1. Splash Screen

2. Chapter Menu Chapter Introduction Section 1:Section 1:The Rise of Industry Section 2:Section 2:The Railroads Section 3:Section 3:Big Business Section 4:Section 4:Unions Visual Summary

3. Chapter Intro Did Industry Improve Society? Many factors promoted industrialization, including cheap labor, new inventions and technology, and plentiful raw materials. Railroads rapidly expanded, while government policies encouraged economic growth. What changes in lifestyle do you think occurred because of industrialization? How do you think industrialization changed American politics?

4. Chapter Timeline

6. Chapter Intro 1 The Rise of Industry What economic policies allowed industries to expand after the Civil War?

7. Chapter Intro 2 The Railroads How did the railroads encourage the settlement of the Plains and the West?

8. Chapter Intro 3 Big Business Why did captains of industry such as Andrew Carnegie expand their businesses through new ways of organization?

9. Chapter Intro 4 Unions Why did workers form unions?

10. Chapter Preview-End

11. Section 1-Main Idea Big Ideas Government and Society The United States government adopted a policy of laissez-faire economics, allowing business to expand.

12. Section 1-Key Terms Content Vocabulary gross national productgross national product laissez-faire entrepreneur Academic Vocabulary resource practice

13. Section 1-Key Terms People and Events to Identify Edwin Drake Alexander Graham Bell Thomas Alva Edison Morrill Tariff

14. A.A B.B Section 1-Polling Question Do you agree with the idea of laissez- fair economics or government? A.Agree B.Disagree

15. Section 1 The United States Industrializes Natural resources and a large labor force allowed the United States to industrialize rapidly.

16. Section 1 By the late 1800s, the United States was the world’s leading industrial nation. –By 1914, the nation’s gross national product was eight times greater than it had been in 1865 when the Civil War came to an end.gross national product The United States Industrializes (cont.) An abundance of raw materials was one reason for the nation’s industrial success.

17. Section 1 At the same time, people began using petroleum. –In 1859 Edwin Drake drilled the first oil well near Titusville, Pennsylvania. The United States Industrializes (cont.) Natural Resource Sites of the United States, c.1890

18. Section 1 The human resources available to American industry were as important as natural resources in enabling the nation to industrialize rapidly.resources –Population growth stemmed from two causes—large families and a flood of immigrants. The United States Industrializes (cont.)

19. A.A B.B C.C D.D Section 1 Where were many of the natural resources located? A.The Northeast B.The South C.The West D.The Southwest

20. Section 1 New Inventions During the late 1800s, inventions such as the telephone and the lightbulb spurred economic development.

21. Section 1 In 1876 a Scottish immigrant named Alexander Graham Bell succeeded in creating the first telephone. Thomas Alva Edison invented or improved the following: New Inventions (cont.) –Phonograph –Electric generator –Lightbulb American Inventions, 1865–1895 –Motion picture –Dictaphone –Battery

22. Section 1 Edison also supplied electric power to New York City. New Inventions (cont.) George Westinghouse invented an air-brake system for railroads and an alternating current system to distribute electricity using transformers and generators. American Inventions, 1865–1895

23. Section 1 Other inventions during the late 1800s: –Ice machine –Refrigerated railroad car –Northrop automatic loom –Power-driven sewing machine and cloth cutter New Inventions (cont.)

24. A.A B.B C.C D.D Section 1 Who laid the first telegraph cable across the Atlantic Ocean? A.Thaddeus Lowe B.Nikola Tesla C.Thomas Watson D.Cyrus Field

25. Section 1 Free Enterprise Laissez-faire economics promoted industrialization, but tariffs protected American companies from competition.

26. Section 1 Another important reason the United States was able to industrialize rapidly was its free enterprise system. –In many ways, the U.S. practiced laissez- faire economics in the late 1800s.laissez- faire –In other ways, the government went beyond laissez-faire and introduced policies intended to promote business. Free Enterprise (cont.)

