1. Industrial Development 31-32 How did industrial development affect life in the late 1800s? What were the major inventions, innovations, and entrepreneurs of the time period? How did industrial leaders accumulate wealth and power and justify their means?

2. USA becomes Industrial Leader By 1880—United States world’s leading producer of goods Why?Unlimited labor force (mostly immigrants), abundant coal supply, iron mining, discovery oil (Edwin Drake and development of the railroad (network to ship and transport goods)

3. Public Support Laissez-faire: “hands off” gov’t approach Unlimited immigration = labor  no education, willing to work for little pay High tariffs support American industry Public financing of RR and businesses

4. Entrepreneurs and Innovations: late 1800’s see an explosion of inventions and innovations Telephone: Alexander G. Bell Light bulb: Thomas Edison Electric Power: Nikola Tesla (AC Power) Bessemer Process: Henry Bessemer, removes impurities from iron = steel Typewriter invented by Christopher Sholes creates work for women

5. Entrepreneurs and Innovations Photography—George Eastman Phonograph and Motion pictures—Edison, provides entertainment Radio—Nikola Tesla, improves communications Retail and canned foods— rise of retail industry, mail order, department stores

6. Entrepreneurs and Innovations John Rockefeller— oil Andrew Carnegie— steel JP Morgan— big business finance Vanderbilt— railroads Dupont— chemical manufacturing (first dynamite) Westinghouse— electric industry Duke--tobacco

7. Railroads lead the way…. “iron horse” Leading consumer of goods, better transportation= settlement of west transcontinental completed in 1869 Standardization of time: timezones— Eastern, Central, Mountain, Pacific

8. Railroad Prosperity Growth of urban areas Development of Company Towns (company owned everything in town controlling worker and harsh conditions): Pullman, Illinois made RR cars Railroad scandals: gov’t land, graft, and stock fraud, and strikes Grange and the RRs Railroad abuses— unfair rates Granger laws (eventually ruled unconstitutional by Wabash v. Illinois) Interstate Commerce Act: attempt to regulate business, required RRs to post rates and fees

9. BIG BUSINESS Corporations develop Limited liability leads to public investment Mass market selling AdvantagesDisadvantages Greater efficiency: mass production Unfair competition: no regulations leads to monopolies Economy of scale: reduction in cost as output increases Corruption and bribery Manager system: Owner  Managers  Supervisors  Workers Destroyed labor union movements: sought out court orders, denied recognition Productivity studies: to increase worker productivity Corrupt practices: horizontal and vertical integration

10. Social Darwinism Based on Darwin’s theory of evolution Survival of the fittest also applies to the business world: best business will thrive Justified the wealth of big business Gospel of Wealth: Andrew Carnegie, justified wealth of rich, idea is to help the poor help themselves Rags to riches: the American Dream Horatio Alger—dime novels adventure and opportunity in the west

11. Robber Barons Robber Baron rather than Captain of Industry b/c extreme profits made by business owners by using corrupt business practices and at the cost of the employee PHILANTHROPY begins: practice of giving away large sums of money, helped improve the image of robber barons Big Business practices exposed, public begins to call for regulation: Sherman Anti-Trust Act (1890) weak law, but set precedent for future laws, 1 st attempt to regulate big business!

12. The Bessemer process was a. A way to make coal into energy. b. A method of braking a heavy train. c. A way of changing iron into steel. d. A method picking party members for gov;t jobs.

13. Which of the following was NOT a "captain of industry". a.Ida Tarbell b.John Rockefeller c. Andrew Carnegie d. Cornelius Vanderbilt

14. This is the theory that the best businessmen will rise to the top and get rich? a.Social Gospel b.b. Social Darwinism c. Social Competition d. Social Relativity

15. Philosophy that people should help those that are less fortunate than them? a.Social Darwinism b.Social Gospel c. Social Isolation d. Social Divinity

16. Which answer most likely refers to how a poor oilfield worker would describe Rockefeller? a.as a friend b.b. as a robber baron c.as a captain of industry d.as a good family man