1. THE INDUSTRIAL SOCIETY
Chapter 18

2. Industrial Development 1865-1914
Late nineteenth-century U.S. offers ideal conditions for rapid industrial growth
Abundance of cheap natural resources
Large pools of labor
Largest free trade market in the world
Capital, government support without regulation providing incentive for growth 2

3. Railroads
Railroads capture the imagination of the American people
Becomes safe, fast, and reliable
End rural isolation
Regional economic specialization
Make mass production, consumption possible
1865–1916-U.S. lays over 200,000 miles of track through federal land grants/incentives (leads to corruption)
Congress authorizes the transcontinental railroad (Union Pacific vs. Central Pacific)
Tracks meet in Utah, Promontory Point
Bankers gain control after Panic of 1893 and impose order by consolidating power and eliminating competition 4

4. Creation of Time Zones

5. Industrialists Captains of Industry Robber Barons
a business leader whose means of amassing a personal fortune contributes positively to the country
a business leader whose means of amassing a personal fortune contributes negatively to the country

6. The Business of Invention
Late nineteenth-century industry leads to new American technology
An Age of Invention
Telegraph, camera, processed foods, telephone, phonograph, incandescent lamp
Electricity in growing use by 1900
Bessemer Process (refining steel) leads to mass production 13

7. Carnegie and Steel
Made his wealth in large-scale steel production (U.S. Steel)
By 1901, Carnegie employs 20,000 and produces more steel than Great Britain
Requirements lead to “vertical integration”
Definition: A type of organization in which a single company owns and controls the entire process from obtaining raw materials to manufacture and sale of the finished product 10

8. Rockefeller and Oil
John D. Rockefeller organizes Standard Oil Company of Ohio/creating the first known trust
Rockefeller lowers costs, improves quality, establishes efficient marketing operation
Requirements lead to “horizontal integration”
Definition: A type of organization in which a single company buys out, or merges, it competitors controlling all its competition 12

9. The System The Sellers The Wage Earners
Marketing becomes a science in late 1800s
Advertising becomes common
Americans become a community of consumers
Montgomery Ward
Sears-Roebuck
Marshal Fields
The labor of millions of men and women built the new industrial society
1875–1900 real wages rose, working conditions improved, and workers’ national influence increased

10. Working Men, Working Women, Working Children
Chronically low wages
Average wages: $ per year
Salary required for decent living: $600 per year
Dangerous working conditions
High death rate, high injury rate and chronic illness
Composition of the labor force by 1900
20% women
10% girls and 20% boys under the age of 14
Women and children are poorly paid

11. Racism in the Workplace
Discriminatory wage structure and practice
Whites earn more than blacks or Asians
Protestants earn more than Catholics or Jews
Black workers earn less at every level and skill
Federal Chinese Exclusion Act prohibits Chinese immigration for 10 years

12. The Jungle

13. Labor Unions
Knights of Labor (1869)-combine all workers skilled and unskilled
A.F.L. (1886)-seeks practical improvements for wages, working conditions
Samuel Gompers
Focus on skilled workers
Ignores women and African Americans
Courts come down on side of owners with injunctions against strikes
1880–1900: 23,000 strikes
Chicago Haymarket incident prompts fears of anarchist uprising
Homestead steel strike 17

14. Industrialization’s Benefits and Costs
Rapid industrialization
Rise in national power and wealth
Improving standard of living
Human cost of industrialization
Exploitation
Social unrest
Growing disparity between rich and poor
Increasing power of giant corporations 19