warm up: review for quiz, chapter section 1. quiz clear desk no talking
TRANSCRIPT
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Warm Up:
Review for Quiz, Chapter Section 1
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Quiz
Clear DeskNo talking
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Chapter 5 Section 2
The Second Industrial Revolution
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Oil Boom
• First commercial oil well discovered in Pennsylvania in 1859
- Pennzoil • Oil prospectors (wildcatters) began to search for oil• Discovery of oil near Beaumont TX in 1901 began
oil boom• Oil refined into kerosene, gasoline, petroleum
products• began revolution in transportation and industry
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Steel
• Bessemer Process made steel production cheaper and easier
American Steel Production
• The U.S. became the world’s top producer of steel
1873 1910115,000 tons 24,000,000 tons
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Steel
• Steel helped transform the U.S. into a modern industrial economy
Uses of steel:• Locomotives• Rails• Bridges• Skyscrapers• Factories used steel machinery to make goods
faster
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Railroads
• 1865-1890 number of miles of railroad tracks increased 5x
- Cheap steel- Federal land grants
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Railroads
• Transcontinental Railroad completed in 1869• Union Pacific laid tracks eastward from Omaha• Central Pacific laid track westward from
Sacramento• Met in Promontory Summit in Utah• Cut travel time across country from months to
days
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Railroads
Effects of the Railroads
• The railroads promoted trade
• created jobs,
• helped western settlement.
• Railroads also led to the adoption of a standard time,
• rail schedules could not accurately depend on the sun’s position,
• USA divided into four time zones
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Warm Up:
Create a list of important business people & entrepreneurs.
What business did they make their money in?
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The Rise of Big Business
Factors behind the rise of big business• Entrepreneurs- risk takers who start new
businesses• Capitalism- an economic system in which most
businesses are privately owned• Laissez-Faire Capitalism - French for “leave
alone”, refers to an economic system where companies operate without much government interference
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A new form of business organization allowed businesses to grow
Read: The Corporate World
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New Business Organization
Corporation• A business with the legal status of an individual• Owned by people who buy stock, (or shares), in the
company• A Board of Directors makes the decisions• Corporate officers run the day to day operations• Corporations can raise money by selling stock• Stockholders can only lose the amount of money they
invested in the business• Corporations can continue to exists after founders leave/die
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New Business Organization
Trust• A group of corporations who join together
under the same leadership so they can control and industry.
Monopoly• A company or trust that controls and entire
industry• Can raise prices or lower quality at will
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The Gilded Age
• The period of economic expansion in the late 19th century marked by corporate leaders amassing staggering fortunes
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Industrial Tycoons
• To increase profits and grow businesses:Vertical integration• the combination of companies which are at
different stages of the production process.Horizontal Integration• The combination of companies that are in the
same business
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Read: Industrial Tycoons
• Captain of Industry- Business leaders who help business grow and gave away money to help others.
• Robber Barons - forced many companies to go out of business and treated their workers poorly.
• Summarize how the industrial tycoon made his fortune, and what he did with it.
• Was he a captain of industry or a robber baron?
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Inequality of Wealth
• As tycoons like Rockefeller, Carnegie, Vanderbilt, and Morgan amassed large fortunes
• Many industrial workers scraped by in $500 per year
• By 1890, ten percent of the population held 75% of the nations wealth
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Read Gospel of Wealth
Answer Questions on a separate sheet of paper
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Inequality of Wealth
Social Darwinism• the belief that Charles Darwin’s ideas of
natural selection also apply society. • Stronger people, businesses and nations
would prosper• Weaker ones would fail
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• Do you think that the rich deserve to be rich, and the poor to be poor?
• What are potential problems with economic inequality?
• Do you think that the level of economic inequality that existed during the Gilded Age exists today?
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Warm Up:
In general, how would you characterize is the economy doing
right now?
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• In the third quarter of 2010, corporate profits reached a record high
• American businesses earned profits at an annual rate of $1.659 trillion
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Who benefits when corporations have high profits?
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Current US unemployment rate is 9.3%
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How might stagnant wages and high unemployment effect workers?
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How might high unemployment rate and stagnant finances impact government tax
revenue?
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How will declining tax revenue impact the Federal Budget?
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Total Debt of the Federal Government $13,847,884,133,109.61(As of Yesterday)
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What are some ways that the government can solve these problems?
•Unequal Distribution of Wealth•Declining Tax Revenue•Record Debts and Deficits
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Warm Up:
•If you have a lot of Christmas shopping to do, and very little time, what is the most effective means of getting it done?•How do you know the best things to get people for gifts?
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Mass Marketing
• Retail merchants looked to maximize profits• New forms of marketingBrand names• Allowed mass produced goods to be marketed
nationally
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Brand Names
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Mass Marketing
Advertising • Goal to get consumers to consume a specific
brand• Aimed at women• Ads in magazines
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Advertising
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Mass Marketing
Department Stores• Sold many different types of products under
one roof• Made shopping more convenient for
consumers• Located in cities
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Department Stores
Macy’s in New York 1858Lord and Taylor’s 1861
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Mass Marketing
Mail Order Catalogues• Allowed rural customers access to a variety of
goods• Everything from shoes to houses
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Sears Catalogue
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Government Action
• Government grew uneasy about power of corporations
Sherman Anti-Trust Act (1890)• Made it illegal to form trust that interfered
with free trade• Ineffective
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Problems in the Workplace
• 9% of Americans controlled 75% of wealth• Industrial workers received low wages• people worked 6 days a week 14 hours a day• children worked• work conditions were dangerous and
unhealthy
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Problems in the Workplace
• immigrants were willing to work for low wages & in poor conditions
• workers who wanted to improve their conditions found that they could not
- their bosses could easily hire the unemployed to take their places.
