2Section 1 – Rise of Industry GNP – Total value of goods and services produced by a countryU.S. GNP was 8X greater in the early 1900’s then it was before the Civil War.
3Natural and Human Resources Industry needed water, timber, coal, iron, copperFirst oil well in Titusville, PA in 1859Petroleum (Kerosene)Oil fields grew rapidly from Pennsylvania to TexasLabor needs led to more immigrationChina and Eastern Europe
4Free Enterprise and the Government Laissez-Faire Economics“Let Do”Low taxes, limited government debtEntrepreneursTariffs and the issue of free tradeContradictions to laissez-faire ideasDid American industry really need protection from foreign competition
5New Technology Thomas Edison Alexander Graham Bell (Telephone)AT&TThomas EdisonElectricityRefrigerated railroad car, automatic loom, sewing machines, telegraph, radios
6Section 2 - RailroadsMany new inventions made settling the West easierNothing aided the settlement of the west more than the Transcontinental Railroad
7Transcontinental Railroad Two railroad companies worked on the first Transcontinental Railroad…The Union Pacific Company started in Omaha, NebraskaThe Central Pacific Company started in Sacramento, CaliforniaFinal spike at Promontory Summit, UT on May 10, 1869
9Pioneers of the Railroad Industry Grenville DodgeUnion Pacific“Big Four”Central PacificCornelius VanderbiltGrand Central Station
10National Railway System Time ZonesHuge benefit to the nation’s infrastructureTravel was safer and more efficient
11Land Grant SystemGovernment gave railroads land that was sold to raise money for railroad construction
12Robber BaronsRailroad owners that built their fortunes by swindling investorsJay GouldCredit Mobilier ScandalJames J. HillThe anti-robber baronGreat Northern RailroadOnly transcontinental railroad not eventually forced into bankruptcy
13Sec 3 Big BusinessCorporation – an organization owned by many people but treated by law as though it was a single personThe people who owned the corporation were StockholdersThe shares of ownership those people owned were called Stocks
14Companies had two different kinds of costs Fixed Costs – costs that companies pay whether they are running or notOperating Costs – costs that occur when running a company
15Consolidation of Industry Vertical IntegrationA company owns all of the different businesses on which it dependsHorizontal IntegrationCombining of firms engaged in the same type of business
16Competition 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.
17Andrew Carnegie – Steel industry John D. Rockefeller – Standard Oil CompanyJay Gould – Financier, banker
18Monopolies When a single company controls an entire market Trusts – legal concept that allows one person to manage another person’s property
19Sec 4 UnionsFrom 1865 to 1897, the U.S. experienced a rise in the value of money called deflationWorkers became angry when companies tried to pay them less and they formed Unions to fight back.
202 types of UnionsTrade 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”
21Workers 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.
22If the union called for a strike, the employer would hire replacement workers called strikebreakers
233 Major Strikes of the late 1800s The Great Railroad Strike of 1877The Haymarket RiotThe Pullman Strike
24The Great Railroad Strike of 1877 The strike involved 80,000 railroad workers in 11 statesIt also affected 2/3 of the nation’s railways
25President 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.
26Haymarket RiotIn 1886, organizers called for a strike to fight for an 8 hour work dayIn Chicago 3,000 people gathered for a rallyWhen the police entered someone threw a bomb in the middle of the officers
277 police officers and 4 workers were killed The Knights of Labor were blamed for the bombing
28Pullman StrikePullman cars were a type of rail car used by different train companiesIn an effort to end the strike the government began to use the cars for the U.S mail
29Grover Cleveland sent in troops to end the strike saying that he had to “keep the mail running”