Rise of Industry

Rise of IndustryRise of IndustryIntroductionProfilesAndrew CarnegieJohn D. RockefellerThomas EdisonLaborGeneral ConditionsWomen and ChildrenUnionsConclusionThemesLeading Industrialists:Captains of Industry or Robber Barons? Working conditions and life for workersBy 1900 the U.S. was a major industrial power, but was it worth the costBellworkWhich is more important: Large financial reward for the few or small financial reward for the many?Factors of Economic GrowthWorkers abundant workforce to produce and innovateFactors of Economic GrowthWorkersResources Materials used to produce goods (Energy; Raw Materials)

Factors of Economic GrowthWorkersResourcesCapital Money to pay workers and purchase resources; Tools to produce goods

Factors of Economic GrowthWorkersResourcesCapitalEntrepreneurs People who innovate and start businesses

Rise of IndustryIntroductionProfilesAndrew CarnegieJohn D. RockefellerThomas EdisonLaborGeneral ConditionsWomen and ChildrenUnionsConclusionAndrew Carnegie (1835-1919)Founded U.S. SteelVertical Integration:Control all portions of manufacturing process from raw materials to distributionWealth: $300 Billion (2012 Dollars)

Vertical IntegrationControlling each step in the production, disruption, and sale of a product.

John D. RockefellerFounded Formed Standard Oil Undercut competition by lowering prices until competition went out of business, then raised pricesHorizontal Integration: Controlled about 90% of U.S. oil refining capacity by 1879Wealth: $320 Billion (2012 Dollars)

Horizontal IntegrationControlling each all competition at a specific step in the production or distribution level

Check Up!Briefly explain the difference between Vertical Integration and Horizontal Integration. Provide an example for each one.

Cost of IndustrializationU.S. became major industrial power by 1900

Industrial Power

Cost of IndustrializationU.S. became major industrial power by 1900Business leaders acted as Philanthropists: Gave money back to society

Philanthropist - CarnegieHelped establish 2,000 librariesEstablished $10 million dollar fund for teachersGave away 90% of his fortune to charities and foundationsCarnegie Endowment for International Peace

Cost of IndustrializationU.S. became major industrial power by 1900Business leaders acted as Philanthropists: Gave money back to society

Environmental degradationStrip miningPollution in rivers

Environmental degradation

Cost of IndustrializationU.S. became major industrial power by 1900Business leaders acted as Philanthropists: Gave money back to society

Environmental degradationStrip miningPollution in riversFactory life was poor

Factory Life

Cost of IndustrializationU.S. became major industrial power by 1900Business leaders acted as Philanthropists: Gave money back to society

Environmental degradationStrip miningPollution in riversFactory life was poorCorruption in government

Corruption in Government75 out of 90 Senators in 1906 had accepted bribes from corporation or business leaders

Cost of IndustrializationU.S. became major industrial power by 1900Business leaders acted as Philanthropists: Gave money back to society

Environmental degradationStrip miningPollution in riversFactory life was poorCorruption in governmentSocial DarwinismBelief that individuals must be free to struggle, succeed or fail without government intervention

Captains of Industry or Robber Barons?Captain of Industry: a business leader whose means of amassing a fortune contributes positively to the country.

Robber Baron: Modern-day businesspeople who engage in unethical business tactics to build large personal fortunes.

Were the leaders of these companies Robber Barons or Captains of Industry? Why?Check Up!Were the leaders of these companies Robber Barons or Captains of Industry? Why?Rise of IndustryIntroductionProfilesAndrew CarnegieJohn D. RockefellerThomas EdisonLaborGeneral ConditionsWomen and ChildrenUnionsConclusionBellworkWhat options do employees who work under harsh conditions have to improve their work place?General Working Conditions in 1900New: Large factories

General Working Conditions in 1900New: Large factories repetitive tasks

General Working Conditions in 1900New: Large factories repetitive tasks Average work week: 55-66 hours

General Working Conditions in 1900New: Large factories repetitive tasks Average work week: 55-66 hoursDangerous Conditions1913 25,000 work place fatalities700,000 serious injury

Check Up!How does this testimony reflect the fundamental differences between the old and new factory system within the United State?

