the age of innovation and industry us history learning target: i can identify the positive and...

The Age of Innovation and The Age of Innovation and IndustryIndustry

US HistoryUS History

Learning Target: I can identify the Learning Target: I can identify the positive and negative impacts of positive and negative impacts of IndustrializationIndustrialization

Essential VocabularyEssential Vocabulary

• CapitalismCapitalism• Definition: an economic system in Definition: an economic system in

which investment in and ownership which investment in and ownership of the means of production, of the means of production, distribution, and exchange of wealth distribution, and exchange of wealth is made and maintained chiefly by is made and maintained chiefly by private individuals or corporationsprivate individuals or corporations


• Free EnterpriseFree Enterprise• Definition: an economic and political Definition: an economic and political

doctrine holding that a capitalist doctrine holding that a capitalist economy can regulate itself in a economy can regulate itself in a freely competitive market through freely competitive market through the relationship of supply and the relationship of supply and demand with a minimum of demand with a minimum of governmental intervention and governmental intervention and regulation.regulation.


• IndustrializationIndustrialization• Definition: an economic organization Definition: an economic organization

of society built largely on of society built largely on mechanized industry rather than mechanized industry rather than agriculture, craftsmanship, or agriculture, craftsmanship, or commerce.commerce.


• Labor UnionLabor Union• Definition: an organization of wage Definition: an organization of wage

earners or salaried employees for earners or salaried employees for mutual aid and protection and for mutual aid and protection and for dealing collectively with employers.dealing collectively with employers.


• SocialismSocialism• Definition: a theory or system of Definition: a theory or system of

social organization that advocates social organization that advocates the vesting of the ownership and the vesting of the ownership and control of the means of production control of the means of production and distribution, of capital, land, and distribution, of capital, land, etc., in the community as a whole.etc., in the community as a whole.

InventionsInventions

• What do you think the three most What do you think the three most important inventions created are?important inventions created are?

• How have they changed life?How have they changed life?

Essential QuestionEssential Question

• Was the rise of Industry good for Was the rise of Industry good for the United States?the United States?

Causes of Rapid Causes of Rapid IndustrializationIndustrializationCauses of Rapid Causes of Rapid IndustrializationIndustrialization

1.1. Steam Revolution of the 1830s-Steam Revolution of the 1830s-1850s.1850s.

2.2. The Railroad fueled the growing US The Railroad fueled the growing US economy:economy:

First big business in the US.First big business in the US. The key to opening the West.The key to opening the West. Aided the development of other Aided the development of other

industries.industries.

1.1. Steam Revolution of the 1830s-Steam Revolution of the 1830s-1850s.1850s.

2.2. The Railroad fueled the growing US The Railroad fueled the growing US economy:economy:

First big business in the US.First big business in the US. The key to opening the West.The key to opening the West. Aided the development of other Aided the development of other

industries.industries.

Causes of Rapid Causes of Rapid IndustrializationIndustrialization

Causes of Rapid Causes of Rapid IndustrializationIndustrialization

3.3. Technological innovations.Technological innovations. Bessemer and open Bessemer and open

hearth processhearth process Refrigerated carsRefrigerated cars Edison Edison

o ““Wizard of Menlo Park”Wizard of Menlo Park”o light bulb, phonograph, light bulb, phonograph,

motion pictures.motion pictures.

3.3. Technological innovations.Technological innovations. Bessemer and open Bessemer and open

hearth processhearth process Refrigerated carsRefrigerated cars Edison Edison

o ““Wizard of Menlo Park”Wizard of Menlo Park”o light bulb, phonograph, light bulb, phonograph,

motion pictures.motion pictures.

Model T AutomobileModel T AutomobileModel T AutomobileModel T Automobile

Henry FordI want to pay my workers so that they

can afford my product!

Henry FordI want to pay my workers so that they

can afford my product!

““Model T” Prices & Model T” Prices & SalesSales““Model T” Prices & Model T” Prices & SalesSales

U. S. Patents U. S. Patents GrantedGranted

U. S. Patents U. S. Patents GrantedGranted

1790s 276 patents issued. 1790s 276 patents issued.

1990s 1,119,220 patents issued. 1990s 1,119,220 patents issued.

