1. AP EXAM REVIEW! Part VI

2. #6 The Machine Age ( )

3. The Age of Invention and Economic Growth
In 1876, Thomas Edison built his workshop in Menlo Park, NJ and produced some of the most important inventions of the century
Invented the light bulb
Extended the work day (which previously ended at sundown)
Pioneered work in the development of power plants
The last quarter of the 19th century is often called the AGE OF INVENTION because so many technological advances
These advances generated greater opportunities for MASS PRODUCTION, which caused the economy to grow at a tremendous rate
Not surprisingly, people known as “captains of industry” to their fans (and “robber barons” to others) became extremely rich and powerful during this period

4. Industrialization, Corporate Consolidation, and the Gospel of Wealth
As more and faster machines became available, businessmen discovered that their cost per unit decrease and their number of units produced increased
The more raw product they bought, the cheaper the suppliers’ asking price was
Lower costs = lower cost of products
Cheaper the product, the more they sold
This is the concept of ECONOMIES OF SALES
ASSEMBLY LINE PRODUCTION began to take hold when Eli Whitney developed interchangeable parts, but reached a whole new level in Ford’s plants
Workers were asked to perform a single task over and over again, for (before labor reform) 12 to 14 hours a day
Factories were dangerous and resulted in 50,000 injuries/year

5. Industrialization, Corporate Consolidation, and the Gospel of Wealth
Profits continued to rise by huge margins
Government wasn’t able to enforce regulations
Supreme Court was extremely pro-business
Businesses such as railroad companies created larger and larger business, which is known as CORPORATE CONSOLIDATION
Holding company’s were formed as well
A holding company owned enough stock in various companies to have a controlling interest in the production of raw material, the means of transporting that material to a factory, the factory itself, and the distribution network for selling the product
The conclusion of this, logically, is a MONOPOLY (complete control of an entire industry

6. Industrialization, Corporate Consolidation, and the Gospel of Wealth
The most common forms of business consolidation were HORIZONTAL and VERTICAL INTEGRATION
One is legal; one is not
Both were practiced by captains of industry during the Gilded Age
Horizontal (illegal): several smaller companies within the same industry are combined to form one, larger company (either by being bought out legally or destroyed by ruthless practices)
Ex: John D. Rockefeller and Standard Oil
Vertical (legal): one company buys out all the factors of production, from raw materials to the finished product
Ex: Swift Premium might control stockyards, the slaughterhouse, and the processing and packaging plants, but still compete with Oscar Mayer

7. Industrialization, Corporate Consolidation, and the Gospel of Wealth
The back-and-forth battle among the public, the government, and the courts is best exemplified by the SHERMAN ANTITRUST ACT
Sherman Antitrust: forbade any “combination…or conspiracy in the restraint of trade”
The wording was weak and the pro-business Supreme Court interpreted the law as it saw fit, finding loopholes to benefit big business
These loopholes would be close during Wilson’s administration with the passage of the Clayton Antitrust Act

8. Industrialization, Corporate Consolidation, and the Gospel of Wealth
Andrew Carnegie
Promoted a philosophy based on the work of Charles Darwin
Using Darwin’s theory of evolution as an analogy, Carnegie argued that in business, as in nature, unrestricted competition allowed only the “fittest” to survive
This theory was called SOCIAL DARWINISM
He also argued that the concentration of wealth among a few was the natural and most efficient result of capitalism. He asserted that great wealth brought with it social responsibility
He dubbed this belief the GOSPEL OF WEALTH, and he advocated philanthropy (building libraries, but not charity)

9. Factories and City Life
In order to maximize profits, manufacturers reduced labor costs by hiring women and children
Also hired newly arrived immigrants who were anxious for work
Majority of immigrants arrived from southern and eastern Europe
Prior to 1880, most came from northern and western Europe
Because manufacturers paid as little as possible, the cities in which their employees lived suffered many problems associated with poverty
Crime
Disease
Lack of livable housing
Advances in mass transportation (expansion of railroads, streetcars, and subways) allowed the middle class to live in nicer neighborhoods

10. Factories and City Life
Services for the poor were not provided by churches, private charities, and ethnic communities, they were provided by a group of corrupt men called POLITICAL BOSSES
Political Bosses
Helped the poor find homes and jobs
Helped them apply for citizenship and voting rights
Built parks
Funded police and fire departments
Constructed roads and sewage lines
In return they expected community members to vote as they were instructed
Sometimes required “donations” to help fund community projects
Their organizations were called POLITICAL MACHINES
The most notorious was “Boss” Tweed of Tammany Hall New York

11. Factories and City Life
Widespread misery in cities led many to seek changes
Labor unions formed to try and counter the poor treatment of workers
Unions were considered radical
Hired goons or troops broke up strikes
Before the Civil War, few unions existed, and they were small
One of the first national labor unions was the KNIGHTS OF LABOR founded in 1869
The Knights of Labor
Organized skilled and unskilled workers from a variety of crafts
Their goals
Eight-hour workday
Equal pay for equal work for men and women (this wouldn’t become a federal law until 1963!)
Child labor laws (prohibiting workers under 14)
Safety and sanitary codes
Federal income tax (not enacted until 16th Amendment in 1913)
Government ownership of railroad and telegraph lines

