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Unit 1, Lecture 1: Industrialization in America
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Age of Progress Many new inventions are produced at once. – Light bulb, steam engine for trains, tractor New goods are produced, at a faster rate. – People can buy new things – Clothes, cars
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Railroads are King Made travel reliable and movement westward a possibility. Transcontinental Railroad: Railroad line that goes across the continent (across the U.S.) Immigrants are hired to build railroads. – Harsh conditions – 1888: 2,000 employees killed and 20,000 injured Time zones are set up. – Helps standardize time across the country
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Benefits and Problems Helps industry grow, also small towns – Iron, coal, steel, lumber, and glass – Small towns have more infrastructure Potential for abuse in the system – Pullman Railcar Company: new small towns – Credit Mobilier: Stockholders and company pocket profits illegally Growth of the Grange – Organization of farmers, protect their interests – Munn vs. Illinois: Upholds granger laws (laws governing railway treatment of farmers)
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Interstate Commerce Act: Supreme Court rules that a state cannot set rates ( $ charges) on commerce between states. – Now the job of the federal government, and the ICC Vulnerable to economic crash of 1893 – Poorly managed, overbuilt, competition
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Titans of Industry Andrew Carnegie – 1899: Carnegie Steel Company makes more steel than all of England combined – Makes new products cheaply – Uses new technology – Encourages competition in workers John D. Rockefeller – Oil tycoon who uses the trust system (agreements with other companies) to get total control of the oil industry in America
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Social Darwinism vs. Gospel of Wealth Social Darwinism: Survival of the fittest for people. Rich are wealthy because they are better suited. Gospel of Wealth: Rich have a duty to make sure their money does good work in the world.
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Quick Question: Turn to an elbow partner. Do you agree more with Social Darwinism or the Gospel of Wealth? Why? (Be ready to share.)
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Vertical and Horizontal Integration Vertical Integration: Process of buying our suppliers, other parts of a production chain. Horizontal integration: Buying companies that make similar products. Both processes lead to dominance in industries, few people with lots of control
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Labor Unions Debate over craft unions (for skilled workers) and industrial unions (for everyone in an industry). – Samuel Gompers (Craft Unionism) – Eugene Debs (Industrial Unionism) Socialism: economic and political system based on government control of business, property, and distribution of wealth. – Seen as threat. – IWW (Wobblies, union)
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Strikes and Violence Haymarket Affair: A bomb is tossed into a crowd protesting police brutality against a striker. Several people are charged and hanged. Homestead Strike: Carnegie steel plant: battle between strikers and Pinkerton agents. Several die, and steel unions end for many years. Pullman Company Strike: Workers protest unfair living conditions/wages.
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