27. Section 1 The profit motive attracted many entrepreneurs from New England and Europe. entrepreneurs After the Southern states seceded, the Republican-controlled Congress passed the Morrill Tariff, which greatly increased tariff rates. Free Enterprise (cont.) –High tariffs contradicted laissez-faire ideas and hurt American companies trying to sell goods abroad.

28. Section 1 –Later, in the early 1900s, after American companies had become large and efficient, business leaders began to push for free trade. Free Enterprise (cont.)

29. A.A B.B Section 1 Which part of the country supported low tariffs to promote trade and to keep the cost of imported goods low? A.The North B.The South

30. Section 1-End

31. Section 2-Main Idea Big Ideas Science and Technology The growth of railroads encouraged development of the Plains and Western regions.

32. Section 2-Key Terms Content Vocabulary time zone land grant Academic Vocabulary integrate investor

33. Section 2-Key Terms People and Events to Identify Pacific Railway Act Grenville Dodge Leland Stanford Cornelius Vanderbilt Jay Gould Crédit Mobilier James J. Hill

34. A.A B.B Section 2-Polling Question Are there any recent inventions that have made your life easier? A.Yes B.No

35. Section 2 Linking the Nation After the Civil War, the rapid construction of railroads accelerated the nation’s industrialization and linked the country together.

36. Section 2 The railroad boom began in 1862, when President Abraham Lincoln signed the Pacific Railway Act. –This act offered two companies land along its right-of-way in order to speed progress. Linking the Nation (cont.) Under the direction of engineer Grenville Dodge, the Union Pacific began pushing westward from Omaha, Nebraska, in 1865. The Transcontinental Railroad Connects the Nation

37. Section 2 The Central Pacific Railroad began as the dream of engineer Theodore Judah. –He sold stock to four Sacramento merchants, including Leland Stanford. Linking the Nation (cont.) Workers completed the Transcontinental Railroad in only four years, despite the physical challenges. –On May 10, 1869, five gold and sliver spikes were hammered into the rails at Promontory Summit, Utah.

38. Section 2 By linking the nation, railroads increased the markets for many products, spurring American industrial growth. Railroads also stimulated the economy by spending huge amounts of money on steel, coal, timber, and other materials. One of the most successful railroad consolidators was Cornelius Vanderbilt. Linking the Nation (cont.) Federal Land Grants to Railroads, 1870

39. Section 2 To make rail service safer and more reliable, the American Railway Association divided the country into four time zones in 1883.time zones The nationwide rail network also helped unite Americans in different regions. Linking the Nation (cont.)

40. A.A B.B C.C D.D Section 2 All of the following made railway operations efficient EXCEPT A.The booming oil industry B.New locomotive technology C.The invention of air brakes D.Integrated railroad systems

41. Section 2 Robber Barons The government helped finance railroad construction by providing land grants, but this system also led to corruption.

42. Section 2 To encourage railroad construction across the Great Plains, the federal government gave land grants to many railroad companies.land grants Corruption in the railroad industry became public in 1872 when the Crédit Mobilier scandal erupted. Robber Barons (cont.) –This scandal created the impression that all railroad entrepreneurs were “robber barons.”

43. Section 2 –Jay Gould was the most notoriously corrupt railroad owner –However, James J. Hill, who built and operated the Great Northern Railroad, was an honest businessman. Robber Barons (cont.)

44. A.A B.B C.C D.D E.E Section 2 Who was punished after the Crédit Mobilier scandal went public? A.James Garfield B.Schuyler Colfax C.James G. Blaine D.All of the above E.None of the above

45. Section 2-End

46. Section 3-Main Idea Big Ideas Economics and Society Business people such as Andrew Carnegie developed new ways to expand business.

