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The Industrial Movement & Immigration

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  1. The Industrial Movement & Immigration Unit 7 & 8

  2. Unit 7: Industrial Movement • The Rise of Big Business • Important Business Leaders • The Impact of Big Business • American Responds to Big Business • Essential Questions

  3. Timeline: Industrial Movement Munn v. Illinois Railroads regulated 1877 Civil War ends Reconstruction period begins Interstate Commerce Act passed 1887 Pullman Strike 1894 1864 1868 1872 1874 1878 1882 1886 1890 1894 1898 1902 Farmers organize the Populist Party 1891 The Grange is founded 1867

  4. The Rise of Big Business Factors Promoting Big Business in America: • Abundant Natural Resources • New Technologies • Transportation • Cheap Labor • Economic Environment • Social Attitudes

  5. Abundant Natural Resources • Coal • Oil • Iron Ore • Water

  6. New Technologies • Factory System • Steam Engines • Railroads and Steamships • New Machines and Tools • Interchangeable Parts

  7. Transportation • Canals, steamships, and especially railroads • Greatly improved the ability to transport both raw materials and finished products

  8. Cheap Labor • Large families and the arrival of immigrants meant a huge population needed work • The high demand for jobs kept the cost of labor down for businesses

  9. Economic Environment • Investment Capital: Local and International investors saw a bright future for American Industry (Many investors ad made their money through the triangle trade) • Laissez Faire: the government did not get involved in the setting of prices or wages – the market was allowed to control this through the process of “supply and demand” • Federal Government Support • High tariffs kept foreign goods out of US markets • Gave away lands to railroad companies to promote railroad development • Sold lands to mining companies for less than real value • Stayed out of the affairs of most businesses – allowed “free-enterprise” to take place

  10. Social Attitudes Social Darwinism: 1. The ideas of “Survival of the Fittest” to the business community 2. The strong should survive and the weak businesses should fail 3. Applied to government thoughts to help the poor – was seen as “against the laws of nature” Horatio Alger Myth: 1. Based on books by Horatio Alger 2. His characters embodied the “Puritan Ethic” – hard work equals success 3. Often featured the idea of a poor boy becoming a successful businessmen

  11. Characteristic of Big Business New ways begin at this time to organize business 1.) Incorporation: a. Corporations are businesses that have many investors owning shares of the business b. Shareholders hope to receive a share of the profits at a future time c. Losses are spread out to only what a shareholder owns d. Increased investment in American Industry 2.) Trusts: a. A group of corporations in a related field, like railroads and oil b. Later they were made illegal 3.) Department Stores: a. Putting several small stores under one roof – more efficient shopping 4.) Mail Order Catalogs: a. Sears and Montgomery Ward opened up department stores shopping to rural areas

  12. Case Study: Important Business Leaders • Andrew Carnegie • John D. Rockefeller

  13. Andrew Carnegie Early Life: - Immigrant from Scotland - Worked in textile mill at age 12 Big Break: - Familiarized himself with process of Steel making Industry: - Steel Reasons for Success: - Vertical integration – merging steps of production to cut costs of production - Acquired coal mines, iron ore fields, etc… - his prices were lower than all other companies Later Life: - Sold company for a quarter billion dollars - believed the wealthy had an obligation to society and gave away millions of dollars - philanthropy

  14. John D. Rockefeller Early Life: - born and raised in NY State - focused on accounting from an early age Big Break: - moved to Cleveland, got involved in off business at its beginnings - merged oil businesses together (horizontal integration) Industry: - Oil refining (controlled 90% worldwide) Reasons for Success: - Horizontal integration – merging companies that produce the same product - Single minded, goal oriented focus - Formed trusts in response to anti-monopoly legislation Later Life: - Nation’s first ever billionaire

  15. Andrew Carnegie John D. Rockefeller

  16. Impact of Big Business Urban Growth 1. Why they came: - for jobs and better housing - visions of improved opportunities and prosperity 2. Where they went: - Immigrants tended to settle in the port city where their boat landed 3. Influx of foreign immigrants - “Old Immigrants”: Early 1800s – North and West Europe - “New Immigrants”: Late 1800s – South and East Europe 4. Problems: - Crowding and poor living conditions - Increased crime rates - Political corruption and they did not improve the lives of the people

  17. Work and the Workers Factory Working Conditions: 1. Long hours 2. Low pay 3. Unsafe conditions – machine, factories, mines 4. Replaceable workers

  18. Child Labor 1. Kids were used when possible because business owners could pay them less 2. Conditions were more dangerous to kids that often had difficulties operating machines and working long hours

  19. Two Wage Earners: 1. New opportunities for women to work came about at this time 2. Women took jobs out of economic necessity – or to take a greater role in society 3. Paid less than men were paid for similar jobs

  20. Abuses of Big Business: 1. Monopolies: attempts by companies to eliminate competition and “corner the market” for a certain business sector 2. Influence on Government: contributions to campaigns and candidates at a state and federal level in hopes to gain favorable legislation 3. Anti-organized labor: government sided with management against unions at this time 4. Unsafe products: companies often took advantage of lack of regulations on products

  21. America Responds to Big Business Populist Movement: - The populist movement originated with farmers that wanted changes in national politics that would make their situation easier. The Grange: - originally organized as a social organization for farming families - eventually turned into a powerful lobbying organization for pro-farmer legislation - developed into a co-op for agricultural communities to help regulate farm product prices

