Presentation on theme: "The Rise of American Business, Industry, and Labor (1865 - 1920) Civil War changed everything! North was already industrializing (bullets, railroads, etc)"— Presentation transcript:
The Rise of American Business, Industry, and Labor (1865 - 1920) Civil War changed everything! North was already industrializing (bullets, railroads, etc) South was ruined! (NEW SOUTH)
Before the Civil War…. …most businesses were sole proprietorships (single owners). Factories need more start-up capital($$) then a single person business. The birth of corporations! What is a corporation?
What do these terms mean? (homework) 1) Monopoly 2) Conglomerate 3) Merger 4) Trust 5) Holding Company 6) Capitalism 7) Communism 8) Entrepreneurs 9) Laissez-Faire 10) Social Darwinism 11) Robber Barons 12) Philanthropists 13) Labor Union 14) Collective Bargaining 15 Sherman Antitrust Act
Entrepreneurs! Andrew Carnegie John D. Rockefeller J.P Morgan Henry Ford
Entrepreneurs! Andrew Carnegie Scottish Immigrant who started working in a factory at age 12. Invested wisely and entered the steel industry at age 38. By 1901 sold his steel company for $250,000,000! Gave hundreds of millions to charities (libraries) Wrote the book: Gospel of Wealth
Entrepreneurs! John D. Rockefeller Entered the oil-refining business during the Civil War. Used ruthless means to eliminate his competition. By 1882 his company, Standard Oil Company, controlled 90% of all American oil refining. Created the Standard Oil Trust to control more aspects of oil production. Gave hundreds of millions to charities. Rockefeller Center
Entrepreneurs! J.P Morgan Banker who made many loans to up and coming businesses. Purchased and reorganized many bankrupt businesses (profit). Bought Carnegie Steel and reorganized it into the United States Steel Corporation (the world’s largest).
Entrepreneurs! Henry Ford Ford Motor Corp (cars) Created the assembly line Paid laborers a good wage
Laissez-Faire (hands off) The government largely kept “hands off” towards American business. Businesses were booming! The economy was doing well. Foreign trade reached new heights. Why did this change around the end of the 1800’s?
HANDS ON Why? 1) The economy took a turn for the worse 2) Growing criticism that big business made profits on the backs of the American poor/immigrant 3) Growing political pressure for change
RAILROADS!!! (again) In the late 1800’s, railroads developed a number of business practices that hurt farmers and small businesses (pricing). These small business lobbied to have the government change these policies. Railroads lobbied to allow them to stay the same
Please research the following Supreme Court Cases from this era: (homework) 1) Munn v. Illinois (1877) 2) Wabash, St. Louis & Pacific Railway v. Illinois (1886) 3) United States v. E.C. Knight Company (1895) 4) In re Debs (1895)
RAILROADS!!! (again) List several reasons why railroads were so important to so many people. What was it about railroads? How did they effect American society? How did railroads effect other businesses? Did railroads create a market for other businesses? Like what?
Public Pressure: ICC Public pressure forced Congress to pass the Interstate Commerce Act Created the ICC which regulated railroads and ended abuses like rebates. (precedent)
Public Pressure: Sherman Late 1800’s: some business had no competition (monopoly) Public outcry was significant Politicians passed the Sherman Antitrust Act (see vocabulary) Business combination Illegal: “in restraint of trade or commerce” US v. E.C. Knight Company Precedent
Labor Rising Conditions for working people had slowly improved with time However, wages were still low,unemployment was uncertain and could end suddenly. Business owners had tremendous power over employees!
Knights of Labor Formed in 1869 - Terence Powderly Haymaker Riot ended their influence in 1886 Welcome skilled, unskilled, and African-Americans Fought for broad social reforms 8 hour work day end to child labor equal opportunities for women
American Federation of Labor AFL - Samuel Gompers 1886 A collection of craft unions. Fought for “bread and butter” issues Higher wages, better hours, better working conditions Extremely powerful with over 1,000,000 members by 1900
Labor Conflict Describe the following events for homework: Great Railway Strike of 1877 Haymaker Riot Homestead Strike Pullman Strike Give details, who - what - when - why - results?
Great Railway Strike of 1877 -Railroad workers went on strike after several pay cuts. (several states) -President Rutherford B. Hayes sent federal troops to end the strike -Workers got very little
Haymaker Riot -Labor Rally (organized by Knights of Labor) that ended in a bomb blast -7 police died -Chicago -1886 -Public blamed Knights of Labor despite the fact they had nothing to do with the violence.
Homestead Strike -1892 - Union members went on strike (pay cuts) at the Carnegie steel plant -Homestead, Pennsylvania -Violence ensued -16 people died- fewer then 25% of the strikers got their jobs back -Set the steel labor movement back 20 years
Pullman Strike -1894 - Railroad workers went on strike in Illinois -Tied up other rail lines. -President Grover Cleveland sent in troops to end the strike -In re Debs