1. The Expansion of American Industry (1850-1900)
Chapter 14
The Expansion of American Industry ( )

2. Chapter 14 Section 1
A Technological Revolution

3. 1) Patents – licenses to make, use, or sell an invention
I. Identify some of the changes in people’s daily lives in the decades following the Civil War.
Daily life in 1865
1) No electricity
2) No telephones
Daily life in 1900
1) Patents – licenses to make, use, or sell an invention
2) Productivity – the amount of goods and services created in a given period of time

4. 1) Telegraph – Samuel F.B. Morse patented
II. Describe how advances in transportation, communication, and electric power affected people and businesses.
Transportation
1) Railroads
a) Transcontinental railroad – coast to coast
b) Steel replaced iron
c) National system of time zones
Communication
1) Telegraph – Samuel F.B. Morse patented
a) Western Union Telegraph Company
2) Telephone – Alexander Graham Bell
a) American Telephone Company

5. II. Describe how advances in transportation, communication, and electric power affected people and businesses.
C. Electric Power
1) Thomas A. Edison – Menlo Park, NJ
a) DC – direct current
2) George Westinghouse
a) AC – alternating current
b) Transformer
c) GE – General Electric
3) Not in rural areas

6. III. Explain the effects of the development of the Bessemer Process.
Bessemer Process – Henry Bessemer
1) Steel is produced from melting iron, adding carbon, and removing impurities.
2) Mass production – production in great amounts
Brooklyn Bridge
1) Brooklyn and Manhattan
2) Symbol of success in America

7. Chapter 14 Section 2
The Growth of Big Business

8. I. Explain why American industrialists of the late 1800s were called both “robber barons” and “captains of industry”.
Robber baron – implies stealing from the public
Ruthless
Captain of Industry – served their nation in a positive way
Credit
Andrew Carnegie
Steel Industry – Pittsburg, PA
Cut prices – drove out competition
Vertical Consolidation
Gospel of wealth – give money away
Philanthropist

9. II. Describe the theory of Social Darwinism and its connection to big business.
Charles Darwin’s theory of evolution
Natural Selection
Social Darwinism
Society should do as little as possible to interfere with people’s pursuit of success

10. III. Summarize the ways that industrialists gained a competitive edge over rivals, and the effects that big business had on American society.
Monopoly
Complete control of a product or service
Control over price
Cartel
Loose association of businesses to make the same product.
Limits supply

11. III. Summarize the ways that industrialists gained a competitive edge over rivals, and the effects that big business had on American society.
Trust
1) A group of separate companies placed under the control of a single managing board.
2) John D. Rockefeller – Standard Oil Company
a) Horizontal Consolidation
3) Sherman Antitrust Act
a) Outlawed any combination of companies that restricted interstate trade or commerce

12. 1) Expansion, peak, recession, trough, recovery
III. Summarize the ways that industrialists gained a competitive edge over rivals, and the effects that big business had on American society.
Methods of Control
Horizontal Consolidation – bringing together many firms that were in the same business
Vertical Consolidation – gaining control of the many different businesses that make up all phases of a product’s development.
Economies of Scale – production increases, costs decrease
Business Cycle
1) Expansion, peak, recession, trough, recovery

13. Chapter 14 Section 3
Industrialization and Workers

14. I. Identify the sources of the growing American work force and the reasons why entire families worked.
Immigrates
Federal gov’t encouraged foreign immigration
Shifts in population
8 to 9 Million moved to cities
Shift from rural agrarian to urban industrial
Working families
Low wages
Child labor
No gov’t assistance

15. II. Describe factory work in the late 1800s.
Piecework
Those who worked fastest and produced the most pieces earned the most money
Increasing efficiency
Fredrick Winslow Taylor
a) The Principles of Scientific Management
Strict Environment
Division of labor – work divided into separate tasks to be more efficient
Workers were treated like interchangeable parts

16. III. Explain the roles that women and children played in the work force.
Low pay, no advances, low skills
Children
Unhealthy conditions
Stunted growth

17. Chapter 14 Section 4
The Great Strikes

18. I. Summarize the growing gulf between rich business owners and poor workers.
Socialism
An economic and political philosophy that favors public (or social) control of property and income
Karl Marx – Communist Manifesto
Most workers saw it as a threat to:
Private Property
Free Enterprise
Individual Liberty

19. II. List some of the early labor unions and their activities.
1) Provide help for their members
2) Express workers’ demands to employers
Knights of Labor
Included men, women, skilled, unskilled
Equal pay for equal work
Eight-hour day
End child labor

20. II. List some of the early labor unions and their activities.
American Federation of Labor (AFL)
1) Only skilled workers
2) Samuel Gompers – cigar maker
3) Wages, hours, conditions
4) Collective bargaining – workers negotiate as a group
The Wobblies
1) Workers of the World
2) Radical socialists
3) Unskilled workers

21. II. List some of the early labor unions and their activities.
Reaction of Employers
1) Forbade union meetings
2) Fired union organizers
3) “Yellow dog” contracts
4) Refused collective bargaining
5) Refused to recognize unions

22. III. Describe the causes and outcomes of the major strikers of the late 1800s.
Haymarket Riot
1) Scab – workers called in by an employer to replace striking
laborers.
2) Anarchists – radicals who oppose all government
Homestead Strike
1) Strike against Carnegie Steel over wages
Pullman Strike
1) Railway workers’ strike
2) Government sided with factory owners