Review for Unit 5 Test

Industrialization Post Civil War “Industrial Revolution” started in England and spread to US Using machines to replace human and animal power Shift from manufacturing in the home to factories Improved transportation Growth of capitalism Economic system in which the means of production and distribution are privately owned and operated for profit

Industrialization in the US Rich in natural resources Rich in labor resources Rich in capital resources By 1894, US manufactured more goods than any other country in the world

Problems Issues between labor and management Uneven distribution of wealth Harmful business combinations (trusts & monopolies)

Business Small organizations often proved inadequate with the new grown demand for products If a business wanted to expand, it was difficult for one or two people to come up with enough money Corporations become a major form of business Organization legally empowered to act as one person, including the ability to borrow and lend money, make contracts, own poperty, and engage in business (part ownership through the sales of stocks and bonds to raise capital)

Trusts/Monopolies A combination of companies or industries established to reduce competition and increase profits Cut out competition Total control of an industry Carnegie, Rockefeller, JP Morgan ** Think about “The Men Who Built America”

Transportation 1869 first transcontinental railroad was complete Joined the Union Pacific and Central Pacific railroads Enabled the nation to transport its wealth in natural resources to factories, storehouses, markets and seaports

Other Inventions Telephone (Alexander Graham Bell) Telegraph (Samuel Morse) Lightbulb (Thomas Edison) Oil/Kerosene

Entrepreneurs JP Morgan Andrew Carnegie John Rockefeller Reorganizer of railroads, organized the first billion-dollar corporation Andrew Carnegie Ironmaking, bridge building, and investing in oil, Carnegie Steel Company, philanthropist John Rockefeller Standard Oil Company, controlled most of the nations oil refineries

Public Good v. Private Gain Laissez-Faire: opposing government regulation of economic matters beyond what is necessary to maintain property rights and enforce contracts Did not favor interference by unions either Social Darwinism: belief that social progress depended upon competition among human beings resulting in the “survival of the fittest.”

As Americans saw the suffering of the poor in city slums, the deteriorating working conditions and failing health of America’s workers, the monopolistic practices of major businesses, the lack of consumer protection, the exploitation of the nation’s resources, and the widening gap in the distribution of the nation’s wealth, many realized that some government regulation was necessary.

Call for Reform Interstate Commerce Act Sherman Antitrust Act (not successful) More and more Americans were becoming concerned about the effects of big business!

Reform for the Workplace National labor unions Work together for better working conditions (strikes, bargaining) Knights of Labor (Uriah Stephens) American Federation of Labor (Samuel Gompers) International Ladies Garment Workers Union Triangle Shirtwaist Factory fire

Farmers Farmers alliances were formed to address a number of issues Populist Party was formed through the efforts of the Farmer’s Alliances Graduated income tax Gov’t ownership of railroads & telegraph lines, direct election of senators