A.What are the factors that create an imbalance of power?

B.Is Progress always positive?C.Can the level of economic development

accurately describe a culture's way of life?

The Second Industrial Revolution

The Big IdeaThe Second Industrial Revolution led to new sources of power

and advances in transportation and communication.

Main Ideas• Breakthroughs in steel processing led to a boom in

railroad construction. • Advances in the use of oil and electricity improved

communications and transportation.• A rush of inventions changed Americans’ lives.

Main Idea 1: Technological advances were important to Second

Industrial Revolution, period of rapid growth in U.S. manufacturing in late 1800s

Bessemer process, invented mid-1850s, allowed steel to be produced quickly and cheaply.Helped increase steel production from 77,000 tons in

1870 to more than 1 million tons in 1879As steel dropped in price, so did the cost of building

railroads, generating a boom in railroad construction.Growth of railroads helped the country expand and

prosper.

Main Idea 2:.

Chemists invented a way to convert crude oil into fuel called kerosene in the 1850s.

Kerosene, which could be used for cooking, heating, and lighting, created a demand for oil.

A huge oil industry developed after a way to pump oil from the ground was developed in 1859.

Invention• Inventor Thomas Edison, who held more than

1,000 patents, worked to invent an electric light.• Edison and his team introduced the first practical

electric lightbulb in 1879. Spread

• Edison created a power company to distribute electricity, but could not send it over long distances.

• George Westinghouse built a power system that could send electricity many miles across the country.

Development of Electricity

Main Idea 3:

New telegraph technology connected the United States with Britain by cable in 1866.

Alexander Graham Bell patented the telephone in 1876. Telephones were rapidly adopted, the number rising from

55,000 in 1880 to almost 1.5 million in 1900.

The automobile industry grew in steps.1876 – German engineer invented the gasoline-powered engine.1893 – The United States built its first practical motorcar.1908 – Henry Ford introduced the Model T.Ford was first to implement the moving assembly line in manufacturing, making cars more affordable.Wilbur and Orville Wright invented an airplane powered by a gas engine in 1903.

The Big IdeaThe growth of big business in the late 1800s led to the

creation of monopolies.

Main Ideas• The rise of corporations and powerful business leaders led

to the dominance of big business in the United States. • People and the government began to question the

methods of big business.

Main Idea 1:

Many entrepreneurs formed their businesses in the late 1800s as corporations, or businesses that sell portions of ownership called stocks or shares.

Corporate leaders were some of the most widely respected members of American society.

Successful corporations rewarded not only the people who founded them, but also investors who held stock.- Stockholders- a person who owns shares(part) of stock in a corporation or mutual fund

Corporations encouraged more investment in businesses because stockholders could sell stock whenever they wanted.

Andrew Carnegie• One of most admired businesspeople of the time• Focused on steelmaking• Used Bessemer Process• Used vertical integration, owning businesses

involved in each step of manufacturing, to lower costs

• Also gained power through consolidation- bought out several rival companies and combined them with his own

• By 1892 Carnegie Steel Company was producing 25% of the nation’s Steel

• Spent $350 million funding educational grants and concert halls

Business Leaders

John D RockefellerJohn D. Rockefeller

• Standard Oil Company was country’s largest refinery • Developed horizontal integration, owning all

businesses in a field• If you own all the businesses in the field you have the

ability to control the prices in the market this is a monopoly

• Formed a trust, grouping many companies under a single board of trustees or board members who control the business or businesses

• He worked deals with RR companies using rebates- refunds given to loyal customers- ( if you use this company 4 times in a row you get the 5th on free)

• Gave away $500 million in his lifetime to different charities

Leland Stanford

Leland Stanford • Made fortune selling equipment to miners• Governor of California, one of founders of

Central Pacific Railroad• Used his position in government to get

huge land grants and other benefits for his RR company

• Later in his life he founded Stanford University

JP Morgan

Famous Banker –helped people manage their money

He also got into the RR businessOffered Carnegie $480 million and Morgan

formed the US Steel Corporation in 1901 it was the larges corporation in the world at the time.

