gilded age industrialism n.
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  1. GILDED AGE INDUSTRIALISM Unit VIA AP United States History

  2. American Industrial Expansion With the completion of Manifest Destiny throughout continental U.S., the nation encompassed near-perfect elements for massive industrialization and economic expansion Economic Resources Land Abundance and discovery of vast deposits of coal, iron ore, copper, timber, oil, gold, silver, agricultural Labor Cheap wages, immigration, population growth Capital Industrial capitalism and finance capitalism Federal subsidies and land sales Second Industrial Revolution and technological innovation Entrepreneurial Ability Captains of Industry/Robber Barons

  3. Captains of Industry OR Robber Barons Using four business entrepreneurs as case studies for American innovation, industrial growth, and expansion of capitalism. Cornelius Vanderbilt Andrew Carnegie John D. Rockefeller J.P. Morgan

  4. Captains of Industry OR Robber Barons:Cornelius Vanderbilt and Railroads Acquired his wealth in steamships and expanded into railroads in 1860s Revamped northeast railroads through consolidation and standardization New York Central Railroad Regional railway system from New York to Chicago Replaced and built lines with standard gauges Implementation of steel Stronger to carry heavier loads Safer due to no corrosion Vanderbilt University

  5. Railroads Drive the Economy Growth and Influence 35,000 miles (1865) to 200,000 miles (1900) First Transcontinental Railroad (1869) Leland Stanford’s Union Pacific and Central Pacific meet at Promontory Summit, UT Market connections, boomtowns, and jobs Federal Government Involvement Pacific Railway Acts Land grants and government bonds to railroad companies Requirement of standardized gauges By 1871, federal and state governments sold 300,000,000 acres of land to railroads Innovation and Improvement Standardized gauges Westinghouse air brakes Steel Time zones

  6. The Business of Railroads Rate Wars Competition among railroad companies was fierce and intense Stronger companies lowered rates to drive out weaker companies Led to monopolies Increased rates dramatically Long haul and short haul rates Price discrimination favored commercial farmers over small farmers Stock watering/watered stock Inflated stocks led to higher consumer rates Pools Competing lines fixed prices and divided business for max profits Grange Lines Midwest farmers dependent on rail lines for shipping High freight rates impoverished farmers

  7. Commercial Farming Agriculture became commercialized on cash crops for national and international markets Influx of Eastern capital and investment From subsistence to market/stores Pushed out local/small farmers Competition, deflated currency, and overproduction lowered prices while input costs increased “Middle Men” Farmers lost massive share of profits to managers of their sales Grain elevator and railroad companies charged expensive rents and transportation costs

  8. The Farmers Organize Fueled by the Granger Movement Granger laws Munn v. Illinois (1877) States could regulate private companies if they served the public interest, I.e. grain elevators, railroads Wabash, St. Louis & Pacific Railway Co. v. Illinois (1886) States could not regulate interstate commerce Interstate Commerce Act (1886) Interstate Commerce Commission (ICC) Enforce fair railway rates, prohibit discriminatory practices by railroads National Alliance and the Ocala Platform (1890) Unity against corporations and monopolies Favored direct election of Senators, lower tariffs, graduated income tax, federal banking system Evolves into People’s Party (Populists) and Omaha Platform (1892)

  9. Captains of Industry OR Robber Barons:Andrew Carnegie and Steel Managed Pennsylvania Railroad and invested in various industries Steel Bessemer Process Vertical Integration Urbanization and Cities Labor Unions and Strikes

  10. Bessemer Process Oxidation of iron ore to remove impurities Steel is lighter, stronger, rust-resistant Carnegie and Steel Adopted and adapted Bessemer Process to steel plants Increased supply of quality steel dropped steel prices Abundance of steel significantly impacted American industrial growth and expansion

  11. Steel Production

  12. Vertical Integration Carnegie acquired all aspects of steel production Limited competition, maximized profits, lowered prices

  13. Steel and Cities Buildings Skyscrapers Steel beams Infrastructure Railroads Bridges Brooklyn Bridge Urban Innovation Mass Transit Elevated rails Subways Elevators Central steam-heating systems

  14. Home Insurance Building Chicago 1885 Flatiron Building/Fuller Building New York 1902

  15. Gilded Age Urbanization Urbanization Population increasingly moving to cities Mechanization of agriculture Economic opportunities with increased industrialization Increased infrastructure Streetcars, bridges, subways Skyscrapers, elevators, radiators City Layouts Business centers Older sections Immigration and minorities Suburbs Middle and upper class moved outside of cities to escape urbanization Urban reform developments

