1. The Age of Industry (1865-1900) After the Civil War, American scientists, inventors, and entrepreneurs, encouraged by capitalism and the government, transformed the U.S. into an industrial powerhouse.

2. Natural Resources Fuel Growth  Coal Mines  Forests  Farm Land  1859 – 1 st Oil Well drilled in PA (Edwin Drake)  Oil replaced whale blubber  Immigration – Peaked at 1 M a year in 1905

3. Laissez-faire Economics  The U.S. Gov’t policy was “hands off”  Businesses had little gov’t regulation, subsidies, and protective tariffs  100% Supply and Demand!

4. Railroads Lead the Way!  As the USA was united by rail (Transcontinental R.R. 1869), problems resulted for trains, freight, and people  Solar time was no longer adequate  1883 the U.S. and most of world adopted International Standard Time

5. Electricity Changed Lives!  Thomas A. Edison 1. Phonograph (1877) 2. Electric Light (1880) 3. Power Plant (1882) 4. Motion Picture (1888)

6. Advancing Communications  Samuel F.B. Morse used Morse Code to transmit telegraph messages in 1844  By 1900 Western Union was sending 63 M messages a year  Alexander G. Bell’s telephone (1876) led to the formation of AT&T in 1885

7. The Rise of the Steel Industry  Bessemer Process made steel production more efficient  John A. Roebling’s Brooklyn Bridge (1883)  “Race to the Skies” and RR’s improved too

8. It is the longest cable suspension bridge in the Western Hemisphere. Arthur Ravenel, Jr. Bridge Charleston, SC – July 2005

9. Exit Slip – Inventors of the Industrial Age 1. The government’s policy toward the economy after the Civil War can be described as a. very involved b. little Involved 2. In 1883, the move to Standard Time was driven by the _______ industry. a. steel b. coal mining c. auto d. railroad 3. He is credited with the invention of the electric light? a. Edison b. Bell c. Gates d. Swift 4. Which of the following was not an important industry in post-Civil War America? a. Steel b. Oil c. Telegraph d. Electronic

10. Many Corporations Merge  Corporation – people get a charter & sell shares of stock to raise capital (P. 108)  Monopoly – Corporations combine to control an entire industry or service  Trust – Companies ally and turn assets over to board of trustees  The goal was to restrict competition!  Is Wal-Mart a monopoly????

11. Are Monopolies Good or Bad?  Interstate Commerce Commission (1887)- established to monitor the RR industry by investigating unfair practices.  Sherman Antitrust Act (1890) – Outlawed business practices that restricted free trade. But it was rarely enforced for 15 years – Why?

12. Andrew Carnegie and Steel  13 yr-old Scottish Immigrant earned $1.35-wk (1848)  Carnegie Steel (1889)  Used Vertical Integration (coal, RR’s, iron mines) to force competitors out

13. John D. Rockefeller and Oil  1 st oil well in Titusville, PA (1859)  Cleveland, OH Refinery built in 1863  Standard Oil Trust formed in 1870 via Horizontal Integration (P. 110)  He drove his competitors out of business as he sidestepped laws

14. Horizontal and Vertical Integration

15. Social Darwinism and the “Gospel of Wealth”  Carnegie said “millionaires are bees that make most honey”  Charles Darwin’s theory of evolution (1859)  Social Darwinism held that gov’t shouldn’t interfere with business and the most fit will be rich

16. Robber Barons or Captains of Industry?  Did the wealthy “rob” from the public and workers to build empires?  Did their contributions (jobs, goods, services, and philanthropy) outweigh the bad?

17. Exit Slip – The Rise of Big Business 1. T or F – Many industrialists formed trusts during the 19 th Century in an attempt to gain complete control of an industry or a service. 2. T or F - Andrew Carnegie made a fortune in the oil industry. 3. T or F – The theory of Social Darwinism put forth the belief that the smartest business owners are the “fittest,”thus they are the most successful. 4. T or F - Critics of big business owners derogatorily called them “Robber Barons.”

18. Industrialization and Workers  It was a family affair  Child Labor – 1/5 ages 10-16 worked!  No welfare only over-burdened charities!  12-hour days, 6- day weeks!  Unsafe conditions – 1882 avg. 675 deaths/ week – 120 today

19. The Rise of Labor Unions  1820s - Collective Bargaining – negotiating as a group for better wages or benefits  Strike - the most potent collective bargaining method – it is a work stoppage to voice demands  Socialism – favors government not private control over major industries and sharing of the wealth! Labor leaders influenced by philosophy.

20. Early Labor Unions  Knights of Labor (1869) – skilled and unskilled  American Federation of Labor (1886) – craft unions – more exclusive than the Knights  1890 Census – 9% controlled 75% of wealth

21. The Great Strikes! (Pg. 118)  1877 RR Strike – President Hayes uses federal troops to break strike: violence in many cities b/c of pay cut.  Haymarket Square (1886) – Chicago, 8 HR Day, bomb!, dozens killed! Knights of Labor’s was blamed and union membership declined.  Homestead, PA (1892) – Carnegie Steel – he cut wages then broke the steel union!  Pullman Strike (1894) – 120,000 ARU and Eugene V. Debs protested 25% pay cut – 30 killed- Pres. Cleveland sent in troops – Debs to jail