Presentation Transcript

1. Industrialization And The “Gilded Age”

2. America Industrializes After Civil War – “Second Industrial Revolution” – rapid industrialization Occurred during the decades after Civil War
3. New Inventions and Technology Bessemer Process – made production of steel more economical Wood --- Iron - Steel Before -1 Day = 5 tons of steel After – 15 Minutes = 5 tons of steel
4. Steam Engines Steam engines powered pneumatic drills, cutting deeper into the Earth 1860 – 14 million tons of coal 1884 – 100 million tons of coal Oil drilled in Pennsylvania in 1859 First internal combustion engine used gasoline, from oil
5. Electricity Alexander Graham Bell created telephone to increase communication Thomas Edison combined gas and metal filament to create electric light bulbs. Electricity replaced steam and coal in factories Also used on streetcars and subways Each new invention increased people’s standard of living.
6. Growth of Railroads Transcontinental Railroad completed in 1869 at Promontory Point, Utah Built in the west by Chinese Immigrants Worked 12 Hour Days, and 6-Day Weeks Made $26-$35 a month Trip across U.S. was reduced from several months, to a few weeks.
7. A National Market Railroads now linked both coasts of the United States Raw goods and materials are linked to larger markets National Producers could make and ship goods cheaper than local producers Creation of Department Stores, chain stores and mail order houses.
8. Railroad Impact on Population Between 1850 and 1900 the population more than tripled. High Birthrates and increased immigration Created a favorable condition for buisness expansion Demand for goods increased Supply of cheap labor increased
9. New Types of Business Organizations Before Civil War, most businesses were owned by individuals or partners After the war, corporations became popular Separate “person” Allows for many people to pool money together
10. Entrepreneurship and Philanthropy By 1870’s entrepreneurs began to have a dominant influence on American business Lowered the price of goods and improved their quality Made HUGE profits for themselves Known as “Captains of Industry” because they forged modern industrial economy Also known as “robber barons” – used ruthless tactics to destroy competitors and keep wages low
11. Andrew Carnegie Scottish Immigrant, began his life penniless After Civil War, he invested in ironworks and built steel mills in Pittsburgh Used profits to buy more mills and created Carnegie Steel Corporation
12. Carnegie Controlled all phases of steel production Iron ore fields, coal mines, steel mills and ships Paid low wages, and crushed attempts at unions in his mills Later in life, he gave away $350 Million to build libraries and endow universities
13. John D. Rockefeller Built an oil refinery in Cleveland, Ohio In 1870 founded the Standard Oil Company By 1879, he controlled 90% of oil refining in the U.S. Created a monopoly Forced the railroads to pay “secret” low rates, and charged his competitors higher rates
14. Rockefeller Like Carnegie, Rockefeller gave millions of his fortune away Founded University of Chicago and Rockefeller Foundation
15. Interstate Commerce Act (1887) Railroads charged higher rates to local farmers on shorter routes U.S. Supreme Court said only national government could regulate interstate commerce The Interstate Commerce Act prohibits unfair practices by railroads Created Interstate Commerce Commission to enforce the act
16. Sherman Anti-Trust Act Was created to stop monopolies Marked a significant change in Congress’ attitude towards big business Before – Laissez-faire – little government interference After – More control by Congress
17. Conditions of Labor Average workday – 10-14 hours Average work week – 6 Days Average pay - $3-$12 a week Even lower wages for immigrants, women and children
18. Poor Conditions Workers became nothing more than a cog in a companies machine Work became less skilled, more repetitive and boring Very little if any safety. Thousands killed or injured every year
19. Child Labor Textile Mills and Coal Mines used children to preform special tasks Smaller hands fit well into small parts of machines 1/5 Children worked outside the home in 1910 Work = no school = little chance of increased standard of living
20. Rise of Unions Knights of Labor – joined together all skilled and unskilled workers Demanded an 8 hour work day, higher wages and safety codes Grew rapidly in 1880’s, but fell apart after failed strikes
21. American Federation of Labor (AFL) Founded by Samuel Gompers in 1881 Sought “Closed Shops” where only union members could be hired AFL became weakened by the exclusion of unskilled workers By 1910 less than 5% of American workers were unionized
22. Government and Unions Business leaders often contributed to politicians campaigns Politicians saw workers as greedy and businesses as good for American prosperity Most Americans believed that businesses should have the right to hire and fire employees as they pleased
23. Government and Unions Between 1880 and 1900 there were 20,000 strikes involving 6 million workers Government saw this as a disruption of the American economy Supreme Court ruled that unions were illegal combinations in restraint of trade
24. Haymarket Strike of 1886 Haymarket Affair of 1886- labor leaders were blamed when a bomb exploded during a demonstration of strikers in Chicago. 7 Policemen killed and 67 severely wounded
25. Pullman strike (1894) Begin in Pullman, Illinois ARU (American Railway Union) led by Eugene Debs vs. the railroads @ its height involved over 250,000 workers in 27 different states 30 people killed Army was eventually called in to many cities to restore order Debs eventually goes to prison for violating a court order