1. Goal 5
Industrialization, Monopolies, Immigration, City Life and Rise of Labor Unions

2. Gilded Age Time period after Civil War
Made famous by author Mark Twain
Time of rapid industrialization, immigration and changing city life

3. Monopolies
Monopoly
Definition- when one business controls the entire industry
Two types of monopolies
Vertical Integration- person controls all factors of production for one industry (used by Carnegie Steel)
Horizontal Integration- person controls all competition in the same industry (used by Rockefeller Oil)

4. Monopolies Vertical Integration
When one company owns all factors of production and can charge lower prices
Example- Andrew Carnegie’s Steel Company
Carnegie owned the iron mines, the shipping and the steel mills
He could charge less because he didn’t have to pay the extra fees for using other companies

5. Monopolies Horizontal Integration
When one company completely controls an industry by buying all competition
Example- Rockefeller’s Oil Company
Rockefeller would buy companies and give their owners stock in his company
Trust- group of advisors for a company (control and set prices)

6. Monopolies John Rockefeller- Oil Andrew Carnegie- Steel
Cornelius Vanderbilt- Railroads
JP Morgan- banks
Monopolies
Price Fixing
Eliminate Competition
Unfair treatment of poor and middle class

7. Captain of Industry vs. Robber Baron
Owners praised for business skills and donating back to society (Carnegie)
Robber Baron
Owners who became rich illegally or unethically and did not care about workers or society

8. Social Darwinism Theory used by rich to defend their wealth
Based on Charles Darwin’s theory on survival of the fittest
Rich said they deserved to be rich because they worked harder and were smarter than others
Horatio Alger- wrote tales of underprivileged youths who became wealthy through being honest and hard- working

9. S- P- A- M-

10. Immigration First Wave- 1820s to 1860s Second Wave- 1890s to 1920s
Mainly from Northern and Western Europe
Scandinavia (Sweden, Norway), Ireland, Britain
Example- Many Irish will come due to Potato Famines
Second Wave- 1890s to 1920s
Mainly from Southern and Eastern Europe
Italy, Russia, Hungary
Seen as different- most are Catholic or Orthodox religions, darker skinned, poorer classes
Many Jewish groups for religious freedom

11. Theories
Melting Pot- immigrant groups give up their own ethnic identity and blend into one American identity
Cultural Pluralism- immigrant groups keep parts of their own culture and also adopt parts of the American culture
Nativism- groups that were anti-immigrant
Chinese Exclusion Act- banned Chinese laborers from immigrating to US until 1902

12. Theories
Chinese Exclusion Act
Melting Pot Theory

13. Growth of Cities Cities grow tremendously
Known as urbanization (rapid growth of cities)
Immigrants will settle in ethnic neighborhoods
Examples- Chinatowns, Little Italy, etc
Most will live in tenement buildings
One room apartments
Overcrowded, dirty, no fire escapes, no plumbing, disease widespread, unsafe, unsanitary

14. Growth of Cities

16. Responses to Tenement Living
Jacob Riis
Write “How the Other Half Lives”
Expose living conditions in tenements in NYC
Jane Addams
Begin Hull House in Chicago
Help poor immigrants learn English and other necessities (money, etc)

17. Sweatshops Most immigrants work in sweatshops Response Labor Unions
Little pay, long hours, dangerous conditions
Response
People band together to form labor unions
Labor Unions
Fight for higher pay, better conditions and shorter hours
Most do not like immigrants because they work for low wages

18. Labor Unions
Labor Union- group of workers who want to improve economic and social well-being of its members
Craft Union- organizes workers in the same craft or occupation (Ex.- carpenters union, brickmasons union)
Trade Union- includes different kinds of workers (Ex- Union for all building trade- include painters, builders, carpenters, etc)

19. Early Labor Unions Early Unions Knights of Labor- organized in 1869
Will lose popularity after the Haymarket Strike
American Federation of Labor (AFL)
Craft union organized by Samuel Gompers
Later led by Eugene Debs

20. Union Tactics
Collective Bargaining- unions and management try to negotiate on an acceptable contract
Strikes- workers stop working and try to shut down company
Scabs- during strike, company hire workers to cross strike lines and continue working
Injunction- court order to stop a strike
Mediation- if collective bargaining fails, a 3rd party will be called to help settle differences
Each side (labor and management) state their case and the 3rd party gives recommendations
Not binding decision
Arbitration- involves a 3rd party
Each side states their case and 3rd party makes decision
Decision made is binding and must be accepted

21. Government Controls Attempt to address monopolies
Sherman Anti-Trust Act- government outlaws trusts
Not very effective

22. Government Corruption
Political machines and big city politics
Machine- one group who uses bribes and corruption to control government
Ex- Boss Tweed and Tammany Hall in NYC
Patronage- give government jobs based on political support (spoils system)
Pendleton Act- create a civil service system
Civil Service System- government jobs given based on merit (usually by taking a civil service test)

23. Boss Tweed and Tammany HallP- A- M-