Post on 14-Nov-2021
transcript
Industrialization & Big Business
Factors Fueling Industrialization
SWBAT
• Evaluate how different factors fueled industrialization
Do Now:
• Economically, how did the North benefit from the Civil War and Reconstruction?
Video Clip • Discovery Education: “The New
American City”
• We will review the questions at the end as a class
Factors Fueling Industrialization • Using the graphic organizer, fill in
details for each factor contributing to Industrialization in the United States
Civil War
•War created need for quick & efficient manufacturing •Post-war: factories used to manufacture civilian goods
Capital
•Capital = $ •North gained capital from the Civil War •Industry needs $ to invest in new inventions & tech.
Inventions
•Bessemer Process- new steel making process •Typewriter, Elevator, Telephone, Light Bulb •Refrigerated train car
1790-1860: 36,000 patents
1860-1890: 440,000 patents
Natural Resources
•Brought wealth to those who refined or exported them •Iron Ore, Coal, Silver & Gold, Copper, Oil, Lumber
Transportation
•Railroads- transported natural resources factories consumers!
• Seattle, Washington
• Revere, Massachusetts
What do you think… • What were the effects of the railroads
on the industrial growth of the USA?
- Faster, more practical means of transporting goods
- Lower costs of production
- Created national markets for goods
- Model of big business
- Stimulated growth of other industries
Labor
•Sources of Labor: 1.European Immigrants Northeast 2.Chinese Immigrants West 3. Civil War Veterans
• Chinese Immigrants, Angel Island
• European Immigrants, Ellis Island
Government Aid
•Allowed for cheap labor supply •Laissez-faire •Land grants & subsidies to build railroads •Protective tariffs •Gov’t need during C.W. fueled economy
Industrialization • Post Civil War:
- Industrialization causes shift from rural living to urbanization
Industrialization North
1. Economy stimulated by war ($)
2. Improvements in transportation
3. New labor supply- immigrants
South 1. Still
agriculturally based
2. Sharecropping
Industrialization
• Development of Business:
1. Pre-Civil War- most businesses were sole-ownerships or partnerships
2. Post-Civil War- rise in corporations & monopolies
Industrialization • American industry increased in the
following areas:
1. Transportation
2. Steel
3. Energy (coal, oil, electric)
4. Communications (telephone, telegraph)
Wrap Up • How did industrialization & new
technology affect the economy & society?
Wrap Up • Many reformers who opposed the laissez-faire
attitude of the late 19th century argued that:
1. the National Government should not interfere in the activities of big business
2. national wealth could best be assured by the accumulation of gold
3. the idea of rugged individualism is vital to the nation’s economic growth
4. government should protect society through the regulation of business
Rise of Big Business
SWBAT • Explain how big business shaped
economy
• Do Now:
What is a monopoly? Create an example with a partner.
- When a corporation has complete control of a product or service
Disadvantages of Monopolies
1. Prices were fixed because of the lack of competition
2. Exploitation of workers: long hours, low pay, dangerous conditions
Disadvantages of Monopolies
3. Growth in “distance” between the employer & the employee. (Ex: owners shut down factories without regard to workers or the community
Disadvantages of Monopolies
4. Big Business influenced politicians:
•Bribing officials
•Buying votes
•Intimidation
•Rebates (kickbacks to businesses)
•Special rates for politicians
Key Terms • Laissez-faire- policy of noninterference
by the government in a nation’s economy
• Social Darwinism- idea that government actions would interfere with process of natural selection; economic success comes to people who are hardworking & competent
Key Terms
• Horizontal Integration- company combines businesses involved in the same type of industry into one corporation
• Vertical Integration- company owns all the different businesses on which it depends for its operation
Integration
• Which is horizontal integration and which is vertical integration?
