2THE BIG QUESTIONSWhat factors encouraged American economic growth in the decades after the Civil War?How did workers fare in the new industrial America?Could workers have improved their working conditions without organizing labor unions?How did industrialization bring both positive and negative changes?
3BACKGROUNDYou learned about the Industrial Revolution in World History last year, its beginnings in Great Britain, and the results of industrialization on societyAmerican industrialization proceeded at a rapid pace in the decades following the Civil War. Some people consider this period America’s “Second Industrial Revolution.”The United States soon became a world leader in industry
4TECHNOLOGICAL INNOVATIONS Steam and electricity replaced human and animal strengthIron replaced wood, and steel replaced iron (The Bessemer process made steel production more economical)Steam power drove textile mills and depended on coalPetroleum products were used in lighting and machine lubricationThe internal combustion engine used gasoline from oil to run cars and the first airplanes
5THE COMMERCIAL USE OF ELECTRICITY First used as a means of communication along telegraph wiresIn 1876, Alexander Graham Bell ( ) invented the telephoneIn 1879,Thomas Edison produced the first effective electric light bulbElectricity ran motors to drive machinery in factoriesBy 1900, it was powering streetcars and subway trainsBy 1920s, it was used for appliances
6THE GROWTH OF RAILROADS After the Civil War, work began on the Transcontinental RailroadMany workers on the California side were Chinese immigrantsFinally connected in 1869 at Promontory Point, UtahTrunk lines were soon built to connect to the main transcontinental line, and additional new tracks were laid throughout North America
7DEVELOPMENT OF A NATIONAL MARKET Railroads, canals, telegraphs and telephones linked together different parts of the countryShipping was less expensive (improved transportation)Goods were cheaper (less expensive and quicker to produce)New methods of selling were developed (department stores, chain stores, mail-order)Manufacturers advertised in magazines and newspapers in order to sell goods throughout the country
8POPULATION GROWTHBetween 1850 and 1900 the population more than tripledFueled by high birthrate and a constant stream of European immigrantsCreated favorable conditions for business expansionPlaced increasing demands on the natural environment and resources
10NEW TYPES OF BUSINESS ORGANIZATIONS Corporations became commonCorporations issue shares to investors (stocks)Shareholders are partial ownersMore stock = larger share = more dividends ($)By people pooling money, companies could raise vast sums of money needed to fund industriesCorporations made industrial production possible
11ENTREPRENEURSHIP AND PHILANTHROPY An entrepreneur is a person who starts a business in the hope of making a profitThey were able to reap huge profits and create great personal wealthMany became known as “Captains of Industry” as they forged the modern industrial economyCritics called the “robber barons” because many used ruthless tactics to destroy competition and keep worker’s wages low
12BIG BUSINESS CONSOLIDATION In 1873, America experienced a depression. Larger corporations began driving smaller companies out of business, hoping to establish monopolies.At first government did little to regulate big businessBelieved in laissez-faire (gov’t. should not interfere in the free market)Even under laissez-faire, gov’t. protects property, enforces contracts, issues patents, and enacts tariffsReformers called for legislation to remedy some of the anti-competitive practices of big business
13LAWS AGAINST ANTI-COMPETITIVE PRACTICES Interstate Commerce Act (1887) – prohibited unfair practices by railroads, such as charging higher rates for shorter routes. Provided for the Interstate Commerce Commission to enforce the act. This was the first time Congress stepped in to regulate business in America.Sherman Anti-Trust Act (1890) – stopped monopolies engaging in unfair practices that prevented fair competition. Showed a significant change in the attitude of Congress toward abuses of big business
14CONDITIONS OF LABORLong hours & low wages (10-14 hr. days; 6 days a week; $3-12 weekly; immigrants, women, and children lowest paid)Poor conditions, boring and repetitive tasksWork became less skilled, repetitive, monotonous, and boringHazardous conditions (inadequate safety – thousands killed or injured in accidents each year)Child labor (1/5 of children under 15 worked in 1910)No job security or benefits
15THE RISE OF UNIONSGroups of workers organized to improve working conditions and wagesStrikesCollective bargainingThe Knights of Labor – formed in 1869 seeking to create a single national union by joining skilled and unskilled workers. Wanted 8 hr. days, higher wages, safety codes, opposed child labor, supported equal pay for women, supported restrictions on immigration. Disorganization led to it falling apart in the 1890sThe American Federation of Labor (AFL) – founded in 1881 by joining separate unions of skilled workers into a single federation. Limited membership to skilled workers (carpenters, cigar makers, etc.). Sought closed shops (union members only). Emerged as the main voice of organized labor.
16GOVERNMENT ATTITUDE TOWARD UNIONS Early on, government was critical of the labor movementBusiness leaders contributed heavily to political campaigns and politicians saw business as being responsible for American prosperity and worker demands as greedyFeared disruptive effects of strikes would hurt the economy (sometimes used troops to put down strikes)Public opinion also supported laissez-faire and thought wage demands would increase prices and violence and radical ideas would increase