Chapter 13Chapter 13

The Triumph of IndustryThe Triumph of Industry

IntroductionIntroduction

What impact does a war have on industry and What impact does a war have on industry and technology?technology?

What specific impact did industry have on the What specific impact did industry have on the Civil War?Civil War?

http://www.history.com/videos/the-industrial-revolition

1. Technology and Industry1. Technology and Industry

Post Civil WarPost Civil War Rapid industrial growthRapid industrial growth Railroads expandedRailroads expanded Natural resources helpedNatural resources helped

Coal – steam powerCoal – steam power LumberLumber Rivers for shippingRivers for shipping Edwin Drake – first oil well (whales previously)Edwin Drake – first oil well (whales previously)

Workforce growsWorkforce grows New surge in immigration from Europe and AsiaNew surge in immigration from Europe and Asia Large and willing work force to fuel industryLarge and willing work force to fuel industry

Technology & Industry cont.Technology & Industry cont.

Growth of Growth of capitalismcapitalism Laissez faireLaissez faire – govt. stays out of business – govt. stays out of business

Horatio AlgerHoratio Alger - “rags to riches” idea; the - “rags to riches” idea; the American dreamAmerican dream

EntrepreneurshipEntrepreneurship – invest money to make a – invest money to make a profit; creates jobsprofit; creates jobs

Protective Protective tariffstariffs

InnovationInnovation Electricity transforms lifeElectricity transforms life

Thomas Thomas EdisonEdison – light bulb – light bulb 1,000 1,000 patentspatents (grant giving exclusive rights to develop and sell for a (grant giving exclusive rights to develop and sell for a

limited time)limited time) CommunicationCommunication

Samuel F.B. Samuel F.B. MorseMorse – telegraph – telegraph Alexander Graham Alexander Graham BellBell – telephone – telephone

Steel Steel Henry Henry BessemerBessemer – Bessemer Process – Bessemer Process

Purified iron ore to create lightweight, strong steelPurified iron ore to create lightweight, strong steel Suspension bridges held by steel cables (Suspension bridges held by steel cables (Brooklyn BridgeBrooklyn Bridge))

Westinghouse – air brakes; electricity over long distancesWestinghouse – air brakes; electricity over long distances Swift – refrigeration cars (meat)Swift – refrigeration cars (meat)

Innovation cont.Innovation cont.

The nation is linked by railroadsThe nation is linked by railroads Adopted 24 Adopted 24 time zonestime zones for scheduling for scheduling Streetcars, subways, commuter rails appearStreetcars, subways, commuter rails appear Mass productionMass production Growing link in world marketsGrowing link in world markets Everything becomes mechanizedEverything becomes mechanized Impacts the environmentImpacts the environment

http://www.history.com/shows/modern-marvels/videos/the-telegraph-and-telephone

http://www.history.com/shows/modern-marvels/videos/light-bulb-turns-night-into-day

2. Rise of Big Business2. Rise of Big Business

Most businesses privately owned – limited Most businesses privately owned – limited capitalcapital

Desire for profits, expansion, access to Desire for profits, expansion, access to transportation leads to transportation leads to corporationscorporations Many people share ownershipMany people share ownership Huge amounts of capital for research, technology, Huge amounts of capital for research, technology,

reinvestmentreinvestment Board of directors, some shareholders receive Board of directors, some shareholders receive

dividends (payments)dividends (payments)

Big Business cont.Big Business cont.

J.P J.P MorganMorgan – banking – banking Cornelius Cornelius VanderbiltVanderbilt – steamboats then railroads – steamboats then railroads John D. John D. RockefellerRockefeller – oil – oil Andrew Andrew CarnegieCarnegie – steel – steel Some became Some became monopoliesmonopolies where they bought out where they bought out

competition or drove them out of businesscompetition or drove them out of business CartelCartel – people in same business agree on production – people in same business agree on production

to keep prices highto keep prices high TrustTrust – put business in other names or smaller – put business in other names or smaller

companiescompanies

http://www.history.com/videos/john-d-rockefeller-oil-money-and-power

Corporate Giants – How?Corporate Giants – How?

Horizontal IntegrationHorizontal Integration Consolidate (buy) many smaller companies in the Consolidate (buy) many smaller companies in the

same businesssame business Rockefeller - bought small oil companiesRockefeller - bought small oil companies

Vertical IntegrationVertical Integration Control all parts of the production processControl all parts of the production process Rockefeller did this also – controlled oil wells, Rockefeller did this also – controlled oil wells,

pipelines, retail outlets, etc.pipelines, retail outlets, etc. Standard OilStandard Oil

Debating the GiantsDebating the Giants

Captains of Industry or Robber Barons?Captains of Industry or Robber Barons? Robber baronsRobber barons

Unfairly kept high prices, paid workers little, stifled Unfairly kept high prices, paid workers little, stifled competition, swindled the poorcompetition, swindled the poor

Captains of industryCaptains of industry Increased labor force, stimulated the economy, technology Increased labor force, stimulated the economy, technology

benefited all, shaped the U.S. into strong industrial powerbenefited all, shaped the U.S. into strong industrial power Most men were philanthropists and donated millionsMost men were philanthropists and donated millions

Giants cont.Giants cont.

