Unit 1: Rise of Modern America: Industrialism and Urbanization 1865-1910

1. Unit 1: Rise of Modern America:Industrialism and Urbanization1865-1910 Second Industrial Revolution The Rise of Big Business Labor Strives to Organize The Transformation of American Society The Urban World Daily Life in the Cities

2. The Rise of Modern America • The beginning of what America is today: • Positive and negatives • Technology and science • Expansion: Continental US, the World = conflict • Industry, Urbanization, Big Business, Immigration • New ways of owning, buying, selling, working • New roles in society: • Class, race, gender, nationality • New roles of government and politics • New American culture and society CREATES POLARIZATION AND CHANGES WHO WE ARE, WHAT WE DO, HOW WE THINK

3. Basic Ideas of Capitalism • Adam Smith: The Wealth of Nations (1776) • All economic activity based on NATURAL LAWS • Limited resources =/= Unlimited demands • Concept and reality of “supply and demand” • Increase supply and lower demand = prices fall • Decrease supply and higher demand = prices rise • The government, according to capitalists, SHOULD NOT do anything to interfere with these natural laws: • The government should NOT get involved • “Laissez-faire” = “Just let it go” • Unregulated

4. Basic Foundations of Capitalism • 1) Free market system= No government involvement • 2) All based on supply and demand • 3) All based on earning profits • 4) Competition in the market place • (Social Darwinism=survival of the fittest) • 5) All of society (the consumer) benefits • 6) Cycles of “boom” and “bust” • 7) Big business = big corporations • A) Producing and selling • B) Buying and selling

5. Industries Expand • Technology = Science and industry • Communication • Transportation CHANGES HOW WE LIVE • Power • Leads to MASS PRODUCTION MASS Consumption • 1700s-1800s: Steam Engine (Robert Fulton) • Late 1800s: Oil (Drake, Lucas, McCoy) • Early 1900s: Electricity (Edison)/Steel (Bessemer)

6. Electrical Power and Communication Telegraph—Samuel Morse (1840s) Transatlantic cable—Cyrus Field (1866) Typewriter—Christopher Sholes (1867) Telephone—Alexander Graham Bell (1876) Lots of Stuff—Thomas Edison Others: Cash register, calculating machines, sewing machines

7. Electrical Power and Transportation Railroads—cheap steel leads to growth Transcontinental Railroad 1869 Compressed air brake—G. Westinghouse Standard gauge tracks Time Zones Cars (1913 3,000 produced; 1915 300,000 produced) Airplanes (Wright Brothers, 1903) “Spin-Off Effect”

8. Industrialists and Capitalism • With the boom in industry, titans of industry rose to the top of the socio-economic pyramid • Andrew Carnegie, John D. Rockefeller, Cornelius Vanderbilt, etc. • Took advantage of a capitalist society

9. What is Capitalism Again? • Economic system in which private business runs most industries, and competition determines how much goods cost and workers are paid • Starbucks!

10. Capitalism Continued… • During the Second Industrial Revolution, Capitalism created groups of “Haves” and “Have-Nots”

11. Review with a partner… • List three characteristics of capitalism • Identify the three big “titans of industry” and name their specific industries • List five major inventions during the Second Industrial Revolution • Explain how transportation changed during the Second Industrial Revolution • List ten Disney movies

12. Rise of Big Business • Concept of CORPORATION • Stockholders buy shares = investment money • Profits put back into companies = growth • If a corporation has control over an entire industry = monopoly (gov. does not interfere) • A few businesses will succeed, most will fail • Survival of the Fittest (Social Darwinism)

13. Two Ways Monopolies Are Formed • 1) Vertical Integration: A corporation controls all of the production aspects of a particular industry • Carnegie Steel He controlled all the steps needed to make his final product • 2) Horizontal Integration: A corporation controls a particular market • Standard OilRockefeller controlled the entire oil industry • Tactics Used: Pools, Trusts, Mergers, Price Fixing, Bribes and Rebates

14. Titans of Industry • Cornelius Vanderbilt—RR • Leland Stanford—RR • Andrew Carnegie—US Steel • John D. Rockefeller—Standard Oil

15. Two Interpretations of These Kinds of Businessmen Positives “Captains of Industry” Built big businesses US #1 in manufacturing by 1892 Huge fortunesAmericanDreamHoratio Alger PhilanthropistsGospel of Wealth True CapitalistsHugeprofitsBest of the best in what they did

16. Two Interpretations of These Kinds of Businessmen Negatives • “Robber Barons” • Unfair competition • Ruthlessness • Selfish, greedy • Actually went against capitalismdestroyed competition • 1900: 2% of US companies made 50% of all the products made in the US

17. Carnegie’s Home, Libraries, Workers

18. Carnegie’s Home, Libraries, Workers

19. Carnegie’s Home, Libraries, Workers

20. Government Gets Involved • Takes steps to control and regulate these big businesses • Anti-Laissez Faire • 1887: Interstate Commerce Act • 1890: Sherman Anti-Trust Act • 1913: 16th Amendment (Income Tax)

21. Recap Who would support capitalism? Why? Who would oppose capitalism? Why?

22. Labor Strives to Organize • Worker’s Problems

23. Knights of Labor (1869) Uriah Stephens, Terence Powderly, Mary Harris Jones All workers included—skilled and unskilled Pushed for 8 hour day, end to child labor 700,000 members by 1886, several strikes Decline after 1886—Haymarket Square Riot

24. American Federation of Labor Samuel Gompers Only skilled workers (harder to replace in a strike) Organized into separate craft or trade unions Not very political—pushed for basic economic benefits Overall concept of collective bargaining/closed shop v. open shop

