American History

Gilded Age of American IndustryGilded Age of American Industry

How the United States Developed into the World's Greatest Industrialized Nation

How the United States Developed into the World's Greatest Industrialized Nation

I. Industrial growth (1850-1900) A. Factors which contributed to the United State's rapid industrial growth. 1. Wealthy Europeans and Americans invested in American industrial enterprises. 2. Government used high tariffs to protect American businesses from foreign competition. 3. Railroads opened up national markets to manufacturers. 4. The United States had abundant natural resources. 5. A continuous flow of immigrants into the United States to provide labor. 6. Growing U.S. population that could buy the products produced.

The Rise of Modern CapitalismThe Rise of Modern CapitalismI. Rise of Modern Capitalism A. Characteristics of Capitalism 1. Factories are privately owned, but subject to government regulation. 2. Employers furnish raw materials and machinery; workers provide the labor. 3. The owners get profits and the workers get wages. 4. Within large-scale factories, employees and the employer rarely see each other.

Growth of Cities Due to LaborGrowth of Cities Due to Labor

Business OrganizationBusiness OrganizationI. Corporation: A. A company owned by many people, each of who becomes a part owner by purchasing stock. B. Advantages to big business: 1. Build modern and efficient plants and factories. 2. Acquire up-to-date and specialized machinery. 3. Maintains a large distribution market for its products. 4. Increased sales through national advertising. C. Disadvantages to big businesses: 1. Tends to be Monopolistic- destroys smaller independent competition. a. Enormous wealth and power is concentrated into the hands of a few.

The game Monopoly is based on the concept of monopolizing the board and getting rid of your competition as practiced by many industrial giants during the Gilded Age.

Social DarwinismSocial DarwinismI. Social Darwinism and the Gospel of Wealth. “Survival of the Fittest." A. Many wealthy American businessmen, inspired by biologist Charles Darwin’s new theories of natural selection, believed that the poor were deceitful and lazy, while the rich were honest and hard-working. 1. Explained how healthy businesses thrived while unhealthy ones went bankrupt.

Charles Darwin: His evolution theory was very controversial in the late 1800s and caused many heated debates. Many big business leaders subscribed to this belief as to why they were justified in monopolizing business and controlled their wealthy status in society.

Years later, Adolph Hitler would subscribe to social Darwinism as a basis for Nazi racism.

Age of Industrial Giants (Andrew Carnegie)Age of Industrial Giants (Andrew Carnegie)I. Andrew Carnegie A. Known as the "Steel King."

B. Carnegie Steel Company of Pittsburgh, Pa. 1. Owned over 25% of the nation’s entire steel. a. Controlled resources, factories, and transportation

Andrew Carnegie: One of the wealthiest men in the world was once denied boarding of a London subway because he never carried money with him.

Today’s Pittsburgh Steelers adopted Carnegie’s Steel Company’s logo as their own in honor of Carnegie.

Age of Industrial Giants (John D. Rockefeller)Age of Industrial Giants (John D. Rockefeller)II. John D. Rockefeller A. Standard Oil Company 1. Bought out or drove smaller competitors out of business. a. Became too powerful. 2. The U.S. government forced him to dissolve his company into smaller and less dominating independent units.

John D. RockefellerStandard Oil Company

Early oil drill Titusville, Pennsylvania.

Other Industrial GiantsOther Industrial Giants

III. Other Captains of Industry included: A. Philip D. Armour (meat-packing) B. J. Pierpont Morgan (banking and finance)

C. Cornelius Vanderbilt (railroads).

J. Pierpont Morgan (banking and finance)

Philip D. Armour (meat-packing)

Cornelius Vanderbilt (railroads)

The ‘Robber Barons’ of the PastThe ‘Robber Barons’ of the Past

The Protectors of Our IndustriesThe Protectors of Our Industries

The ‘Bosses’ of the SenateThe ‘Bosses’ of the Senate

New Business CultureNew Business Culture1. Laissez Faire the ideology of the

Industrial Age.1. Laissez Faire the ideology of the

Industrial Age.

Individual as a moral and economic ideal.

Individuals should compete freely in the marketplace.

The market was not man-made or invented.

No room for government in the market!

Individual as a moral and economic ideal.

Individuals should compete freely in the marketplace.

The market was not man-made or invented.

No room for government in the market!

Attempts to Control Big Business By the U.S. Govt.’Attempts to Control Big Business By the U.S. Govt.’

I. Interstate Commerce Act of 1887: A. Railroad rates must be reasonable and fair to all patrons. B. Special rates and all rebates were discontinued. C. Railroads could not charge more for shorter hauls than longer hauls.II. Congress created the Interstate Commerce Commission (ICC) to oversee it is complied. III. The Sherman Antitrust Act of 1890: A. Declared it illegal for any business to restrain trade or commerce of another business. B. The Sherman Antitrust Act was difficult to enforce and largely ignored.

Big Business: Often viewed as greedy, money-hungry old men by the American public.

The Organized Labor MovementThe Organized Labor Movement

I. Organized labor A. Developed to help workers overcome long hours, poor pay, and miserable working conditions. B. The organization of Labor Unions. 1. Conditions that made workers want to reform a. Working conditions in many early factories were very poor. 1a. Working environments were often damp, cold, poorly ventilated, and unsanitary.

b. Wages were low 1b. $4 or $5 a week.

c. Long hours: 1c. Men, women, and children often worked 12-16 hour days; 7 days a

week. d. No job security.

1d. Workers lost their jobs during depressions or injury on the job. f. Laissez-faire- Many governments adopted a "hands-off" policy and

permitted businessmen to do pretty much as they pleased.

Unions (Pros vs. Cons)Unions (Pros vs. Cons)

Labor OrganizationsLabor OrganizationsII. Knights of Labor A. First organized labor organization started in 1869. 1. Admitted all workers- men, women, black, white, skilled, or unskilled. a. Rapidly grew in size from 9,000 to 700,000 within a year. b. The K.O.L. fell apart after the disastrous “Haymarket Riot” in 1886.

III. American Federation of Labor (AFL) B. Organized labor organization that represents skilled labor. 1. Skilled labor- Railroad or mine workers.

“Haymarket Riot” in 1886