13.1, page 163Who was the Wizard ofMenlo Park?What did he invent?What details do younotice in thephotograph on page162?
Key Factors to Industrialization natural resources coal, oil, iron ore• improved transportation • railroad (RR), mechanized farming equipment• growing labor force-immigration innovation in technologies (inventions & innovation) “social Darwinism” philosophy• laissez-faire government policies no income tax, no environmental controls
Americans Invest in NewTechnologycapitalists provided $ forscientiﬁc research that ledto new inventionscapitalists provided $ tobuild RR’s, mills, factories,machinery, supplies.....capitalism-economicsystem in which factories,equipment, and othermeans of production areprivately owned
Americans Invest in NewTechnology Capitalism• patent, sole legal right to make or sell invention 1860=36,000 • 1900=600,000• Edison=1,093 patents light bulb
Revolutionary Changes inCommunication & Transportation telegraph lines dramatic progress in communication messages sent anywhere, quickly Morse Code telephones businesses and homes connected with quick contact
Revolutionary Changes in Communication &Transportation 1900=1,000,000 miles telegraph wires=60,000,000 annual messages RRs & newspapers• 1893=250,000 phones• 1920=13,000,000• 2011 U.S. pop 310,866,000 - 327,577,529 cell phones• 2011 China’s pop 1,341,000,000 - 9,757,000,000 cell phones
Consolidated Rail Lines Inexpensive and faster shipping RR companies laid track side by side so trafﬁc could move in both directions caused time zones to be created
Time ZonesRailroads led to the creation of time zones.
New Sources of Fuelrock oil > drillingoil drilling and reﬁningindustry boomsprovides fuel/gas/oil forlamps, machines,automobiles....
The Bessemer Processturns iron > steelsteel rails, longerbridges, skyscrapersCarnegie SteelCompany largest steel production investor
Electricity artiﬁcial light allowed businesses to stay open at home work at night appliances
New Ways to Manage Workmass production interchangeable parts unskilled workers & supervisorsincrease productivity no wasted motion assembly lines
News Ways to Finance &Organize Businessfactors of production land, labor, and capitolcapitol any asset that can be used to produce an income
News Ways to Finance &Organize Businesscorporations formed to provide businesses capitol to expand run by stock ownersmonopoly a company that dominates a particular industry
example - Standard OilJohn D. Rockefeller“bought out” & mergedwith other companiesmade deals to cutprices forced others out of businessmonopoly-controlled90% US oil production
Rockefeller Created a Trust stockholders of independent companies agree to exchange shares of stock for trust certiﬁcates still receive dividends, but lose control of management monopoly created
“Big Business” (image pg. 171) horizontal integration joining ﬁrms together from the same ﬁeld Rockefeller & oil=bought other companies vertical integration taking control of every step in production and distribution Carnegie & steel=raw materials > manufacturing > storage > distribution
IndustrializationWas the rise of industry good for theUnited States?
Laissez-faire “allow to do” the market’s supply and demand will regulate itself without gov. interference HOWEVER, big business was limiting competition, which hurt consumers
Social Darwinismbased on Darwin’stheory of evolutionthe best run business,with the best leaders,would prosper“survival of the ﬁttest”
What did laissez-faire andsocial Darwinism have incommon?
What did laissez-faire andsocial Darwinism have incommon?They both discouraged the government fromregulating business practices.
Laissez-Faire & SocialDarwinism, Reality gov. helped businesses gave RRs land sold natural resources at low prices taxed foreign goods businesses bribed gov. free land for cash payments
Sherman Antitrust Act, 1890outlawed trusts, monopolies, and forms of businessthat restricted tradevague language left the law hard to enforcecourts interpreted in favor of big business
The GildedAge“1. covered orhighlighted with gold”“2. a pleasingappearance thatconceals somethingof little worth”
Andrew Carnegie, steel1870-1900 steelproduction 77,000 tons >11 million tonsdominated the steelindustry with horizontalintegration1890, Carnegie made $25million, average workermade $440
Carnegie’s Philanthropy“A man who dies rich diesdisgraced.”Carnegie Corporation ofNY offered grants to support education built more than 2,500 public libraries San Diego library 1899, $60,000
John D. Rockefeller, oil Standard Oil, used ruthless business tactics formed a monopoly using horizontal integration controlled 90% of oil and raised prices America’s 1st billionaire & world’s richest man
Cornelius Vanderbilt, rr age 16 started ferry business steamships NY > SF RR stock investments 1st NY > Chicago direct service
Robber Barons or Captainsof Industry?philanthropyushered in modern economygreat efﬁciency andproductivitycreated jobsliving standards climbedAmericans demanded goodsand services
Trusts and GovernmentCorruption by 1904 319 industrialist trusts swallowed 5,300independent companieshigh tariffsanti-union police and courtscity bosses
Impact of Industrialism beneﬁtted middle class with mid-level jobs poor water and sewage systems little education among factory workers diseases in ﬁlthy cities inﬂated prices at company stores long hours and injuries on job low pay, but better than Europe
Change and Discriminationwomen entered workforce, but paid lesswomen in textile mills got 50% of men’s pay2 million child laborersminorities and immigrants CA, Chinese self employed to make more $businesses pitted minorities against each other
Organized Laborshorter hoursmore payelimination of child laborsome unions discriminatedstrikes and violence
Food Contaminationfraud-narcotics sold as curescanned foods-dangerous additivesMuckraker’s, The Jungle, McClure’s used writing to expose corruption and wrongdoing
Toll on Environment mining clear cutting forests overgrazing livestock chicago river - “great open sewer” air pollution from burning coal to power machines