Growth of Big Business Brought to you by Local Sweatshop Laborers Mr. Hyer Room 108
Take Careful Notes Today I’m Giving You the Secret Formula of How to become a GazillionMillionBillionaire
<ul><li>Identify management and business strategies that contributed to the success of business tycoons such as Andrew Car...
Causes of Rapid Industrialization <ul><li>Steam Revolution of the 1830s-1850s </li></ul><ul><li>The Railroad fueled the gr...
Causes of Rapid Industrialization <ul><li>Technological innovations.   *  Bessemer Process (Steel) </li></ul><ul><ul><li>*...
Causes of Rapid  Industrialization <ul><li>Unskilled & semi-skilled  labor in abundance. </li></ul><ul><li>Abundant capita...
U. S. Patents Granted 1790s    276 patents issued. 1990s    1,119,220 patents issued.
Late 19 th  Century Business Ideology   <ul><li>Laissez Faire  </li></ul><ul><li>Social Darwinism   </li></ul><ul><li>Lais...
Social Darwinism A Dubious Business “Theory” based on the Work of Naturalist Charles Darwin.  The Origin of Species  (1859)
Darwin’s “The Origin of Species.” This is a first edition.
<ul><li>Based on the research of Charles Darwin </li></ul><ul><li>Earth is billions of years old </li></ul><ul><li>All lif...
“ Survival of the Fittest” ??? <ul><li>Society, like the jungle, fostered a ruthless struggle for survival </li></ul><ul><...
Carnegie I’m so full of Contradictions The “theory” he loved so dearly lacked consistency He  argued against   Government ...
Economies of Scale With faster machines, businessmen discover:  <ul><li>Cost per unit decrease as number of units produced...
Horizontal Integration John D. Rockefeller (Standard Oil Company)
Vertical Integration Andrew Carnegie (U.S. Steel) Gustavus Swift    Meat-packing
Vertical Integration Holding Company <ul><li>Own controlling interest in:   </li></ul><ul><li>Production of raw material <...
 
Horizontal Integration Purchase or Put out of Business Competing Firms Trusts Ex: Oil, Whiskey, Sugar, Lead, Railroads
U. S. Corporate Mergers
World’s Industrial Output
Who’s Winning? Who’s Losing?
The “Robber Barons” of the Past
“ The Bosses of the Senate”
“ The Protectors of Our Industries”
Time for Government Intervention? Gov’t: Expansion of Mergers and Trusts Stifling Free Market Sherman Anti-Trust Act (1890...
Coming Attraction Workers of the World Unite
Labor Unions Emerge
<ul><li>Summarize the emergence and growth of unions. </li></ul><ul><li>Explain the violent reactions of industry and gove...
The Changing American Labor Force
Why Labor Unions? <ul><li>Seven Day Workweeks </li></ul><ul><li>12 -14- hour workdays </li></ul><ul><li>Low Wages </li></u...
The Tournament of Today:    A Set-to Between Labor and Monopoly
What Are Labor Unions? <ul><li>Trade Union = Group of  SKILLED  workers within single trade </li></ul><ul><li>American Fed...
Labor Unions = Dangerous Ideas <ul><li>Unions Considered Radical Organizations </li></ul><ul><li>Utopian or Socialistic Le...
“Bread and Butter” Issues <ul><li>Higher Wages and Shorter Workdays </li></ul><ul><li>Avoid Larger Political Issues </li><...
 
 
 
 
Haymarket Square Riot – Public Begins to Turn Against Unions (1886)
<ul><li>Only organized a small fraction of workers (Not enough members to push business owners to change) </li></ul><ul><l...
Mary Harris Jones “ Mother” Jones <ul><li>Helped Push for Child Labor Reform </li></ul><ul><li>Organized Women Workers </l...
Triangle Shirtwaist Factory  Fire! Shirtwaist Tragedy Leads to Better Workplace Conditions <ul><li>3 or 4 doors locked to ...
Asch Building 8th, 9th & 10 th  Floors
Thank Goodness, the Firemen have arrived!! OOPS! <ul><li>Ladders only reach to six floor – fire is on 8,9 & 10 </li></ul><...
 
