1. Industrial Revolution

2. Inventions Edwin Drake: proved that oil could be extracted from the ground through a well, used steam engine to drill hole Edwin Drake: proved that oil could be extracted from the ground through a well, used steam engine to drill hole Bessemer Steel Process: easier and cheaper way to remove impurities for making steel, made possible mass production of steel Bessemer Steel Process: easier and cheaper way to remove impurities for making steel, made possible mass production of steel Uses for steel: railroads, barbed wire, farm machinery Uses for steel: railroads, barbed wire, farm machinery

3. Inventions Thomas Edison: light bulb, phonograph Thomas Edison: light bulb, phonograph Samuel Morse: telegraph Samuel Morse: telegraph George Westinghouse: airbrakes, electricity safer and less expensive George Westinghouse: airbrakes, electricity safer and less expensive Fredrick Taylor: published The Principles of Scientific Management Fredrick Taylor: published The Principles of Scientific Management Henry Ford: assembly line Henry Ford: assembly line

4. Inventions Christopher Soles: typewriter Christopher Soles: typewriter Alexander Graham Bell: telephone Alexander Graham Bell: telephone

5. Benefits of Electricity Travel cheap- outward expansion of cities Travel cheap- outward expansion of cities Manufactures could locate businesses where ever they chose Manufactures could locate businesses where ever they chose

6. Benefits of Inventions Women: new jobs Women: new jobs Workers: realized they were easily replaceable Workers: realized they were easily replaceable Increased productivity = cheaper goods Increased productivity = cheaper goods Employ fewer people Employ fewer people Improved standards of living Improved standards of living

7. Railroads Central Pacific Railroads Central Pacific Railroads Eastward out of Sacramento Eastward out of Sacramento Employed Chinese immigrants Employed Chinese immigrants Pd $35 per month; provide own meals Pd $35 per month; provide own meals Union Pacific Railroads Union Pacific Railroads Toward West Toward West Employed Irish immigrants Employed Irish immigrants b/c white paid more ($40-$60 per month) b/c white paid more ($40-$60 per month)

8. Railroads Formation of new cities Formation of new cities Began to specialize in one product Began to specialize in one product George Pullman: built factory for manufacturing sleepers, built a town for employers to live in, under company’s control; hoped it would ensure a positive workplace; refused to lower rent after cutting wages- led to violent strike George Pullman: built factory for manufacturing sleepers, built a town for employers to live in, under company’s control; hoped it would ensure a positive workplace; refused to lower rent after cutting wages- led to violent strike

9. Credit Mobilier Formed by Union Pacific Railroad Formed by Union Pacific Railroad Stockholders gave company contract to lay track 2-3 times the actual cost Stockholders gave company contract to lay track 2-3 times the actual cost Pocketed the profits Pocketed the profits Donated shares to representatives Donated shares to representatives Congressional investigation found that investors had taken up $23 million in stocks Congressional investigation found that investors had taken up $23 million in stocks Tarnished reputation of Republican party Tarnished reputation of Republican party

10. Railroads Corruption: charging different people different prices Corruption: charging different people different prices Granger Laws: establish maximum freight and passenger rates, prohibit discrimination Granger Laws: establish maximum freight and passenger rates, prohibit discrimination Munn v Illinois: states won right to regulate railroads for the benefits of farmers and consumers and fed govt right to regulate private industry to serve the public interest Munn v Illinois: states won right to regulate railroads for the benefits of farmers and consumers and fed govt right to regulate private industry to serve the public interest Interstate Commerce Act: reestablished the right of the federal govt to supervise railroad activities and established a five member panel (ICC) Interstate Commerce Act: reestablished the right of the federal govt to supervise railroad activities and established a five member panel (ICC) Panic of 1893: railroads having financial problems, taken over by banks, Morgan and Vanderbilt began to seize RR Panic of 1893: railroads having financial problems, taken over by banks, Morgan and Vanderbilt began to seize RR

11. Big Business Corporations: company that is recognized by law as existing independently from its owners; people buy stock; most they could lose is amount of stock Corporations: company that is recognized by law as existing independently from its owners; people buy stock; most they could lose is amount of stock Capitalism: economic system in which means of production are privately owned rather than being controlled by govt Capitalism: economic system in which means of production are privately owned rather than being controlled by govt

12. Andrew Carnegie Founded 1 st steel plants to use Bessemer process in Pittsburg Founded 1 st steel plants to use Bessemer process in Pittsburg Make better products, cheaper Make better products, cheaper Cut prices to drive competitors out of business Cut prices to drive competitors out of business People should be free to make as much money as possible as long as they give it away People should be free to make as much money as possible as long as they give it away