Social DarwinismSocial Darwinism develops out of Charles develops out of Charles Darwin’s theory of evolution and natural Darwin’s theory of evolution and natural selection: “survival of the fittest”selection: “survival of the fittest”

Applied this theory to capitalismApplied this theory to capitalism The rich were the best because they earned itThe rich were the best because they earned it The most rigorous and productive rise to the topThe most rigorous and productive rise to the top Reluctant to help poor – they were unfitReluctant to help poor – they were unfit Government should stay out of itGovernment should stay out of it

RegulationsRegulations

ICCICC – Interstate Commerce Commission – – Interstate Commerce Commission – first federal body set up to monitor businessfirst federal body set up to monitor business Regulated railroadsRegulated railroads Long history of price fixing, unfair rates, etc.Long history of price fixing, unfair rates, etc.

Sherman Antitrust ActSherman Antitrust Act – Outlawed any trust – Outlawed any trust that operated “in restraint of trade or that operated “in restraint of trade or commerce among the states.”commerce among the states.”

Both seldom enforced but at least an attemptBoth seldom enforced but at least an attempt

FactoriesFactories Immigrants made up large % of work forceImmigrants made up large % of work force Long hours – 12-16 hours, 6 days/weekLong hours – 12-16 hours, 6 days/week SweatshopsSweatshops – small, hot, dirty workplaces – small, hot, dirty workplaces Many women & children employed – 1 in 5 children Many women & children employed – 1 in 5 children

worked rather than attend school – stunted physical worked rather than attend school – stunted physical and emotional growth – lost childhoodand emotional growth – lost childhood

Strict regulation of employeesStrict regulation of employees Dangerous – hearing loss from noise, accidents from Dangerous – hearing loss from noise, accidents from

faulty equipment, poor ventilationfaulty equipment, poor ventilation Child laborChild labor http://www.history.com/videos/the-fight-to-end-child-http://www.history.com/videos/the-fight-to-end-child-

laborlabor

3. Organized Labor3. Organized Labor

Pros of industrial expansion:Pros of industrial expansion: Economy grew drastically, great wealth for Economy grew drastically, great wealth for

industrialists, higher standards of living, industrialists, higher standards of living, availability of goods, access to public institutions availability of goods, access to public institutions (schools, museums)(schools, museums)

Cons of industrial expansion:Cons of industrial expansion: People who worked in factories struggled to People who worked in factories struggled to

survive, immigrant workers faced discriminationsurvive, immigrant workers faced discrimination

Labor Unions FormLabor Unions Form

Early attempts – Early attempts – collective bargainingcollective bargaining – group – group negotiates for better wages, conditionsnegotiates for better wages, conditions

SocialismSocialism spreads in Europe 1830’s spreads in Europe 1830’s Favors public (not private) control of property and Favors public (not private) control of property and

industryindustry 1848 – 1848 – Karl MarxKarl Marx, Friedrich Engels , Friedrich Engels Communist Communist

ManifestoManifesto – denounced capitalism and predicted – denounced capitalism and predicted workers would overthrow ownersworkers would overthrow owners

Labor activists borrowed from these ideasLabor activists borrowed from these ideas

Labor Unions cont.Labor Unions cont. Knights of LaborKnights of Labor – created for all workers of any – created for all workers of any

trade, skilled or unskilledtrade, skilled or unskilled Terrence Powderly took over, encouraged boycottsTerrence Powderly took over, encouraged boycotts Unsuccessful strikes led to its demiseUnsuccessful strikes led to its demise AFL AFL – American Federation of Labor founded by – American Federation of Labor founded by

Samuel GompersSamuel Gompers Craft union of skilled workersCraft union of skilled workers Required duesRequired dues Sought wages, working conditions, better hoursSought wages, working conditions, better hours Opposed women – feared they would drive wages lowOpposed women – feared they would drive wages low

StrikesStrikes

Railroad strikesRailroad strikes – caused destruction of – caused destruction of property, militias called in to protect property, militias called in to protect temporary workers, federal troops sent to stop temporary workers, federal troops sent to stop strikersstrikers

Haymarket SquareHaymarket Square – wanted 8 hour workday, – wanted 8 hour workday, violence began, bomb killed policemen, violence began, bomb killed policemen, several others killedseveral others killed Knights of Labor died as people shied away from Knights of Labor died as people shied away from

radicalism; employers associated unions now with radicalism; employers associated unions now with violenceviolence

Strikes cont.Strikes cont.

Homestead StrikeHomestead Strike - Carnegie cuts wages at steel - Carnegie cuts wages at steel plant; partner (Frick) hired Pinkerton agency, killed plant; partner (Frick) hired Pinkerton agency, killed severalseveral Workers ended strike but led to epidemic of other strikesWorkers ended strike but led to epidemic of other strikes

Pullman StrikePullman Strike – railway car workers required to live – railway car workers required to live in company towns, wages cut; Eugene V. Debs in company towns, wages cut; Eugene V. Debs organizes strike – shut down railroads, mail deliveryorganizes strike – shut down railroads, mail delivery President Cleveland says strike interferes with free trade, President Cleveland says strike interferes with free trade,

sends troops; Debs arrestedsends troops; Debs arrested *Used Sherman Anti Trust Act against WORKERS! *Used Sherman Anti Trust Act against WORKERS!

http://www.history.com/videos/andrew-carnegie-and-the-homestead-strike

http://www.history.com/videos/jp-morgan-battles-coal-miners-in-1902

Impact of Labor UnionsImpact of Labor Unions

Frequent use of troops citing “interference Frequent use of troops citing “interference with trade” with trade”

Trend of contract negotiations & strikesTrend of contract negotiations & strikes Splits within the union – radical, moderate Splits within the union – radical, moderate Mistrust and fear of labor; conflictsMistrust and fear of labor; conflicts