1. Industrial Revolution Working Conditions

2. Changes in the Work Place Original manufacturing was an Artisinal System ( think of an artist or you making the car ) Big Change – Division of Labor occurs! ( think of you making only one part of the car )

3. The Difference in Production Division of Labor Artisinal System

4. WOW! Division of Labor Changes Manufacturing! Positive: increases productivity for businesses Negative: workers no longer take pride in work and removes creativity

5. Growing Work Force Immigrants Immigrants Former Farm Families Former Farm Families Women and Children Women and Children Does not include African Americans Does not include African Americans

6. The Life of a Worker Children as young as age 6 sent out to work Aid provided by private charities because... Government Welfare does not exist at this time!

7. The Life of a Worker, cont. Typically work 12 hours/day, 6 days/week Difficult to move outside of the area of industry that your ethnicity put you into.

8. Skilled Workers Native Born Semi-Skilled Workers Irish and Germans Unskilled Workers Italians and Poles A Segregated System of Labor

9. Those Who Helped Workers: Jacob Riis Illustrated the negative impact of children working in mines and factories Published photos of working children in How the Other Half Lives and wrote Children of the Poor

10. Lewis Hine Traveled around the country to photograph child workers in factories, mills, mines, and canneries. Documented the plight of working children Photos were used as evidence ( to the public and government ) of the need for child labor reform

11. The Growth of Big Business The Good and The Bad

12. Robber Barons Business leaders who made fortunes by stealing from public They drained natural resources, paid low wages to workers, required long hours of employees

13. Robber Barons

14. They persuaded public officials to interpret laws in their favor They ruthlessly drove their competitors to ruin Paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions

15. Captains of Industry The business leaders served their nation in a positive way. Raised productivity and expanded markets.

16. Created jobs that enabled many Americans to buy new goods and raise their standard of living. Also created museums, libraries, and universities, many of which still serve the public today. Carnegie Hall

17. Robber Baron – negative Captain of Industry – positive Business leaders who served the nation (built factories, increased supplies, raised production, expanded markets, and provided jobs) Robber Baron versus Captain of Industry

18. How did the industrialists (business leaders) gain an edge and what were the effects on US society? Underpay their workers Drive competitors out of business Develop new ways to organize their businesses

19. Vertical Integration/Consolidation Buying out or controlling businesses related to various phases of production for one product

20. Controlling the Market Bob’s Pizza Using Vertical Integration, Bob could control the Pizza market in town by controlling many of the costs associated with making his pizza! Bob’s Farm Bob’s Cheese Factory Bob’s Trucking Company

21. Horizontal Integration/Consolidation When you buy out all of your competitors (firms that are part of the same business)

22. Controlling the Market Bob’s Pizza Delaware Pizza Happy Time Pizza Using Horizontal Integration, Bob could control the Pizza market in town by buying the other Pizza shops! Bob’s Pizza

23. Monopoly vs. Cartel Monopoly – one company with complete control of a product or a service (think Microsoft) Cartel – a loose association of businesses in a similar field that make the same product and agree to limit supply to drive up prices (think oil or illegal drugs)

25. Andrew Carnegie

26. Captain of Industry for steel production in Pittsburgh Used Bessemer Process to produce stronger steel Utilized vertical integration or consolidation for business purposes Born in Scotland

27. Carnegie as a Philanthropist A Philanthropist uses wealth to improve society Carnegie funded the building of libraries, education facilities, and music/arts facilities

28. Wrote Gospel of Wealth Wrote Gospel of Wealth Carnegie’s philosophy that a person should be able to make as much money as they can, BUT they should also use their wealth to improve society

29. Social Darwinism Drove American Business Based on Darwin’s Theory of Evolution (1859) regarding natural selection and survival of the fittest Based on Darwin’s Theory of Evolution (1859) regarding natural selection and survival of the fittest Businessmen are justified in using any means to become rich and powerful – the government should stay out! Businessmen are justified in using any means to become rich and powerful – the government should stay out!

30. John D. Rockefeller Formed Standard Oil Company

31. John D. Rockefeller and the Standard Oil Company Wealthy individual who saw the oil industry as a way to get richer Made illegal deals with railroads to transport oil cheaper, thus weakening other refineries that he would eventually buy Utilized horizontal integration or consolidation for business purposes

32. Also important re: Standard Oil... Trusts A group of separate companies that are placed under the control of a single managing board (Board of Directors) A group of separate companies that are placed under the control of a single managing board (Board of Directors) Trusts limit competition and cause prices to rise Trusts limit competition and cause prices to rise

33. Which Led to the Sherman Antitrust Act Enacted in 1890 Effort by Congress to end trusts/monopolies Ineffective due to lack of enforcement

34. Business Cycle The growth and contraction of a nation’s economy A new concept in the mid-late 1800s

35. Entrepreneurs Individuals who start their own businesses such as... Rockefeller – Oil Carnegie – Steel Vandebilt – Railroad Levi Strauss – (Denim) Clothing Bill Gates – Computer Software

36. Ida Tarbell Focused on Drilling, shipping, refining, and the sale of oil Smaller companies could not pay the higher shipping costs

37. Ida Tarbell Journalist who investigates and exposes misconduct among political and/or business leaders Journalist who investigates and exposes misconduct among political and/or business leaders

38. Ida Tarbell Ida’s father was forced out of business by Standard Oil Perhaps this was revenge???

39. Ida Tarbell Muckraking Journalism can... Expose legitimate misconduct and corruption Create disbelief and cynicism Be false and harmful to innocent parties