Technological Revolution and Big Business Growth in American Industry

1. Chapter 6 – The Expansion of American Industry Section 1: A Technological Revolution Section 2: The Growth of Big Business Section 3: Industrialization and Workers Section 4: The Great Strikes

2. Section 1: A Technological Revolution TEKS – 8A, 22A, 22C, 23A, 25D

3. TEKS • 8A • Create thematic maps, graphs, charts, models, and databases representing various aspects of the United States. • 22A • Explain the effects of scientific discoveries and technological innovations such as electric power, the telegraph and telephone, petroleum-based products, medical vaccinations, and computers on the development of the United States. • 22C • Analyze the impact of technological innovations on the nature of work, the American labor movement, and businesses. • 23A • Analyze how scientific discoveries and technological innovations, including those in transportation and communication, have changed the standard of living in the United States. • 25D • Create written, oral, and visual presentations of social studies information.

4. Daily Life in 1865 • Day determined by sun • No electricity • At the Mercy of the Weather • No A/C or Heaters • Communication Slow • No telegraphs or telephones

5. Technology Booms • Patents • Licenses that give the inventor the exclusive right to make, use, or sell an invention for a set period of time • U.S. Productivity Explodes • Productivity – the amount of goods and services created in a given period of time

6. Oil • One New Process • Edwin Drake sent to PA to drill for oil • Cheaper and more efficient if it worked • Previously, oil taken from two processes: • Melting the fat from a whale • Digging large pits and waiting for oil to seep above ground • Both time-consuming and expensive

7. Thomas Edison • Experimented with electricity • Created the first light bulb • Day no longer determined by the sun • Developed the idea of a central power station

8. The Telegraph and Telephone • Samuel F.B. Morse perfected the telegraph (sending messages over wires) • Used Morse code • Alexander Graham Bell experimented with an electric current to transmit sounds • Central switchboards with operators could link an entire city

9. First Telegraph

10. Early Telephones

11. Railroads • Transcontinental railroad • A railway extending from coast to coast (Atlantic Ocean to Pacific Ocean) • To strengthen the countries economic infrastructure • May 10, 1869 • At Promontory Summit, Utah, the final golden spike was driven into position

12. Time Zones • Towns set their clocks according to solar time • Time differences created confusion • Railroad adopted a national system of time zones

13. Railroads and Industry • A faster and more practical means of transporting goods • Less limited by geographic factors • Lower costs of production • Cheaper way to transport goods • Creation of national markets • Allowed businesses to sell products nationwide • A model for big business • Huge numbers of workers to control • Stimulation of other industries • Encouraged innovation in other industries

14. Bessemer Process • Steel had been produced by melting iron, adding carbon, and removing impurities • The Bessemer process made it much easier to remove the impurities • Made mass production of steel possible

15. Bessemer Converter

16. The Brooklyn Bridge • New York City is bustling • Only way to reach Manhattan from Brooklyn was a ferry • Shut down in winter • John Roebling designed a suspension bridge with thick steel cables suspended from high towers to hold up the main span

17. Brooklyn Bridge

18. Section 2: The Growth of Big Business TEKS – 12C, 19B, 24G

19. TEKS • 12C • Describe the impact of the Sherman Antitrust Act on businesses. • 19B • Evaluate the contributions of significant political and social leaders in the United States such as Andrew Carnegie, Shirley Chisholm, and Franklin D. Roosevelt. • 24G • Support a point of view on a social studies issue or event.

20. “Robber Barons” or“Captains of Industry” • “Robber Barons” – business leaders who built their fortune by stealing from the public • Drained the country • Drove their competitors to ruin • “Captains of Industry” – business leaders who increased the supply of goods by building factories, raising productivity, and expanding markets.

21. John D. Rockefeller • “Robber Baron” – methods used to gain control of the oil industry called into question • “Captain of Industry” – gave over $500 million to establish or improve charities

22. Andrew Carnegie • “Robber Baron” – questioned his labor practice’s and motives behind his good deeds. • “Captain of Industry” – gave over $350 million to charities

23. Social Darwinism • Wealthy the most valuable group n society • Darwin – all animal life had evolved by a process of “natural selection,” a process in which only the fittest survive to reproduce • Social Darwinism – a society should do as little as possible to interfere with people’s pursuit of success.

24. Big Business • Characteristics of Big Business: • Larger Pools of Capital • Money to pay for big businesses. • Wider Geographic Span • Telephone and railroads aided the geographic expansion of businesses. • Broader Range of Operations • Big businesses combined multiple operations. • Revised Role of Ownership • Less manager to worker relationships. • New Methods of Management • New rules and accounting policies.

25. Small Companies Fail • Small companies pushed out because of the high start up costs • Oligopoly – a market structure which is dominated by only a few large, profitable firms. • Monopoly – complete control of a product or service. • A business would buy out its competitors or drive them out of business. • Cartel – A loose association of businesses that make the same product. • Agreed to limit the supply of their product and thus keep the prices high.

