1. Aim: Economic Changes & Developments Do-Now : Do you like the game Monopoly? Why/Why not? Do-Now : Do you like the game Monopoly? Why/Why not?

2. Post-Civil War Economy War Stimulated North’s economy and destroyed the south’s

3. Key Economic issues North -Continued rapid development, new interest in overseas -Crucial to economy, Transcont.- develops west -Farms began to mechanize to increase production- Urban Areas North -Continued rapid development, new interest in overseas -Crucial to economy, Transcont.- develops west -Farms began to mechanize to increase production- Urban Areas Industries Railroads Land Use & Ag. South - Began slow, (textile & Steel), Urban areas needed much work -Destroyed, needed building, roads & bridges too - Slave based plant. system ends, land destroyed, poor whites & blacks compete. (sharecropping & tenant farming)

4. Growth of Corporations  New Technology & Business expansion lead to corporations. Why?  Corporation- A business where many investors own shares/stocks. Investors Then receive a dividend -Benefits of losses with failed business -Speeds up industry growth  New Technology & Business expansion lead to corporations. Why?  Corporation- A business where many investors own shares/stocks. Investors Then receive a dividend -Benefits of losses with failed business -Speeds up industry growth

5. Other forms of organizations  Monopoly- A company or small group of companies that has complete control over a particular field of business (ex. Pizza chain)  Some monopolies are okay  Conglomerate- A corporation that owns a group of unrelated companies(clearchannel & GE)  Monopoly- A company or small group of companies that has complete control over a particular field of business (ex. Pizza chain)  Some monopolies are okay  Conglomerate- A corporation that owns a group of unrelated companies(clearchannel & GE)

6. Continued  Merger- Process by which one company aquires legal control of another  Pools- When Companies work together to fix prices. (RR’s 1800s)  Trusts- When a group of corporation is controlled by board. Shareholders lose say in company. - Limit competition  Trusts and pools were outlawed.  Holding company- Get around Trusts. Buys company’s stock rather than direct take over  Merger- Process by which one company aquires legal control of another  Pools- When Companies work together to fix prices. (RR’s 1800s)  Trusts- When a group of corporation is controlled by board. Shareholders lose say in company. - Limit competition  Trusts and pools were outlawed.  Holding company- Get around Trusts. Buys company’s stock rather than direct take over

7. Innovation & Entrepreneurs  Rural Areas- Mail order Catalogs. Spread products (vacuum, light bulb, telephone, electric iron)  Department stores- Variety under one roof.  Rural Areas- Mail order Catalogs. Spread products (vacuum, light bulb, telephone, electric iron)  Department stores- Variety under one roof.

8. Entrepreneurs  People who take responsibility for the organization and operation of a new business venture.  Risk large sums of $ to make great profits.  People who take responsibility for the organization and operation of a new business venture.  Risk large sums of $ to make great profits.

9. Entrepreneurs  Andrew Carnegie- Originally bad investor. Sought to control all aspects of steelmaking.  Became worlds largest steelmaker  Sold for 1/4 bil.  Duty to society- $ to charity and built free public libraries.  Andrew Carnegie- Originally bad investor. Sought to control all aspects of steelmaking.  Became worlds largest steelmaker  Sold for 1/4 bil.  Duty to society- $ to charity and built free public libraries.

10. Entrepreneurs  John D. Rockefeller  Standard Oil- 1882 controlled over 90% of U.S. oil refining  1882- Standard Oil Trust Why?  Believed competition was wasteful  Donated to charity  John D. Rockefeller  Standard Oil- 1882 controlled over 90% of U.S. oil refining  1882- Standard Oil Trust Why?  Believed competition was wasteful  Donated to charity

11. Entrepreneurs  J. Pierpont Morgan  Banker- Made loans to new businesses.  Took control of bankrupt railroads, reorganized and made profits  Bought Carnegie Steel in 1901, created U.S. Steel corporation world’s largest.  J. Pierpont Morgan  Banker- Made loans to new businesses.  Took control of bankrupt railroads, reorganized and made profits  Bought Carnegie Steel in 1901, created U.S. Steel corporation world’s largest.

12. Henry Ford  1913- Assembly Line  Lowered Cost of Production  Sped up rate of production  Paid Workers Higher Wages- Set standard  1913- Assembly Line  Lowered Cost of Production  Sped up rate of production  Paid Workers Higher Wages- Set standard

13. Old School Thought of Business  Puritan work ethic?  Poor boys become rich through hard work and luck  If not??  Puritan work ethic?  Poor boys become rich through hard work and luck  If not??

14. Late 1800’s  Rethinking Business Mentality  Due to cut-throat business tactics  Rethinking Business Mentality  Due to cut-throat business tactics

15. New Philosophies  Laissez Faire (Lazy Fair)  Free Enterprise System- Up to the individual  Laissez Faire (Lazy Fair)  Free Enterprise System- Up to the individual

16. Social Darwinism  Businesses live or die by natural selection  Weak Businesses fail -Healthy survive  Businesses live or die by natural selection  Weak Businesses fail -Healthy survive What would Government interference do? Interfere with Natural selection

17. Robber Barons or Philanthropists?  Growing gulf between rich and poor  Robber Barons- Those who gained their wealth by ruthless methods in their dealings with competitors at the expense of the poor and working class  What do you think?  Growing gulf between rich and poor  Robber Barons- Those who gained their wealth by ruthless methods in their dealings with competitors at the expense of the poor and working class  What do you think?