25. Labor Strives to Organize • Worker’s Tools:

26. Homestead Strike • Workers at Carnegie Steel went on strike to protest a wage cut • Managers instituted a lockout • Violence ensued-16 deaths

27. Labor Strives to Organize • Employer’s Tools:

28. Guess the Word… Law of Supply and Demand Corporation John D. Rockefeller Knights of Labor Scabs

29. Guess the Word… Capitalism Transcontinental Railroad Andrew Carnegie Lockout American Federation of Labor

30. Different Economic Systems • Free Market (Capitalism) • Government makes ZERO decisions • Mixed Economic (Socialism) • Combination of Free Market and Command • Command (Communism) • Government makes all the economic decisions • Production • Pricing • Distribution • No concern with Supply and Demand • Too unfair, too unequal

31. Different Economic Systems, cont’d… • Free Market (Capitalism)—Profits are key • So…Mass production and mass consumption • 1870s early 1900s (bulk purchasing = lower prices) • Department stores (1860s-1870s) • Marshall Field-Chicago • R.H. Macy-NYC • Chain Stores (almost a monopoly) • Woolworths • A&P Grocery • Mail Order Catalogs • Sears and Roebuck

32. Transformation of American Society • Immigration: • 1880-1915 = Massive change in immigration patterns • Old Immigrants v. New Immigrants Old Immigrants • 1770s-1890s • Northern and Western Europe • Mostly Protestant • Sought economic opportunity and religious freedom New Immigrants • 1890s-mid 1900s • Southern and Eastern Europe • Jews, Catholics, Orthodox • Came for the same reasons but had MANY challenges

33. Immigration • New Immigrants • Differ physically • Language barriers • Cultural differences • Concentrated in big cities • Could these new immigrants be “Americanized?” • Melting Pot • Pros and Cons of diversity?

34. Immigration, cont’d… • From 1905 to 1907: 10,000 immigrants per day at Ellis Island • By 1890: 15% of all Americans were foreign born • NYC: 80% • Chicago: 75% • Boston: 65%

35. New Immigrants & Difficulties • Resentment • Political, economic, cultural, religious reasons • Difficulties: • Long expensive journey • New unknown life in US = culture shock • Loved ones left behind or separated upon arrival • Housing issues = ethnic slums (Little Italy) • Racism and religious persecution • Language issues = job issues • General issues: Stay true or fit in?

36. New Immigrants& Difficulties, cont’d… • Xenophobia: Fear of foreigners • Nativism: Disrespect for cultures not yours • Immigrants seen as: • Too different • Anarchists • Radicals • Socialists • Communists • Competition for jobsImmigrants paid less • Many joined unions=seen as anti-American

37. Attempts to Restrict Immigration • 1873: Economic depression in US • Dennis Kearney set a Workingman’s Party to keep out Chinese workers • 1882: Congress passes Chinese Exclusion Act • 1894: Immigration Restriction League proposes literacy tests—Congress passes a law • 1906: Asian children in San Francisco removed from public schools • 1907: Agreement between US and Japan • Japan agrees not to let any more Japanese emigrate to America (1907: 30,0001909: 3,000) • 1913: Alien Land Law in California • Since immigrants are not eligible for citizenship, they cannot own land

38. Guess the Word… Old Immigrant Tenement Nativism Literacy Test Blacklist

39. Guess the Word… Injunction Ghetto Jacob Riis Ellis Island New Immigrant

40. Daily Life in the Big Cities • Increased immigration brought about a larger lower class and a smaller upper class

41. Culture • The influx of immigrants brought various religious, social, and cultural practices and customs to the United States • Created a “melting pot”

42. Social Class Pyramid

43. Social Class Pyramid Breakdown • BOTTOM PORTION: • New Immigrants • Lived in ghettos/tenements • Chinatown, Little Italy, “Jewtown” • Factory workers • Little pay, bad hours, bad conditions Jacob Riis--How the Other Half Lives

44. Social Class Pyramid Breakdown • MIDDLE PORTION • Old Immigrants (Fluently spoke English) • Store owners, doctors, lawyers, teachers, etc. • Women • Secretaries • Nurses • Teachers • MAIN REASON FOR THE EMERGENCE OF THIS CLASS IS COMPULSORY EDUCATION LAWS

45. Education • Education: • 1860s: Compulsory Education Laws = educated people are necessary for democracy • # of public school kids from 7-15 million • Education could also help immigrants assimilate • Learn about American culture, history, English • 1870: 160 public high schools/500 colleges • 1900: 6,000 public high schools/1000 colleges • Since more education = more reading = publishing and advertising • 1865: 500 Daily newspapers • 1910: 2600 Newspapers • William Randolph Hearst/Joseph Pulitzer (Yellow Journalism)

46. Social Class Pyramid Breakdown • TOP PORTION: • Old Money • Modeled lives after British Victorian Culture • Nouveau Riche (Newly Rich) • Conspicuous Consumption • Spent money just to show off • Social Gospel • Applied Christian principles to social problems • Social Darwinism • Argues that society progresses through competition, with the fittest rising to positions of wealth

47. Daily Life in the Big Cities • More money = more leisure time/entertainment • Reading • Parks—Central Park in NYC 1857 (Frederick Law Olmsted) • Sports—Baseball, football, boxing, basketball • Theater—Vaudeville variety shows • Music—Jazz, combines cultural diversity • Scott Joplin • Jelly Roll Morton • Louis Armstrong • Amusement Parks—Roller coaster (1884); Coney Island; Ferris Wheel (1893 in Chicago) • Skyscrapers—Elisha Otis (1853); Louis Sullivan (1890)