2 THE RISE OF INDUSTRYAmerica became much more industrialized after the CW as people left farms to work in mines and factoriesLate 1800s – U.S. became the world’s leading industrial nationGDP by 1914 was 8x what it was in 1865
3 NATURAL RESOURCES U.S. benefits from a lot of NRs Timber, coal, iron…why/how does this help?Westward expansion and building of the transcontinental RR speed up industrialization (why?)Emergence of the oil industry in PA (Edwin Drake, 1859)History of PetroleumDRAKE
4 ANSWERWHAT HAPPENED TO AMERICA’S POPULATION FROM 1860 TO 1910? - it nearly tripled
5 REVIEW QUESTIONLIST 3 EFFECTS THIS HAD ON THE INDUSTRIALIZATION OF AMERICA. THINK ECONOMICALLY AND SOCIALLY/CULTURALLY.
6 REVIEW ANSWERLIST 3 EFFECTS THIS HAD ON THE INDUSTRIALIZATION OF AMERICA. THINK ECONOMICALLY AND SOCIALLY/CULTURALLY. 1. provided a large labor force 2. created demand for consumer goods 3. changed the ethnic makeup of the nation
7 LARGE WORKFORCE 1860 – 1910: American population triples Why was it growing so fast?Effects on industry?
8 NEW INVENTIONS (In addition to natural resources and labor, new inventions/technology were crucial to the industrial process. New technology increased productivity and improved both transportation and communication)Alexander Graham Bell and the telephone ((1870s)George Westinghouse: train breaks and electricity (1880s – 1890s)Thomas Edison and just about everything (1870s – 1880s)
9 IMPACT OF TECHNOLOGYEveryday life was changed by inventions such as the ice machine and refrigerated RR carsClothing industry was changed by standardized sizes and the automatic loomTrans-Atlantic telegraph cable in 1866How would your life be without this?
10 12.2 – THE RAILROADS Explosion of RR from 1865 to 1900 35,000 miles to 200,000 miles of trackPacific Railway Act (1862)Spurs growth of RR w/ government land grants
11 TRANSCONTINENTAL RAILROAD Construction began in 1865 and was finished in 1869Union Pacific – led by Grenville DodgeStarted from Omaha and worked westVeterans, Irish laborCentral PacificStarted by Theodore Judah, sold stock to the “Big 4” (Stanford, Crocker, Hopkins, Huntington)Started construction on the west coast and worked eastChinese laborLeland Stanford
12 TRANSCONTINENTAL RAILROAD – cont. Final construction finished with the two lines meeting in Utah on May 10,
13 IMPACT OF THE TRANSCONTINENTAL RR Time ZonesIncreased # of markets for goodsStimulated economy by increased spending on steel, coal, timber…Created new jobs (such as?)Connected the nation psychologicallyLed to the integration of smaller RR networks (Cornelius Vanderbilt)
14 12.3 – THE RISE OF BIG BUSINESS Pre-Civil War – most businesses were small (family owned, one owner…..)Post- Civil War – large businesses began to dominate the economyLargely due to the growth of corporations – an organization owned by many people but treated by the law as though it were a personOwned by stockholders/shareholdersSelling of stock enables Cs to raise a lot of moneyThis money allows them to spread out the risk and to generate money to invest, research, hire…..What do you think are the largest American corporations?
15 RISE OF BIG BUSINESS cont. Economies of Scale – corporations were now able to decrease the cost of manufacturing by producing goods quickly and in large quantities…..big business was getting very efficientFixed vs. operating costs?(see “The Rise of Big Business” worksheet)
16 CONSOLIDATING INDUSTRY By the 1870s competition had reduced many industries to just a few large corporationsExamples today?Carnegie, Rockefeller, and Morgan were giants of business at this time
17 TITANS OF INDUSTRYAndrew CarnegieJ.P.MorganJohn D. Rockefeller
18 WHAT IS THE POINT OF A UNION? 12.4 – UNIONSWHAT IS THE POINT OF A UNION?
19 UNIONS cont. Problems for industrial workers in the 19th century: Unsafe, unclean working conditionsVery long work weeksGrowing gap between wealthy and working classesLow/unfair wages (in 1900 the average worker was paid 0.22/hr and worked 59 hrs/week)The issue for workers was that they had little to no power to change these circumstances
20 EARLY UNIONS Craft Workers vs. Common Laborers? Trade Unions – formed by craft workers as early as the 1830smore skilled workers, more leverage against managementIndustrial Unions – united all workers in a particular industryLess skilled, less leverageWhich ones were businesses more likely to work with and why?
21 COMPANIES OPPOSE UNIONS Require workers to sign oaths or sign contractsHire detectives to identify union organizersBlacklist individualsLockoutsHire replacements (scabs)
22 POLITICAL & SOCIAL OPPOSITION TO UNIONS No laws protecting union workers or union rightsCourts often were against unions (why?)Fear of Marxism/anarchism/un-AmericanismKarl Marx
23 NEW UNIONS EMERGEUnions took different approaches to achieve their goals, gave rise to new unionsAmerican Federation of Labor (AFL)Focused on skilled laborSamuel Gompers (goals and strategy?)Largest union by 1900 (who was discriminated against)Industrial Workers of the World (IWW)Sought to unite all workers according to industry (regardless of skill level)Different strategies than AFL (more prone to use strikes)Never as large as the AFL, seen as more radical
24 WHAT ABOUT WORKING WOMEN? By 1900 women made up about 18% of the workforceOnly 1/3 were industrial workersReceived unequal payCreated their own unionsEx. Int’l Ladies’ Garment Workers UnionMary Harris Jones – “Mother Mary”