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The Triumph of Industry 1865-1914

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Innovation Drives the Nation Patents A grant by the government to the inventor giving the right to develop and sell inventions without competition Electricity Created by Thomas Jefferson brought lighting to homes and businesses, as well as other things. Steel Industry Bessemer Process purified iron making it stronger. Bridges, skyscrapers, rail lines.

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Railroads Time zones were created to maintain schedules. Automobile First began in 1902

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The Rise of Big Business The Corporation More than one person owns the company Raises money by selling stock Layered people structure For profit or non-profit

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Gaining Competitive Edge in Business Monopolies When a corporation tries to gain complete control over a market. Cartels Businesses come together and agree to limit production to control prices. Trusts Companies assign their stock to a board of trustees who combine them into a new corporation and take out the profits.

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Vertical Integration Companies that own the complete line of production. Enables then to control costs and prices. OilOil companies, both multinational (such as ExxonMobil, Royal Dutch Shell, ConocoPhillips or BP) and national (e.g. Petronas) often adopt a vertically integrated structure. This means that they are active along the entire supply chain from locating crude oil deposits, drilling and extracting crude, transporting it around the world, refining it into petroleum products such as petrol/gasoline, to distributing the fuel to company-owned retail stations, for sale to consumers.ExxonMobilRoyal Dutch ShellConocoPhillipsBPPetronascrude oilrefiningpetrol/gasoline

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Vertical Integration Crude Oil, drilling, refineriesDistribution channelsRetail store selling gas

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Horizontal Integration Consolidation of many like businesses to form one business. Purpose is to increase profits and remove competition. Expansion via acquisition of a competitor or by adding outlets to a chain. For example, a book publisher might acquire another publishing house to increase its stable of editors and authors or to otherwise enhance its competitiveness.

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Horizontal Integration WendysMcDonaldsMcWendys

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The government Imposes Regulations Interstate Commerce Act (1877) First used to oversee railroads Regulated trade Sherman Antitrust Act (1890) Outlawed any trust that restrained trade or commerce. Clayton Antitrust Act (1914) Strengthened the Sherman Antitrust Act

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The Organized Labor Movement Factory Work Sweatshops Working conditions 12 hour days, 6 days a week. Often dangerous places to work. Children worked (1 in 5, ages 10-16, by 1900) Factory Towns Had housing, stores and other amenities to keep worker in debt.

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Labor Unions Collective bargaining Employees or representatives negotiating better working conditions Strikes First formed union- National Trades Union (1834) Knights of Labor (1869) Was for all workers Mission was to replace capitalism ways Folded after growing to 700,000 workers

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AFL (American Federation of Labor) Founded by Samuel Gompers AFL was a craft union for skilled workers. Women not allowed. Charges dues and focused on benefits for workers, such as wages, hours, and conditions.

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Strikes StrikeCauseEffect Railroad Strikes (1877)Response to cut in workers wages Set the scene for violent strikes to come. Haymarket Square (1886)Part of a campaign to achieve an 8 hour work day Americans became weary of labor unions; the Knight of Labor were blamed for the riot and membership declined Homestead Strike (1892)Economic depression led to cuts in steelworkers wages After losing the standoff, steelworkers unions lost power throughout the country Pullman Strike (1893)Wags cut without a decrease in the cost of living in the company town Employers used the courts to limit the influence of unions.

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Lasting Effects Strikes and discontent set the tone for the formation of labor unions in the US. Government becomes more involved in big business. New laws and regulations are passed.

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Progressivism Believe that new ideas and honest and efficient government could be social justice. Came from all groups of people. Women wanted the vote. Wanted to see the end of corruption and ineffective government. Others wanted government to regulate big business, bust trusts, and create more opportunities for small business. Close the gap between rich and poor.

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Muckrackers People who wrote about the social, government, and big business issues. Jacob Riis- photographer Lincoln Steffens- editor known for uncovering social problems Upton Sinclair-wrote The Jungle

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Society Reforms Jane Adams- Settlement House Florence Kelly Movement to ban child labor 1912 U.S. Childrens Bureau created Keating-Owens Act also to ban child labor, repealed until 1938. National American Women Suffrage Association Headed by Carrie Catt pushed for the vote Improve education Improve working conditions

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Reforming government Many cities went to city commissioners to run things and improve city government Political bosses were being arrested or removed from office. Elections rules are changed Direct primaries-the people elect candidates Initiative-people could put laws on ballots Referendum- people could approve or reject laws passed by legislators Recall- could remove politicians from office

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Theodore Roosevelt (1901-1909) Becomes president after President McKinely is assassinated. Known as the Square Deal president. Started to regulate industry and bust trusts

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Laws that were passed Hepburn Act (1906) Reinforced the ICC and regulated prices for shipping. Meat Inspection Act (1906) Processing plants to be inspected Food and Drug Act (1906) Correct labelling or products National Reclamation Act (1902) Controlled water rights

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William H. Taft (1909-1913) Relaxed the rules for corporations and used the rule of reason which allowed big business monopolies Undid many of the regulations that Roosevelt had put into place. Defeats Roosevelt in presidential election and TR doesnt make a third term.

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Wilsons presidency (1913-1921) The New Freedom Placed strict controls over government Lowered tariffs on imports to promote lower prices The Federal Reserve Act (1913) Placed national banks under the federal government Sets interest rates Federal Trade Commission Watched business and its practices

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Amendments passed 16 th Amendment (1913) Passes to create a federal income tax ( Underwood Tariff Act) 18 th Amendment (1919) Banned the sale of alcohol 19 th Amendment (1920) Gave women the right to vote

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Progressivism Leaves a Legacy Expanded the role of government with regulation. A time for massive new legislation More protections were offered to its citizens. Although not a perfect solution it at least paved the way for today.