Presentation on theme: "CH 14 Industrialization. Section 1 – Rise of Industry GNP – Total value of goods and services produced by a country U.S. GNP was 8X greater in the early."— Presentation transcript:
Section 1 – Rise of Industry GNP – Total value of goods and services produced by a country U.S. GNP was 8X greater in the early 1900’s then it was before the Civil War.
Natural and Human Resources Industry needed water, timber, coal, iron, copper First oil well in Titusville, PA in 1859 Petroleum (Kerosene) Oil fields grew rapidly from Pennsylvania to Texas Labor needs led to more immigration China and Eastern Europe
Free Enterprise and the Government Laissez-Faire Economics “Let Do” Low taxes, limited government debt Entrepreneurs Tariffs and the issue of free trade Contradictions to laissez-faire ideas Did American industry really need protection from foreign competition
New Technology Alexander Graham Bell (Telephone) AT&T Thomas Edison Electricity Refrigerated railroad car, automatic loom, sewing machines, telegraph, radios
Section 2 - Railroads Many new inventions made settling the West easier Nothing aided the settlement of the west more than the Transcontinental Railroad
Transcontinental Railroad Two railroad companies worked on the first Transcontinental Railroad… The Union Pacific Company started in Omaha, Nebraska The Central Pacific Company started in Sacramento, California Final spike at Promontory Summit, UT on May 10, 1869
Pioneers of the Railroad Industry Grenville Dodge Union Pacific “Big Four” Central Pacific Cornelius Vanderbilt Grand Central Station
National Railway System Time Zones Huge benefit to the nation’s infrastructure Travel was safer and more efficient
Land Grant System Government gave railroads land that was sold to raise money for railroad construction
Robber Barons Railroad owners that built their fortunes by swindling investors Jay Gould Credit Mobilier Scandal James J. Hill The anti-robber baron Great Northern Railroad Only transcontinental railroad not eventually forced into bankruptcy
Sec 3 Big Business Corporation – an organization owned by many people but treated by law as though it was a single person The people who owned the corporation were Stockholders The shares of ownership those people owned were called Stocks
Companies had two different kinds of costs Fixed Costs – costs that companies pay whether they are running or not Operating Costs – costs that occur when running a company
Consolidation of Industry Vertical Integration A company owns all of the different businesses on which it depends Horizontal Integration Combining of firms engaged in the same type of business
Competition and Laissez-faire economics led to the control of a few very powerful men in industry These men became the most powerful men in the U.S. during the time.
Andrew Carnegie – Steel industry John D. Rockefeller – Standard Oil Company Jay Gould – Financier, banker
Monopolies When a single company controls an entire market Trusts – legal concept that allows one person to manage another person’s property
Sec 4 Unions From 1865 to 1897, the U.S. experienced a rise in the value of money called deflation Workers became angry when companies tried to pay them less and they formed Unions to fight back.
2 types of Unions Trade Union – a union made up of skilled workers such as “Teachers Union” Industrial Union – a union that united all workers within a certain industry, like the “Pelham High School Union”
Workers who tried to organize a strike were fired and put on a blacklist When workers formed a union companies would use a lockout to not allow them in the factory and refuse to pay them.
If the union called for a strike, the employer would hire replacement workers called strikebreakers
3 Major Strikes of the late 1800s The Great Railroad Strike of 1877 The Haymarket Riot The Pullman Strike
The Great Railroad Strike of 1877 The strike involved 80,000 railroad workers in 11 states It also affected 2/3 of the nation’s railways
President Hayes ordered the army to reopen many of the rail lines but before it was over more than 100 people were dead and millions of dollars of equipment had been destroyed.
Haymarket Riot In 1886, organizers called for a strike to fight for an 8 hour work day In Chicago 3,000 people gathered for a rally When the police entered someone threw a bomb in the middle of the officers
7 police officers and 4 workers were killed The Knights of Labor were blamed for the bombing
Pullman Strike Pullman cars were a type of rail car used by different train companies In an effort to end the strike the government began to use the cars for the U.S mail
Grover Cleveland sent in troops to end the strike saying that he had to “keep the mail running”