  16. Urban Problems Overcrowding Tenement Living Pollution Crime Sanitation/Water Treatment Disease

  17. Urban and Social Reforms Municipal services Social Gospel Apply Christian values toward social problems and issues Josiah Strong, Walter Rauschenbusch, Richard T. Ely Settlement Houses Jane Addams and Hull House YMCA Salvation Army Social Criticism Jacob Riis - How the Other Half Lives (1889) Henry George - Progress and Poverty (1879)

  18. Working Conditions Typical 12 hour days, 6 days a week Conditions Poor ventilation and heavy equipment In 1882, average of 675 workers killed each week Injured = fired No benefits, such as vacation days, sick leave, health insurance, workers’ compensation, pensions Women Earned half of what men earned in comparable or same jobs Child Labor As young as 5 years old 12-14 hours for $.27 ($6.65)

  19. Unions vs. Management Industrialization, mass production, use of semiskilled workers = devalued labor Poor and dangerous working conditions, immigrants, and meager salaries = upset workforce Organized labor to appeal for better conditions, higher salaries, benefits Union Methods: political action and efficacy, strikes, picketing, boycotts, slowdowns Industrialization, mass production, use of semiskilled workers = increased profits Poor and dangerous working conditions, immigrants, and meager salaries = increasing profits and satisfied management Developed image of unions and organized labor as un-American, socialist, anarchist Management Methods: lockouts, scabs, blacklists, yellow-dog contracts, government/private force, court injunctions

  20. National Labor Union (NLU) Founded in 1866 as the first national labor union Platform 8-hour workday Monetary reform, cooperatives Racial and gender equality Impact 8-hour workday for federal employees Decline Panic of 1873 Knights of Labor

  21. Great Railroad Strike of 1877 July 14-September 4, 1877 Causes Panic of 1873 Class conflict with wage cuts and unemployment Events Strikers forced rail stoppages Federal troops engaged strikers Riots and massacres Impact Would lead to better organization of workers and labor unions Legislation to limit unions and preparations for potential conflicts

  22. Knights of Labor Founded in 1869 Terence V. Powderley Claimed over a million workers by 1880s Platform Open to blacks, women, most immigrants, Catholics, unskilled and semi-skilled workers Cooperatives and anti-trusts 8-hour workday, child labor laws Preferred arbitration over strikes Decline Haymarket Bombing AFL

  23. Haymarket Riot of 1886 May Day (May 1st) Strike begins of harvesting workers May 3rd Police sent to protect strikers Fight broke out and one person killed and several injured May 4th Protest Anarchists planned demonstration against police brutality Police dispersed crowd of 2,000 Bombing A pipe bomb exploded and killed 7 police officers Police fired into crowd killing 4 Trial 8 innocent anarchists convicted of murder in a show trial 4 hanged, 1 committed suicide, 3 pardoned by governor

  24. American Federation of Labor (AFL) Founded in 1886 as an organization of national craft unions of skilled workers Samuel Gompers “Bread and Butter” Unionism Higher wages Shorter working hours Better working conditions Tactics Used arbitration and strikes Avoided political radicalism and extremism

  25. Homestead Strike June 30-July 6, 1892 Henry Frick Manager of Carnegie Steel Pursued wage cuts due to lower steel prices Attempted to weaken steel workers union Events Frick orders a lockout and hires scabs Use of Pinkertons to disperse strikers State militia broke the strike and took over the plant Impact Weakened steel workers union Tarnished Carnegie’s reputation

  26. Pullman Strike (1894) Pullman Palace Car Company Established “model town” for workers In response to Panic of 1893, wages cut but not rents and town costs Eugene V. Debs Led strike with American Railway Union Strike Workers blocked transport of Pullman cars Pullman Co. linked them to mail cars President Grover Cleveland deployed federal troops and court injunctions to enforce postal service Opinion Most Americans opposed the strike Included AFL and Samuel Gompers In Re Debs (1895) Supreme Court ruled federal court injunctions to enforce interstate commerce constitutional

  27. Captains of Industry OR Robber Barons:John D. Rockefeller and Oil Horizontal Integration Standard Oil Trusts and monopolies Sherman Anti-trust Act (1890) Gilded Age Society Social Darwinism Gospel of Wealth

