Industrialization

Dawes Act – Assimilate Native Americans Homestead Act – Develop the land of the Great Plains

Factors for the rise of Industry Natural Resources –water, timber, coal, iron, and copper Located in the West Railroads bring resources to the East

Factors for the rise of Industry Cont. A large workforce – 1860-1910 population tripled Larger workforce  greater demand for goods Caused by: Large Families Flood of Immigrants (20 million between 1870-1910)

Notion of Free Enterprise Laissez-Faire – Belief that the government should not interfere in the economy. Greater efficiency and wealth for everyone Rise of Entrepreneurs – People who risk their capital in organizing and running a business.

The Railroads

Linking the Nation Railroad boom began in 1862 Lincoln signed the Pacific Railway Act Provided for the construction of a transcontinental railroad by two corporations: The Union Pacific and the Central Pacific To encourage rapid construction Offered land for each mile of track laid

Who Built the Railroads? Civil War veterans Miners Farmers Ex-Convicts New Immigrants from: Ireland China Each crew had about 10,000 employees each

Railroads Spur Growth By linking the nation, railroads helped increase the size of markets for many products Railroads stimulated the economy by spending a large sum of money on: Steel Coal Timber

Land Grant System To encourage railroad construction Railroads sold the land they were given to settlers, real estate companies, and other businesses

Robber Barons Great wealth Accusations that they had built their fortunes by swindling investors and taxpayers, bribing government officials, and cheating on their contracts or debts Robber Baron - a wealthy person who tries to get land, businesses, or more money in a way that is dishonest or wrong

Captain of Industry Captain of Industry - a business leader that benefits the nation in a positive way

Big Business

The Rise of Big Business Dominated the economy, operating vast complexes of factories, warehouses, offices, and distribution facilities Corporation - An organization owned by many people but treated by law as though it were a single person.

Trusts Government became suspicious of large corporations 1882 – Standard Oil (John D. Rockefeller) became first Trust Trust – A new way of merging businesses that did not violate the laws against owning other companies

Unions

Working in the United States Life was difficult for workers Machines replaced skilled labor Workers performed highly specific, repetitive tasks Working conditions were unhealthy and dangerous Breathed in lint, dust, and toxic fumes In 1900 the average industrial worker made 22 cents per hour and worked an average of 59 hours a week. THAT IS ONLY $12.98 PER WEEK!

Early Unions Two types of Industrial Workers: Craft workers – machinists, iron molders, glassblowers, shoemakers, printers Common laborers – few skills, low wages Craftworkers began to form Trade Unions Unions limited to people with specific skills Industry opposed unions Companies would use a lockout to lock workers out of the property and refuse to pay them

The Struggle to Organize Knights of Labor – The first nationwide industrial union. In response to the railroad strike 8 hour workday, a government bureau of labor statistics, equal pay for women, abolition of child labor creation of worker-owned factories

American Federation of Labor Combination of Trade Unions founded by Samuel Gompers Belief that unions should stay out of politics Higher wages, better working conditions in the American system

“Bread and Butter” Bread and butter objectives Better wages, better working conditions, shorter working hours