Rise of Industry

1. Rise of Industry

2. Rise of Industry • Introduction • Profiles • Andrew Carnegie • John D. Rockefeller • Thomas Edison • Labor • General Conditions • Women and Children • Unions • Conclusion

3. Themes • Leading Industrialists: • Captains of Industry or Robber Barons? • Working conditions and life for workers • By 1900 the U.S. was a major industrial power, but was it worth the cost

4. Bellwork • Which is more important: Large financial reward for the few or small financial reward for the many?

5. Factors of Economic Growth • Workers – abundant workforce to produce and innovate

6. Factors of Economic Growth • Workers • Resources – Materials used to produce goods (Energy; Raw Materials)

7. Factors of Economic Growth • Workers • Resources • Capital – Money to pay workers and purchase resources; Tools to produce goods

8. Factors of Economic Growth • Workers • Resources • Capital • Entrepreneurs – People who innovate and start businesses

9. Rise of Industry • Introduction • Profiles • Andrew Carnegie • John D. Rockefeller • Thomas Edison • Labor • General Conditions • Women and Children • Unions • Conclusion

10. Andrew Carnegie (1835-1919) • Founded U.S. Steel • Vertical Integration: • Control all portions of manufacturing process from raw materials to distribution • Wealth: $300 Billion (2012 Dollars)

11. Vertical Integration • Controlling each step in the production, disruption, and sale of a product.

12. John D. Rockefeller • Founded Formed Standard Oil • Undercut competition by lowering prices until competition went out of business, then raised prices • Horizontal Integration: Controlled about 90% of U.S. oil refining capacity by 1879 • Wealth: $320 Billion (2012 Dollars)

13. Horizontal Integration • Controlling each all competition at a specific step in the production or distribution level

14. Check Up! • Briefly explain the difference between Vertical Integration and Horizontal Integration. Provide an example for each one.

15. Cost of Industrialization • U.S. became major industrial power by 1900

16. Industrial Power

17. Cost of Industrialization • U.S. became major industrial power by 1900 • Business leaders acted as Philanthropists: Gave money back to society

18. Philanthropist - Carnegie • Helped establish 2,000 libraries • Established $10 million dollar fund for teachers • Gave away 90% of his fortune to charities and foundations • Carnegie Endowment for International Peace

19. Cost of Industrialization • U.S. became major industrial power by 1900 • Business leaders acted as Philanthropists: Gave money back to society • Environmental degradation • Strip mining • Pollution in rivers

20. Environmental degradation

21. Cost of Industrialization • U.S. became major industrial power by 1900 • Business leaders acted as Philanthropists: Gave money back to society • Environmental degradation • Strip mining • Pollution in rivers • Factory life was poor

22. Factory Life

23. Cost of Industrialization • U.S. became major industrial power by 1900 • Business leaders acted as Philanthropists: Gave money back to society • Environmental degradation • Strip mining • Pollution in rivers • Factory life was poor • Corruption in government

24. Corruption in Government • 75 out of 90 Senators in 1906 had accepted bribes from corporation or business leaders

25. Cost of Industrialization • U.S. became major industrial power by 1900 • Business leaders acted as Philanthropists: Gave money back to society • Environmental degradation • Strip mining • Pollution in rivers • Factory life was poor • Corruption in government • Social Darwinism • Belief that individuals must be free to struggle, succeed or fail without government intervention

29. Captains of Industry or Robber Barons? • Captain of Industry: a business leader whose means of amassing a fortune contributes positively to the country. • Robber Baron: Modern-day businesspeople who engage in unethical business tactics to build large personal fortunes. • Were the leaders of these companies Robber Barons or Captains of Industry? Why?

30. Check Up! • Were the leaders of these companies Robber Barons or Captains of Industry? Why?

31. Rise of Industry • Introduction • Profiles • Andrew Carnegie • John D. Rockefeller • Thomas Edison • Labor • General Conditions • Women and Children • Unions • Conclusion

32. Bellwork • What options do employees who work under harsh conditions have to improve their work place?

33. General Working Conditions in 1900 • New: • Large factories

34. General Working Conditions in 1900 • New: • Large factories • repetitive tasks

35. General Working Conditions in 1900 • New: • Large factories • repetitive tasks • Average work week: 55-66 hours

36. General Working Conditions in 1900 • New: • Large factories • repetitive tasks • Average work week: 55-66 hours • Dangerous Conditions • 1913 • 25,000 work place fatalities • 700,000 serious injury

37. Check Up! • How does this testimony reflect the fundamental differences between the old and new factory system within the United State?

38. U.S. Labor Force • Child Laborers • 1900: 2 million children worked for wages • Female workers • Earned less money than male counterparts • 1900: 17% of workforce was female

39. Example: Skilled vs. Unskilled Wages • Bricklayer (skilled) • 3.00 day • General Laborer (unskilled) • 1.30 day • Southern Mill Worker (Unskilled) • 0.84 day

40. Example: Skilled vs. Unskilled Wages • Bricklayer (skilled) • 3.00 day • General Laborer (unskilled) • 1.30 day • Southern Mill Worker (Unskilled) • 0.84 day • It would take a mill worker 1.5 million years to make as much money as Carnegie made in his lifetime.

41. Example: Steel Workers • Shifts: 7 days a week, 12 hours a day • One day off per month • Extremely dangerous work

42. Title: Unit 6 - FormativeFormative Assessment: Complete the following chart by identifying at least three fact for each topic.

43. Rise of Industry • Introduction • Profiles • Andrew Carnegie • John D. Rockefeller • Thomas Edison • Labor • General Conditions • Women and Children • Unions • Conclusion

44. Labor Responds • Union: an organization of workers that have banded together to achieve common goals • Major U.S. Unions • National Labor Union • Knights of Labor • American Federation of Labor (AFL) • Industrial Workers of the World (Wobblies)

45. Check Up! • Gompers was an advocate for workers rights and a leader of the American Federation of Labor (AFL). Why does he argue that workers should have the right to strike?

46. Union Busting • Strike Breaking • Bring in outside workers • Army/militia

47. Union Busting • Strike Breaking • Bring in outside workers • Army/militia • Ban Unions through Contracts

48. Union Busting • Strike Breaking • Bring in outside workers • Army/militia • Ban Unions through Contracts • Defame Unions • Anarchists – Abolish gov. • Socialists – Democratic movement to redistribute wealth • Communists – Violent revolution to redistribute wealth

49. Check Up! • How does this cartoon reflect the anti-union sentiments amongst some people within the United States?

50. Homework: Identify and describe each of the following events in labor history