 
 
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New Industrial Age

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  • Transcript of "New Industrial Age"

    1. 1. Growth of Big Business Brought to you by Local Sweatshop Laborers Mr. Hyer Room 108
    2. 2. Take Careful Notes Today I’m Giving You the Secret Formula of How to become a GazillionMillionBillionaire
    3. 3. <ul><li>Identify management and business strategies that contributed to the success of business tycoons such as Andrew Carnegie. </li></ul><ul><li>Explain Social Darwinism and its effects on society. </li></ul>Learning Objectives
    4. 4. Causes of Rapid Industrialization <ul><li>Steam Revolution of the 1830s-1850s </li></ul><ul><li>The Railroad fueled the growing US economy: </li></ul><ul><ul><li>* First big business in the US. </li></ul></ul><ul><ul><li>* A magnet for financial investment. </li></ul></ul><ul><ul><li>* The key to opening the West. </li></ul></ul><ul><ul><li>* Aided the development of other industries. </li></ul></ul>
    5. 5. Causes of Rapid Industrialization <ul><li>Technological innovations. * Bessemer Process (Steel) </li></ul><ul><ul><li>* Refrigerated cars * Edison  “Wizard of Menlo Park”  light bulb, power plants </li></ul></ul><ul><ul><li>* Extension of Work day </li></ul></ul>
    6. 6. Causes of Rapid Industrialization <ul><li>Unskilled & semi-skilled labor in abundance. </li></ul><ul><li>Abundant capital. </li></ul><ul><li>New, talented group of businessmen [ entrepreneurs ] and advisors. </li></ul><ul><li>Market growing as US population increased. </li></ul><ul><li>Government willing to help at all levels to stimulate economic growth. </li></ul><ul><li>Abundant natural resources. </li></ul>
    7. 7. U. S. Patents Granted 1790s  276 patents issued. 1990s  1,119,220 patents issued.
    8. 8. Late 19 th Century Business Ideology <ul><li>Laissez Faire </li></ul><ul><li>Social Darwinism </li></ul><ul><li>Laissez Faire </li></ul><ul><li>Power to the Individual </li></ul><ul><li>Market Not Man-made or invented </li></ul><ul><li>Individuals Compete Freely in Marketplace </li></ul><ul><li>No room from government interference </li></ul>
    9. 9. Social Darwinism A Dubious Business “Theory” based on the Work of Naturalist Charles Darwin. The Origin of Species (1859)
    10. 10. Darwin’s “The Origin of Species.” This is a first edition.
    11. 11. <ul><li>Based on the research of Charles Darwin </li></ul><ul><li>Earth is billions of years old </li></ul><ul><li>All life forms, including humans, developed gradually over several million </li></ul><ul><li>Natural selection </li></ul><ul><li>Mutated genes create changes over time </li></ul><ul><li>Meaning the organisms best adapted to their environment survive above others </li></ul>EVOLUTION
    12. 12. “ Survival of the Fittest” ??? <ul><li>Society, like the jungle, fostered a ruthless struggle for survival </li></ul><ul><li>The fit survive and spread </li></ul><ul><li>The weak perish </li></ul><ul><li>Instead of tooth and claw, the struggle is economic </li></ul><ul><li>Government interference to reward society and the economy is futile </li></ul><ul><li>This “natural selection” necessary for the advancement of human race </li></ul><ul><li>Carnegie adds to this grim concept: “ Gospel of Wealth :” the economic winners have a responsibility to those below. (What a guy!) </li></ul>Individuals must have absolute freedom to struggle, succeed or fail Hello, Little People
    13. 13. Carnegie I’m so full of Contradictions The “theory” he loved so dearly lacked consistency He argued against Government Regulation He welcomed Government Assistance (tax abatements, grants, tariffs, etc.
    14. 14. Economies of Scale With faster machines, businessmen discover: <ul><li>Cost per unit decrease as number of units produced increase </li></ul><ul><li>More raw product purchased, the cheaper suppliers’ asking price </li></ul><ul><li>The closer capacity they kept new, faster machines running, the less the cost of labor and electricity </li></ul><ul><li>The lower their costs, the cheaper they could sell their products </li></ul><ul><li>The cheaper the product, the more they sold </li></ul>Huge Profits
    15. 15. Horizontal Integration John D. Rockefeller (Standard Oil Company)
    16. 16. Vertical Integration Andrew Carnegie (U.S. Steel) Gustavus Swift  Meat-packing
