The Industrial Society 1865-1914

Industrial Development The late 19th century offers ideal conditions for rapid industrial growth: Cheap natural resources Large pools of labor Largest free trade market in the world Capital Government support without regulation

Railroads Steamships, telegraph, and telephone help to tie nation together, but railroads transform American life End rural isolation Allow regional economic specialization Make mass production/consumption possible Lead to organization of modern corporations Stimulate other industries Symbolic of American power and progress

Building the Railroad Government supported and paid for the construction of the railroads – often in the form of land grants Federal railroad grants prompt corruption Government benefits as well in the form of discounted service and increased revenue on the sale of government land

Linking the Nation No integrated rail system before the Civil War During and after the war , trunk lines are linked and the railroad becomes truly national Rail transportation becomes safe, fast, and reliable By 1900, there are five transcontinental railroads

Problems of Growth Intense competition among railroads led to corruption After the Panic of 1893, bankers gained control of the RR and consolidate

Steel and Carnegie Bessemer process of refining steel permits mass production Use of steel transforms agriculture, manufacturing, transportation, and architecture Iron ore and transportation are necessary for large-scale steel production, leading Andrew Carnegie to begin “vertical integration” Carnegie becomes enormously wealthy, but acts as a philanthropist Coke fields Iron ore deposits Ships Railroads purchased by Carnegie Steel mills Coke fields Iron ore deposits Ships Railroads purchased by Carnegie Steel mills Coke fields Iron ore deposits Ships Railroads purchased by Carnegie Steel mills Coke fields Iron ore deposits Ships Railroads purchased by Carnegie Steel mills Coke fields Iron ore deposits Ships Railroads purchased by Carnegie Steel mills

Oil and Rockefeller 1859 – 1st oil well drilled in Pennsylvania John D. Rockefeller practiced “horizontal integration” to lower costs, improve quality, and establish efficient marketing – and make himself unbelievably wealthy Independent Oil refineries Standard Oil Company purchased by Rockefellar

The Business of Invention New technologies emerging at an amazing rate Industry drives innovation drives industry Electricity growing in use by 1900 American life transformed by the telegraph, camera, processed foods, telephone, phonograph, and incandescent lamp

Marketing Advertising becomes common New ways of selling include chain stores, department store, brand names, and mail-order America becomes a community of consumers

Labor Overall, real wages grow in this time period and new services become available to labor Average wage is still very low, and the cost of living outpaces it Industrial accidents and chronic illness from pollutants Women and children labor in jobs that expose them to these same dangers, but for significantly lower wages

Discrimination in the Workplace Adults earn more than children Men earn nearly twice as much as women Whites earn more than blacks or Asians Protestants earn more than Catholics or Jews Blacks earn less at every level and skill

Labor Unions Early labor unions meet with little success National Labor Union Knights of Labor Molly McGuires American Federation of Labor seeks practical improvements in wages and working conditions

Labor Unrest Employees seek to humanize the factory Employers try to apply the strict laws of the market Courts side with owners Late 1800s see numerous strikes, but the most famous are: Haymarket Homestead Pullman

Industrialization’s Benefits and Costs Rise in national power and wealth Improved standard of living Costs Exploitation Social unrest Growing disparity between rich and poor Increasing power of giant corporations