Gates Foundation promotes world health research and education • Why do they do it?
This, then, is held to be the duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance; to provide moderately for the legitimate wants of those dependent upon him; and after doing so to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer, and strictly bound as a matter of duty to administer in the manner which, in his Judgment, Is best calculated to produce the most beneficial results for the community—the man of wealth thus becoming the mere agent and trustee for his poorer brethren, bringing to their service his superior wisdom, experience, and ability to administer, doing for them better than they would or could do for themselves. . . . • Andrew Carnegie. "Wealth," North American Review, CXLVIII (June. 1889). 661-662.
Oil Drake back
Home Insurance Building – 1885 Chicago – Louis Sullivan back
back Biggest Mergers in US History GTE & Bell Atlantic JP Morgan Chase & Bank One Proctor & Gamble and Gillette AOL & Time Warner Bank of America & NationsBank AT&T Broadband / Comcast
“What is the chief end (goal) of man? – to get rich! In what way? – dishonestly if we can; honestly if we must.” Mark Twain, 1871 “my country, ‘is of thee, Once land of liberty, Of thee I sing. Land of the millionaire; Farmers with pockets bare; Caused by the cursed snare – The Money Ring.” Alliance Songster, 1890 “There are many humorous things in the world, among them the white man’s notion that he is less savage than the other savages.” Mark Twain It’s all a matter of perspective!!!
5. How did big business owners justify their wealth? Social Darwinism – extension of Charles Darwin’s “survival of the fittest” theory of evolution; if left alone by govt. the best businesses will survive (natural selection); justification for laissez-faire economy. “Gospel of Wealth” – Wealth was a sign of God’s favor, those who had it had a Christian duty to share it; give back to society; charity. Philanthropy – Andrew Carnegiegave away $350,000,000 to est. Carnegie Foundation, libraries, colleges and universities John D. Rockefeller gave away $500,000,000 to est. Rockefeller Foundation, University of Chicago, medical institute Bill Gates – Gates Foundation promotes world health research and education Why do they do it?
“This, then, is held to be the duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance; to provide moderately for the legitimate wants of those dependent upon him; and after doing so to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer, and strictly bound as a matter of duty to administer in the manner which, in his Judgment, is best calculated to produce the most beneficial results for the community—the man of wealth thus becoming the mere agent and trustee for his poorer brethren, bringing to their service his superior wisdom, experience, and ability to administer, doing for them better than they would or could do for themselves. . . .” • Andrew Carnegie. "Wealth," North American Review, CXLVIII (June. 1889). 661-662.
According to Carnegie, what is the duty of wealthy people? “to produce the most beneficial results for the community” • What is this called? • Who are the “poorer brethren” to whom Carnegie refers? • Who might disagree with Carnegie’s philosophy? 5. What if not enough people accept Carnegie’s philosophy?
Factory workers, immigrants, farmers, African Americans, women, children had to: • Stand up for themselves… or • Get help from other people… or • get help from the government! • PROGRESSIVES!
Assess the impact of labor unions on industry and the lives of workers Essential Question – How can people without power protect themselves?
The Labor Movement What is a labor union? An organization of wage earners formed to represent the interests of its members against the interests of business owners. Why did workers begin to unionize in the 1800s? Skilled workers and craftsmen were replaced by machines and unskilled workers (mechanization and specialization) Most common demands: higher wages, shorter work hours, better working conditions National Trades Union (1834 -1837)
3. What strategies were incorporated by labor unions to get their demands met? What was the most effective tactic? Collective bargaining – legal negotiation between labor and management Mediation – Mediator recommends solution Arbitration – arbitrator mandates settlement (usually favored management) Usually ended badly for workers because mediators and arbitrators were “influenced” by business owners Strike – work stoppage intended to force employers to meet demands (most effective tactic)
4. What would business owners do to prevent or stop strikes? • employers often preempted strikes with Lockouts – wouldn’t let workers return until they gave in • Blacklists – employers shared names of pro-union workers and refused to hire anyone on the list • Yellow-dog contracts – workers had to agree NOT to join a union before they got hired • Private guards / Pinkertons were used to spy on workers and break up union activities/meetings • Courts almost always sided with big businesses – issued court injunctions to end strikes order workers back to work
5. Name the 5 most significant labor unions of the labor movement. Knights of Labor – 1869 – open to all; “equal pay for equal work” American Federation of Labor (AFL) – 1886 joined many craft unions together; only for skilled workers; successful strikes for higher wages and shorter workweek Industrial Workers of the World (IWW) “Wobblies” – 1905 – unskilled workers advocated socialism and radical tactics American Railway Union (ARU) – 1894 – skilled AND unskilled workers; successful strike for higher wages International Ladies Garment Workers – 1909 – Triangle Shirtwaist Factory fire; improved workers conditions 6. Who were the three leading figures in the American labor movement of the late 19th century, and with what organization was each associated? Terence Powderly & Uriah Stephens – Knights of Labor Samuel Gompers – AFL – led several successful strikes Eugene V. Debs – ARU – strong supporter of Socialism; most famous labor leader; ran for president multiple times
7. Why did most Americans fear the Socialist views of Eugene V. Debs and the Wobblies? Most workers and labor unions preferred MODERATE methods and changes to improve conditions Some Socialists promoted RADICAL changes to capitalist economic system – government control of businesses and equal distribution of wealth Socialists and Wobblies (IWW) often advocated violent takeovers of businesses – intentionally turned strikes into riots
8. What event most caused the general public to turn against the labor movement? Why? Haymarket Square Riot – Chicago May 4, 1886 Protest of police brutality at McCormick Harvester plant Bomb killed 7 police; shots fired; chaos ensued 8 convicted of “inciting riot”; 4 hung to death • As more strikes ended in violence labor movement lost public sympathy and were perceived as lawless barbarians
Goal 5.3 - Labor Unions GROUP POSTER ACTIVITY Group Tasks: • Runner – get materials for group work (listed below), use tape to hang up poster • Designer – draw poster layout and write information on poster • Researcher – Use textbook to find necessary information for poster (pp.453-455) • Artist – Produce illustration(s) that depicts significant events or aspects of the strike Required Materials: • 1 piece chart paper • 2 or 3 Markers • Ruler • Text book • Labor Movement Strikes Chart (handout) INSTRUCTIONS: • Send runner to front table to get materials for poster. • Research necessary information for assigned Labor Strike, and write info. on chart. • Create poster following example on PowerPoint slide (below). • Produce picture in center of poster to illustrate events of the Strike. • Create a Picket Sign Slogan for the strike as part of center picture. • Hang poster on wall/front board for display and return to seats. • Starting at the poster your group produced, rotate with your group clockwise from poster to poster to complete your chart with info from other posters.
Name of Strike DATE & PLACE PARTICIPANTS Picket Sign Slogan Picture of Strike ISSUES / DEMANDS ENDING & RESULTS
Immigration? How many of you moved to Charlotte from another town, state, or country? Why? From Where? • 2012 Election Results