Donated money to many charities over his lifetime

Loaned the US government money on several occasions

Captain of Industry – a term used in the US during the IR describing a business leader whose means of amassing personal fortune contributes positively to the country in some way

Robber Baron- term used to describe America’s very successful business owners during the late 1800’s and early 1900’s who abused their power to take advantage of smaller weaker companies.

Main Idea 2:People and the government began to view big business

as a problem in the late 1800s.Concerned about child labor, low wages, and poor

working conditionsMany business leaders believed in social Darwinism.

Darwin’s “survival of fittest” applied to which human beings would succeed in business and in life in general.

Other business leaders believed that the rich should help the poor.Carnegie, Rockefeller, Stanford, and other business

leaders gave away large sums of money to charities.

The Antitrust Movement

Critics said many businesses earned their fortunes through unfair business practices.Used size and strength to drive smaller competitors out

of businessPowerful trusts sold goods and services below market

value until smaller competitors went out of business, then raised prices.

Some people were concerned when a trust gained a monopoly, or total ownership of a product or service.

The Sherman Antitrust Act passed in 1890 made it illegal to create monopolies or trusts that restrained trade.The act did not clearly define a trust in legal terms, so it

was hard to enforce.Corporations and trusts continued to grow in size and

power.

The Big IdeaChanges in the workplace led to a rise in labor unions and

workers’ strikes.

Main Ideas• The desire to maximize profits and become more efficient

led to poor working conditions. • Workers began to organize and demand improvements in

working conditions and pay.• Labor strikes often turned violent and failed to accomplish

their goals.

Main Idea 1:

Several factors led to a decline in the quality of working conditions in the late 1800s.Machines and unskilled workers replaced skilled

craftspeople.These low-paid workers could easily be replaced. They

brought costs down and caused production to rise.Frederick W. Taylor, an efficiency expert, published The

Principles of Scientific Management in 1909.Encouraged managers to view workers as

interchangeable partsInjuries increased, and conditions worsened.Workers looked for ways to bring about change.

Poor Working Conditions

Small, crowded roomsSpecialization made workers tired, bored, and more likely

to be injured.Managers paid less attention to working conditions.Stuffy airUnsafe workplacesLong hoursLow wagesNo job security

Knights of Labor• First national labor union, founded in 1870s• Pushed for eight-hour workday, equal pay for equal work, and

end to child labor • Included both skilled and unskilled workers • Terence V. Powderly became leader in 1879 and ended

secrecy of organization.

Main Idea 2:

American Federation of Labor • Organized individual national unions, such as mine-workers’ and

steelworkers’ unions• Limited membership to skilled workers • Used collective bargaining, in which all workers acted

collectively, or together, to negotiate with management

Haymarket Riot• Erupted between protesters and police in Chicago• Someone threw a bomb and wounded many police officers and killed

eight• Resulted in decline of Knights of Labor

Homestead Strike• Strike occurred at Carnegie Steel Company in Homestead, Pennsylvania.• Workers were protesting the buying of new equipment and cutting jobs• Resulting fight left workers and Pinkerton guards dead.

Main Idea 3:

Pullman Strike • Began with workers who made Pullman train cars • Spread to workers who worked on trains pulling sleeping cars• The workers stopped trains on many lines all over the country• Federal troops stopped strike.

Gilded AgeIn American history, the Gilded Age refers to

substantial growth in population in the United States and extravagant displays of wealth and excess of America's upper class during the post-Civil War and post-Reconstruction eras of the late 19th century (1865-1901). The term "Gilded Age" was coined by Mark Twain and Charles Dudley Warner in their 1873 book, The Gilded Age: A Tale of Today.

-Gilding is the decorative technique of applying fine

metallic-leaf or powder to solid surfaces such as wood, stone, or metal