4.4. Unskilled & semi-skilled Unskilled & semi-skilled labor in abundance.labor in abundance.

5.5. Abundant capital.Abundant capital.

6.6. New, talented group of businessmen New, talented group of businessmen [[entrepreneursentrepreneurs] and advisors.] and advisors.

7.7. Market growing as US population increased.Market growing as US population increased.

8.8. Government willing to help at all levels to Government willing to help at all levels to stimulate economic growth.stimulate economic growth.

9.9. Abundant natural resources.Abundant natural resources.

4.4. Unskilled & semi-skilled Unskilled & semi-skilled labor in abundance.labor in abundance.

5.5. Abundant capital.Abundant capital.

6.6. New, talented group of businessmen New, talented group of businessmen [[entrepreneursentrepreneurs] and advisors.] and advisors.

7.7. Market growing as US population increased.Market growing as US population increased.

8.8. Government willing to help at all levels to Government willing to help at all levels to stimulate economic growth.stimulate economic growth.

9.9. Abundant natural resources.Abundant natural resources.

Causes of Rapid Causes of Rapid IndustrializationIndustrializationCauses of Rapid Causes of Rapid IndustrializationIndustrialization

New Business New Business CultureCultureNew Business New Business CultureCulture

1.1. Laissez FaireLaissez Faire the ideology of the the ideology of the Industrial Age. Industrial Age.

1.1. Laissez FaireLaissez Faire the ideology of the the ideology of the Industrial Age. Industrial Age.

Individual as a moral and Individual as a moral and economic ideal.economic ideal.

Individuals should compete Individuals should compete freely in the marketplace.freely in the marketplace.

The market was not man-made The market was not man-made or invented. or invented.

No room for government in the No room for government in the market!market!

Individual as a moral and Individual as a moral and economic ideal.economic ideal.

Individuals should compete Individuals should compete freely in the marketplace.freely in the marketplace.

The market was not man-made The market was not man-made or invented. or invented.

No room for government in the No room for government in the market!market!

2.2. Social DarwinismSocial Darwinism2.2. Social DarwinismSocial Darwinism Adapted Darwin’s Adapted Darwin’s

ideas ideas Notion of Notion of

“Survival of the “Survival of the Fittest.”Fittest.”

$ Individuals must Individuals must have absolute have absolute freedom to freedom to struggle, succeed struggle, succeed or fail.or fail.

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

Adapted Darwin’s Adapted Darwin’s ideas ideas

Notion of Notion of “Survival of the “Survival of the Fittest.”Fittest.”

$ Individuals must Individuals must have absolute have absolute freedom to freedom to struggle, succeed struggle, succeed or fail.or fail.

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

Herbert SpencerHerbert Spencer

New Business Culture:New Business Culture:“The American Dream?”“The American Dream?”New Business Culture:New Business Culture:“The American Dream?”“The American Dream?”

3.3. Protestant (Puritan) “Work Ethic”Protestant (Puritan) “Work Ethic” Horatio Alger [100+ novels]Horatio Alger [100+ novels]

3.3. Protestant (Puritan) “Work Ethic”Protestant (Puritan) “Work Ethic” Horatio Alger [100+ novels]Horatio Alger [100+ novels]

Is the idea of the “self-made man” a MYTH??Is the idea of the “self-made man” a MYTH??

New Type of Business New Type of Business EntitiesEntitiesNew Type of Business New Type of Business EntitiesEntities

1.1. PoolPool – – a group making secret agreements, setting a group making secret agreements, setting prices and determining business conditionsprices and determining business conditions

2.2. TrustTrust – a combination of firms or corporations formed – a combination of firms or corporations formed by a legal agreement headed by a small group. The by a legal agreement headed by a small group. The goal of a trust is to reduce or eliminate competition.goal of a trust is to reduce or eliminate competition.

1.1. PoolPool – – a group making secret agreements, setting a group making secret agreements, setting prices and determining business conditionsprices and determining business conditions

2.2. TrustTrust – a combination of firms or corporations formed – a combination of firms or corporations formed by a legal agreement headed by a small group. The by a legal agreement headed by a small group. The goal of a trust is to reduce or eliminate competition.goal of a trust is to reduce or eliminate competition.

