The Industrial AgeThe Industrial Age

Chapter 5Chapter 5

EconomyEconomy

a system of a system of productionproduction, , distributiondistribution, & , & consumptionconsumption of goods and services of goods and services

CapitalismCapitalism

an economic system based on private an economic system based on private ownershipownership

TycoonTycoon

A powerful businessmanA powerful businessman

GDPGDP

►Gross (amount) Domestic (home) Gross (amount) Domestic (home) ProductProduct

►Total value of goods produced in a Total value of goods produced in a country every yearcountry every year

GDPGDP

►$14,260,000,000,000.$14,260,000,000,000.0000

unionunion

►An organization of workers who An organization of workers who represent them to improve working represent them to improve working conditionsconditions

industriesindustries

►a type of businessa type of business

Today’s American EconomyToday’s American Economy

Today’s American Economy Today’s American Economy

► The U.S. is the largest economy in the worldThe U.S. is the largest economy in the world► Capitalism - private ownership of capital Capitalism - private ownership of capital ► GDP $14.26 trillionGDP $14.26 trillion► Population of 307 million (estimate)Population of 307 million (estimate)► 154.4 million workers154.4 million workers► Median Household Income $50,000 ($12 hour x 2)Median Household Income $50,000 ($12 hour x 2)► Major Industries farming, manufacturing, Major Industries farming, manufacturing,

healthcarehealthcare► Oil Consumption 19.5 million barrels a day (1 b Oil Consumption 19.5 million barrels a day (1 b

gall)gall)► 12% of Americans live in poverty12% of Americans live in poverty

►Largest “States” by economy:Largest “States” by economy: California (8)California (8) Texas (13)Texas (13) New York (14)New York (14) Florida (20)Florida (20) Illinois (21)Illinois (21)

1794-1794-18771877

The Breakers in Newport, RIThe Breakers in Newport, RI

The The Biltmore Biltmore

in NCin NC► ii

I. I. Railroads Railroads ► A. Railroad ExpansionA. Railroad Expansion

1. 1. New TechnologyNew Technology► a. Steam Engine Locomotive (p113)a. Steam Engine Locomotive (p113)► b. iron track - b. iron track - standard gaugestandard gauge (4ft 8.5in width) (4ft 8.5in width)► c. air brakes c. air brakes ► d. couplers d. couplers ► e. refrigerated carse. refrigerated cars► f. sleeping carf. sleeping car

2. More and more track… (NOT TODAY!)2. More and more track… (NOT TODAY!)► 1860 = 30,000 miles of track1860 = 30,000 miles of track► 1900 = 193,000 miles “ “1900 = 193,000 miles “ “► 2010 = 122,000 miles2010 = 122,000 miles

3. Purpose of Trains:3. Purpose of Trains:► a. Distributiona. Distribution

move goods around the nation move goods around the nation move goods to ports such as NYC to ship to the world.move goods to ports such as NYC to ship to the world.

► b. Civil War – move troops and supplies rapidlyb. Civil War – move troops and supplies rapidly

► Why is new technology important in an Why is new technology important in an industry?industry?

► Why is there less track today?Why is there less track today?

B. Railroad BaronsB. Railroad Barons► Powerful businessmen (tycoons) who consolidatedPowerful businessmen (tycoons) who consolidated

control of railroads in their regioncontrol of railroads in their region

1. Fierce 1. Fierce CompetitionCompetition between companies between companies►Larger companies attempted to put smaller Larger companies attempted to put smaller

companies out of business by offering rebates companies out of business by offering rebates (lower prices)(lower prices)

22. . Famous Famous Railroad Robber BaronsRailroad Robber Barons►a.. a.. Cornelius Vanderbilt-Cornelius Vanderbilt- Controls NYC to Controls NYC to

Great Lakes RRGreat Lakes RR►b. b. James J HillJames J Hill - Controls Great Northern Route - Controls Great Northern Route

(Minn. to Washington State) (Minn. to Washington State) 3.3. Few lawsFew laws control their business activity control their business activity

(no government regulation) (no government regulation) 4. 4. MonopolyMonopoly

► control all the trackscontrol all the tracks and you control the price and you control the price►Railroad Barons made secret deals called Railroad Barons made secret deals called pools pools

that divided business and set pricethat divided business and set price

How do we set the time?How do we set the time?