47. Section 3-Key Terms Content Vocabulary corporation stock economies of scaleeconomies of scale pool vertical integration horizontal integration monopoly trust holding company

48. Section 3-Key Terms Academic Vocabulary distribution consumer People and Events to Identify Andrew Carnegie John D. Rockefeller

49. A.A B.B Section 3-Polling Question Does advertising influence your decision when buying a product? A.Yes B.No

50. Section 3 The Rise of Big Business Corporations could produce goods more efficiently, which allowed the rise of big business.

51. Section 3 By 1900, big businesses dominated the economy, operating vast complexes of factories, warehouses, and distribution facilities.distribution Big business would not have been possible without the corporation.corporation The Rise of Big Business (cont.) –The people who own the corporation are called stockholders because they own shares of ownership called stock.stock

52. Section 3 –With the money raised from the sale of stock, corporations could invest in new technologies, hire large workforces, and purchase many machines. –This enabled them to achieve economies of scale.economies of scale The Rise of Big Business (cont.) Types of Business Organizations

53. Section 3 Big businesses had high fixed costs and low operating costs, which gave them several advantages: –They could produce more goods cheaply and efficiently. –They could continue to operate in poor economic times by cutting prices to increase sales rather than shutting down. The Rise of Big Business (cont.)

54. Section 3 –They could also negotiate rebates from railroads, further lowering their operating costs. The Rise of Big Business (cont.)

55. A.A B.B Section 3 Which of the following is a cost that occurs when running a company, such as paying wages and shipping costs and buying raw materials and supplies? A.Fixed cost B.Operating cost

56. Section 3 Consolidating Industry Business leaders devised new and larger forms of business organizations and new ways to promote their products.

57. Section 3 Many companies did not like the intense competition that had been forced on them. To stop prices from falling, many companies organized pools to keep prices at a certain level.pools Consolidating Industry (cont.) –However, companies that formed pools had no legal protection and could not enforce their agreements in court.

58. Section 3 The remarkable life of Andrew Carnegie illustrates many of the factors that led to the rise of big business in the U.S. –Born poor, he eventually opened a steel company in Pittsburgh in 1875. –To make his company more efficient, he began the vertical integration of the steel industry.vertical integration Consolidating Industry (cont.) The Rise of the Steel Industry

59. Section 3 Successful business leaders also pushed for horizontal integration. horizontal integration –A famous industrialist who achieved almost complete horizontal integration of his industry is John D. Rockefeller. –By 1880, the company controlled about 90% of the oil-refining industry in the U.S. Consolidating Industry (cont.) The Rise of the Steel Industry

60. Section 3 –Standard Oil came close to being a monopoly, but international competition forced the company to keep its prices low. monopoly In 1882, Standard Oil formed the first trust, a new way of merging businesses that did not violate laws against monopolies.trust Consolidating Industry (cont.)

61. Section 3 Beginning in 1889, the state of New Jersey further accelerated the rise of big business with a new general incorporation law. –Many companies immediately used the law to create a new organization, the holding company. holding company Consolidating Industry (cont.) Another increase in the size of corporations began in the mid-1890s, when investment bankers began to help put new holding companies together.

62. Section 3 –Perhaps the most successful investment banker of the era was J.P. Morgan. –U.S. Steel was the first billion-dollar company in American history. Consolidating Industry (cont.)

63. Section 3 The creation of giant manufacturing companies in the U.S. forced retailers to expand in size as well. –N.W. Ayer and Son, the first advertising company, began creating large illustrated ads instead of relying on the old small print line ads previously used in newspapers. Consolidating Industry (cont.)

64. A.A B.B C.C D.D Section 3 The following type of store first appeared during the mid to late 1800s EXCEPT A.The department store B.Chain stores C.Mail-order catalogues D.Malls

65. Section 3-End

66. Section 4-Main Idea Big Ideas Struggles for Rights Unions grew and labor unrest intensified as workers fought for more rights.

