Transcript Industrial Revolution

Why the Industrial
Growth?

 The Civil War challenged industries to make goods more
quickly and efficiently
 The government encouraged immigration to meet the
increasing demand for labor in the nation’s factories – In
1881 alone, nearly three quarters of a million immigrants
arrived in the US – workforce grows
 Industrial growth can be attributed to the abundance of
natural resources in the US – coals, forests, oil (kerosene
and gasoline)
 Inspiring books are written encouraging entrepreneurs
 Government encourages free enterprise and wants
business to be successful – protective tariffs and the
principles of laissez-faire
Innovation Drives the
Nation
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 By the late 1800s the drive for innovation and efficiency seemed to touch every
sphere of life – the number of patents increased rapidly during this time
 Electricity
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Thomas Edison established a research laboratory in Menlo Park, NJ in which he
would receive more than 1,000 patents for new inventions – Edison and his team are
most notably known for the light bulb but also are known for developing central
power plants to light entire sections of cities. Edison’s work would later get improved
by other inventors.
 Communication
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1844 – Samuel Morse – Telegraph technology or sending messages over a wire
1876 – Alexander Graham Bell patented the telephone
1896 – Guglielmo Marconi invented the wireless telegraph
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 Steel
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By 1900, there were more than one million telephones in the United States
1850 – English man Henry Bessemer developed a process for purifying iron, resulting
in strong, but lightweight steel. The Bessemer Process quickly made its way to
American industries
By 1890, the US was out producing British steel manufacturers. – Strong steel would
eventually lead to the building of suspension bridges and skyscrapers
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Innovation Drives the
Nation
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 Railroads
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1869 – George Westinghouse patents air brakes for trains
1887 – Granville Woods patents a telegraph system for trains
Gustavus Swift patents refrigerated rail cars
By 1883 there were three transcontinental railroads in the US
Problems were caused in the railroad industry because of time – led to the
development of time zones in the US in 1884
 City Transportation
 Electric streetcars, commuter trains, and subways appeared in major cities
 Americans living outside the city can now easily commute to work – suburbs
 Factory production of automobiles with gas powered engines began in 1902
 Flight
 1903 – First successful airplane flight by two bicycle manufacturers, Orville and
Wilbur Wright marked the birth of the aviation industry
Resources and
Transportation

 An abundance of natural resources and an efficient
transportation system to carry raw materials and
finished goods set up a spiral of related growth
 Railroad cars could efficiently get supplies to
factories, which in turn the factories could use these
supplies in a system of mass production to make
goods quickly and inexpensively.
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Impact of
Industrialization

 Linking World Markets
 By 1880, American exports of grain, steel, and textiles dominated international
markets
 Changing American Society
 Farms became mechanized
 Mass production of goods meant new urban dwellers had easy access to
clothing and supplies they would have had to make by hand in the past – yet
they faced higher costs of living, were dependent upon cash wages to buy food,
and performed repetitive work in factories.
 Thinking About the Environment
 In the early 1800s, few worried about how industry might effect the
environment – by the late 1800s, industrial waste had risen dramatically and
mining had begun to destroy the land
 In the Midwest, increasing agricultural production had led to soil erosion and
dust storms
 People became concerned about protecting natural resources – Congress
responded by setting aside protected lands that would eventually become the
National Park Service – Yellowstone Park in 1872 was among the first
The Rise of Big Business