12. Factories and City Life
The Haymarket Square Riot (1886)
A labor demonstration in Chicago’s Haymarket Square
A bomb went off, killing police
Many blamed the incident on the influence of radicals within the union movement, although no one knew who set off the bomb
Propagandists began to associate unions with violence and political radicalism
The American Federation of Labor (Samuel Gompers)
Concentrated on the “bread and butter” issues of higher wages and shorter workdays
Excluded unskilled workers (skilled only)
Refused to accept immigrants

13. Factories and City Life
Charitable middle-class organizations, usually run by women, made efforts at urban reform
Lobbied local governments for building-safety codes, better sanitation, and public schools
Frustrated by government’s slow progress pace, members founded and lived in settlement houses in poor neighborhoods
Jane Adams: Hull House (Chicago)
Provided services such as English lessons for immigrants, day care for children of working mothers, childcare classes for parents, playgrounds for children
Popular novels and newspapers began to appear
“Yellow Journalism” – new style of sensational journalism
Bold, screaming headlines

14. Jim Crow Laws and Other Developments in the South
Advancements in the machine age affected primarily the Northern cities
South: agriculture continued to be the main form of labor
Landless farmers were sharecroppers, renting land in which was called the CROP-LEIN SYSTEM, which was designed to keep the poor in constant debt
The advent of the JIM CROW LAWS made matters worse for blacks
As the federal government backed off the South after Reconstruction, cities passed discriminatory laws
Supreme Court ruled that the 14th Amendment didn’t protect blacks discrimination by privately owned businesses
Plessy v. Ferguson: Supreme Court case that ruled that “separate but equal” facilities for different races was legal

15. Factories and City Life
Booker T. Washington
Believed that white society was not ready to accept blacks as equals
He promoted economic independence as the means by which blacks would improve their lot
Founded the Tuskegee Institute, a training school for blacks
Accused of being an ACCOMODATIONIST because he refused to press for immediate equal rights

16. The Railroads and Developments in the WEst
Railroads quickly transformed depot towns into vital cities by connecting them to civilization
Easier, faster travel meant more contact with ideas and technological advances from the East
“railroad time” (schedules of the railroads) gave the nation its first standardized method of telling time with the adoption of time zones
As rails pushed westward, settlers started filling in the territory.
By 1889, North Dakota, South Dakota, Washington, and Montana were populous enough to achieve statehood
Wyoming and Idaho followed in 1890

17. The Railroads and Developments in the WEst
The government, realizing the potential of the region passed two significant pieces of legislation in 1862: THE HOMESTEAD ACT AND THE MORRILL LAND GRAND ACT
Homestead Act: Federal government offered 160 acres of land to anyone who would “homestead” it (cultivate the land, build a home, live there) for five years
Of course, the land they were giving away belonged to the Native Americans
Morrill Land Grand Act: set aside land and provided money for agriculture colleges, turning agriculture sciences became a huge industry in the U.S.

18. National Politics
Mark Twain dubbed the era between Reconstruction and THE GILDED AGE
Gilded metals: shiny, gold-like surface, but beneath lies a cheap base
Twain’s point: politics looked good, but just beneath the surface lay crass corruption
Political machines ran the cities
Big business bought votes in Congress
Workers had no protection from greed from their employers
Twain was right on the money
The presidents were generally not corrupt, but relatively weak
As a result, we barely remember Rutherford B. Hayes (except for his connection to the Compromise of 1877), James Garfield, Chester A. Arthur, Grover Cleveland (both times), or Benjamin Harrison

19. The Silver Issue and the Populist Movement
After the Civil War, production on all fronts – agricultural and industrial – increased
Greater supply led to a drop in prices, which was trouble for many farmers
Looking for a solution, farmers supported a more generous money supply
An increase in available money would make payments easier
Inflation would rise, making their debts worth less
Obviously the banks were against this, preferring the country to use only gold to back its money supply
Silver was mined in the West, so the plan had the added support of Western miners as well

20. The Silver Issue and the Populist Movement
The “silver vs. gold” debate
The Grange Movement formed and by 1875 had more than 1 million members
Became big enough to to endorse political parties and lobby for legislation
Ultimately died out due to lack of money, but were replaced by the Farmers Alliance
The Farmers Alliance eventually turned into the People’s Party, the political arm of the POPULIST MOVEMENT
Populists backed William Jennings Bryan in the election of 1896
Best remembered for his “Cross of Gold” speech
Called for “free silver”
Lost to Republican William McKinley
This is when the Republicans first became associated with its pro-business stance

21. Foreign Policy: Imperialism
William H. Seward, secretary of state under Lincoln and Johnson
Set the precedent for increased American participation in the Western Hemisphere
Engineered the purchase of Alaska
Invoked the Monroe Doctrine to force France out of Mexico
The search for a port along the route to Asia drew the U.S. to Hawaii
The U.S. annexed Hawaii, enraging Japan (this anger would resurface during WWII)
Another opportunity for expansion was in Cuba
Cuban natives revolted against Spanish control
An American warship, The Maine, exploded of Cuba’s coast
U.S. declared war, drove Spain out of Cuba, and also drove Spain out of the Philippines
The Treaty of Paris (again): Spain granted Cuba independence and ceded the Philippines, Puerto Rico, and Guam to the U.S.