New Types of Business New Types of Business EntitiesEntitiesNew Types of Business New Types of Business EntitiesEntities

2.2. TrustTrust::

** Horizontal Integration Horizontal Integration John D. John D. Rockefeller Rockefeller

2.2. TrustTrust::

** Horizontal Integration Horizontal Integration John D. John D. Rockefeller Rockefeller * Vertical Integration:

A. Gustavus Swift Meat-packing * Vertical Integration:

A. Gustavus Swift Meat-packing

B.Andrew Carnegie U. S. Steel

C.John D. Rockefeller – Standard Oil

B.Andrew Carnegie U. S. Steel

C.John D. Rockefeller – Standard Oil

New Type of Business New Type of Business EntitiesEntitiesNew Type of Business New Type of Business EntitiesEntities

Iron & Steel Iron & Steel ProductionProductionIron & Steel Iron & Steel ProductionProduction

U. S. Corporate U. S. Corporate MergersMergers

U. S. Corporate U. S. Corporate MergersMergers

% of Billionaires in % of Billionaires in 19001900% of Billionaires in % of Billionaires in 19001900

% of Billionaires in % of Billionaires in 19181918% of Billionaires in % of Billionaires in 19181918

Big Business EmergesBig Business Emerges

• Andrew Carnegie Andrew Carnegie • Steel Baron – 80% of American SteelSteel Baron – 80% of American Steel• Management GeniusManagement Genius• Gospel of WealthGospel of Wealth

• 90% ($325 million) donated to music, arts, and libraries90% ($325 million) donated to music, arts, and libraries• John D. Rockefeller (*1 Billionaire in the US)John D. Rockefeller (*1 Billionaire in the US)

• Oil Baron – Standard Oil – 90% of American OilOil Baron – Standard Oil – 90% of American Oil• Consolidate, compete, and dominateConsolidate, compete, and dominate• Philanthropist - $500 million to U of C, foundations, Philanthropist - $500 million to U of C, foundations,

and hospitalsand hospitals• J.P. MorganJ.P. Morgan

• Financial GeniusFinancial Genius• Philanthropist – smaller scale but still huge $$Philanthropist – smaller scale but still huge $$

The Gospel of Wealth:The Gospel of Wealth:Religion in the Era of Religion in the Era of IndustrializationIndustrialization

The Gospel of Wealth:The Gospel of Wealth:Religion in the Era of Religion in the Era of IndustrializationIndustrialization

$ Inequality is Inequality is inevitable and inevitable and good.good.

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

$ Wealth no longer Wealth no longer looked upon as looked upon as bad.bad.

$ Viewed as a sign of Viewed as a sign of God’s approval.God’s approval.

$ Christian duty to Christian duty to accumulate wealth.accumulate wealth.

$ Wealth no longer Wealth no longer looked upon as looked upon as bad.bad.

$ Viewed as a sign of Viewed as a sign of God’s approval.God’s approval.

$ Christian duty to Christian duty to accumulate wealth.accumulate wealth.

Regulating the Regulating the TrustsTrustsRegulating the Regulating the TrustsTrusts1890 1890 Sherman Antitrust ActSherman Antitrust Act

passed by Congress in 1890, passed by Congress in 1890, it was an early attempt to try it was an early attempt to try to control abuses by large to control abuses by large combinations of businesses combinations of businesses called trusts. It generally called trusts. It generally outlawed combinations of outlawed combinations of companies that acted in companies that acted in restraint of free trade. restraint of free trade.

1890 1890 Sherman Antitrust ActSherman Antitrust Act passed by Congress in 1890, passed by Congress in 1890,

it was an early attempt to try it was an early attempt to try to control abuses by large to control abuses by large combinations of businesses combinations of businesses called trusts. It generally called trusts. It generally outlawed combinations of outlawed combinations of companies that acted in companies that acted in restraint of free trade. restraint of free trade.

Relative Share of Relative Share of World ManufacturingWorld ManufacturingRelative Share of Relative Share of World ManufacturingWorld Manufacturing

Modern ‘Robber Modern ‘Robber Barons’??Barons’??Modern ‘Robber Modern ‘Robber Barons’??Barons’??

the age of innovation and industry us history learning target: i can identify the positive and...

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