Industrial Revolution Notes

Immigration Industry Urbanization

Key Factors in Industrial Growth Vast amounts of coal, iron, oil (Black Gold) and ore are discovered throughout the U.S. Improved transportation methods expanded trade from coast to coast Labor Supply – immigrants and people who moved to cities from rural areas

Great Texas Oil Boom

Impact of Railroads Connected all parts of the United States – increased trade Standardized Time Zones – Problem – before standardized time – a passenger riding from Maine to California might reset their watches as many as 20 times. Solution: 1883 – time zones were established thus synchronizing time throughout the U.S. Fostered the growth of towns – linked previously isolated cities

The Spirit of Innovation Between 1860 – 1900 the U.S. Patent Office granted over 676,000 patents. Bessemer Process – cold air pressure method – made the production of steel both easy and cost-effective Electricity is introduced for both commercial an domestic use Introduction of machines led to increased production and the use of the assembly line. New inventions impacted the way people lived and worked.

The Power of Electricity Thomas Alva Edison

Alexander Graham Bell

Christopher Sholes Typewriter

Government Support for Industry The U.S. government offered loans and minimal regulation to industries. Government maintained a “laissez-faire” or “hands off” approach to industry.

Social Darwinism Herbert Spencer – English philosopher used Charles Darwin’s theories to explain the evolution of human society. Riches=sign of God’s favor; the poor must be lazy/inferior people who deserved what they have Survival of the fittest

Vertical Integration A company’s taking over its suppliers and distributors to gain total control over the quality and cost of its product. Example: Orange Juice Industry Oranges Juicing Equip. Packaging Trucks

Horizontal Consolidation The purchasing of competing companies that sell the same product. Example: Nike Athletic Shoes Reebok Puma New Balance Sketchers Result = MONOPOLY

Trusts Industrial giants consolidated smaller companies and reshaped U.S. businesses into massive corporations. As they became rich and powerful, owners of trusts manipulated the government at all levels.

John D. Rockefeller J.D. Rockefeller Rockefeller and the Standard Oil Company came to control 90% of the oil industry in the U.S. He attempted to monopolize the oil industry, arguing that monopolies and trusts ensured economic stability and high quality goods. J.D. Rockefeller

Taking Control of the Market Industrialists like Rockefeller reaped huge profits by paying their employees extremely low wages. They drove their competitors out of business by selling their products for less that it cost to produce them. Once they controlled the market, they hiked up the prices.

Wealthy Americans Face Criticism At the turn of the century Americans began to disapprove of the fact that so few individuals controlled the vast majority of America’s natural resources, industries and utilities. In 1900 the material wealth of 1% of the population was greater than that of the other 99% combined.

Robber Barons Because of their cut-throat tactics, industrialists were called Robber Barons. Despite this title many were also great philanthropists. Rockefeller gave away $500 million + Carnegie donated 90% of his wealth

Industrialists Defend Big Business Andrew Carnegie wrote the “Gospel of Wealth” which argued that wealth was a sign of divine (God’s) approval. Wealthy industrialists have the responsibility to give back to their community.

Sherman Anti-Trust Act Made it illegal to form a trust that interfered with free trade between states or with other countries. Problem: it was very difficult to prosecute companies because the act was not clearly defined. Supreme Court threw out most of the cases and the government stopped trying to enforce the act.

Impact of Industrialization Brought many middle-class Americans greater comforts and conveniences to their daily lives.

The Gilded Age Mark Twain labeled this period in history “The Gilded Age”, because the open displays of wealth among American elite society seemed like a… Cheap picture frame; golden on the outside but rotten on the inside. When new-money titans lived lavishly while the poor suffered.

QUESTION IN WHAT WAYS DOES THE METAPHOR FIT? How was American Society like a gilded picture frame with rotting wood underneath?