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Chapter 6, Section 1: Technology and Industrial Growth. Causes of the Industrialization. 1. Natural Resources Edwin Drake : Drilled first oil well in U.S. History in Titusville, Pennsylvania Oil : Before: used to boil whale blubber/After: Kerosene and gasoline (after automobile)
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Causes of the Industrialization 1. Natural Resources • Edwin Drake: Drilled first oil well in U.S. History in Titusville, Pennsylvania • Oil: Before: used to boil whale blubber/After: Kerosene and gasoline (after automobile) 2. Large Workforce • Immigration increased (Asia and Europe) 3. Capitalism and Entrepreneurs • Entrepreneur: One who risks (invests) money in order to make money • Horatio Alger: Wrote: “Rags to Riches” novels about “entrepreneurial spirit” 4. Government Policy -Laissez-Faire: “Free Enterprise” Government took “hand’s-off” approach to business (Supply/Demand) with little regulation (rules) -Protective Tariffs: Taxes on imports aimed at protecting local business
Innovation Drives the Nation • Patent: Exclusive permission to develop and sell an Invention for a certain period of time • Thomas Edison: Inventor who set up Menlo Park Research Laboratory in New Jersey: Invented Light Bulb (1880) • Alexander Graham Bell: 1876: Patented Telephone • Gugliemo Marconi: Wireless Telegraph: “Father of Radio” • http://www.history.com/topics/alexander-graham-bell/videos#the-telegraph-and-telephone
STEEL • Bessemer Process: Henry Bessemer: Purifying Iron by “Blasting” it with intense heat • Suspension Bridges: Roadway suspended in air w/ steel cables. • -Brooklyn Bridge: 1883: First of its kind • Skyscraper: Used steel frames for height: Home Insurance Building: Chicago: First Skyscraper ever built
Technology and Transportation • Railroads • George Westinghouse: 1869: Invented Air Brakes • Granville Woods: 1887: Train Telegraph • Gustavus Swift: Refrigerated Rail Car • BIG Problem: Times were set independently (Usually using sun) Scheduling Became Impossible • SOLUTION: 1884: 27 Countries created 24 “Time-Zones” • Airplane: 1903: Orville and Wilbur Wright: Kitty Hawk, N.C. First Successful Flight • http://www.history.com/topics/wright-brothers/videos#wright-brothers
Spiral of Growth • Railroads stimulated (Sped up/helped) innovation and industrialization • -Brought Natural Resources from Western U.S. • Mass Production: Factories turned out large numbers of product in short amount of time.
Impact of Industrialization • 1. Linked World Markets: Food…etc. • 2. Changed American Society: Growth of Cities • 3. Environmental Problems: Pollution • -National Park Service: 1872: Formed to protect environment against abuses of business. • *Yellowstone National Park: 1872: First National Park in U.S. History • *Indiana Dunes National Lakeshore: 1966
The Corporation • Corporation: Many people “share” ownership of ONE company • Monopoly: Complete control of a product or service • Cartel: Businesses agree to make same product and limit supply to drive up prices. (OPEC-oil, De Beers-diamonds) • J.D. Rockefeller: Standard Oil/ Controlled Railroads to “corner” oil market • J.P. Morgan: Developed research labs • Cornelius Vanderbilt: Railroad tycoon: N.Y. to Chicago direct rail line.
Vertical/Horizontal Integration • Horizontal Integration: Consolidate many firms into one business (Super Company) ** Was Illegal Trust: Companies assign stock to board of TRUSTEES who get paid with stock profits (Made Horizontal Integration Legal) Vertical Integration: Control ALL businesses involved in product development (Monopoly: Own the Board) Andrew Carnegie: U.S. Steel/Pittsburgh, PA
The Big Business Debate • Support: “Captains of Industry” • 1. Efficient • 2. Lower Prices • 3. Provided Jobs • 4. Made U.S. Powerful • 5. Philanthropists: Helped fellow man • Against: “Robber Barons” • 1. Unfair Advantages • 2. Drove Small businesses out • 3. No Competition • 4. Monopolies would RAISE prices • 5. “Swindle” Poor
Social Darwinism • Charles Darwin: On the Origin of Species • Animals evolved through Natural Selection • “Survival of the fittest” • Social Darwinism: Wealth was a measure of one’s value and those who had it were “fit” Those who do not should “adapt” • * Many used theory as a way to discriminate against minorities and other “poverty-stricken” Americans and Immigrants because of their “unfitness”
Government Regulations • Interstate Commerce Commission (ICC): Could monitor railroads that cross state lines. Then refer records to Congress to address “unfairness” • Sherman Anti-trust Act: Outlawed Trusts/Monopolies that limited trade among several states • Read Wealth: Page 113: Andrew Carnegie
Worker Hardships • Immigrants and poor exploited by big business: (Low Wages) • Long Days: (12 Hour/ 6 Days per week) • Unsafe conditions: Sweatshops: Small, hot, dark, and dirty: Triangle Shirt waste Co. NYC (Top) • Children exploited (20% 10-16 Employed 1890’s) • Company Towns: Pullman Town-Chicago (Bottom) Isolated communities owned by company • Company Stores: Workers forced to shop at company owned stores that overcharged them
Labor Unions Form • Collective Bargaining: negotiating with employer as a group: Strikes used to force negotiation (Top Left) • Socialism: Favors PUBLIC control of property/ Opposite of Capitalism (Private Ownership) (Karl Marx: CommunistManifesto) • Knights of Labor: Industrial Union: Uriah Stephens • 1881: Terence Powderly : Became president (Bottom) • American Federation of Labor: Samuel Gompers: “Skilled worker” Union (Top)
Strikes Rock the Nation • Railroad Strike of 1877: First major strike in U.S. History (Wages): Government sided w/ Business and Violence Erupted • Haymarket Riot: 1886: Chicago: Knights of Labor (Fair Wages/ 8 HR Work Day) • Anarchists: Anti-government: Joined protest: Bomb Exploded: Dozens Killed/ Including Police
Strikes Rock the Nation • Homestead Strike: Pennsylvania: U.S. Steel (protest wage cuts during depression) • Pinkerton: Private “Strike Breaking” Police Force (intimidate workers) *Anarchist tried to assassinate Henry Frick: (Carnegie’s Partner) *Government Sided w/ Business
Strikes Rock the Nation • Pullman Strike: 1893: Pullman Palace Car Company: Chicago • Eugene Debs: American Railway Union President *Workers blocked trains from running during strike. *Pullman attached MAIL CARS to his *Grover Cleveland sent troops to end strike *Eugene Debs arrested for “federal offense”
Effects on Labor Movement • Trend: general course of events • Government trend was to side with business • Socialism spread through U.S. • Eugene Debs: Ran for President in 1900 • *Radical ideas continued to spread because of Industrial worker’s “perception” of unfairness
DID YOU KNOW? • During a coal miner’s strike in 1921, miners in West Virginia (Battle of Blair Mountain) wore red handkerchiefs around their necks to show unity. • They were nicknamed “rednecks”! • …Oh yeah… and the color red is usually associated with Communism (Marxism), too!