18. “Gilded Age”  Rich spend freely showing off their wealth  What is this called?  Conspicuous Consumption  Rich spend freely showing off their wealth  What is this called?  Conspicuous Consumption

19. Government Policies Toward Business  Generally - Laissez Faire  Expansion and growth justified it  Business leaders make financial contributions  Loans & land grants aid expansion, high foreign tariffs  Generally - Laissez Faire  Expansion and growth justified it  Business leaders make financial contributions  Loans & land grants aid expansion, high foreign tariffs

20. Steps Toward Regulation  - Periodic economic downturns -Growing Criticism of practices -Increasing political presusre for change -Limited impact of government, but set the course for future.  - Periodic economic downturns -Growing Criticism of practices -Increasing political presusre for change -Limited impact of government, but set the course for future.

21. Railroad Problem  Due to greedy railroad owners, some states passed regulation laws  Railroads sued to have them overturned  Due to greedy railroad owners, some states passed regulation laws  Railroads sued to have them overturned

22. Munn v. Illinois  1877- States could regulate railroad  States had power to police private property “affected with a public interest”  Question of interstate?  Overturned by 1886- Wabash case saying only Fed. Government could regulate interstate trade  1877- States could regulate railroad  States had power to police private property “affected with a public interest”  Question of interstate?  Overturned by 1886- Wabash case saying only Fed. Government could regulate interstate trade

23. Interstate Commerce Commission  1887- Interstate Commerce  Set Precedent  1887- Interstate Commerce  Set Precedent

24. Sherman Antitrust Act  1890 Any business combination/trust is illegal if it is “in restraint of trade or commerce”  U.S. v. E.C. Knight Co.- 1895- Many Businesses exempt.  Holding Companies  Precedent Set  1890 Any business combination/trust is illegal if it is “in restraint of trade or commerce”  U.S. v. E.C. Knight Co.- 1895- Many Businesses exempt.  Holding Companies  Precedent Set

25. “Eight Hours For Work, Eight Hours for Sleep, Eight Hours for What we will”  Cooperation & Association- Labor Unions  Collective Bargaining?  Benefits? Individual vs. Group  Cooperation & Association- Labor Unions  Collective Bargaining?  Benefits? Individual vs. Group

26. Knights of Labor  1869- Terrence Powderly  Broad Reforms- Child Labor, Workday, Women  1869- Terrence Powderly  Broad Reforms- Child Labor, Workday, Women

27. AFL  1886- specific, immediate goals- hours, working conditions, wages  Bread-and-butter unionism  Samuel Gompers  NO- Women, immigrants, African Americans  1886- specific, immediate goals- hours, working conditions, wages  Bread-and-butter unionism  Samuel Gompers  NO- Women, immigrants, African Americans

28. International Ladies’ Garment Workers Union  Represents laborers in sweatshops

29. Triangle Shirtwaist Company  New York City- March 1911  150- Young Immigrant women  New York City- March 1911  150- Young Immigrant women

30. Labor Conflicts  Great Railway Strike  Haymarket Riot  Homestead Strike  Pullman Strike  Lawerence Textile Strike  Great Railway Strike  Haymarket Riot  Homestead Strike  Pullman Strike  Lawerence Textile Strike

31. Haymarket Riot  1886- Influenced Anti-Labor Feeling  Knights Decline- AFL, Public blame  Bomb- 7 P.O.’s, Civilians  1886- Influenced Anti-Labor Feeling  Knights Decline- AFL, Public blame  Bomb- 7 P.O.’s, Civilians

32. Great Railway Strike  1877- Pay cuts for railway workers  President Hayes- Federal Troops  No real benefits- Owners Tougher  1877- Pay cuts for railway workers  President Hayes- Federal Troops  No real benefits- Owners Tougher

33. Homestead Strike  1892- Homestead, Penn. Carnegie Steel Plant- Wage Cut  Security Guards to protect plant- 16 people killed- National Guard  Less than 25% Get jobs back  Stops Union Movement  1892- Homestead, Penn. Carnegie Steel Plant- Wage Cut  Security Guards to protect plant- 16 people killed- National Guard  Less than 25% Get jobs back  Stops Union Movement

34. Pullman Strike  1894- Illinois strike- Stopped other railways  President Grover Cleveland- Federal troops  Government- Business over labor  Why?  Sooner Than expected  1894- Illinois strike- Stopped other railways  President Grover Cleveland- Federal troops  Government- Business over labor  Why?  Sooner Than expected

35. Transcontinental Railroad

36. Lawrence Textile Strike  IWW- Industrial Workers of the World  1912- Textile mills, Lawrence, MA.  Law shortening work week- Lowers wages  Workers win demands (overtime, 15%, no strike repercussions)  Women, immigrants, children, can unite  IWW- Industrial Workers of the World  1912- Textile mills, Lawrence, MA.  Law shortening work week- Lowers wages  Workers win demands (overtime, 15%, no strike repercussions)  Women, immigrants, children, can unite

37. Timeline  Create a timeline- From change of business mindset to strikes and government action  Why is this significant?  Create a timeline- From change of business mindset to strikes and government action  Why is this significant?

38. The Great Plains?  Climate?  Land?  Economy?  Climate?  Land?  Economy?