Industrial RevolutionIndustrial Revolution

Working Conditions

Changes in the Work PlaceChanges in the Work Place

Original manufacturing was an Artisinal System (think of an artist or you making the car)

Big Change – Division of Labor occurs! (think of you making only one part of the car)

The Difference in ProductionThe Difference in Production

Division of Labor

Artisinal System

WOW! Division of Labor WOW! Division of Labor Changes Manufacturing!Changes Manufacturing!

Positive: increases productivity for businesses

Negative: workers no longer take pride in work and removes creativity

Growing Work ForceGrowing Work Force

ImmigrantsImmigrantsFormer Farm FamiliesFormer Farm FamiliesWomen and ChildrenWomen and ChildrenDoes notDoes not include include

African AmericansAfrican Americans

The Life of a WorkerThe Life of a Worker

Children as young as age 6 sent out to work

Aid provided by private charities because . . .

Government Welfare does not exist at this time!

The Life of a Worker, The Life of a Worker, cont.cont.

Typically work 12 hours/day, 6 days/week

Difficult to move outside of the area of industry that your ethnicity put you into.

Skilled Workers

Native Born

Semi-Skilled Workers

Irish and Germans

Unskilled Workers Italians and Poles

A Segregated System of

Labor

Those Who Helped Those Who Helped Workers: Workers: Jacob RiisJacob Riis

Illustrated the negative impact of children working in mines and factories

Published photos of working children in How the Other Half Lives and wrote Children of the Poor

Lewis HineLewis HineTraveled around the

country to photograph child workers in factories, mills, mines, and canneries.

Documented the plight of working children

Photos were used as evidence (to the public and government) of the need for child labor reform

The Growth of Big BusinessThe Growth of Big Business

The Good and The Bad

Robber BaronsRobber Barons

Business leaders who made fortunes by stealing from public

They drained natural resources, paid low wages to workers, required long hours of employees

Robber BaronsRobber Barons

They persuaded public officials to interpret laws in their favor

They ruthlessly drove their competitors to ruin

• Paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions

Captains of IndustryCaptains of Industry

The business leaders served their nation in a positive way.

Raised productivity and expanded markets.

Created jobs that enabled many Americans to buy new goods and

raise their standard of living.

• Also created museums, libraries,

and universities, many of which still

serve the public today.

Carnegie Hall

Robber Baron – negative

Captain of Industry – positiveBusiness leaders who served the nation (built factories, increased supplies, raised production, expanded markets, and provided jobs)

Robber Baron Robber Baron versusversus Captain of IndustryCaptain of Industry

How did the industrialists How did the industrialists (business leaders) gain an (business leaders) gain an edge and what were the edge and what were the effects on US society?effects on US society?

Underpay their workersDrive competitors out of

business Develop new ways to organize

their businesses

Vertical Vertical Integration/ConsolidationIntegration/Consolidation

Buying out or controlling businesses related to various phases of production for one product

Controlling the MarketControlling the Market

Bob’s Pizza

Using Vertical Integration, Bob could control the Pizza market in

town by controlling many

of the costs associated with

making his pizza!Bob’s Farm

Bob’s Cheese Factory

Bob’s Trucking Company

Horizontal Horizontal Integration/ConsolidationIntegration/Consolidation

When you buy out all of your competitors (firms that are part of the same business)

Controlling the MarketControlling the Market

Bob’s Pizza

Delaware

Pizza

Pizza PizzaHappy Time PizzaUsing Horizontal Integration, Bob could

control the Pizza market in town by buying the other Pizza shops!

Bob’s Pizza Bob’s Pizza Bob’s Pizza

Bob’s Pizza

Monopoly vs. CartelMonopoly vs. CartelMonopoly – one company with

complete control of a product or a service (think Microsoft)

Cartel – a loose association of businesses in a similar field that make the same product and agree to limit supply to drive up prices (think oil or illegal drugs)

Andrew CarnegieAndrew Carnegie

Andrew CarnegieAndrew Carnegie

Captain of Industry for steel production in Pittsburgh

Used Bessemer Process to produce stronger steel

Utilized vertical integration or consolidation for business purposes

Born in Scotland

Carnegie as a PhilanthropistCarnegie as a PhilanthropistA Philanthropist uses

wealth to improve societyCarnegie funded the

building of libraries, education facilities, and music/arts facilities

Wrote Wrote Gospel of WealthGospel of Wealth

Carnegie’s philosophy that a person should be able to make as

much money as they can, BUT they should also use their wealth to improve society

Social Darwinism Drove Social Darwinism Drove American BusinessAmerican Business

Based on Darwin’s Theory of Based on Darwin’s Theory of Evolution (1859) regarding natural Evolution (1859) regarding natural selection and selection and survival of the fittestsurvival of the fittest

Businessmen are justified in using Businessmen are justified in using any means to become rich and any means to become rich and powerful – the government should powerful – the government should stay out!stay out!

John D. RockefellerJohn D. RockefellerFormed Standard

Oil Company

John D. Rockefeller and the John D. Rockefeller and the Standard Oil CompanyStandard Oil Company

Wealthy individual who saw the oil industry as a way to get richer

Made illegal deals with railroads to transport oil cheaper, thus weakening other refineries that he would eventually buy

Utilized horizontal integration or consolidation for business purposes

Also important re: Standard Oil ... Also important re: Standard Oil ... TrustsTrusts

A group of separate A group of separate companies that are placed companies that are placed under the control of a under the control of a single managing board single managing board (Board of Directors)(Board of Directors)

Trusts limit competition Trusts limit competition and cause prices to riseand cause prices to rise

Which Led to the Which Led to the Sherman Antitrust ActSherman Antitrust Act

Enacted in 1890Effort by Congress to end trusts/monopolies

Ineffective due to lack of enforcement

Business CycleBusiness CycleThe growth and

contraction of a nation’s economy

A new concept in the mid-late 1800s

EntrepreneursEntrepreneurs

Individuals who start their own businesses such as . . .

Rockefeller – OilCarnegie – SteelVandebilt – RailroadLevi Strauss – (Denim) ClothingBill Gates – Computer Software

Ida TarbellIda Tarbell

Focused on Drilling, shipping, refining, and the sale of oil

Smaller companies could not pay the higher shipping costs

Ida TarbellIda TarbellJournalist who Journalist who investigates and investigates and

exposes misconduct exposes misconduct among political and/or among political and/or

business leadersbusiness leaders

Ida TarbellIda TarbellIda’s father

was forced out of

business by Standard Oil

Perhaps this was

revenge???

Ida TarbellIda Tarbell

Muckraking Journalism can . . . Expose legitimate misconduct

and corruptionCreate disbelief and cynicismBe false and harmful to

innocent parties