26. Carnegie Steel • Age 30, Carnegie made $50,000 ($622,474) • Established Carnegie Steel Company in 1889 • Vertical consolidation – gaining control of many different businesses that make up all phases of a product’s development. • Economies of scale – as production increases, the cost of each item produced is lower

27. Standard Oil Trust • Rockefeller got rich off of grain and meat during the Civil War • Formed the Standard Oil Company in 1870 • Horizontal consolidation – involves the bringing together of many firms in the same business. • Trust – a board of trustees that managed the companies as a single unit

28. Standard Oil in 1899

29. Government Responds • American Telephone and Telegraph, Swift and Armour, General Electric, Westinghouse, and DuPont • Sherman Antitrust Act • Passed in 1890 in an attempt to limit the amount of control a business could have over an industry. • Outlawed any combination of companies that restrained interstate trade or commerce

30. Logos Today

31. Section 3: Industrialization and Workers TEKS – 2C, 8B, 10B, 22C, 23A, 24H

32. TEKS • 2C • Analyze social issues such as the treatment of minorities, child labor, growth of cities, and problems of immigrants. • 8B • Pose and answer questions about geographic distributions and patterns shown on maps, graphs, charts, models, and databases. • 10B • Analyze the effects of changing demographic patterns resulting from immigration to the United States. • 22C • Analyze the impact of technological innovations on the nature of work, the American labor movement, and businesses. • 23A • Analyze how scientific discoveries and technological innovations, including those in transportation and communication, have changed the standard of living in the United States. • 24H • Use appropriate mathematical skills to interpret social studies information such as maps and graphs.

33. Growing Work Force • 14 million people immigrated to the U.S. between 1860 and 1900 • 1860 • Laborers worked 12 hour days, 6 day weeks, and production goals

34. Pay and Work • Piecework – workers received a fixed amount of money for each piece they produced • Performed in sweatshops • A shop where employees worked long hours at low wages and under poor working conditions

35. Increasing Worker Productivity • Division of labor – way of producing in which different tasks are performed by different persons • “I regard my people as I regard my machinery. So long as they can do my work for what I choose to pay them, I keep them, getting out of them all I can.”

36. Work Day • Worked by the clock • Very strict • Fined or fired for talking, being late, or refusing to do a task • Workplaces not safe • Children would work in factories • Left school at the age of 12 or 13 to work

37. Section 4: The Great Strikes TEKS – 2C, 22C

38. TEKS • 2C • Analyze social issues such as the treatment of minorities, child labor, growth of cities, and problems of immigrants. • 22C • Analyze the impact of technological innovations on the nature of work, the American labor movement, and businesses.

39. Big Business • 9% of Americans held 75% of the national wealth • Socialism • An economic and political philosophy that favors public instead of private control of the means of production • People should cooperate, not compete, in producing goods

40. Knights of Labor • Formed in Philadelphia in 1869 • To organize all working men and women, skilled and unskilled, into a single union • Pursued • Equal pay • Eight-hour workday • End to child labor • By 1890s, the K of L had largely disappeared

41. American Federation of Labor • Formed in 1886 under the leadership of Samuel Gompers • A craft union • Sought to organize only skilled workers in a network of smaller unions, each devoted to a specific craft • Collective bargaining • A process in which workers negotiate as a group with employers

42. Stopping Unions • Employers Measures to Stop Unions: • Forbidding union meetings • Firing union organizers • Signing of “yellow dog” contracts • Workers promised never to join unions or participate in strikes • Refusing to bargain collectively • Refusing to recognize unions

43. Great Railroad Strike of 1877 • Wage cut for Baltimore and Ohio railroads • Workers went on strike and tried to prevent others from running the trains • President Hayes sent in federal troops • Mobs destroyed property worth $5 million ($62 million today)

44. Great Railroad Strike of 1877

45. Eugene V. Debs • Promoted industrial unions • Organized workers from all crafts in a given industry

46. Haymarket Riot, 1886 • Arguing for eight-hour workdays • Fights between strikers and scabs • Worker called in by an employer to replace striking laborers • Group of anarchists (radical who oppose all government) joined strikers in Chicago’s Haymarket Square • Bomb went off

47. Homestead Strike, 1892 • Union at Carnegie plant in Homestead, PA • Called in Pinkertons • A private police force known for their ability to break strikes • Shooting broke out

48. Pullman Strike, 1894 • Pullman (railroad businessman) cut wages by 25% • Union turned to Eugene V. Debs and the American Railway Union • 260,000 railway workers joined the strike • Disrupted delivery of the mail • Federal troops sent in

49. Pullman Strike

50. End of Chapter 6 – The Expansion of American Industry Prepare for a QUIZ!