american industry comes of age

American Industry Comes of Age

Matt Lopez. Selected slides from Ms. Susan M. PojerMatt Lopez. Selected slides from Ms. Susan M. Pojer

1. Unskilled & semi-skilled labor in abundance2. Capital3. Entrepreneurs 4. Market growing as population increased5. Government willing to stimulate economic growth6. Abundant natural resources

1. Unskilled & semi-skilled labor in abundance2. Capital3. Entrepreneurs 4. Market growing as population increased5. Government willing to stimulate economic growth6. Abundant natural resources

Causes of Rapid IndustrializationCauses of Rapid Industrialization

Social Darwinism

Law of the jungle

The strong survive, the weak fail

No government interference – “laissez faire”

Therefore, state intervention to reward society and the economy is futile!

Most people liked this concept because it appealed to their work ethic

The Gospel of Wealth:Religion in the Era of Industrialization

The Gospel of Wealth:Religion in the Era of Industrialization

$ Wealth no longer looked upon as bad

$ Viewed as a sign of God’s approval

$ Christian duty to accumulate wealth

$ Should not help the poor

$ Wealth no longer looked upon as bad

$ Viewed as a sign of God’s approval

$ Christian duty to accumulate wealth

$ Should not help the poor

“On Wealth”“On Wealth”

Andrew CarnegieAndrew Carnegie

$ The Anglo-Saxon race is superior.

$ “Gospel of Wealth” (1901).

$ Inequality is inevitable and good.

$ Wealthy should act as “trustees” for their “poorer brethren.”

$ The Anglo-Saxon race is superior.

$ “Gospel of Wealth” (1901).

$ Inequality is inevitable and good.

$ Wealthy should act as “trustees” for their “poorer brethren.”

Robber BaronsMen that do anything to achieve great wealth

Accused of exploiting workers

Forcing horrible working conditions

Unfair labor practices

Selling cheap, then raising price after competitor goes out of business

“Captains of Industry” (euphemism)

Modern Robber BaronsModern Robber Barons

Trust

Stockholders turn their stock over to trustees and they run the corporation

Many companies joined together

Merger

Company buys out competitor

Monopoly

Company buys out everyone

Only provider of that service

Oil IndustryJohn D. Rockefeller started Standard Oil Company

Used a trust to gain control of other companies

Andrew CarnegieBuilds steel empire using:

New machinery (better products)

Cheap production methods

Talented workers paid in stock

Competition among workers

Vertical and horizontal integration

Labor Unions

Workers were being exploited

1882 – 675 workers killed each week in factories

Wages – which often got cut laterChild .27 per day

Women - $267 per year

Men - $498 per year

No benefits

6 day work week – 12-14 hours per day

Unions improved wages, hours, and conditions over time

“Tools” of Management

“Tools” of Labor

“scabs”

P. R. campaign

Pinkertons

lockout

blacklisting

yellow-dog contracts

court injunctions

open shop

boycotts

sympathy demonstratio

ns

informational picketing

closed shops

organized strikes

“wildcat” strikes

Early Unions

The Molly Maguires(1860s - 1870s)

The Molly Maguires(1860s - 1870s)

JamesMcParland

Pinkerton Agents

The Corporate “Bully-Boys”:

Pinkerton Agents

The Corporate “Bully-Boys”:

National Labor Union

1866-1873

Laid groundwork for future unions

Knights of Labor - 1869Knights of Labor - 1869 Eight-hour workday.

Workers’ cooperatives.

Worker-owned factories.

Abolition of child and prison labor.

Increased circulation of greenbacks.

Equal pay for men and women.

Safety codes in the workplace.

Prohibition of contract foreign labor.

Abolition of the National Bank.

Haymarket Riot (1886)Haymarket Riot (1886)Chicago

Haymarket Affair – protest against police brutality in breaking up strikes

Bombing at protest

Blamed on anarchists

8 Arrested

Knights of Labor lose support

American Federation of Labor

Started by Samuel Gompers 1886

By 1915 avg. work week went from 55hrs to 49 hrs

Avg. weeks wage rose from $17.50 to $24

Violent Strikes

Great Strike of 1877 – railroad strike that stopped trains for a week, federal troops called in to halt strike

Homestead Strike – steel workers strike, more violence and death

Company TownsPullman Illinois

Built by George M. Pullman for employees

Built sleeper cars

Residents were provided for

Homes- very nice

Medical Needs, shops, parks…

A “Compan

yTown”:

Pullman, IL

A “Compan

yTown”:

Pullman, IL

The Town of Pullman

Pullman, IL.An outsider goes to visit

He likes it at first

Well planned and laid out

Talks to residents and company officers and changes his opinions

Pullman had a lot of control

Residents could not drink

Could not hang out on their porches

Pullman Strike – strike against Pullman’s control & wage cuts, more violence and death

The SocialistsThe Socialists

Eugene V. Debs

Big Corporate Profits!Big Corporate Profits!

The Rise & Decline of Organized Labor

The Rise & Decline of Organized Labor