Integration • With a partner, choose a product and
explain what vertical integration would entail for that product
• Example: American Apparel- controls the dyeing, finishing, designing, sewing, cutting, marketing and distribution of the company's product
Government Regulation
• Before the 1870s, the government was not involved in Big Business- we had a laissez-faire policy
Government Regulation • Steps toward Government Regulation
(control):
1. Growing criticism of practices allowing Big Business to profit at the expense of the working class
Government Regulation
2. Increasing local political pressure for change
State Regulation • Regulation happened within states first
• States began to pass laws against monopolies, but these laws were NOT EFFECTIVE because:
1. monopolies moved to other states
2. the Supreme Court ruled against states regulating monopolies
Federal Government Involvement
1. Interstate Commerce Commission, 1887
- first time fed. gov. intervened in private business
- established precedent of fed. gov. intervention
Federal Government Involvement
• Weakness:
– vague language, shortage of people and no $ to run Interstate Commerce Commission
– not very effective at stopping monopolies, but it was a first attempt
Federal Government Involvement
2. Sherman Anti-Trust Act, 1890
- another attempt by fed. gov. to end monopolies
- law declares any business combination or trust is illegal if it restrains (inhibits) trade or commerce
Federal Government Involvement
• Weakness:
- business went around the law & formed other monopolies, lack of enforcement, & the Supreme Court continued to rule in favor of Big Business
Conclusion
• By 1890, both the federal and state governments tried to regulate or control Big Business but both failed still had a lot of monopolies in the US.
Wrap Up
• Read the excerpt from Carnegie’s “Wealth” and answer the Critical Thinking Questions
SWBAT • Explain how business practices of
entrepreneurs led to their success
Do Now:
- What is an entrepreneur? Can you give an example of one?
*people who invest $ into a product or innovation, in hopes of making a profit
Captains of Industry
• Finish Biography of America
• Read through the information in your packet and complete the “Questions” on your own
* I will be meeting with students about recommendations individually
Captains of Industry or Robber Barons?
SWBAT
• Explain criticisms of the monopolists
Do Now: What methods do workers use to achieve their aims?
- Collective bargaining, strikes
How are entrepreneurs viewed?
How is Standard Oil
viewed by the cartoonist?
“Bosses of the Senate”
The Trust Giants Point of View “What a funny little government”
Reading
• Read the excerpt from Wealth Against Commonwealth
Answer reading questions
Robber Barons
• The negative view of big businessmen was that they were Robber Barons, who created more harm than good
• Why did people in society criticize industrialists?
• They believed monopolies were not good for the common man
Social Critics
• Many criticized the practices of the “Captains of Industry” and Big Business during the Industrial Revolution
• 3 Social Critics:
Social Critics
1. Henry Lloyd- criticized methods used; concerned for the small businessman
2. Edward Bellamy- Looking Backwards, book showed a utopian socialist society; anti-capitalist
Social Critics 3. Henry George- Progress and Poverty, book explained how industrial progress leads to poverty, because it creates two opposing classes: rich and poor.
The Breakers • Vanderbilt’s
(steamships & railroad) summer “cottage” in Newport, RI
The Elms • Berwind’s (coal)
summer cottage in Newport, RI
Rosecliff • Oelrichs’
(silver) retreat in Newport, RI
Wrap Up • What led to Government
Regulations...
• Explain two criticisms people had about monopolies
• Do you think the industrialists of the time should be viewed as “Captains of Industry” or “Robber Barons”? Explain your answer.
Labor Unions
SWBAT
• Compare and contrast Knights of Labor and AFL
Do Now: Why do workers need labor unions?
• To help improve working conditions and pay
Labor Unions
• Pre-Civil War: labor unions local and for skilled workers only
• Post-Civil War: rise in national labor unions
Labor Unions Knights of Labor:
1869- 1890s American Federation of Labor (AFL): 1886-1955
Leaders Terence Powderly Samuel Gompers
Membership Large, inclusive union (skilled and unskilled workers, men, all ethnicities, EXCEPT Chinese)
Skilled white men ONLY; later included the ILGWU (women’s garment union)
Goals 8 hr work day, end to child labor, equal wages for women; “A Cooperative Commonwealth”
“Bread and Butter” unionism: 1.Better wages 2.Better hours 3.Better working conditions
Labor Unions Methods 1. Opposed to strikes
2. Encouraged boycotts & negotiation 3. Warned that liquor robbed workers of wages, just as greedy employers did
1. Collective bargaining (union leader represents workers negotiates issues with management) 2. Strikes/Boycotts 3. Wanted a “closed-shop”
Still in existence?