  22. The Government Responds Munn vs. Illinois (1877) - reactions against railroads charging unfair prices to farming industry - the issue was whether or not a state could regulate prices of railroad activities - 7-2 decision in favor of the states – gave states power to regulate local business Interstate Commerce Act (1877) - First federal government regulation of big business - marks and end to laissez faire - Created Interstate Commerce Commission to monitor and regulate interstate business (especially railroads) and began to end the abuses in industry

  23. The Growth of Labor Unions 1. Early National Labor Unions - Knights of Labor a. led for many general reforms: 8 hour days, end to child labor, equal pay for women b. declined in power after a few unsuccessful strikes and competition from the AF of L - A.F. or L. a. American Federation of Labor b. fought hard for basic rights and conditions for workers c. did not welcome women, immigrants or African Americans

  24. Objectives of Labor Unions • Better wages for workers • Better working conditions: less hours and safer conditions • Better associated benefits like health care, sick days, vacation time

  25. Conflict and Struggle • Tools of Management • Yellow-dog contracts: owners required workers to sign oaths to not join a union • Detectives were often hired to search our union organizers – then fire them • Lock-outs prevented workers from working – and getting paid • Owners often hired replacement workers (scabs) during a strike • Black lists: owners often shared names of troublemakers – wouldn’t hire them

  26. Tools of Unions • Collective Bargaining – third party representatives used to negotiate contracts • Strikes – organized action of not reporting for work by employees • Picket – standing near business with signs to call attention to unfair conditions • Boycott – organized action of not buying products of a business

  27. Major Strikes • Pullman Strike: • Striking workers of railway-car makers clogged up the railways in much of the country • President Cleveland sent in federal troops to keep the trains moving because they carried US Mail • The Supreme Court case of US vs. Debs decided the federal government had a right to support the “general welfare” of the American people

  28. Other Labor Unions • CIO: Congress of Industrial Organizations a. organized skilled and unskilled laborers in various Industries b. American Railway Union, United Mine Workers • AFL-CIO Merger: a. 1955 – two largest labor unions in America merged to form an even more powerful labor organization – become largest in the world

  29. Essential Questions • In what way can it be said that America was destined to have “Big Business”? - Natural transportation systems - Plenty of raw materials and resources - Government policies that were favorable to business (laissez-faire) - A base of capital investors (American and Foreign) - A strong labor force was available - The “rugged individualism” of the American character

  30. 2. How did industrial growth and the rise of business in America produce both positive and negative results? Positive: - Dramatic increases in industrial production – becoming the world leader - Improvement in quality and availability of affordable goods for consumers - Set the stage for an increased role as a world power Negative: - Harsh working and living conditions - Little to no rights for workers - Growth of monopolies - Big business had too much influence over government

  31. Unit 8: Immigration • Map • Different Period of Immigration: “Old Immigrants”, “New Immigrants”, NAO Period, and Recent Immigration • Important Terms • Essential Questions

  32. Different Periods of Immigration in America Time: - Old Immigration (Colonial Period, “The Great Migration”) Who Came? - Dominated by the English - Other “English” speaking people: Scotch, Irish - Western and Northern Europeans: Dutch, Scandinavians, Germans - Africans as labor

  33. Reasons Why? - Most came for religious or political freedoms - Many came to improve economic situation - Opportunities of a new land Reactions by US - These people became the US - They generally worked together and supported one another as newcomers in a new land - They often had common enough cultural traditions to reduce significant conflicts from occurring

  34. Time: - “New Immigration” – Late 1800s to Early 1900s Who Came? - More from Eastern and Southern Europe - Asians: from Japan and China

  35. Reasons Why? - Better economic opportunities in the industrial centers of America - Religious freedoms (Russian Jews) - Some for political freedoms Reactions by US - Increase in anti immigration feelings or “Nativism” - The first wave of immigrants considered themselves to be the true or “native” Americans and resented the new immigrants from other areas of the world - created prejudice and bigotry - many feared the erosion of the original “American” way of life

  36. Time: - NAO Period – 1925-1965 Who Came? - Mostly Europeans - England - Italy - Germany Reasons Why? - World War II Reactions by US: - Strict regulation of immigration during this period - maximum numbers established to be allowed into America - Severally restricted “new” immigrants - favored northern and western Europeans not eastern and southern

  37. Time: - Recent Immigration Who Came? - Latin Americans (illegal crossing of Mexican/American border - Caribbean (Cuba, Haiti, Dominican Republic) - Asians (China, Philippines. Vietnam, S. Korea, India, Pakistan) Reasons Why? - Economic opportunities, Political oppression, fleeing conflicts Reactions by US: - Illegal Immigration Reform Act (border patrols, punish employers that hire illegals - Immigration Act (set maximum allowed immigrants in US each year; set fair system to determine who would be allowed in)

  38. Old Immigrants: The first wave of Europeans coming to the Americas (1700s). Usually came from Northern and Western parts of Europe. Usually came with money. Came for a more independent life. New Immigrants: The second wave of Europeans coming to the United States (1800s). Usually from Eastern or Southern Europe. Usually came poor – looking for oppotunities Immigration Terms