Presentation on theme: "2d Industrial Revolution and the Growth of Big Business"— Presentation transcript:
12d Industrial Revolution and the Growth of Big Business Section 1:2d Industrial Revolution and the Growth of Big BusinessGeorgia Performance Standards:SSUSH11a-d
2SSUSH11 The student will describe the economic, social, and geographic impact of the growth of big business and technological innovations after Reconstruction.a. Explain the impact of the railroads on other industries, such as steel, and on the organization of big business.b. Describe the impact of the railroads in the development of the West; include the transcontinental railroad, and the use of Chinese labor.c. Identify John D. Rockefeller and the Standard Oil Company and the rise of trusts and monopoliesd. Describe the inventions of Thomas Edison; include the electric light bulb, motion pictures, and the phonograph, and their impact on American life
15Railroads and the West Government involvement in settlement: Morrill Act (1862)Public land used or sold to found collegesExamples: UGA, Ft. Valley, Auburn, AL A&MHomestead Act (1862)People could gain property after living on it and farming for 5 years
16Railroads and the West “Railheads” Cattle Drives Ranching Cities on a rail line that served to move cattle eastwardCattle DrivesRanching“open range”Introduction of barbed wire
19Transcontinental Railroad Prior:Routes to CaliforniaOverland by wagon train (2 months)Water, via Panama/Nicaragua (2-6 months)Water, via Cape Horn (6-10 months)Pacific Railroad ActsCentral Pacific – from Sacramento CA eastUnion Pacific – from Council Bluffs IA west
20Transcontinental Railroad Problems:WeatherGeographySuppliesHad to be shipped to San FranciscoCaliforniaIowa
22Explore Art Search Exhibitions Explore Art Education Research and Conservation Publications Public Programs About the J. Paul Getty MuseumTrestle Bridge Near Fort Harker, KansasAlexander Gardner American, Kansas, Albumen print 13 x 18 1/2 in. 84.XM
24Transcontinental Railroad meeting at Promontory Summit, Utah Transcontinental Railroad meeting at Promontory Summit, Utah
25Chinese Labor and Railroads Early labor:MinersViewed as unreliable, expensiveMove to Chinese immigrantsCheapEconomic conditions in China were poorBy 1868, 12,000 were employed by the Central Pacific Railroad (80% of their workforce)
26Chinese Labor Harsh treatment Paid less Discriminated against due to ethnicityhe Chinese teams were organized into groups of 20 under one white foreman; as the difficulty of construction increased, so often did the size of the gangs. Initially, Chinese employees received wages of $27 and then $30 a month, minus the cost of food and board. In contrast, Irishmen were paid $35 per month, with board provided
27Reaction to Chinese Laborers The Mongolian invasion has begun at last in good earnest…the first detachment of Chinese laborers…numbering 250 men, arrived… carrying their baggage on poles…in true Oriental fashion. Most of these men were employed in the construction of the Pacific Railroad…. - Harper’s Weekly, 22 January, 1870
35Rise of Trusts/Monopolies Monopoly: control over all or almost all trade or production of a goodCause:Rise of urban centers (cities)Rise of industrialization/mass productionTransportation improvementsTwo Major Corporations:Standard OilU.S. SteelTrusts: a large corporation or combination with a monopoly of some service or commodity.
36Big BusinessA pejorative (negative) term used to describe the political and economic power of a corporation that influences prices of goodsWal-MartExxonHome DepotNow it’s your turn.
38MonopolyMonopolyOne company has exclusive control over their entire industryWipe out all of the competitionTwo Methods:Vertical IntegrationHorizontal Integration
39Vertical IntegrationOne company controls all means of production and distribution from beginning to endMiddleman is eliminatedCosts less for company to create a productLower pricesConsumers go with cheaper pricesCompetition eliminated
40Vertical Integration One Company Owns all Phases of Production From TopTo BottomRaw MaterialsAssembly andManufacturingEnd ProductDistribution
41Horizontal Integration Buy out the competitionIf companies refuse to sell, lower prices to undercut the competitionConsumers flock to lower pricesCompetition goes bankrupt or is forced to sell
43Horizontal Integration To Form aGiantCompany(Trust)SmallBusinessSmallBusinessSmallBusinessPurchased byone CompanySmallBusinessSmallBusinessSmallBusinessSmallBusinessSmallBusinessSmallBusinessSmallBusinessSmallBusinessSmallBusiness
46Steel Industry Needed to build railroads, buildings Mass production, perfected by Carnegie, allowed U.S. steel production to skyrocket
47U.S. Steel Formed in 1901 World’s first billion dollar company Produced 67% of U.S. steel in that year
48Robber BaronNegative - a business leader that builds wealth by lying, cheating and stealingRobs from consumersAbuses employees and workersDrives competitors out of business (And enjoys it!)Drains the country of natural resourcesBribes government officials
50Captain of IndustryPositive - a business leader that positively contributes to the countryCreates jobsIncreases availability of goodsExpands marketsHelps the economyA philanthropists – donates money or goods to a charityCreates museums, libraries, universities
55Standard Oil CompanyOil company founded in Cleveland, Ohio by John D. RockefellerSuccessful, yet ruthlessBy 1890, it controlled 88% of all refined oilBy 1904, it controlled 91% of U.S. oil productionDID YOU KNOW: Today, descendants of Standard Oil Company still exist. Do you recognize any of these logos of just a small portion of the successors to Standard Oil?