1. Chapter 19
The Industrial Age

2. Essential Question
How did technological advances change people’s lives and affect businesses?

3. I. The Second Industrial Revolution
Second Industrial Revolution: a period of rapid growth in U.S. manufacturing in the late 1800s
Steel Industry:
Bessemer Process: a way to manufacture steel quickly and cheaply by blasting hot air through melted iron
Railroads:
Cheap steel means more railroads
Passenger service improved (sleeping cars)
Faster shipping of products

4. Oil and Electricity
Oil, or petroleum, now used as a major power source
Electricity becomes a source of light and power
Patents: exclusive rights to make or sell inventions
Thomas Edison and George Westinghouse

5. Inventions Alexander Graham Bell: 1876 - patented the telephone
1876 – 1893 – gasoline engines used in motorcars (only for wealthy)
Henry Ford: launches the Model T using the assembly line to reduce cost and make cars more affordable

6. II. Big Business Leaders
Corporations: business that sell portions of ownership called stocks
Social Darwinism: view of society based on Darwin’s theory of natural selection
Andrew Carnegie – controlled the steel corporation using vertical integration: ownership of a business involved in each step of the manufacturing process
$298.3 billion (2012)
John D. Rockefeller – controlled the oil industry (Standard Oil) using horizontal integration: owning all business in a certain field and trusts: grouping together a number of companies under a single board of directors (trustees)
$663.4 billion (2012)
Bill Gates - $ 59 billion (2012)

7. Antitrust Movement
Critics feel business leaders were earning their fortunes through unfair practices and driving out competition
Monopoly: total ownership of a product or service
Sherman Antitrust Act: 1890 – made it illegal to create monopolies or trusts that restrained trade
Did not actually define what a trust or monopoly was, so it was hard to enforce

8. III. Industrial Workers
Machines run by unskilled workers
Specialization brought costs down and production up
Frederick Taylor: efficiency engineer encouraged owners to view workers as interchangeable parts
Working conditions get worse

9. Workers Organize Knights of Labor: 1870 – first national labor union
Led by Terrence Powderly
Equal pay for equal work
End child labor
8-hr workday
Every type of worker
American Federation of Labor (AFL): 1890
Led by Samuel Gompers
Only skilled workers
Collective bargaining: all workers acting collectively had a much better chance in negotiation with management

10. Labor Strikes
Haymarket Riot: 1886 – in Chicago, someone threw a bomb and killed 8 police officers – Knights of Labor were blamed
Homestead Strike: 1892 – 16 people killed in a gun battle between strikers and Pinkerton detectives at Carnegie’s steel factory
Pullman Strike: 1894 – workers stop traffic on railroad lines to protest Pullman’s laying off of workers – federal troops sent in to stop the strike