1. Unit 1 : A Growing Nation Chapter 14: An Industrial Nation

2. I. Big Business Corporations – companies sell shares of ownership called stocks to raise money Entrepreneurs – people who take risks & organize new businesses Capitalism – private businesses dominate the economy & promote competition Laissez Fairre – govt. does not interfere in economic affairs (hands off big business) Patent – exclusive right to manufacture or sell an invention

3. II. Age of Steel Bessemer process - improved efficiency of steel production used a blast of hot air to purify molten iron and convert it to steel used a blast of hot air to purify molten iron and convert it to steel Railroads grew fast – steel had to keep up w/ demand Second Industrial Revolution Late 1800s, early 1900s Late 1800s, early 1900s New technologies helped industry grow to new heights Electric power replaced steam & water power

4. Steel (cont.) Used to build railroads, construct bridges and buildings Andrew Carnegie - moved from Scotland, dominated the steel industry Believed the wealthy had a duty to society Believed the wealthy had a duty to society Gave away over $350 million to charity Gave away over $350 million to charity

5. III. Monopolies and Trusts Monopolies - characterized by a lack of competition to produce a good or service competitiongoodservice competitiongoodservice - Goal is to control the market for a product by destroying the competition - Achieved by controlling production and distribution of a good or service Trust – consolidate corporations under a Board of Trustees to control the market

6. IV. Robber Barons Powerful industrialists who amassed huge personal fortunes - Used unethical business practices such as monopolizing CarnegieFordVanderbiltMorganRockefeller

7. IV. Robber Barons Carnegie and steel - 1873 inspired by Bessemer Process; focused on steelmaking - By 1900, US Steel produced more steel than all of Britain - Vertical integration: buy companies involved in each step of production each step of production Rockefeller & oil - formed Standard Oil Co. (refined oil) - controlled 90% of oil industry - Horizontal integration: buy out the competition to own all businesses in the field own all businesses in the field

9. John D. Rockefeller Bio Entered oil business in 1863 Oil was important as a fuel source and a lubricant for factory machinery Created the Standard Oil Co. Practiced vertical integration - oil fields - storage facilities - pipelines - railroads Also practiced horizontal integration Refineries  refineries  refineries Refineries  refineries  refineries Complete control over an industry = monopoly Controlled 90% of oil in US

11. V. Social Darwinism (SD) SD - idea that “survival of the fittest” determines success of people in society & marketplace Strong survive & the weak fail Strong survive & the weak fail “Survival of the fittest” strengthens society as a whole “Survival of the fittest” strengthens society as a whole Justification for industrialists Justification for industrialists Social Darwinists and capitalists agree that competition promotes progress

12. Chapter 14.1 Review 1. Describe laissez-faire economic policies. 2. A monopoly can best be characterized as ________ 3. Horizontal integration is _______________________ 4. Vertical integration is _________________________ 5. Describe three aspects of a monopoly. 6. What is a trust? 7. Describe “Robber Barons.” 8. Social Darwinists believed in the idea that _________

13. VI. Labor Unions Advantages of unions Greater bargaining power (pay, hours & conditions) Greater bargaining power (pay, hours & conditions) Strength in numbers Strength in numbers Main purpose of a union is collective bargaining Main purpose of a union is collective bargaining Negotiations between management and a union about pay and work conditions on behalf of all the workers in the union Negotiations between management and a union about pay and work conditions on behalf of all the workers in the union 2011: NFL & NBA 2011: NFL & NBA

14. Knights of Labor Welcomed unskilled laborers including blacks, immigrants & women 1869 first major national labor organization 1869 first major national labor organization Opened to all who “toiled” Opened to all who “toiled” Accepted all workers Accepted all workers Encouraged collective bargaining Encouraged collective bargaining

