What advantages did America have during its growth?  Natural resources  Timber, coal, water, iron, copper  Transported via railroads  Didn’t need to import them  Petroleum  Kerosene in lamps and stoves  Drilling oil wells

What advantages did America have during its growth?  Workforce  US population triples between  20 million immigrants  More workers  More consumers

What advantages did America have during its growth?  Government policies  Laissez-faire  Let people do as they choose without gov’t interference  Lower taxes  Very few regulations  Those with money decide how to use it

What advantages did America have during its growth?  Government policies (cont.)  Entrepreneurs  Investors  Risk money to start a business  Tariffs  Taxes on imported goods  More money spent on American goods

How did inventions spur the development of American industry?  Telephone, 1876  Alexander Graham Bell  Use an electrical current to transmit sound  “Come here, Watson. I want you.”  Bell Telephone Company  AT&T (American Telephone and Telegraph Company)

How did inventions spur the development of American industry?  Thomas Edison  Phonograph, 1877  Early record player  Light bulb & electric generator, 1879  Edison General Electric Company (GE), 1889  Working towards providing electricity in American homes

How did inventions spur the development of American industry?  Nikola Tesla  Alternating current, 1893  Power for most of North America today  X-rays  Wireless energy and communications

How did inventions spur the development of American industry?  Refrigerators  Ice Machine  refrigerated rail car  Transport meat without spoiling  Clothes  Automatic loom  Shoes  Mass produced shoes  End of cobblers

How did the American railroad system develop?  Transcontinental Railroads  Pacific Railway Act  Public land for rail companies  Union Pacific vs. Central Pacific  Push towards West  Immigrants, veterans, miners, farmers  Tough conditions

How did the American railroad system develop?  Growth of Railroads  Railroad consolidation  Linking of independent railways  Cornelius Vanderbilt  Shipping magnate – steamboats  Purchased and linked three Eastern rail companies  Profit!  Time zones  No longer used the sun

How did the American railroad system develop?  Growth of Railroads (cont)  Technology  More cars on a track  More products shipped in a single trip  Land grants  Building railways cost $$$  Government gave land to rail companies  Rail companies sold it to settlers

How did the American railroad system develop?  Robber Barons  Insider trading  Using information to manipulate prices, or to buy low & sell high  Jay Gould  Bribery  Crédit Mobilier Scandal  Union Pacific stockholders set up construction company  Sold stock to Congress  Deal with themselves for lots of $  Distrust in Congress

How did corporations shape American industry?  Rise of corporations  Owned by many people (stockholders) but treated as one person  Can own property, pay taxes, sue (and be sued)  Economies of scale  Sell stocks to raise money  Use $ to make a lot of goods at low prices  Result = competition

What contributed to the rise of business?  Rise of corporations  Vertical integration  Company owns all different aspects it depends on for operation

What contributed to the rise of business?  Rise of corporations  Horizontal integration  Combining different companies in the same industry into one large corporation

What contributed to the rise of business?  Rise of corporations  Monopoly  Controlling an entire market  Trust  Merging businesses by managing others legally  Holding companies  Doesn’t produce anything but owns & controls businesses

How did the formation of unions affect American industry?  What is a union?  Association of workers formed to protect rights and further interests

How did the formation of unions affect American industry?  Causes of Unions  Horrible working conditions  Improved standard of living?  Inequality of wealth  Deflation  Rise in value of $$$  Owners cut wages

How did the formation of unions affect American industry?  Types of Unions  Craft worker unions  Special skills  Machines, stone, iron, glass, shoes, etc.  Common laborers  Fewer skills  Lower wages  Trade unions  Craft workers AND common laborers in a particular industry

How did the formation of unions affect American industry?  Resistance towards unions  New hires forced to pledge to not join a union  Private investigators  Blacklist  Lockout  Replaced union workers with strikebreakers called “scabs”

How did the formation of unions affect American industry?  Resistance towards unions (continued)  Courts didn’t recognize right to organize  Perception that unions were Marxist  Workers vs. owners  Overthrow government  Communism

How did the formation of unions affect American industry?  Women in the workforce  By 1900, women made up 18-20% of labor force  Domestic service, teachers, nurses, secretaries, garment & food factories  Paid less than men for same job  Excluded by unions  Formed Women’s Trade Union League

Point The man who has his millions will want everything he can lay his hands on and then raise his voice against the poor devil who wants ten cents more a day. Counterpoint Labor unions would have us believe that they transfer income from rich capitalists to poor workers. In fact, they mostly transfer income from the large number of non-union workers to a small number of relatively well-off union workers.

How successful were early unions?  Great Railroad Strike of 1877  Panic of 1873  Railroads slashed wages  80,000 workers across 11 states went on strike  Destroyed equipment, blocked rails  President Hayes sent in troops  100+ dead, millions of $ in damages

How successful were early unions?  Knights of Labor  Nationwide labor union  8-hour workday  National bureau of labor stats  Equal pay for women  No more child labor  Worker-owned factories

How successful were early unions?  Knights of Labor  Opposed strikes, especially violent strikes  Preferred arbitration  Third party decides  Successful strike against railroad wage cuts  Membership from 100,000 to 700,000 in one year

How successful were early unions?  Haymarket Riot  Nationwide strike for 8-hour workday  Clashes between strikers and police in Chicago left one dead  More protests  Bomb  police and protesters both open fire  7 police, 4 workers dead  8 arrested, including one Knights of Labor member

How successful were early unions?  Pullman Strike  Pullman Company made railroad cars  Forced employees to buy from stores owned by company  Workers strike  US Mail on rail cars  President Cleveland: Deliver the mail or else!  Sent in 12,000 troops

How successful were early unions?  American Federation of Labor  Samuel Gompers  Stay out of politics  Focus on working conditions and legal recognition of unions