Unit 2: The Gilded Age &

Industrialization of the USPowerPoint #1

Daily Essential Questions:

1. How did industrialization and new technology affect the United States’ economy and society?

2. How did big business affect the American economy in the late 1800s and early 1900s?

3. Why did labor unions begin? Why were they unsuccessful in the late 1800s?

EQ #1:

How did industrialization and new technology affect the United States’

economy and society?

1. Civil War – Encouraged innovation and railroads expanded. Led to growth of cities.

2. Natural Resources – The US had resources including oil!

3. Growing Workforce – Immigrants worked for low wages.

4. New Business Practices–spurred economic growth. –such as laissez faire – means hands off - minimal govt. regulation

5. Government Policies – Helped businesses – ex: protective tariffs to encourage the buying of American goods.

What were the causes of the “Second Industrial Revolution” in the US?

How did Railroads Change America?

Growth of Cities

1. Chicago, Pittsburgh, and Atlanta became more populated.

2. Transcontinental Railroad - 1869

Encouraged Innovation

1. Air brakes invented.2. Refrigerated cars invented3. Time zones were set.

Improved Industry

1. Led to Mass Production2. Businesses obtained raw materials easily.3. They sold products to people far away.

How did Railroads Change America?

Growth of Cities

1. Chicago, Pittsburgh, and Atlanta became more populated.

2. Transcontinental Railroad - 1869

Encouraged Innovation

1. Air brakes invented.2. Refrigerated cars invented3. Time zones were set.http://auto.howstuffworks.com/auto-parts/brakes/brake-types/air-brake1.htm

Improved Industry

1. Led to Mass Production2. Businesses obtained raw materials easily.3. They sold products to people far away.

Why were time zones important?

How did Railroads Change America?

Growth of Cities

1. Chicago, Pittsburgh, and Atlanta became more populated.

2. Transcontinental Railroad - 1869

Encouraged Innovation

1. Air brakes invented.2. Refrigerated cars invented3. Time zones were set.

Improved Industry

1. Led to Mass Production2. Businesses obtained raw materials easily.3. They sold products to people far away.

Railroads in 1905

Chicago, Atlanta, and Pittsburgh became important hubs.

Major Inventions of the 1800sInventor Major invention Year

Samuel Morse ** Telegraph** – led to a communications revolution!

1844

Alexander Graham Bell

Telephone 1876

Elias Howe Sewing machine 1846

Elisha Otis Safety elevator 1852

Thomas Edison ** Light bulb** (and other stuff like the phonograph)

1880

Granville Woods Steam boiler 1884

Henry Bessemer, William Kelly

Bessemer Process** - which purified iron to create steel -made skyscrapers and suspension bridges possible.

1851-1855

What major inventions impacted the economy and society?

How would these make life better?https://www.youtube.com/watch?v=HQ2RJC1a8T0 Thomas Edison 3min

Major Inventions of the 1800sInventor Major invention Year

Samuel Morse ** Telegraph** – led to a communications revolution!

1844

Alexander Graham Bell

Telephone 1876

Elias Howe Sewing machine 1846

Elisha Otis Safety elevator 1852

Thomas Edison ** Light bulb** (and other stuff like the phonograph)

1880

Granville Woods Steam boiler 1884

Henry Bessemer, William Kelly

Bessemer Process** - which purified iron to create steel -made skyscrapers and suspension bridges possible.

1851-1855

What major inventions impacted the economy and society?

How would these make life better?https://www.youtube.com/watch?v=HQ2RJC1a8T0 Thomas Edison 3min

Lunch atop a skyscraper: workers on the Empire State Building construction.

The Flatiron Building going up in 1903. New York City

How did steel change the US?

EQ #2:

How did big business affect the American economy in the late 1800s

and early 1900s?

Who were the Big Business Tycoons of the Late 1800s? ***

Business leader Industry

John D. Rockefeller Standard Oil

Andrew Carnegie Carnegie Steel

Cornelius Vanderbilt Railroads

J.P. Morgan Banking & eventually buys Carnegie Steel to form US Steel

Who were the Big Business Tycoons of the Late 1800s? ***

Business leader Industry

John D. Rockefeller Standard Oil

Andrew Carnegie Carnegie Steel

Cornelius Vanderbilt RailroadsVanderbilt University, Biltmore Estate

J.P. Morgan Banking & eventually buys Carnegie Steel to form US Steel

(JP Morgan Chase is an investment firm that still exists today.)

or “captains of industry” who served the nation, made better products, and lowered the prices of goods?

Were the tycoons “robber barons” who cheated the poor and drove small businesses under . . .

http://www.sageamericanhistory.net/gildedage/topics/gildedage1.html

Robber Barons or Captains of Industry?

Drained natural resources.

Got the govt. to interpret laws in their favor.

Drove competitors out of business.

Paid low wages.

Provided dangerous or unhealthy working conditions.

Increased the supply of goods by building factories.

Improved productivity (made stuff better, faster, and cheaper).

Created jobs and improved the standard of living for many Americans.