15. American Federation of Labor Represented skilled labor only; most effective & enduring union Main purpose was collective bargaining Main purpose was collective bargaining Negotiated for better pay, fewer hours & safer conditions Negotiated for better pay, fewer hours & safer conditions 1886-present: most powerful leader was Samuel Gompers & strike was a ready tool

16. VII. Strikes Haymarket Square Riot (Chicago, IL 1886) strikers clashed w/ police: several killed, 100's hurt - May 1, 1886 – Strikes & demonstrations were held nationwide, to - May 1, 1886 – Strikes & demonstrations were held nationwide, to demand an eight-hour workday for industrial workers demand an eight-hour workday for industrial workers - May 3, 1886 -- McCormick Reaper Works factory went on strike; unarmed strikers, police clash; several strikers were killed unarmed strikers, police clash; several strikers were killed - Evening of May 4, 1886 -- A meeting of workingmen is held near Haymarket Square, Chicago. Police arrived to disperse the peaceful assembly; a bomb is thrown into the ranks of the police; the police open fire; workingmen evidently return fire; police and an unknown number of workingmen killed; the bomb thrower is not identified Significance: Americans linked unions w/ radicals

17. Homestead Strike Wages were cut & workers went on strike in 1892 Wages were cut & workers went on strike in 1892 Henry Clay Frick and Carnegie Amalgamated union workers went on strike 300 Pinkertons called in - 3 guards & 10 strikers killed Significance: state govt. supported corporation (big business)

18. State militia entered Homestead, PA to put down the strike of July 1892

19. Pullman Strike (1894) Pullman Palace Car Co. (Chicago) cut wages but did not reduce workers rent Largest strike in US history had interrupted US mail service Eugene V. Debs (future Socialist Party of America) got involved Eugene V. Debs (future Socialist Party of America) got involved Significance: President Cleveland sent in the national guard & sided w/ corporation

20. ***Govt. favored business in most disputes w/ labor in late 19th century*** ***Govt. favored business in most disputes w/ labor in late 19th century***

21. VIII. Industry Advantages of US in world market - Raw materials, expanding markets & favorable govt. policies (LF) Advantages of US in world market - Raw materials, expanding markets & favorable govt. policies (LF) Growth of manufacturing - Natural resources, investment capital and cheap labor Growth of manufacturing - Natural resources, investment capital and cheap labor People left farms and moved to cities for jobs in industry People left farms and moved to cities for jobs in industry

22. IX. Frederick Olmsted Landscape architect - designed Central Park (Manhattan) and Prospect Park (Brooklyn) Landscape architect - designed Central Park (Manhattan) and Prospect Park (Brooklyn) also Boston, Chicago, Capital grounds in DC and Stanford Univ. also Boston, Chicago, Capital grounds in DC and Stanford Univ.

23. Mass transit Cities created forms of mass transit such as the subway and cable car

24. Inventions Inventions Nikolaus Otto invented the horseless carriage by using an internal combustion engine Orville & Wilbur Wright were bicycle makers who invented the airplane after a 12 second flight

25. Inventions Alexander Graham Bell invented the telephone which transmitted voices using electricity Thomas Edison-invented the light bulb and brought electricity to NYC

26. Gold Standard - money was backed by gold in the treasury (1882-1933) Gold Standard - money was backed by gold in the treasury (1882-1933) Free Silver - some people wanted $ to be backed by silver as well to get more $ flowing in the economy Free Silver - some people wanted $ to be backed by silver as well to get more $ flowing in the economy

27. Chapter 14.2 Review 9. The main purpose of a labor union is ________________. 10. Unions negotiate about _______ and ________________. 11. The American Federation of Labor (AFL) represented ______________ and was the most _________________. 12. What type of workers did the Knights of Labor accept? 13. What was the significance of the Homestead strike? 14. The Pullman Strike ended when President Grover Cleveland ____________________. 15. What was the significance of the Haymarket bombing? 16. The govt. would usually support (business / labor) during strikes in the Industrial Revolution.