1. NEW INDUSTRIALIZATION
2nd Phase of the Industrial Revolution

2. New vs. Old 1870 is the rough dividing line between Old IR and New IR
industrialization spreads to France, Italy, Russia, Japan, Germany and the US

3. US Industrializes Industry grows HUGE after Civil War
Leading industrial power by 1914
36% of worlds manufactured goods
Why?
Government played a big role
Mass production
Culture of consumption
Widening gap between classes!

4. New Industrialization Stations
At each table you will read about and note the effects of a key invention/change/result of the second phase of the industrial revolution.

5. Change 1: New Innovations & Inventions

6. Telegraph and telephone increase communication
Bessemer process lowers the cost of steel and encourages construction
Electricity

7. Change 2: The Rise of “Big Business”

8. Businesses Grow Larger
Horizontal integration—buy up every company in the same business
Vertical integration—take control of each step of the production & distribution of a product
Andrew Carnegie (Vertical in Steel Business)
John Rockefeller (Horizontal in Oil Business)

10. Monopolies One business is the only supplier of a particular item
Example: If AT&T were the only cell phone company in the United States, they would have a monopoly.
Why might this be problematic?

11. Monopolies Businesses formed monopolies and trusts
Controlled all of one kind of business
Allowed them to set prices
Why wasn’t the government regulating this behavior…

12. Government Leaves Business Alone…Sort of
Laissez-faire policies
Social Darwinism

13. Laissez Faire Policies
“Hands off” policies which allowed businesses to do whatever they wanted
Market will regulate itself by supply and demand and government should not intervene

14. Social Darwinism Based on Darwin’s theory of evolution
The best-run businesses led by the most capable people would survive prosper
“Survival of the fittest”

15. Herbert Spencer explained his idea of Social Darwinism in 1851.
“It seems hard that those without skills …should experience hunger... It seems hard that a laborer stopped by sickness from competing with his stronger workers should have to suffer the resulting loss. It seems hard that widows and orphans should be left to struggle for life or death. [Even so], in…the interests of universal humanity, these harsh deaths [have a good effect]…they bring to early graves the children of diseased parents.”

16. In Reality…
Businesses bribed legislators to pass laws favoring their companies
“Our political leaders are hired, by bribery…to conduct the government of a city, state, nation, not for the common good, but for the interests of private business.”
Government sells resources to companies at very low prices

18. Attitude Inventory
How should we judge the business giants of the Gilded Age?
Are they robber barons for the way they gained their wealth and the lordly style in which they lived or
Captains of industry who helped usher in our modern economy

19. Change 3: Changes in the Workplace

20. Assembly Lines & Scientific Management
Fredrick Taylor & Henry Ford
Interchangeable parts
No wasted time
Workers stand in one place all day, performing the same task over and over
Workers feel as though they have become machines

21. Child Labor
Up to 18% of the workforce during the Gilded Age

24. Working Conditions
Many companies forced people to work in brutal conditions
As much as 6 days a week, 12 hours a day
Got no vacation, sick leave, unemployment compensation, or reimbursement for injuries suffered on the job.
1882, an average of 675 laborers were killed in work-related accidents each week