The Second Industrial Revolution

1. The Second Industrial Revolution Honors American History Chapter 4

2. Industrial growth in the US improved conditions for workers. Industrial growth in the US created great wealth for both workers and entrepreneurs. Industrial growth in the US benefited only wealthy entrepreneurs. Industrial growth in the US caused tension between employers and labor unions. Which of the following do you most agree with?

3. Essential Question Industrialization increased the standard of living and the opportunities of most Americans, but at what cost? Was it worth it?

5. New Business Culture • What is “Laissez Faire”the ideology of the Industrial Age. • Individual as a moral and economic ideal. • Individuals should compete _______ in the marketplace.(Capitalism) • The market was not man-made or invented. • No room for __________ in the market!

6. Basic Principles of Capitalism • ________ ownership of business • Individual economic freedom • ______Market • Supply and ________ • What is the primary motivator = _______

7. Supply and Demand

8. Causes of Rapid Industrialization • Oil Boom-______ ______ 1859 Titusville Pennsylvania How did it change America? 2. Technological innovations. • Steel - _______ and open hearth process • Why important? • Refrigerated cars

9. 1st oil well in Titusville Pa.

10. Causes of Rapid Industrialization 3. The ________ fueled the growing US economy: • First big business in the US. • A magnet for financial investment. • The key to opening the _____. How? • Aided the development of other industries. What major industry is tied to this industry?---____________

11. Railroad Construction

12. Causes of Rapid Industrialization • Unskilled & semi-skilled ______ in abundance. • Abundant _______.(What is this?) • New, talented group of businessmen [___________] and advisors. (risk takers) • Market growing as US ________ increased. • ______ willing to help at all levels to stimulate economic growth.(“______ _____”) • Abundant natural ________.

14. Thomas Alva Edison “_____ of ____ Park” What did he invent?

15. The Light Bulb

17. The Phonograph (1877)

18. The Ediphone or Dictaphone

19. The Motion Picture Camera

20. Communication Revolution • Telegraph Who? When? What did it do? How did it change life?

21. Alexander Graham Bell Invented the __________ (1876)

23. Transportation Revolution • What led to the development of mass transit systems? • Streetcars • Subways

24. What invention was key to the development of the automobile? Who built the first practical American motorcar? Automobiles

26. Model T Automobile Henry Ford-______ ______ of the automobile I want to pay my workers so that they can afford my product!

27. The Airplane Wilbur ______ Orville _______ Kitty Hawk, NC – December 7, 1903

28. The Rise of Big Business Section 4.2

29. New Type of Business Entities • Corporation – What is it? Who owns it? Who runs it? How does it raise money? • Trust What is it? Who runs it? What can this lead to? • Partnership - • Sole Proprietorship - • Standard Oil Co. • John D. Rockefeller

30. The Corporation • A business that is owned by a number of people (share profits and risks) • Share of stock • Why did the corporation emerge at this time?

31. New Type of Business Entities • Trust: • Horizontal Integration John D. Rockefeller • Vertical Integration: • Gustavus Swift  Meat-packing • Andrew Carnegie  U. S. Steel

32. Horizontal Integration

33. Vertical Integration Transportation Oil Wells Retail Refineries All owned by Standard Oil of Ohio

34. New Type of Business Entities

35. U. S. Corporate Mergers What does this graph illustrate?

36. Standard Oil Co. Rockefeller used both horizontal and vertical.

38. “On Wealth” • The Anglo-Saxon race is superior. • “Gospel of Wealth” (1901). • Inequality is inevitable and good. • Wealthy should act as “trustees” for their “poorer brethren.” • What industry did he control? What company? Andrew Carnegie – What does the cartoon depict about Carnegie?

39. Cornelius [“Commodore”] Vanderbilt Can’t I do what I want with my money? George Pullman – sleeper cars (Why important?) He also built a company town near Chicago.

40. Pullman Cars A Pullman porter

41. New Financial Businessman The Broker: • J. Pierpont _______ (banker) • Bought Carnegie Steel for $480 million

42. The Captains of IndustryWhat does this term imply about these men?

43. Business Legacy Today

44. The ‘Robber Barons’ of the Past Are they “robber barons” or “captains of industry”?

45. Philanthropy

46. Modern ‘Robber Barons’?? What company is the cartoon referring to? Why?

47. 2.Social Darwinism • British economist. • Advocate of laissez-faire. • Adapted Darwin’s ideas from the “Origin of Species” to humans. • Notion of “_____ of the _______.” Herbert Spencer

48. 2.Social Darwinism in America • Individuals must have absolute freedom to struggle, succeed or fail. • Therefore, state intervention to reward society and the economy is futile! William Graham SumnerFolkways (1906) Do you agree with this philosophy?

49. 1890 10% of population has 75% of wealth Sherman Antitrust Act What did it do? Was it effective? ICC-1887 – What is this? Why was it important? 4.3 – Organized Labor MovementWorkers Organize Immigrants and children worked in factories Why did they begin to join unions?

50. Child Labor