67. Section 4-Key Terms Content Vocabulary deflation trade union industrial union blacklist lockout arbitration injunction closed shop

68. Section 4-Key Terms Academic Vocabulary restraint constitute People and Events to Identify Marxism Knights of Labor American Federation of Labor Samuel Gompers

69. A.A B.B Section 4-Polling Question Do you feel that you would join a union if aspects of your job were unfair? A.Yes B.No

70. Section 4 Working in the United States Low wages, long hours, and difficult working conditions caused resentment among workers and led to efforts to organize unions.

71. Section 4 Life for workers in industrial America was difficult. –Deflation added to tensions between workers and employers.Deflation Working in the United States (cont.) There were two basic types of industrial workers in the U.S. in the 1800s—craft workers and common laborers. –In the 1830s, as industrialization began to spread, craft workers began to form trade unions.trade unions

72. Section 4 Employers generally viewed unions as conspiracies that interfered with property rights. –Business leaders particularly opposed industrial unions. industrial unions Working in the United States (cont.) Why Did Workers Want to Organize?

73. Section 4 Companies used several techniques to stop workers from forming unions: –They required workers to take oaths or sign contracts promising not to join a union. –They hired detectives to identify union organizers. –Workers who tried to organize a union or strike were fired and placed on a blacklist.blacklist Working in the United States (cont.)

74. Section 4 When workers formed a union, companies used “lockouts” to break it.lockouts –In the 1800s, the ideas of Karl Marx, called Marxism, became very influential in Europe. Working in the United States (cont.) Working in the United States, 1870–1900 Unions also suffered from the perception that they were un-American.

75. A.A B.B Section 4 Machinists, iron molders, stonecutters, shoemakers, and printers fall under which type of worker? A.Craft worker B.Common laborer

76. Section 4 Struggling to Organize Workers began to form unions to fight for better wages and working conditions but had few successes.

77. Section 4 In July 1877, the Baltimore and Ohio Railroad announced it was cutting wages for the third time. –This decision led to a strike involving 80,000 railroad workers and 12 bloody days of fighting before police, state militias, and federal troops could restore order. Struggling to Organize (cont.) Strikes and Labor Unrest, 1870–1900

78. Section 4 The Knights of Labor opposed strikes, preferring to use boycotts to pressure employers. –They also supported arbitration.arbitration Struggling to Organize (cont.) Nearly 700,000 people joined the Knights, but in the spring of 1886 an event known as the Haymarket Riot undermined their reputation.

79. Section 4 In the summer of 1892, a strike at a steel mill owned by Andrew Carnegie in Homestead, Pennsylvania, led to the death of several people. Struggling to Organize (cont.) Comparing Major Strikes

80. Section 4 During the Pullman Strike, a federal court issued an injunction directing the union to halt the boycott.injunction –In the case In re Debs, the Supreme Court upheld the right to issue such an injunction. –This gave business a powerful tool for dealing with labor unrest. Struggling to Organize (cont.)

81. A.A B.B C.C D.D Section 4 The Knights of Labor called for the following actions EXCEPT A.An 8-hour work day B.Equal pay for women C.Higher wages D.The abolition of child labor

82. Section 4 New Unions Emerge The AFL fought for skilled workers; new unions tried to organize unskilled workers.

83. Section 4 New types of unions emerged that tried to reach out to workers. The American Federation of Labor (AFL) was the dominant union of the late 1800s. New Unions Emerge (cont.) –Samuel Gompers was the first president of the AFL, a position he held until 1924.

84. Section 4 The AFL had three main goals: –It tried to convince companies to recognize unions and to agree to collective bargaining. –It pushed for closed shops.closed shops –It promoted an 8-hour workday. New Unions Emerge (cont.)

