The Industrial Revolution in the United States

http://www.hulu.com/watch/25218/billy-madison-industrial-revolution-puppy

What makes you think the host was once a high school teacher?

Life is Changing

People were resistant to change, but life was fundamentally changing.

1. Industrialization meant more people in factories and fewer farmers.

2. More wages meant more disposable income.

3. Better standard of living meant more people seeking opportunities.

Inventions

Mother Necessity Video

Check for Understanding

Think of an invention that you use every day that makes your life easier. Turn to a neighbor and share.

How would your life be different without this invention?

Early Industrial Development– Textile Mills

Largest industry at the time was textile (fabric).

Even though the textile industry was the largest business, factories were still small.

Textile Mills

Samuel Slater – “Rhode Island System” First to use steam-driven

power looms Relied on sole

proprietorship or partnership form of ownership initially.

Relied on family for labor – with growth had to hire professional managers.

Vertically integrated operations forward and backward.

Samuel Slater

Textile Mills

Francis Lowell Used water-power looms.

Hired non-family supervisors & managers. Relied on adult female labor.

Textile Mill at Pawtucket, Rhode Island

Mill – present day reconstruction

Depiction of Mill

The American System of Manufactures

Interchangeable parts– previously confined to making muskets and revolvers.

The Springfield (MA) Armory was an early factory prototype. 250 employees – largest factory in the U.S. until

after the Civil War. Labor was more specialized. Uniform standards promoted interchangeability of

parts.

The Railroads: Pioneering in U.S. Management

First “big business” in the U.S. – developed c. 1830. Started the transportation revolution. Change from local markets to national markets. How did railroads change industry and trade? How

did they influence the location of cities?

Courtesy of Association of American Railroads (AAR)

Railroads Need Laborers

Built by immigrant labor (Irish in east and Chinese in west)

Where did these immigrants call home?

Complete the Immigrant Experience

How many generations does it take to become an American?

Inventive and Innovative Impulses

Railroads: made travel possible and pleasurable; fostered a retailing revolution.

Telegraph and telephone: aided growth of commerce and transportation through communication.

Other industries developed and grew: Electrical Mass marketers Sewing machines Harvesters Steel

Industrial Growth and Systematic Management How did entrepreneurs take advantage of the

emerging industries? What do you think could be the next emerging

industry that could make you wealthy? Who benefits from these emerging markets?

Who suffers? Now lets look at one who benefitted.

Andrew Carnegie (1835-1919)Steel Industry

Used the new Bessemer furnace technology to begin vertically and horizontally integrating his firm in the steel industry.

Andrew CarnegieCourtesy of The General Libraries, The

University of Texas at Austin.

Andrew CarnegieSteel Industry

Vertical and Horizontal control of the market to drive down prices for consumers.

Preview Txt. 155, 159, 161

Agree/disagree- is Carnegie’s control of the entire steel industry good or bad? Andrew Carnegie’s his first job was in a

textile mill like this.

Working Conditions

Big business often focused on the bottom line- profit.

How did this effect workers?

Read excerpt from the Jungle (Upton Sinclair).

Social Darwinism vs. social Gospel Darwinists would

argue that the rich are rich because they are smarter, more educated, better able to adapt to change. The poor are poor because they are not able to adapt- they deserve it.

The Social Gospel says that big business and circumstances keep people down. We need to help the poor and less fortunate.

WWJD

Summary

From independence to 1860, the U.S. grew and developed industry.

Period was critical to development of the modern economy (ethics, perceptions, values).

Railroads and the telegraph allowed firms to grow exponentially (VERY LARGE).

Managers were required for large, complex organizations.

Quality of life for people was improving.

Additional Internet Resources

Academy of Management – Management History Division Websitehttp://www.aomhistory.baker.edu/departments/leadership/mgthistory/links.html

List of Internet Resources compiled by Charles Booth http://www.jiscmail.ac.uk/files/MANAGEMENT-HISTORY/links.htm

Western Libraries Business Library – Biographies of Gurus http://www.lib.uwo.ca/business/gurus.html Developments from Ancient History

http://www.accel-team.com/scientific/index.html Max Weber

http://www.faculty.rsu.edu/~felwell/Theorists/Weber/Whome.htm Nicolo Machiavelli – Medieval Source Book – The Prince 1513

http://www.fordham.edu/halsall/basis/machiavelli-prince.html John Locke Biography

http://www.blupete.com/Literature/Biographies/Philosophy/Locke.htm Adam Smith

http://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/smith/ James Watt by Carnegie

http://www.history.rochester.edu/steam/carnegie/ Developments during the Industrial Revolution

http://www.accel-team.com/scientific/scientific_01.html

Additional Internet Resources

The Robert Owen Museum http://robert-owen.midwales.com/

Charles Babbage Institute http://www.cbi.umn.edu/exhibits/cb.html Andrew Ure - The Philosophy of the Manufacturers 1835

http://www.fordham.edu/halsall/mod/1835ure.html Charles Dupin Biography

http://www-groups.dcs.st-and.ac.uk/~history/Mathematicians/Dupin.html Cyrus McCormick - Biography

http://www.vaes.vt.edu/steeles/mccormick/bio.html Samuel F.B. Morse

http://memory.loc.gov/ammem/atthtml/mrshome.html Henry R. Towne – Address delivered at Purdue University (1905)

http://www.cslib.org/stamford/towne1905.htm Andrew Carnegie

http://www.americaslibrary.gov/cgi-bin/page.cgi/aa/carnegie The Rockefellers – PBS Documentary

http://www.pbs.org/wgbh/amex/rockefellers/ The Samuel Gompers Papers

http://www.history.umd.edu/Gompers/index.html

End of Part One