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Workers Organize
• Conditions became so bad, that workers began to organize into unions to improve their conditions
• Organized labor hoped to pressure employers for better pay and improved conditions
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Methods Used by Unions
• Strikes- refusal to work• Boycotts- refusal to buy a companies products• Collective Bargaining – workers negotiate as a
group with employers- “Closed shop”- workplace that only hires
union members
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Warm Up:
What were some complaints that workers had in the late 19th and early
20th centuries?
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Knights of Labor
Knights of Labor was begun in 1869 • Goal to organize all workers into a single union• Accepted unskilled workers, African Americans,
women• It only barred liquor dealers, professional gamblers,
lawyers, bankers, and stockbrokers,• campaigned for economic and social reform• Equal pay for equal work, 8 hour work day, end to
child labor.
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Knights of Labor
• Led by Terence V. Powderly• the Knights won a number of strikes for the eight-
hour day, • they staged a successful strike against Jay Gould’s
Wabash Railroad in 1885• membership reached 3/4 of a million workers.
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Great Railroad Strike of 1877
• Baltimore and Ohio Railroad announced 10% wage cut• Workers responded by blocking the movement of
trains• Strikes spread, blocking freight traffic for a week• Clashes between strikers and militias grew violent• In Pittsburgh soldiers fired on rioters• Crowds burned railroad property• President called in federal groups to suppress labor
unrests
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The Haymaker Riot 1886• May Day (May 1st ) Labor Protest by Knights of Labor - National protests for 8 hour workday• In Chicago, on May 3rd police break up fight between workers
and scabs• May 4th protests to call attention to police brutality at protests • a dynamite bomb was thrown, killing 11 and injuring over
100.• People blamed foreign born union members for violence
– Eight men with foreign sounding names were charged with murder and conspiracy
– All eight were convicted and sentenced to death, with little evidence
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Companies Respond
• Corporations had many weapons against unions- hiring strikebreakers - asking the courts to order strikers to stop striking,
and if they continued, to bring in troops. - hiring “scabs” or replacements - “lockouts” to starve strikers into submission• often, workers had to sign “ironclad oaths” or
“yellow dog contracts” which banned them from joining unions.
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American Federation of Labor
• Founded by Samuel Gompers in 1886Major Goals• Better salaries• better work conditions• eight hour workday
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American Federation of Labor
Structure• It consisted of an association of self-governing
national unions• each of which kept its independence• with the AFL unifying overall strategy.
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American Federation of Labor
• AFL composed of skilled laborers• it was willing to let unskilled laborers fend for
themselves. • Critics called it “the labor trust.”
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Homestead Strike 1892
• Worker strike and Carnegie’s Homestead Steel Factory
• Steelworkers angry over pay cuts• Workers took control of the factory- AFL refused to call a boycott Carnegie Steel products• Company hired 300 Pinkerton detectives- Armed with rifles and dynamite• Forced strikers to surrender• 16 killed & dozens wounded
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Pullman Strike 1894
• Pullman Palace Car Company severely slashed wages• Laid off 1/3 of workers• Strike of American Railway Union organized by Eugene
Debs• Urged members not to work on trains that used
Pullman cars• Railroad traffic paralyzed from Chicago to California- AFL did not support Pullman strikers• Federal troops dispatched to break up strike- Mail had been disrupted
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Public Responds
• The middle-class, annoyed by the recurrent strikes, grew deaf to the workers’ outcry.
• The view was that people like Carnegie and Rockefeller had battled and worked hard to get to the top
• workers could do the same if they “really” wanted to improve their situations.
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Results of Labor Movement• From 1881 to 1900:• there were over 23,000 strikes involving 6,610,000 workers
with a total loss to both employers and employees of about $450 million.
• labor unions were only embraced a small minority—3%—of all workers.
• In 1894, Labor Day was made a legal holiday. • The late 1800’s remained an era of big business
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Warm Up:
What distinguishes the modern way of life?
(What makes our life modern?)
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Transportation Revolution
Streetcars• Horse drawn passenger
vehicles were the earliest form of mass transit
• In the 1830’s most cities had horse cars, rolling along rails in the street
• 1900, most cities had replaced horse drawn cars with electric streetcars, or trolleys
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Transportation Revolution
Subways• As cities grew, traffic
became a problem• Boston opened the first
underground subway in the US in 1891
• NYC subway opened in 1904
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Transportation Revolution
Automobile• Internal combustion engine
was invented in Germany in mid 1800’s
• Karl Benz began production of first automobile in 1886
• Charles and Frank Duryea built first practical automobile in US in 1893
• Early cars were playthings of the wealthy
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Transportation Revolution
Airplanes• Orville and Wilbur
Wright flew the first successful airplane in Kitty hawk NC in 1903
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Communications Revolution
Telegraph• Samuel Morse patented a
method for sending messages instantly over wires with electricity in 1837
• Morse Code stood for letters in the alphabet
• Telegraph grew with the railroads
• Telegraph wires strung up along railroad lines
• Train stations had telegraph offices
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Communications Revolution
Telephone• Patented by Alexander
Graham Bell in 1876• First time voice able to
be transmitted long distances
• By 1900, over 1 million phones
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Typewriter
• Christopher Latham Sholes invented first practical typewriter in 1867
• Developed keyboard pattern that is still in use today
• Could produce legible documents quickly
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Thomas Edison• Opened his own research lab in
1876 • The Wizard of Menlo ParkInventions include:• Electric vote counting machine• Stock ticker• Phonograph• Wireless transmitter• Electric light bulb• Motion picture camera• ProjectorOver 1,000 patents
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Chapter 5 Section 2
Quiz on Friday