  28. Standard Oil Rockefeller established Standard Oil in 1870 Uses for Oil Kerosene lamps Fuel for railroads Used vertical integration to control oil industry then horizontal integration to control oil market Eventually controlled 95% of oil refining

  29. Horizontal Integration

  30. Robber Barons and Trusts Tactics of Standard Oil Lowered prices to drive out competitors Threatened companies to sell to Standard Oil (buyouts) Bribed railroads to buy Standard Oil fuel (rebates, kickbacks) Bribed Congress members Standard Oil Trust Stockholders’ shares traded for trust certificates Board of Trustees controlled and administered companies as a whole Shareholders earned dividends based on overall profits Monopolies Controls prices Limits competition Pressure on other services to provide discounts and rebates

  31. Bosses of the Senate

  32. Antitrust Movement Sherman Antitrust Act (1890) Prohibits any “contract, combination, in the form of trust or otherwise, or conspiracy in restraint of trade or commerce” United States v. E.C. Knight Co. (1895) Sugar refining monopoly tested Sherman Antitrust Act Regulation applied to commerce and not manufacturing

  33. Scientific Management“Taylorism” Frederick W. Taylor Scientific management used to match labor with production demand Designed hierarchies Subdivisions of labor Time management Effects Managerial class Efficiency Increased factory production Lowered labor costs

  34. Gilded Age Socioeconomics Socioeconomic gap extensively widened By 1890s, 10% of Americans controlled 90% of the nation’s wealth Standard of living for upper class and middle class improved dramatically Poor working class suffered in urban centers 2/3 of population were wage earners Expansion of middle class/white-collar workers Due to growth of managers/administrators/experts in businesses Iron law of wages Supply and demand determined wages, not the consideration of workers’ welfare

  35. Gilded Age Women 20% of American women worked as wage earners Most single women; 5% married Low-income families required women in workplace Female-based Jobs Typical home-associated industries: textiles, foods, domestic servants New types of jobs: secretaries, bookkeepers, typists, communication operators Women and feminized jobs considered low status and low salaries Gibson Girl Iconic image of women as independent, stylish, and working Led to women to seek new types of jobs

  36. Women’s Suffrage National American Woman Suffrage Association (NAWSA) (1890) Merger of NWSA and AWSA Elizabeth Cady Stanton and Susan B. Anthony Gave way to leadership of Carrie Chapman Catt Western States Wyoming granted full suffrage in 1869

  37. Gilded Age Families Stronger nuclear families Birth rates and family size rates decreased Children as economic liability in urban areas Divorce rates increased 1 in 12 by 1900

  38. Immigration Population 16.2 million immigrants between 1850-1900 8.8 million during 1901-1910 Pushes Mechanization removing jobs, esp. in rural areas Overpopulation Persecution Pulls Political and economic freedoms and opportunities Old Immigrants Northern and Western Europe New Immigrants Southern and Eastern Europe; Asia Catholics, Jews

  39. Immigrant Issues Sociopolitical Enemies Nativists Josiah Strong - Our Country Legislation Page Act of 1875 Forbade forced labor Asians, prostitutes, convicts Immigration Acts of 1882, 1891 $0.50 tax Forbid convicts, lunatics, idiots, diseased, disabled Chinese Exclusion Act (1882) Chinese immigration ban for 10 years Chinese prevented from becoming citizens United States v. Wong Kim Ark (1898) All people born in U.S. are citizens Political Machines Employment, housing, social services for votes Ethnic Neighborhoods Little Italy Chinatown

  40. Ellis Island “…Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore…” Emma Lazarus - The New Colossus, 1883

  41. Laissez-Faire and Social Darwinism Laissez-Faire Economics Economy driven by the “invisible hand” of market forces (supply and demand) Government should refrain from regulation or interference Social Darwinism Herbert Spencer “Survival of the fittest” Wealth a result of hard work and brilliance Poor and unfortunate were lazy William Graham Sumner Absolute freedom to struggle, succeed, or fail State intervention is futile Gospel of Wealth Andrew Carnegie Guardians of the nation’s wealth “All revenue generated beyond your own needs should be used for the good of the community.”

  42. Horatio Alger Myth “Rags to riches” stories Young American men, through hard work and virtue, will succeed Also used a supporting wealthy philanthropic character Seemingly propaganda of the American Dream under free enterprise and capitalism