Philanthropists – donated millions of dollars to create new libraries, schools, and museums – many still exist today. (Vanderbilt Univ., Carnegie Hall, Tuskegee Institute)

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What strategies did corporations use to eliminate competition and decrease costs?

1. Monopolies –only one supplier, no competition, able to pay lower prices for raw materials

2. Horizontal integration - Standard Oil - took over small oil refineries

3. Vertical integration – Carnegie Steel – took over all stages of production

4. Formed Trusts – firms that combine to reduce competition and control prices.

You will make a t-chart for Rockefeller and Carnegie. As you watch the video clips fill out the chart.

ROBBER BARON

1.

2.

3.

4.

5.

CAPTAIN OF INDUSTRY

1.

2.

3.

4.

5.

https://www.youtube.com/watch?v=9saLsvWcppw - Rockafeller

https://www.youtube.com/watch?v=3ye1-6X-NrE -Carnegie

What company does this cartoon depict?Is this vertical or horizontal integration?

Andrew Carnegie's philanthropy. Puck magazine cartoon by Louis Dalrymple, 1903.

“The Gospel of Wealth” – the wealthy must help those who want to help themselves.

the belief that wealth was a measure of a person’s value and

those who had wealth were the most “fit.”

Social Darwinism uses the Theory of Survival of the Fittest to Defend Big Business and Laissez-Faire

In other words applying Charles Darwin’s idea of evolution of species

to American business and capitalism.

So, Social Darwinism is…

What is Social Darwinism?

ICC • Interstate Commerce Commissionoversaw railroad operations –first federal organization set up to regulate business. Tried to ensure fair practices.

Sherman Antitrust Act

• Passed by the Senate in 1890• Outlawed trusts that operated “in restraint of trade or commerce among the several states”

How did the federal government begin to regulate business and limit their

power?

ICC • Interstate Commerce Commissionoversaw railroad operations –first federal organization set up to regulate business. Tried to ensure fair practices.

Sherman Antitrust Act

• Passed by the Senate in 1890• Outlawed trusts that operated “in restraint of trade or commerce among the several states”

How did the federal government begin to regulate business and limit their

power?

EQ #3:

Why did labor unions begin? Why were they unsuccessful in the late

1800s?

1. Low wages.

2. Worked in unhealthy conditions -sweatshops.

3. Overworked, 6-7 days 12 hours

4. Lived in company townsand had to buy goods at high interest at company stores.

This leads to…

Collective Bargaining, Strikes, Labor Unions

What problems did workers face in the late 1800s?

Photographs by Lewis W. Hine

Urban factory work was a major occupation of native-born migrants from the countryside as well as immigrants. Sixty-four percent of Boston’s female industrial workforce was immigrant in 1860. Women workers performed the same unskilled jobs in urban mills as in the rural mills, and were paid much less than men, who often performed skilled jobs. In Philadelphia in the 1830s, mill women made an average of $2.25 per week compared to men’s average weekly earnings of $6.50-$7.00. https://www.nwhm.org/online exhibits/industry/4.htm

Knights of Labor

1. First national labor union, founded in 1870s.

2. Pushed for 8 hourworkday, equal pay for equal work, and end to child labor.

3. Skilled and unskilled workers.

4. Declined in 1890s.

Workers began to organize and demand improvements in working conditions and pay.

American Federation of Labor

1. Organized individual national unions, such as mine-workers’ and steelworkers’ unions

2. Only skilled workers

3. Used collectivebargaining and strikes.

What were the goals and strategies of different Labor Unions?

The belief that wealth should be distributed equally to everyone.

1. Most Americans rejected socialism, and Labor Unions weren’t socialist organizations but some labor activists borrowed ideas from it to support social reform like demonstrations and strikes for more rights.

2. Because the general public believed that unions were socialistic, that belief hurt the effectiveness of unions in the late 1800s. (In general people did not like unions!)

https://www.investopedia.com/terms/s/socialism.asp Socialism vs. Capitalism 2min

What is socialism and how did it impact labor unions?

The 1886

Haymarket Riot

made

many Americans

wary of labor

unions.

1. Great Strike – 1877

• Railroad workers in multiple locations upset about wage cuts responded with violence.

• President Hayes sent in federal troops to stop it.

• Significance: Employers and Businesses could get the govt. to help them deal with striking workers. ***

What are four main examples of labor strikes?

"A Steeple-View of the Pittsburgh Conflagation"; engraving showing the burning of Union Depot and Pennsylvania Railroad yards, Pittsburgh, PA during Great railroad strike of 1877

https://www.youtube.com/results?search_query=great+railroad+strike+of+1877 2min

2. Haymarket Riot - 1886

• Erupted between protesters and police in Chicago.

• Resulted in decline of Knights of Labor.

• Made many Americans not like labor unions.

3. Homestead Strike - 1892

• Strike occurred at Carnegie Steel Company in Homestead, Pennsylvania.

• Resulting fight left workers and Pinkerton guards dead.

4. Pullman Strike -1894

• Began with workers who made Pullman train cars…stopped RR traffic and mail delivery.

• Federal troops stopped strike. ***

• Leader Eugene V. Debs sent to jail. (He becomes a socialist after the strike)