Who has the power to set Who has the power to set time?time?

► Railroad Barons and Sir Sandford Fleming in Railroad Barons and Sir Sandford Fleming in 1884 1884

Prime MeridianPrime Meridian

►Time Zones in United StatesTime Zones in United States

► C. Economy GrowsC. Economy Grows 1. Transportation improves with RR1. Transportation improves with RR

► raw materials (iron, coal, timber) shipped to factoriesraw materials (iron, coal, timber) shipped to factories

2. Demand for iron/steel and lumber 2. Demand for iron/steel and lumber ► Railroads need materials to build more trackRailroads need materials to build more track► Factories produce steelFactories produce steel

3. Jobs3. Jobs► Thousands of jobs created in railroadThousands of jobs created in railroad

► D. Time ZonesD. Time Zones 4 major time zones created to help schedule trains 4 major time zones created to help schedule trains

(p144)(p144)

Why is communication Why is communication important?important?

II. InventionsII. Inventions► A. CommunicationA. Communication

Improvements in making far away places closerImprovements in making far away places closer1. Telegraph 1. Telegraph

► a. Samuel Morsea. Samuel Morse 1844 telegraph & “Morse Code” invented (1844 telegraph & “Morse Code” invented (…… --- --- …… ) ) 1860 thousands of miles of telegraph wires1860 thousands of miles of telegraph wires

► b. Transatlantic telegraph b. Transatlantic telegraph 1866 Cyrus Field linked the U.S. & Europe by a telegraph cable 1866 Cyrus Field linked the U.S. & Europe by a telegraph cable

on the Atlantic Ocean flooron the Atlantic Ocean floor

2. Telephone2. Telephone► Alexander Graham BellAlexander Graham Bell

1876 created the phone that transmitted speech1876 created the phone that transmitted speech ““Mr. Watson, come here. I want you!”Mr. Watson, come here. I want you!” 1877 Bell Telephone Company created (AT&T)1877 Bell Telephone Company created (AT&T)

3. Steps till modern today…3. Steps till modern today…► (radio, wireless phones, cell phones, smart phones, texting (radio, wireless phones, cell phones, smart phones, texting

etc…)etc…)

Why is transportation Why is transportation important?important?

►B. Transportation B. Transportation The inventions allowed great distances to be covered in less The inventions allowed great distances to be covered in less timetime..

1. 1. RailroadRailroad ► 1814 George Stephenson invented the first steam locomotive in England1814 George Stephenson invented the first steam locomotive in England► 1869 Transcontinental RR finished1869 Transcontinental RR finished

2. 2. SteamshipsSteamships► 1836 first steamship 1836 first steamship The Great WesternThe Great Western crosses the Atlantic by crosses the Atlantic by

BritishBritish► 1862 Battle of the Ironclads in the Civil War1862 Battle of the Ironclads in the Civil War

3. 3. AutomobileAutomobile► Several Europeans develop the “first” carSeveral Europeans develop the “first” car► 1903 Henry Ford establish his company1903 Henry Ford establish his company

1908 Model T introduced1908 Model T introduced Assembly line & mass production Assembly line & mass production 15 million Model Ts sold in 18 years (all black)15 million Model Ts sold in 18 years (all black)

4. 4. AirplaneAirplane► 1903 Wilbur and Orville Wright develop first “airplane” at Kitty 1903 Wilbur and Orville Wright develop first “airplane” at Kitty

Hawk, NCHawk, NC► 1911 Military uses for airplane developed1911 Military uses for airplane developed

5. Steps to the modern day?5. Steps to the modern day?

►C. Thomas Edison (Wizard of Menlo Park)C. Thomas Edison (Wizard of Menlo Park)““Genius is one percent inspiration and ninety-Genius is one percent inspiration and ninety-nine percent perspiration.”nine percent perspiration.”