    17. 17. Vertical Integration Holding Company <ul><li>Own controlling interest in: </li></ul><ul><li>Production of raw material </li></ul><ul><li>Transportation to factory </li></ul><ul><li>The factory itself </li></ul><ul><li>Distribution network of product </li></ul>Monopoly of Entire Industry
    18. 19. Horizontal Integration Purchase or Put out of Business Competing Firms Trusts Ex: Oil, Whiskey, Sugar, Lead, Railroads
    19. 20. U. S. Corporate Mergers
    20. 21. World’s Industrial Output
    21. 22. Who’s Winning? Who’s Losing?
    22. 23. The “Robber Barons” of the Past
    23. 24. “ The Bosses of the Senate”
    24. 25. “ The Protectors of Our Industries”
    25. 26. Time for Government Intervention? Gov’t: Expansion of Mergers and Trusts Stifling Free Market Sherman Anti-Trust Act (1890) <ul><li>This federal law forbid any “combination…or conspiracy in the restraint of trade” between states or with other countries. </li></ul><ul><li>Difficult to enforce (“Trust” not clearly defined.) </li></ul><ul><li>Supreme Court overturned 7 of 8 cases against Trusts </li></ul><ul><li>Companies reorganized to avoid “Trust” designation </li></ul><ul><li>Better laws to come (Watch out for Teddy and Taft) </li></ul>
    26. 27. Coming Attraction Workers of the World Unite
    27. 28. Labor Unions Emerge
    28. 29. <ul><li>Summarize the emergence and growth of unions. </li></ul><ul><li>Explain the violent reactions of industry and government to union strikes. </li></ul>Learning Objectives
    29. 30. The Changing American Labor Force
    30. 31. Why Labor Unions? <ul><li>Seven Day Workweeks </li></ul><ul><li>12 -14- hour workdays </li></ul><ul><li>Low Wages </li></ul><ul><li>No Vacation Time </li></ul><ul><li>No Sick Leave </li></ul><ul><li>No Disability Insurance </li></ul><ul><li>No Healthcare </li></ul><ul><li>No Unemployment Compensation </li></ul><ul><li>Dangerous Working Conditions </li></ul>
    31. 32. The Tournament of Today: A Set-to Between Labor and Monopoly
    32. 33. What Are Labor Unions? <ul><li>Trade Union = Group of SKILLED workers within single trade </li></ul><ul><li>American Federation of Labor (Led by Samuel Gompers ) – Confederation of trade unions (Skilled workers) </li></ul><ul><li>Unskilled Workers Unions would form a few years later – one of these is led by Eugene V. Debs (Socialist) </li></ul><ul><li>Early Labor Unions excluded immigrants and blacks </li></ul>
    33. 34. Labor Unions = Dangerous Ideas <ul><li>Unions Considered Radical Organizations </li></ul><ul><li>Utopian or Socialistic Leanings </li></ul><ul><li>Government Wary of Supporting Them </li></ul><ul><li>Businesses and Courts Hostile to Them </li></ul>Socialism – An economic system in which the government owns most of the major means of production and distribution. (Coal, steel, transportation) Other industries privately owned. Reduces inequality among citizens.
    34. 35. “Bread and Butter” Issues <ul><li>Higher Wages and Shorter Workdays </li></ul><ul><li>Avoid Larger Political Issues </li></ul><ul><li>Easier to Achieve Reform with Business Owners than through Gov’t Sponsored Reform Laws </li></ul>Samuel Gompers
    35. 40. Haymarket Square Riot – Public Begins to Turn Against Unions (1886)
    36. 41. <ul><li>Only organized a small fraction of workers (Not enough members to push business owners to change) </li></ul><ul><li>Business owners had too much money and power to bend to union demands </li></ul><ul><li>Government tended to support corporations and not the unions </li></ul><ul><li>It won’t be until the 1930s when the Union’s gain real power </li></ul>Unions’ Weaknesses
    37. 42. Mary Harris Jones “ Mother” Jones <ul><li>Helped Push for Child Labor Reform </li></ul><ul><li>Organized Women Workers </li></ul>
    38. 43. Triangle Shirtwaist Factory Fire! Shirtwaist Tragedy Leads to Better Workplace Conditions <ul><li>3 or 4 doors locked to prevent theft </li></ul><ul><li>Faulty Fire Escape </li></ul><ul><li>No Sprinklers – too expensive </li></ul><ul><li>Owners avoid jail – pay $75 per death (146 x $75 = $10,975) </li></ul>
    39. 44. Asch Building 8th, 9th & 10 th Floors
    40. 45. Thank Goodness, the Firemen have arrived!! OOPS! <ul><li>Ladders only reach to six floor – fire is on 8,9 & 10 </li></ul><ul><li>Pumps can raise water to 9 & 10 </li></ul><ul><li>Don’t worry – building is “fire proof” </li></ul>

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