1. AN INDUSTRIAL SOCIETY 1860-1914

2. CAUSES Many natural resources Building of canals and railroad’s
Growing population
High immigration
New inventions and processes
Investment of capital
Development of corporations

3. Effects More manufactured goods
Large corporations, monopolies, and trusts
Bad working conditions / sweatshops
Labor unions and strikes
Economies of the East and West linked together
Labor movement wins permanent changes (i.e. shorter working hours)

4. BIG BUSINESS
CORPORATION-a single body with its own powers and responsibilities separate from individual members (usually run by a board of directors).
TRUST-a combination of corporations with the purpose of reducing competition and controlling prices.
MONOPOLY-one corporation controls an industry or only provider of a product or service.

5. STEEL ANDREW CARNEGIE: Carnegie Steel
Bessemer Steel Process-new, cheaper way to make steel
Vertical Integration controlled all processes related to making the steel (mines, ships, RR’s)
Multimillionaire (rags to riches)
Philanthropist
Sold company to J.P. Morgan

6. RAILROADS LELAND STANFORD & CORNELIUS VANDERBILT
Government loans & land grants
Transcontinental RR
Tied the U.S. together (standard time)
Hired many immigrants (immigrants especially Chinese & Irish, and some Native Americans & African-Americans)
Dangerous / poor working conditions

7. OIL JOHN D. ROCKEFELLER: Standard Oil Monopoly on the oil industry
Formed a trust: Standard Oil Trust (combine, control, reduce)
“In 6 weeks in1872, Standard Oil absorbed 22 of its 26 Cleveland competitors…”
Multimillionaire (rags to riches)
Philanthropist

8. BANKING J. PIERPOINT MORGAN Banker
Dominated corporate finance and industrial consolidation (took over troubled businesses)
1901 one of the wealthiest men in the world
Philanthropist

9. THE GILDED AGE ? Gild-to cover with gold 1800’s the rich got wealthy
Everything was not ‘covered with gold’
Poverty and corruption was rampant

10. INVENTORS & INVENTIONS Many inventions helped industries grow
THOMAS ALVA EDISON
replaced gas lights with electric lights
1880’s made a million bulbs a year
Invention Factory
Over 1000 U.S. & over 1200 foreign patents
ALEXANDER GRAHAM BELL
Used electricity to invent the telephone

11. LABOR Sweatshops Poor working conditions Long hours, low pay, dangers
Child labor
Immigrants, women, children, and minorities were discriminated against
Many activists tried to get help
Mother Jones fought for child labor laws and coal miners rights

12. WORKERS BAN TOGETHER Labor unions are formed
Ban together to get better working conditions
Power in numbers
Police and ‘the law’ were on the sides of the wealthy business owners
Business leaders accused unions of trying to spread socialism (everyone owns and shares the work and profits )
Strikes often led to violence (Haymarket Affair)

13. UNIONS AMERICAN FEDERATION OF LABOR Samuel Gompers Skilled workers
discriminated against women and “minorities”
KNIGHTS OF LABOR
Different trades
Open to women and African Americans

14. THE END Why would the government want a transcontinental railroad?
Do wealthy people have a duty to become philanthropists?
How did inventions make business easier?