““Anything that won't sell, I don't want to Anything that won't sell, I don't want to invent. Its sale is proof of utility, and utility is invent. Its sale is proof of utility, and utility is success.success.” ” ►1876 - Workshop opens in NJ enters “invention business”1876 - Workshop opens in NJ enters “invention business”►1876-1877 - telephone transmitter (improves 1876-1877 - telephone transmitter (improves communication)communication)►1877 - phonograph (record player)1877 - phonograph (record player)►1879 - Electric light bulb 1879 - Electric light bulb ►1882 - Electric Power plants1882 - Electric Power plants

(connects 85 buildings in NYC for using the lightbulb)(connects 85 buildings in NYC for using the lightbulb)

►1888-1891 - motion picture projector (movies)1888-1891 - motion picture projector (movies)►1900-1910 - Storage battery1900-1910 - Storage battery

III. Big BusinessIII. Big Business

►A. Factors of ProductionA. Factors of Production resources needed for industrial productionresources needed for industrial production

►1. Land – farmland, mines, forests, etc…1. Land – farmland, mines, forests, etc…►2. Labor – workers 2. Labor – workers ►3. Capital – money to buy machines, tools, 3. Capital – money to buy machines, tools,

buildings, buildings, communication & transportation communication & transportation

networksnetworks The U.S. had an abundance of all the factors The U.S. had an abundance of all the factors

in the 19in the 19thth Century Century The rise of the corporation (type of company) The rise of the corporation (type of company)

that sells stocks to raise capitalthat sells stocks to raise capital

http://www.nytimes.com/interactive/2007/11/06/business/20071107_WINNERSLOSERS_GRAPHIC.html#

► B. OilB. Oil 1. In the late 191. In the late 19thth C., used to light and heat homes C., used to light and heat homes 2. Edwin Drake discovers oil in Pennsylvania in 1859 2. Edwin Drake discovers oil in Pennsylvania in 1859

and an “oil rush” beginsand an “oil rush” begins 3. John D. Rockefeller (1839-1937)3. John D. Rockefeller (1839-1937)

► a. most famous “oil man” who is richest American in historya. most famous “oil man” who is richest American in history► b. forms Standard Oil in 1870b. forms Standard Oil in 1870► c. in 1882, forms a trust that is a group of companies that c. in 1882, forms a trust that is a group of companies that

formed a monopoly in the oild businessformed a monopoly in the oild business► d. used horizontal integration (p156 see chart)d. used horizontal integration (p156 see chart)

RockefellRockefellerer

Standard OilStandard Oil

C. SteelC. Steel 1. Bessemer Process & open hearth process – two 1. Bessemer Process & open hearth process – two

new methods for making steel more cheaply and in new methods for making steel more cheaply and in large quantitieslarge quantities

2. Andrew Carnegie (1835-1919)2. Andrew Carnegie (1835-1919)► a. built a steel plant near Pittsburgh, PAa. built a steel plant near Pittsburgh, PA► b. used vertical integration to expand his business: (see b. used vertical integration to expand his business: (see

p156)p156) bought iron and coal minesbought iron and coal mines built warehouses, ships and factoriesbuilt warehouses, ships and factories gained control of railroads gained control of railroads

► c. Carnegie Steel Corp made 1/3 of all steel in U.S.c. Carnegie Steel Corp made 1/3 of all steel in U.S.► d. d. sold his business to U.S. Steel in 1901 and made hundreds of sold his business to U.S. Steel in 1901 and made hundreds of

millions millions

Captains of IndustryCaptains of Industry (Andrew Carnegie in middle) (Andrew Carnegie in middle)