13. Business Strategies Vertical integration: buying out suppliers; controlling each step Vertical integration: buying out suppliers; controlling each step Horizontal integration: buy out competition; monopolize industry Horizontal integration: buy out competition; monopolize industry Laissez-faire: (allow to do) market place should not be regulated Laissez-faire: (allow to do) market place should not be regulated Social Darwinism: “natural selection” survival of the fittest; govt should not intervene in business Social Darwinism: “natural selection” survival of the fittest; govt should not intervene in business Monopoly: dominating a particular industry (Rockefeller’s Standard Oil); complete control over industry’s production, wages paid, quality, prices charged Monopoly: dominating a particular industry (Rockefeller’s Standard Oil); complete control over industry’s production, wages paid, quality, prices charged

14. John D. Rockefeller Used trusts: set of companies that are managed by a small group known as trustees. A method of consolidating competing companies in which participants turn their stock over to a board of trustees Used trusts: set of companies that are managed by a small group known as trustees. A method of consolidating competing companies in which participants turn their stock over to a board of trustees Owned Standard Oil Co.; controlled 90% of refining business Owned Standard Oil Co.; controlled 90% of refining business Pd employers low wage; sold oil at extremely low rates; once control of market raised prices Pd employers low wage; sold oil at extremely low rates; once control of market raised prices

15. Robber Barons & Captains of Industry Robber Barons: business leaders who built their fortunes by stealing from the public; drained country of natural resources, employees underpaid, poor working conditions Robber Barons: business leaders who built their fortunes by stealing from the public; drained country of natural resources, employees underpaid, poor working conditions Captains of Industry: served the nation in a positive way; increasing supply of goods Captains of Industry: served the nation in a positive way; increasing supply of goods

16. Sherman Anti-trust Act illegal to form a trust that interfered with free trade between states or with other countries illegal to form a trust that interfered with free trade between states or with other countries Didn’t define what a trust was, hard to prosecute companies

17. Workers Hazardous tasks, monotony, no vaca, sick leave, unemployment compensation Hazardous tasks, monotony, no vaca, sick leave, unemployment compensation Wages so low everyone in family had to work Wages so low everyone in family had to work Child labor: didn’t have to pay as much, most dangerous working conditions Child labor: didn’t have to pay as much, most dangerous working conditions Living conditions: lived in slums, tenements Living conditions: lived in slums, tenements

18. Labor Unions Groups of workers joined together to improve conditions (higher wages, shorter hours, better working conditions) Groups of workers joined together to improve conditions (higher wages, shorter hours, better working conditions) Power from threat of strikes Power from threat of strikes National Labor Union: passage of 8 hour workday National Labor Union: passage of 8 hour workday Noble Order of the Knights of Labor: open to all, used arbitration instead of strikes Noble Order of the Knights of Labor: open to all, used arbitration instead of strikes American Federation of Labor: skilled workers, Samuel Gompers president, collective bargaining, used strikes, won higher wages, shorter weeks American Federation of Labor: skilled workers, Samuel Gompers president, collective bargaining, used strikes, won higher wages, shorter weeks American Railway Union: Eugene Debs founder American Railway Union: Eugene Debs founder

19. Socialism Believed rich getting richer, poor getting poorer turned to socialism Believed rich getting richer, poor getting poorer turned to socialism Economic and political system based on govt control of business and property and equal distribution of wealth Economic and political system based on govt control of business and property and equal distribution of wealth Communism: extreme form, classless society Communism: extreme form, classless society Industrial Workers of the World: formed by unskilled workers Industrial Workers of the World: formed by unskilled workers

20. Violent Strikes Great Strike of 1877: B&O Railroad employees striking after 2 nd wage cut in 1 month, trains didn’t run for a week, Hayes called in federal troops to stop strike Great Strike of 1877: B&O Railroad employees striking after 2 nd wage cut in 1 month, trains didn’t run for a week, Hayes called in federal troops to stop strike Haymarket Affair: gathered to protest police brutality; rain lead to crowd leaving; police arrived; bomb thrown @ them; 7 police officers & several workers died b/c of chaos Haymarket Affair: gathered to protest police brutality; rain lead to crowd leaving; police arrived; bomb thrown @ them; 7 police officers & several workers died b/c of chaos

21. Violent Strikes Homestead Strike: Pres of co. planned on cutting wages, led to strike, hired armed guards to protect factory so they could hire scabs (strikebreakers) killed 3 det. 6 workers, Penn National Guard arrived Homestead Strike: Pres of co. planned on cutting wages, led to strike, hired armed guards to protect factory so they could hire scabs (strikebreakers) killed 3 det. 6 workers, Penn National Guard arrived Pullman Strike: during Depression laid off 3000 employees, cut wages of rest, didn’t cut cost of living, strike b/c failed to restore wages, decrease rent; hired scabs, turned violent, Cleveland sent in troops, Pullman fired most of strikers, rest blacklisted Pullman Strike: during Depression laid off 3000 employees, cut wages of rest, didn’t cut cost of living, strike b/c failed to restore wages, decrease rent; hired scabs, turned violent, Cleveland sent in troops, Pullman fired most of strikers, rest blacklisted