Big Business and Labor Unions

Vocabulary Monopoly – complete control of a product or service by one company Trust – a group of separate companies that are placed under the control of a single managing board Robber Baron – business leaders who made their fortune from “stealing” from the public Captain of Industry – business leaders who served their nation in a positive way Social Darwinism Gospel of Wealth – duty of wealthy to share their wealth w/ people who are working hard to better themselves

Big Business National economic growth Abundance of goods Pros Cons National economic growth Abundance of goods Improved standard of living Employed skilled and unskilled workers Development of philanthropic endeavors Eliminated competition Monopolies and trust Many held unfair influence over government Increased gap between rich and poor

Andrew Carnegie Scottish immigrant Richest man in the world in the early 20th century Net worth - $310 Billion Used the Bessemer process to monopolize the steel industry Believed in Social Darwinism Created the Gospel of Wealth Donated more that $350 million to various causes Education (80%), international peace, libraries, cultural centers, research, and publications

Other Robber Barons/Captains of Industry Cornelius Vanderbilt Controlled the railroads Net worth - $105 Million Not known for his philanthropy, but gave $ 1 million to Vanderbilt University John D. Rockefeller Controlled the oil industry Used horizontal consolidation Net worth - $340 Billion John P. Morgan Banker, who refinanced the railroads and loaned the United States government $65 million in gold in 1895 Net worth $41.5 Billion

Mass Production Consumer goods More diverse goods Increased production

Dangerous Working Conditions Extremely low wages – about $1 a day Everyone had to work; seven days a week Many children under 15 worked full time. Up to 12 or more hours a day. Work was repetitive and dangerous Hazardous working conditions No helmets or safety goggles Toxic gases and dust – lung disease was common Sharp blades with no protection No vacation time, sick leave or money for injuries on the job. Injuries were very common. In 1882, 675 people on average were killed in work related accidents EACH WEEK!

Labor Unions Developed out of unsafe working conditions and low wages Contributed to poor living and social conditions Unions provided strength in numbers by threatening to strike Protect workers interest

Labor Unions Cont. Some only included skilled workers Others allowed more diversity in skill and political ideals Not widely accepted by the government or the general public

James Bride, The Inside History of the Carnegie Steel Company, 1903 “Hardly a day passes that a [union] “committee” did not come forward with some demand or grievance….Every detail of working the great plant was subject to the interference of some busybody representing the Amalgamated Association”

Famous Labor Unions Knights of Labor American Federation of Labor Skilled and unskilled Included African Americans and women American Federation of Labor Samuel Gompers Skilled workers only Industrial Workers of the World Wobblies American Railway Union Eugene Debbs - socialist

Labor Unions 1870-1900s

Chinese Exclusion Act Barred Chinese immigration for 10 years Prevent Chinese already in the US from becoming citizens Caused by: Fear of cheap labor Nativist sentiments European Immigrants were more willing to assimilate into the American Culture

The Mortar of Assimilation – And the One Element that Won’t Mix

Activity Look at the chart labeled 4. Big Business and Government. Use the information in the chart to create a line graph on the blank graph titled 4. Big Business and Government Look at the chart labeled 5. The Gilded Age. Use the information in the chart to create a bar graph on the blank graph titled 5. The Gilded Age