NO- blamed for Haymarket Riot and lost membership
YES- combined with another union AFL-CIO
Labor Unions • Management’s Reaction to Unions:
1.Blacklists- list of names of people who caused “trouble” and should not be hired
2.Lockouts- locked gates to factories so no one could go to work and get paid hired “scabs” (replacement workers)
Labor Unions
3. Used public opinion and laws (Sherman Anti-Trust) against labor unions
Labor Unions • Activity!
• It’s 1890: Choose a Labor Union from above and create a poster, urging workers to join!
• DUE AT THE END OF CLASS!
• MUST HAVE:
– name of union, color, & creativity!
Wrap Up
• What factors prompted the emergence of Labor Unions?
• How did the AF of L and Knights of Labor differ in terms of types of workers organized; their views of immigrants, African-Americans, Chinese and women workers; and their positions on strikes?
Strikes
SWBAT
• Explain major labor strikes, tactics used, the role of the government, and the outcome of the strikes
Do Now: What is the purpose of employees going on strike?
Your Task • Once in your group, follow the
directions on your notesheet
• When groups present you will complete the remaining questions using the information they provide you with
Period 5 • Strike #1: Evelyn, Elena, Katie
• Strike #2: Nayeli, Jose, Jannet, Evan
• Strike #3: Emerson, Nicole Girillo, Henry, Sabriy
• Strike #4: Julia, Frida, Michelle, Anahi, Phil
• Strike #5: Nicole Gonzalez, Suzanne
Period 6 • Strike #1: Jean Pierre, Torry, Shyanne, Erik
• Strike #2: Danny, Nelly, Liam, Leslie, Rosie
• Strike #3: Luci, Alejandro, Christian, Ashanti
• Strike #4: Alexis, Vanessa, Emily, Nicole, Irvin
• Strike #5: Alana, Kevin, Darin, Ruby
Period 7 • Strike #1: Steffani, Jesus, Lizbeth, David, Angelina
• Strike #2: Raul, Naomi, Roynell, Tom, Shawn
• Strike #3: Michelle, Cassie, Bianca, Oliver
• Strike #4: Maria, Leslie, Frank, Valerie, Aaliyah
• Strike #5: Ozzie, Cindy, Amanda
Pattern of Strikes • Increasing tensions between workers &
employers led to large, violent, often unsuccessful strikes stopped by the Federal Government
Era of Strikes Tensions increase between workers
& owners
Workers organize unions
Business owners oppose
unions
Era of strikes begins with
Railroad Strike, 1877
Major strikes continue
Government sides with
business owners, using army to put
down strikes
Gap between rich & poor
Supreme Court Decisions
SWBAT • Examine 3 Landmark Supreme Court
Decisions Do Now: • What do you think led the government
toward the regulation of business in the late 1800s?
- Criticism of big business practices, making a profit at the expense of the poor & working class; downturns in the economy; political pressure for change
Supreme Court Cases • In the late 1800s, railroads companies
formed policies discriminating against farmers & small shippers
• The groups pressured states to pass laws regulating railroad practices & the railroads sued to have the laws overturned
Supreme Court Cases
Your Task • Closely examine the 3 Supreme
Court Cases you’ve been given
• With a partner, answer questions on a separate piece of paper
Supreme Court Cases 1. Wabash v. Illinois, 1886
- S.C. changed its mind
ruled only Fed. Gov. can regulate interstate commerce/trade and most monopolies were considered interstate commerce/trade
Supreme Court Cases 2. U.S. v. E.C. Knight Company, 1895 - aka “Sugar Trust Case” - S.C. found the Sherman Anti- Trust Act did not apply to this case because this was not “commerce”; the case dealt with “manufacturing” many business were exempt from the Sherman Anti-Trust Act
Supreme Court Cases 3. In re Debs, 1895 - S.C. ruled the Fed. Gov. had the right to regulate interstate commerce & ensure operations of the U.S. Postal System slowed the momentum of labor unions
Wrap Up
• To what extent was the Sherman Anti-Trust Act effective in protecting competition?
• How effective was government regulation of railroads at the state level? National level?