Presentation on theme: "The Growth of Industrialism"— Presentation transcript:
1 The Growth of Industrialism The Second Industrial Revolution
2 Causes of Rapid Industrialization Steam Revolution of the 1830s-1850s.The Railroad fueled the growing US economy:First big business in the US.A magnet for financial investment.The key to opening the West.Aided the development of other industries.
3 Causes of Rapid Industrialization 3. Technological Innovations:SteelBessemer ProcessRailroadsSkyscrapersElectricityTelegraph, telephoneEscalators, elevators, central heatingGenerators, underground conductors
6 Invention and innovation Machines increase productionSewing machineAssembly line techniqueHenry FordOilAllowed for automobiles, planes
7 U. S. Patents Granted 1790s 276 patents issued.
8 Causes of Rapid Industrialization Unskilled & semi-skilled labor in abundance.Abundant capital.New, talented group of businessmen [entrepreneurs] and advisors.Market growing as US population increased.Government willing to help at all levels to stimulate economic growth.Abundant natural resources.
9 New Business CultureLaissez Faire the ideology of the Industrial Age.Individual as a moral and economic ideal.Individuals should compete freely in the marketplace.The market was not man-made or invented.No room for government in the market!
10 2. Social Darwinism British economist. Advocate of laissez-faire. Adapted Darwin’s ideas from the “Origin of Species” to humans.Notion of “Survival of the Fittest.”Herbert Spencer
11 William Graham Sumner Folkways (1906) Social Darwinism in AmericaIndividuals must have absolute freedom to struggle, succeed or fail.Therefore, state intervention to reward society and the economy is futile!William Graham Sumner Folkways (1906)
12 New Business Culture: “The American Dream?” Protestant (Puritan) “Work Ethic”Horatio Alger [100+ novels]Is the idea of the “self-made man” a MYTH??
13 Industrial Leaders Rockefeller and Oil Carnegie and Steel By 1879, Standard Oil owned over 90% of the marketAlso gained control of pipelines and railroadsReduced oil prices for the first timeCarnegie and SteelBuilt a steel plant using the Bessemer ProcessFired incompetent employees, slashed prices during recession and kept tabs on competitorsIn 1900, Carnegie produced ¼ of the steel
14 Other Industry leaders VanderbiltSwept up the railroad industry into smartly linked trunk linesArmour and SwiftEstablished control of the beef marketGuggenheimCopper industry
15 New Type of Business Entities CorporationAn organization owned by many people, but treated by law as a single person.PoolsAgreements to maintain prices at a certain level.
16 New Type of Business Entities 3. Trust: allows one person to manage another person’s property.4. Monopoly: gaining exclusive control of a market.
17 Types of Monopolies Horizontal Integration Vertical Integration Combining many firms in the same type of business into one large corporation.Vertical IntegrationOwns all of the different businesses it depends on for its operation.
18 New Type of Business Entities Trust:Horizontal Integration John D RockefellerVertical Integration:Gustavus Swift Meat-packingAndrew Carnegie U. S. Steel
26 Criticism and Defense of Big Business Taken risks and so were entitled to profits“The Gospel of Wealth”Carnegie donated $350 million during his lifetime to libraries, schools, and research
27 “On Wealth” The Anglo-Saxon race is superior. “Gospel of Wealth” (1901).Inequality is inevitable and good.Wealthy should act as “trustees” for their “poorer brethren.”Andrew Carnegie
28 Regulating the Trusts 1877 Munn. v. IL 1886 Wabash, St. Louis & Pacific Railroad Company v. IL1890 Sherman Antitrust Actin “restraint of trade”“rule of reason” loophole1895 US v. E. C. Knight Co.
29 Impact of Industrialism Benefits the middle classGreater comforts and conveniencesSears’ general catalogClerical and sales positions expanded with female laborSent children to collegeBuy property
30 Impact of Industrialism Life for average AmericansCandle-lit homesNo indoor plumbing or heatingCould not afford a phone or stoveOnly ¼ of the population owned property7% of Americans had high school diplomasLaborers had neither time or money to enjoy leisure activities and luxury goods
31 Impact of Industrialism Industrial Working Conditions10-12 hour daysFaced extreme heatPermanent back injuriesInjuries from faulty machines or from lack of sleep“become a hand—not a brain—not a soul—deadened into a part of a machine.”
32 Impact of Industrialism Low pay and reasons to staySought to keep jobs long enough to return home richerCompeting supply of laborTake home pay as low as $5 a weekKept thousands of families living at poverty levels.