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Industrialization - PowerPoint PPT Presentation

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Industrialization. 1865-1901. What led to industrialization?. Cheap labor New inventions and technology Plenty of raw materials Railroads. The United States Industrializes. After the Civil War, industry rapidly expanded and millions of Americans left farms to work in mines and factories.

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What led to industrialization
What led to industrialization?

  • Cheap labor

  • New inventions and technology

  • Plenty of raw materials

  • Railroads

The united states industrializes
The United States Industrializes

  • After the Civil War, industry rapidly expanded and millions of Americans left farms to work in mines and factories.

  • Gross National Product - the total value of all goods and services produced by a country.

  • By 1914 our GNP was eight times greater than it had been when the Civil War ended.

Natural resources
Natural Resources

  • Water, timber, coal, iron, and copper were available in the United States.

  • American companies could obtain them cheaply and did not have to import them.

  • Many of these resources were located in the mountains of the American West.

  • Railroads brought settlers and miners to the region and carried the resources back to factories in the East.

  • New resources like petroleum were developed.

A large workforce
A Large Workforce

  • Between 1860 and 1910, the population of the United States almost tripled.

  • This population increase provided industry with large workforce and created a greater demand for consumer goods.

  • Population growth was the result of larger families and a flood of immigrants coming to the United States.

Free enterprise
Free Enterprise

  • Laissez-faire - let people do as they choose.

  • Laissez-faire relies on supply and demand rather than the government to regulate prices and wages.

  • Laissez-faire supports low taxes and keeping the governments debts low.

  • Competition between companies is good.


  • Alexander Graham Bell - telephone

  • Thomas Alva Edison - phonograph, light bulb, electric generator, battery, mimeograph, and the motion picture

  • Gustavus Swift - refrigerated train car


  • Pacific Railway Act (1862) - provided for the construction of a transcontinental railroad.

  • Union Pacific pushed westward from Omaha, Nebraska.

  • The Central Pacific pushed eastward from California.

  • Railroads increased the size of markets for many products

Land grants
Land Grants

  • Land grants were given to many railroad companies to encourage railroad construction.

  • Railroad companies would then sell the land to settlers, real estate companies, and other businesses to raise money to build the railroad.



  • A corporation is an organization owned by many people but treated by law as though it were a single person.

  • The people who own the corporation are stockholders.

Economies of scale
Economies of Scale

  • With the money a corporation made for the sale of stock, they could invest in new technologies, hire a large work force, and purchase many machines.

  • Corporations make goods more cheaply because they produce so much so quickly using large manufacturing facilities.

Fixed costs
Fixed Costs

  • Costs the company has to pay whether or not it is operation

  • For example: loans, mortgages, and taxes

Operating costs
Operating Costs

  • Costs that occur when running a company.

  • For example: paying wages, shipping charges, buying raw materials and other supplies.


  • Many corporate leaders did not like intense competition.

  • To stop prices from falling, many companies organized pools to maintain prices at a certain level.

Andrew carnegie
Andrew Carnegie

  • Born to a poor family in Scotland.

  • He came to America as a young boy.

  • As a young man, he bought shares in iron mills and factories.

  • In 1875 he opened a steel company in Pittsburgh.

Vertical and horizontal integration page 321
Vertical and Horizontal Integration Page 321

  • Vertical Integration - a company owns all of the different businesses on which it depends for its operation

  • Horizontal Integration - combining many firms engaged in the same type of business into one corporation.

Big business
Big Business

  • A monopoly is when a single company controls an entire market.

  • A trust is a legal concept that allows one person to manage another person’s property.

  • A holding company does not produce anything itself. Instead it owns stocks in a company that does produce goods.


  • Trade unions are limited to people with a specific skill.

  • Industrial unions united all craft workers and common laborers in a particular industry.

  • If workers formed a union, companies often used a lockout to break it. Owners would lock the workers out and refuse to pay them.

  • If the Union called a strike, employers would hire strikebreakers.

Great railroad strike of 1877
Great Railroad Strike of 1877

  • In 1873 a severe recession struck forcing many companies to cut wages

  • In July 1877, several railroads announced more wage cuts.

  • This triggered the first nationwide labor protest.

  • Railroad workers across the country walked off of the job. There were 80,000 workers in 11 states involved.

Great railroad strike
Great Railroad Strike

  • Angry strikers smashed equipment, tore up tracks, and blocked rail service.

  • The governors of several states called in the militia to stop the violence.

  • By the time the strike ended, 100 people were dead and millions of dollars of property were destroyed.

Knights of labor
Knights of Labor

  • The Knights of Labor - first nationwide industrial union.

  • Wanted an 8 hour workday, supported equal pay for women, the abolition of child labor, and the creation of worker-owned factories.

Haymarket riot
Haymarket Riot

  • In 1886 organizers called for a nationwide strike on May 1 to s

  • how support for an 8 hour work day.

  • On May 3, strikers and police clashed. One striker was killed.

  • The next night an anarchist group met in Haymarket Square to protest the killing.

  • 3000 people gathered.

Haymarket riot1
Haymarket Riot

  • As police entered the square, someone threw a bomb.

  • The police opened fire and workers fired back.

  • Seven police officers and four workers were killed.

  • Police arrested 8 people for the bombing.

  • Seven of the men arrested were German immigrants and anarchists

  • All 8 men were convicted, 4 were executed.

The pullman strike
The Pullman Strike

  • In 1893 railroad workers created the American Railway Union.

  • Eugene Debs was the leader.

  • Pullman Palace Car Company of Illinois belonged to the ARU.

  • Workers went on strike because of an issue over wages.

Pullman strike
Pullman Strike

  • In support, the ARU stopped handling all Pullman cars.

  • The railroad managers arranged for U.S. mail cars to be attached to the Pullman cars.

  • If strikers refused to handle the cars they would be interfering with the mail - a violation of federal law.

  • President Cleveland sent in troops.

American federation of labor
American Federation of Labor

  • Delegates from over 20 trade unions organized the AFL.

  • Samuel Gompers was the leader.

  • AFL should fight for higher wages and better working conditions.

  • He was willing to strike but preferred negotiations.

American federation of labor1
American Federation of Labor

  • Goal 1 - tried to get companies to recognize unions and agree to collective bargaining.

  • Goal 2 - pushed for closed shops meaning that companies would hire only union members

  • Goal 3 - pushed for an 8 hour workday.

Women s trade union league
Women’s Trade Union League

  • Dedicated to promoting women’s labor issues.

  • Pushed for an 8 hour work day, creation of minimum wage, and end to evening work for women, and the aboliton of child labor.