U.S. Labor ForceChild Laborers1900: 2 million children worked for wagesFemale workersEarned less money than male counterparts1900: 17% of workforce was female

Example: Skilled vs. Unskilled WagesBricklayer (skilled)3.00 dayGeneral Laborer (unskilled)1.30 daySouthern Mill Worker (Unskilled)0.84 day

Example: Skilled vs. Unskilled WagesBricklayer (skilled)3.00 dayGeneral Laborer (unskilled)1.30 daySouthern Mill Worker (Unskilled)0.84 day

It would take a mill worker 1.5 million years to make as much money as Carnegie made in his lifetime.Example: Steel WorkersShifts: 7 days a week, 12 hours a dayOne day off per monthExtremely dangerous work

Title: Unit 6 - FormativeFormative Assessment: Complete the following chart by identifying at least three fact for each topic.

Rise of IndustryIntroductionProfilesAndrew CarnegieJohn D. RockefellerThomas EdisonLaborGeneral ConditionsWomen and ChildrenUnionsConclusionLabor RespondsUnion: an organization of workers that have banded together to achieve common goalsMajor U.S. UnionsNational Labor UnionKnights of LaborAmerican Federation of Labor (AFL)Industrial Workers of the World (Wobblies)

Check Up!Gompers was an advocate for workers rights and a leader of the American Federation of Labor (AFL). Why does he argue that workers should have the right to strike?

Union BustingStrike BreakingBring in outside workersArmy/militia

Union BustingStrike BreakingBring in outside workersArmy/militiaBan Unions through Contracts

Union BustingStrike BreakingBring in outside workersArmy/militiaBan Unions through ContractsDefame UnionsAnarchists Abolish gov.Socialists Democratic movement to redistribute wealthCommunists Violent revolution to redistribute wealth

Check Up!How does this cartoon reflect the anti-union sentiments amongst some people within the United States?

Homework: Identify and describe each of the following events in labor historyRailroad Strike of 1877Haymarket AffairHomestead StrikePullman StrikeLaborOrigins of modern unions are set in late 1800sOnly included about 5% of all workforce by late 1880s, but numbers would rise dramatically in the 1900sMany employers, like Carnegie, fought to break unions

Knights of LaborFounded in 1869Open to all laborers1800: 700,000 membersGoals:Equal pay for womenEnd child laborLimit Chinese Immigration8hr work dayGraduated income tax

Knights of LaborHaymarket Square Riot (May 4, 1886)Background: Laborers in Chicago held a General strikeStrike sympathizers held a rally near Chicago at Haymarket SquareEvent was attacked by bombing: 7 police, 4 demonstrators were killedUnion lost support after bombing

American Federation of Labor (AFL)Formed in 1884Union of skilled workersGoalsEight hour dayEmployers liability for injuries on the job1.6 million members by 1904

Long Term ImpactLabor unions had mixed success over the next century, with a peak in the 1950 and 60s.

Rise of IndustryIntroductionProfilesAndrew CarnegieJohn D. RockefellerThomas EdisonLaborGeneral ConditionsWomen and ChildrenUnionsConclusionConclusionU.S. became an industrial power and was led by powerful inventors and industrialistsProgress was often on the backs of laborers who worked under difficult conditionsUnions often achieved local success, but not national success

The nation industrialized quickly, but was it worth the cost?Check Up!In a complete paragraph explain how the development of Big Business led labor groups to organize

Websites of InterestCarnegieRockefellerEdisonHaymarket Affair Digital CollectionEmergence of Advertising in America: 1850-1920Sourcehttp://college.cengage.com/history/lecturepoints/index.html ReadingsA Machinist Describes Specialization, 1883 p. 52A French Economists Notes the Machines Impact on American Workers, 1897 p. 55Dr. John B. Whitakers Explains the Impact of the Factory on Workers Health, 1871 p. 55Terence V. Powderly Defines the Knights of Labor, 1878 p.59An AFL Perspective on Women in the Work Force, 1897 p. 62