1. By: Ms. Susan M. Pojer and edited by ms. moy
The
Incorporation
of America
By: Ms. Susan M. Pojer and edited by ms. moy

2. Essential Question
Industrialization increased the standard of living and the opportunities of most Americans, but at what cost?

3. Causes of Rapid Industrialization
Steam Revolution of the 1830s-1850s
The Railroad fueled the growing US economy:
First big business in the U.S.
A magnet for financial investment
The key to opening the West
Aided the development of other industries

10. Patterns of Land grants given to corporations to build railroads

11. Pacific Railway Act What made it possible: Passed July 1, 1862
Created Union Pacific to build road from the East and meet the Central Pacific
Provided companies 5 alternating plots of land on each side of the road for each mile along the route
Allowed $16,000 for each mile of flat land, $32,000 for hills, and $48,000 for mountain terrain
Revised in 1864 to allow companies more land and privileges

12. Biggest and best engineering project of its time
Made the country smaller (People could travel further distances faster than ever before)
Helped spur interest in Homestead Act (Sale of land in Midwest at low cost to promote the movement of people to region)
Improved communication (With train came telegraph lines and transcontinental communication)
The beginning of the end for Native Americans
Led to other transcontinental railroads and shorter branches

13. Effects of transcontinental railroad: 4 Standard Time Zones and emigration of Irish and Chinese workers

14. Causes of Rapid Industrialization
Technological innovations
Bessemer and open hearth process that revolutionized the manufacture of steel
Steel lighter and stronger than iron leading to the design and building of skyscrapers and bridges
Refrigerated cars used to ship meat changing meat processing system
Use of steam engine to drill oil and refine it into kerosene used in lamps

15. Research and Development
Major inventions enhanced productivity and improved the standard of living for most Americans:
Alexander Graham Bell invented the telephone in 1876  led to the creation of the Bell Telephone Co. (later, AT&T) that led to a way for worldwide communication network
Thomas Edison pioneered the:
phonograph (1877) – recordings of speeches, songs, and peoples’ voices
light bulb (1879) – changed what people did – day longer
System for producing & distributing electricity – power came to the people, not people living by the power source – used in urban areas (streetcars, lamp posts) and changed life for all

16. Bessemer Process Sir Henry Bessemer (British) and adapted in U.S.
Process rapidly changed molten iron (heavy and full of impurities) into steel (lighter, more pure, and stronger)

17. Titled to pour molten iron into the top and then returned to an upright position
Air forced through channels in the bottom causing fire to burn off impurities
Tilted to pour out steel to then pour into molds

18. Thomas Alva Edison
“Wizard of Menlo Park”

19. The Light Bulb

20. The Phonograph (1877)

21. The Motion Picture Camera

22. Alexander Graham Bell
Telephone (1876)

23. Alternate Current
George Westinghouse

24. The Airplane Wilbur Wright Orville Wright
Kitty Hawk, NC – December 7, 1903

25. Model T Automobile
Henry Ford I want to pay my workers so that they can afford my product!

26. “Model T” Prices & Sales

27. U. S. Patents Granted 1790s  276 patents issued

28. Causes of Rapid Industrialization
Unskilled & semi-skilled labor in abundance
Abundant capital
New talented group of businessmen [entrepreneurs] and advisors
Market growing as U.S. population increased
Government willing to help at all levels to stimulate economic growth
Abundant natural resources

29. New Business Culture Individual as a moral and economic ideal
Laissez faire capitalism  the economic ideology of the Industrial Age
Individual as a moral and economic ideal
Individuals should compete freely in the marketplace
The market was not man-made or invented, so it cannot be controlled by people
No room for government regulation in the market, only support for growth

30. 2. Social Darwinism Herbert Spencer British economist
Advocate of laissez-faire capitalism
Applied Darwin’s theory from the “Origin of Species” to human behavior
Idea of “Survival of the Fittest” to explain why so few were wealthy and so many were poor
Herbert Spencer

31. 2. Social Darwinism in America
Individuals must have absolute freedom to struggle, succeed or fail
Therefore, state intervention to reward society and the economy is futile
So, poor are poor because they want to be, and wealthy are rich because they are more suited for wealth
William Graham Sumner Folkways (1906)

32. New Business Culture: “The American Dream?”
Protestant (Puritan) “Work Ethic”
Horatio Alger [100+ novels]
Is the idea of the “self-made man” a MYTH??

33. New Type of Business Entities
Pool  Interstate Commerce Act  Interstate Commerce Commission created
Trust  John D Rockefeller
Standard Oil Co

34. Standard Oil Co.

35. New Type of Business Entities
Trust:
Horizontal Integration  John D Rockefeller
Vertical Integration:
Gustavus Swift  Meat-packing
Andrew Carnegie  U. S. Steel

36. Iron & Steel Production

37. New Type of Business Entities

38. U. S. Corporate Mergers

39. New Financial Businessman
The Broker: Invests other peoples’ money in order to make more money
J. Pierpont Morgan

40. Wall Street – 1867 & 1900

41. The Reorganization of Work
Frederick W. Taylor
The Principles of Scientific Management (1911)
$ To maintain high productivity of workers, design an assembly line that has one task for each worker

42. The Reorganization of Work
The Assembly Line
Each worker does the same small task over and over
Each worker will work faster when not moving from
work station to work station

43. % of Billionaires in 1900

44. % of Billionaires in 1918

45. Number of Billionaires in 2016 in the U.S. and the World
540 billionaires in U.S. alone
Worth a collective $2.4 trillion
132 in finance and investing
73 in technology
52 in fashion and retail
38 in real estate
NYC is billionaire capital of the U.S. - 70

46. The Protectors of Our Industries

47. The “Bosses” of the Senate

48. The “Robber Barons” of the Past

49. Cornelius [“Commodore”] Vanderbilt
Can’t I do what I want with my money?

50. William Vanderbilt The public be damned!
What do I care about the law? H’aint I got the power?

51. The Gospel of Wealth: Religion in the Era of Industrialization as Justification of extreme wealth and poverty
Wealth no longer looked upon as bad
Viewed as a sign of God’s approval
Christian duty to accumulate wealth
Should not help the poor
Why would people start to believe these new ideas about acquiring wealth?
Russell H. Conwell

52. “On Wealth” Andrew Carnegie The Anglo-Saxon race is superior
“Gospel of Wealth” (1901) supported this idea
Inequality is inevitable and good
Wealthy should act as “trustees” for their “poorer brethren”
We are providing jobs for the masses, so they should be satisfied with our wealth
Andrew Carnegie

53. The Federal Government Begins to Regulate the Trusts and their unfair business practices
1877  Munn. v. IL
1886  Wabash, St. Louis & Pacific Railroad Company v. IL
1890  Sherman Antitrust Act
in “restraint of trade”
“rule of reason” loophole
1895  US v. E. C. Knight Co.

54. Relative Share of World Manufacturing