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Discover the transformative era of industrialization, marked by explosive economic growth, enhanced workforce, railroad expansion, free enterprise principles, notable inventions, and the rise of big businesses in the United States. Learn about key factors like the boom in natural resources, railroad construction, government roles, and the impact on society. Explore the lives of workers, early unions, and the struggles faced during this pivotal period that reshaped the nation's economy.
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The Rise of Industry • By 1914 the country’s GNP was eight times greater than it had been when the Civil War ended • Natural Resources – contained the resources necessary for industries: water, timber, coal, iron, and copper • A large workforce – Between 1860 and 1910 the population in the U.S. tripled • Large amount of workers • Greater demand for consumer goods
Reasons for Population Growth • Large Families • Flood of Immigrants – • Social and economic conditions in China and Europe were horrible • In search of a better life • Between 1870-1910, roughly 20 million immigrants arrived in the U.S.
Linking the Nation • Railroad boom began in 1862 • Lincoln signed the Pacific Railway Act • Provided for the construction of a transcontinental railroad by two corporations: • The Union Pacific and the Central Pacific • To encourage rapid construction • Offered land for each mile of track laid
Who Built the Railroads? • Civil War veterans • Miners • Farmers • Ex-Convicts • New Immigrants from: • Ireland • China • Each crew had about 10,000 employees each
Free Enterprise • Laissez-Faire – Belief that the government should not interfere in the economy other than to protect private property rights and maintain peace. • Greater efficiency and wealth for everyone • Based on Market Supply and Demand, not on government regulation of prices and wages • Rise of Entrepreneurs – People who risk their capital in organizing and running a business.
Government’s Role in Industrialism • Kept taxes and spending low • No costly regulations on industry • Northern – high tariffs, protect American industry • Southern – low tariffs, promote trade • Morrill Tariff – Reversed the years of declining tariffs
New Inventions • Alexander Graham Bell – Telephone, AT&T • Thomas Alva Edison – Invented the phonograph, the lightbulb, electric generator, the dictaphone, the motion picture • Impact
Railroads Spur Growth • By linking the nation, railroads helped increase the size of markets for many products • Railroads stimulated the economy by spending a large sum of money on: • Steel • Coal • Timber
Connection of lines in New York done by Cornelius Vanderbilt • Linked NYC to Chicago • Built New York’s Grand Central Terminal • Introduction of Time Zones to make the rail lines more reliable
Land Grant System • To encourage railroad construction • Railroads would then sell land to settlers, real estate companies, and other businesses to raise money to build the railroad
Robber Barons • Great wealth • Accusations that they had built their fortunes by swindling investors and taxpayers, bribing government officials, and cheating on their contracts or debts • Robber Baron - a wealthy person who tries to get land, businesses, or more money in a way that is dishonest or wrong
Captain of Industry • Captain of Industry - a business leader that benefits the nation in a positive way
The Rise of Big Business • Dominated the economy, operating vast complexes of factories, warehouses, offices, and distribution facilities • Corporation - An organization owned by many people but treated by law as though it were a single person.
Consolidation of Industry • Corporate leaders who organized pools to stop prices from falling and maintain them at a certain level. • Vertical and Horizontal Integration
Vertical Integration • Andrew Carnegie
Horizontal Integration • Monopoly
Trusts • Government became suspicious of large corporations • 1882 – Standard Oil (John D. Rockefeller) became first Trust • Trust – A new way of merging businesses that did not violate the laws against owning other companies
Working in the United States • Life was difficult for workers • Machines replaced skilled labor • Workers performed highly specific, repetitive tasks • Working conditions were unhealthy and dangerous • Breathed in lint, dust, and toxic fumes • In 1900 the average industrial worker made 22 cents per hour and worked an average of 59 hours a week. THAT IS ONLY $12.98 PER WEEK!
Early Unions • Two types of Industrial Workers: • Craft workers – machinists, iron molders, glassblowers, shoemakers, printers • Common laborers – few skills, low wages • Craftworkers began to form Trade Unions • Unions limited to people with specific skills • Industry opposed unions • Companies would use a lockout to lock workers out of the property and refuse to pay them
The Struggle to Organize • Knights of Labor – The first nationwide industrial union. • In response to the railroad strike • 8 hour workday, a government bureau of labor statistics, equal pay for women, abolition of child labor creation of worker-owned factories
American Federation of Labor • Combination of Trade Unions • founded by Samuel Gompers • Belief that unions should stay out of politics • Higher wages, better working conditions in the American system
“Bread and Butter” • Bread and butter objectives • Better wages, better working conditions, shorter working hours