THE EMERGENCE OF INDUSTRIAL AMERICA AND LABOR’S RESPONSE THE EMERGENCE OF INDUSTRIAL AMERICA & LABOR’S RESPONSE ( )

I.Causes of the Industrial Revolution in the United States A. Wealth and availability of natural resources 1. coal, iron ore, and timber 2. rivers and lakes to run factories 3. abundance of farmland for food B. The growing number of workers 1. immigrants provide labor 2. cities expand as people are drawn by jobs C. Innovations and inventions improve business efficiency 1. The light bulb 2. The dynamo D. Railroads establish new markets

Notice the location of cities: Close to Waterways Chicago New York Detroit

United States Railroads 1870

II. The Rise of Big Business and the “Robber Barons” A. Andrew Carnegie 1. Scottish Immigrant 2. One of the first industry giants to make his own fortune 3. Created U.S. Steel Monopoly a. Vertical integration: bought out suppliers (coal fields, iron mines, railroads) to control materials involved in production b. Horizontal integration: bought out other steel companies to eliminate competition

B. John D. Rockefeller 1. Founded Standard Oil 2. Trust— Individual companies hand over their assets to a board of trustees a. Trust headed by Rockefeller ran separate companies as one corporation b. Monopoly—controlled 90% of the oil industry by Under cut the competition by offering lower prices (able to do this by illegal refunds from railroad companies) Sherman Anti-trust Act passed as a result—illegal to form a trust that violated free trade

Cartoon about the Standard Oil Trust The Trust was finally broken up in 1911 into 38 different companies in a Supreme Court ruling.

C. Good or Bad? You Decide 1. Robber Barons—Use corrupt practices to make money a. Undercut competition by lowering prices, but then hiked up prices later on b. established monopolies often by questionable means c. cut wages to make profit 2. Philanthropists—Donate large sums of wealth a. Rockefeller gave away over $500 million to charities b. Carnegie donated 90% he accumulated during his life time (Carnegie library, Carnegie Hall, etc.)