85. Section 4 In 1905, a group of labor radicals, many of them socialists, created the Industrial Workers of the World (IWW). By 1900, women made up more than 18% of the labor force. New Unions Emerge (cont.) –The type of jobs women did outside the home reflected society’s ideas about what constituted “women’s work.” constituted

86. Section 4 One of the most famous labor leaders of the era was Mary Harris Jones. In 1900 Jewish and Italian immigrants who worked in the clothing business in New York City founded the International Ladies’ Garment Workers Union. In 1903, Mary Kenney O’Sullivan, Leonora O’Reilly, Jane Addams, and Lillian Wald established the Women’s Trade Union League (WTUL), the first national association dedicated to promoting women’s labor issues. New Unions Emerge (cont.)

87. A.A B.B C.C D.D Section 4 Which of the following unions wanted to organize all workers according to industry, without making distinctions between skilled and unskilled workers? A.American Federation of Labor B.Women’s Trade Union League C.Industrial Workers of the World D.International Ladies’ Garment Workers Union

88. Section 4-End

89. VS 1 Causes of Industrialization Abundant natural resources Cheap immigrant labor force High tariffs reduce the import of foreign goods National transportation and communication networks

90. VS 2 Causes of the Growth of Big Business Little or no government intervention Development of pools, trusts, holding companies, and monopolies Small businesses could not compete with economies of scale of larger businesses Practices of some big businesses sometimes limited competition

91. VS 3 Effects on the Workplace Rural migration and immigration created large, concentrated workforce Low wages, long hours, and dangerous working conditions were common in large-scale industries First large unions formed but had little bargaining power against larger companies

92. VS-End

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112. Vocab1 gross national product the total value of goods and services produced by a country during a year

113. Vocab2 laissez-faire policy that government should interfere as little as possible in the nation’s economy

114. Vocab3 entrepreneur one who organizes, manages, and assumes the risks of a business or enterprise

115. Vocab4 resource material used in the production process, such as money, people, land, wood, or steel

116. Vocab5 practice to do something repeatedly so it becomes the standard

117. Vocab6 time zone a geographical region in which the same standard time is kept

118. Vocab7 land grant a grant of land by the federal government especially for roads, railroads, or agricultural colleges

119. Vocab8 integrate to combine two previously separate things

120. Vocab9 investor one who puts money into a company in order to gain a future financial reward

121. Vocab10 corporation an organization that is authorized by law to carry on an activity but treated as though it were a single person

122. Vocab11 stock money or capital invested or available for investment or trading

123. Vocab12 economies of scale the reduction in the cost of a good brought about especially by increased production at a given facility

124. Vocab13 pool a group sharing in some activity; for example, among railroad owners who made secret agreements and set rates among themselves

125. Vocab14 vertical integration the combining of companies that supply equipment and services needed for a particular industry

126. Vocab15 horizontal integration combining of many firms engaged in the same type of business into one corporation

127. Vocab16 monopoly total control of a type of industry by one person or one company

128. Vocab17 trust a combination of firms or corporations formed by a legal agreement, especially to reduce competition

129. Vocab18 holding company a company whose primary business is owning a controlling share of stock in other companies

130. Vocab19 distribution the act or process of being given out or disbursed to clients, customers, or members of a group

131. Vocab20 consumer a person who buys what is produced by an economy

132. Vocab21 deflation a decline in the volume of available money or credit that results in lower prices, and, therefore, increases the buying power of money

133. Vocab22 trade union an organization of workers with the same trade or skill

134. Vocab23 industrial union an organization of common laborers and craft workers in a particular industry

135. Vocab24 blacklist a list of persons who are disapproved of or are to be punished or boycotted

136. Vocab25 lockout a company tool to fight union demands by refusing to allow employees to enter its facilities to work

137. Vocab26 arbitration settling a dispute by agreeing to accept the decision of an impartial outsider

138. Vocab27 injunction a court order whereby one is required to do or to refrain from doing a specified act

139. Vocab28 closed shop an agreement in which a company agrees to hire only union members

140. Vocab29 restraint the act of limiting, restricting, or keeping under control

141. Vocab30 constitute to be composed of, made up of, or formed from

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