1. The Busy Hive
KC 6.1 Part I-II

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

3. Causes of Rapid Industrialization
Technological innovations.
Bessemer and open hearth process
Refrigerated cars
Edison
“Wizard of Menlo Park”
light bulb, phonograph, motion pictures.

4. Alexander Graham Bell
Telephone (1876)

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

6. New Business Culture
Laissez Faire  the 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.
No room for government in the market!

7. 2. Social Darwinism British economist.
Adapted Darwin’s ideas from the “Origin of Species” to humans.
Notion of “Survival of the Fittest.”
Herbert Spencer

8. 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!
William Graham Sumner Folkways (1906)

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

10. Standard Oil Co.

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

12. New Type of Business Entities

13. New Financial Businessman
The Broker:
J. Pierpont Morgan

14. Wall Street – 1867 & 1900

15. % of Billionaires in 1900

16. % of Billionaires in 1918

17. The Protectors of Our Industries

18. The ‘Bosses’ of the Senate

19. The ‘Robber Barons’ of the Past

20. “On Wealth” The Anglo-Saxon race is superior.
“Gospel of Wealth” (1901).
Inequality is inevitable and good.
Wealthy should act as “trustees” for their “poorer brethren.”
Andrew Carnegie

21. The Changing American Labor Force

22. Child Labor

23. Child Labor

24. Labor Unrest:

25. The Corporate “Bully-Boys”: Pinkerton Agents

26. An injury to one is the concern of all!
Knights of Labor
Terence V. Powderly
An injury to one is the concern of all!

27. Goals of the Knights of Labor
Eight-hour workday.
Workers’ cooperatives.
Worker-owned factories.
Abolition of child and prison labor.
Increased circulation of greenbacks.
Equal pay for men and women.
Safety codes in the workplace.
Prohibition of contract foreign labor.
Abolition of the National Bank.

28. The American Federation of Labor: 1886
Samuel Gompers

29. How the AF of L Would Help the Workers
Catered to the skilled worker.
Represented workers in matters of national legislation.
Maintained a national strike fund.
Evangelized the cause of unionism.
Prevented disputes among the many craft unions.
Mediated disputes between management and labor.
Pushed for closed shops.

30. Anarchists Meet on the Lake Front in 1886

31. McCormick Harvesting Machine Co.
Haymarket Riot (1886)
McCormick Harvesting Machine Co.