Robber BaronsRobber Barons

►D. Captains of Industry or Robber BaronsD. Captains of Industry or Robber Barons 1. huge wealth in hands of a few people1. huge wealth in hands of a few people 2. built successful businesses that employed 2. built successful businesses that employed

millions of Americans millions of Americans 3. unfair business practices – consolidation, 3. unfair business practices – consolidation,

pools, trusts, monopolies, strike pools, trusts, monopolies, strike breakers, and corruption (bribes)breakers, and corruption (bribes)

4. working conditions for employees4. working conditions for employees 5. philanthropy – donated millions to charities5. philanthropy – donated millions to charities

IV. Industrial WorkersIV. Industrial Workers►A. Working Conditions (sweatshops)A. Working Conditions (sweatshops)

1. long hours (6 days week, 10-12 hour 1. long hours (6 days week, 10-12 hour days)days)

2. unsafe equipment2. unsafe equipment 3. unhealthy air3. unhealthy air 4. no job security4. no job security 5. children and women paid less than men5. children and women paid less than men

► B. Growth of Labor UnionsB. Growth of Labor Unions Organization of workers that wanted improved Organization of workers that wanted improved

working conditions such as an 8 hour work day, working conditions such as an 8 hour work day, weekend off and safe conditionsweekend off and safe conditions

1. 1. trade unionstrade unions – represents skilled workers – represents skilled workers such as carpenters or plumberssuch as carpenters or plumbers

2. 2. American Federation of LaborAmerican Federation of Labor (AFL) (AFL)► formed in 1881 to represent skilled workers in many craftsformed in 1881 to represent skilled workers in many crafts► Samuel Gompers led AFL and used collective bargaining to Samuel Gompers led AFL and used collective bargaining to

improve conditionsimprove conditions► Strikes and Picket Lines used to protest Strikes and Picket Lines used to protest ► 1904 1.6 million workers have joined 1904 1.6 million workers have joined

(today 11.5 million members)(today 11.5 million members)

►C. Labor LeadersC. Labor Leaders 1. Samuel Gompers 1. Samuel Gompers

– – created AFL in 1881created AFL in 1881

2. Mary Harris Jones 2. Mary Harris Jones - woman leader who helps woman leader who helps

organize unions for minersorganize unions for miners

3. Eugene Debs 3. Eugene Debs - leader of union during Pullman - leader of union during Pullman

Strike in Chicago in 1894Strike in Chicago in 1894

► D. Labor vs Big BusinessD. Labor vs Big Business During economic depressions of 1870s and 1890s, During economic depressions of 1870s and 1890s,

many companies cut wagesmany companies cut wages Unions respond with strikes:Unions respond with strikes:

► 1877 – railroad workers on strike 1877 – railroad workers on strike strike breakers hired and workers destroy tracksstrike breakers hired and workers destroy tracks

► 1886 – Haymarket Square, Chicago1886 – Haymarket Square, Chicago strike at McCormick Harvest Company and police sent in to strike at McCormick Harvest Company and police sent in to

end strike, bomb is thrown and many are killed in violenceend strike, bomb is thrown and many are killed in violence► 1892 – Homestead Strike, Pennsylvania1892 – Homestead Strike, Pennsylvania

Strike at Carnegies Steel Company and 300 guards hired to Strike at Carnegies Steel Company and 300 guards hired to end picket line, violence leads to 10 deathsend picket line, violence leads to 10 deaths

► 1894 – Pullman Strike, Chicago1894 – Pullman Strike, Chicago A general strike is ordered end by injunction of federal court, A general strike is ordered end by injunction of federal court,

Eugene Debs is arrested, and federal troops sent in to end Eugene Debs is arrested, and federal troops sent in to end stirkestirke

Lesson PlanLesson Plan

►http://www.icsd.k12.ny.us/legacy/acs/lihttp://www.icsd.k12.ny.us/legacy/acs/library/ushistory/laborwebquest/index.hbrary/ushistory/laborwebquest/index.htmltml