 Corporations develop – a number of people share the
ownership of a business
 Corporations were good for risky industries, and were
suited to expand markets due to their huge amounts of
capital or invested money.
 Corporations sought to maximize profits by paying the
least they needed to for raw materials and paying their
workers the least possible – this insured their products
were priced below that of competitors
 Some corporations tried to become monopolies – to have
complete control of a product or service
 Some like John D. Rockefeller, an oil tycoon, made deals
with railroad companies
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Horizontal and Vertical
Integration
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 Business sought was to decrease cost and maximize
profit
 Horizontal Integration – Consolidating many firms
within the same business
 Vertical Integration – Allowing businesses to gain
control of the many different businesses that make up
all phases of a product’s development – allows
companies to reduce costs and charge higher prices to
competitors
Debating the Role of Big
Business
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 Many believed that consumers were harmed by the
unfairly high prices that monopolies and cartels set on
their products – because of big business’ capacity to
swindle the poor, shrewd capitalists became known as
“robber barons.”
 At the same time, however, many people believed that
business leaders served the nation positively, thus
earning the nickname “captains of industry” – large
businesses created jobs and even some business leaders
like Carnegie, Vanderbilt, and Rockefeller were important
philanthropists which established universities, museums,
and libraries, believing that such institutions made it
possible for the disadvantaged to rise to wealth.
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The Government
Imposes Regulations
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 The railroad industry was renowned for practices such as
fixing unfair rates
 The Interstate Commerce Commission was created in 1887,
in the U.S. Senate, to oversee railroad operations.
 The government slowly became involved in regulating
trusts
 In 1890 the Senate creates the Sherman Anti-Trust Act,
which outlawed any trust that operated in restraint of trade
or commerce
 The ICC and the Sherman Anti-Trust Act began a trend
toward federal limitations on corporation’s power.
Factory Conditions
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 In the 1880s and 1890s, employed factory workers were
paid low wages in order for their employer to increase
profit. Immigrants made up a large portion of this work
force.
 Factory workers would often work 12 hour days, 6 days a
week in small, dirty, often crammed workplaces referred
to as sweatshops. They would be fined if they were late or
exceeded their allowed time for breaks.
 Factory work was often dangerous – workplaces were
poorly lit, often overheated, and badly ventilated. There
were always more people than jobs so workers would be
easily replaced.
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Families in the
Workforce
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 Women frequently worked as laundresses, telegraph operators,
and typists.
 Since many families had both parents needing to work to
survive economically, many families would bring their children
to work in order to keep them off the streets.
 By the end of the 1800s, nearly one in five children between the
ages of 10 and 16 worked rather than attending school.
Conditions were often harsh for them and many suffered
problems with physical and mental growth.
 By the 1890s social workers began lobbying to get children out
of the factories and into child care or schools. Eventually there
efforts prompted states to pass legislation on child labor.
Living in Company
Towns
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 Many laborers, especially those who worked in the mining
industry, were forced to live in isolated communities near their
workplaces. The housing in these communities, known as
company towns, was owned by the business and rented out to the
employees.
 The employer also owned the “company store” where workers
were forced to buy goods – the company store sold goods on credit
but had a high interest – most of the employees wages would be
owed back to the company store
 Since workers could be arrested if they left their jobs before they
repaid their loans, employers could hold workers to their jobs
through a system workers’ advocates called “wage slavery.”
 Mexican, African Americans, and Chinese workers were often
segregated in separate towns.
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Early Labor Protests
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 Factory workers tried to gain more power against
their employers by using the technique of collective
bargaining or negotiating as a group for higher
wagers or better working conditions.
 One form of collective bargaining was the strike.
Local strikes in some regions of the United States
were able to achieve shorter workdays. The 10-hour
workday became more common in most New
England factories.
Founding the Knights of
Labor
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 In 1869, Uriah Smith Stephens founded a labor union called the
Knights of Labor – this union actively recruited African
Americans – functioned largely as a secret society, devoted to
broad social reform such as replacing capitalism with workers’
cooperatives.
 In 1881 Terrence V. Powderly took on the leadership of the
Knights. He was the son of Irish immigrants who continued to
lead workers out of the bondage of wage labor – he encouraged
boycotts and negotiation with employers while abandoning the
secretive nature of the union.
 By 1885, the Knights had grown to include some 700,000 men
and women nationwide, of every race and ethnicity. By the
1890s, however the Knights had largely disappeared. This can
be attested to a series of failed attacks including the Haymarket
Riot.
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Forming the AFL
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 An English immigrant named Samuel Gompers formed the
American Federation of Labor – The AFL was a craft union
which focused on skilled workers from some 100 local unions
devoted to specific crafts or trades
 Unlike the Knights which focused on larger social gains for
workers, the AFL focused on more specific issues like wages,
working hours, and working conditions. Because of its’ narrow
focus it was nicknamed the “bread and butter” union.
 The AFL was not as successful as the Knights in gaining
membership, partly because of its own policies. It opposed
women members, because Gompers believed their presence
would drive wages down. While the AFL was open to African
American members, many local branches found ways to
exclude them.
Strikes Rock the Nation
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 Haymarket Riot
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On May 1, 1886, thousand of workers held a national demonstration in which they
were seeking an 8 hour workday
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Strikes erupted in several cities and fights broke out between strikers and
strikebreakers.
On May 4, protestors gathered at Haymarket Square in Chicago. A frenzy broke out
when a protestor threw a bomb, killing a policeman. Dozens of people, both
protestors and police officers were killed.
The Haymarket Riot left an unfortunate legacy and led to the fizzle of the Knights of
Labor since people were associating union activities with violence.
 Homestead Strike
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Summer of 1892, a Carnegie steel plan in Pennsylvania cut workers’ wages. The union
called a strike. Carnegie’s partner Henry Frick responded by bringing in the
Pinkertons, a private police group known for their ability to break up strikes.
The Pinkertons killed several strikers and wounded many others during the two week
stand-off. On July 23rd, an anarchist tried to assassinate Frick. The public associated
this attempt as being union sponsored. In fear of losing their reputation the union
called off the strike. The strike involved troops and local militia to suppress.
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Strikes Rock the Nation
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 Pullman Strike
 In 1893, the Pullman Palace Car Company laid off workers and
cut their pay by 25%. The owner George Pullman required that
workers lived in company towns and controlled their rents and
prices of goods. In May 1894, workers sent a delegation to try
to negotiate with Pullman; he responded by firing three of
them and shutting down the plant.
 The workers turned to Eugene Debs and the American Railway
Union (ARU). The ARU called a national strike. By June 1894,
nearly 300,000 rail workers had walked off their jobs. The
Pullman Strike halted both railway traffic and mail delivery.
 On July 4, Grover Cleveland sent in federal troops, ending the
strike. When Debs refused he was arrested for conspiring
against interstate commerce. The strike was stopped by the
government.
Effects on the Labor
Movement

 The Labor Movement made people aware of the mistreatment of
employees during the Industrial Revolution.
 Contract negotiations, strikes, and legislation would become the life for
American industry.
 Violence by anarchists hurt the reputation of unions as many associated
unions to violence
 In the decades after the Pullman Strike, the labor movement split into
different factions, some increasingly influenced by socialism.
 Socialism – an economic and political philosophy that favors public, instead of
private, control of property and income. Socialists believe that society at large,
not just private individuals, should take charge of a nation’s wealth. Wealth
they argue should be distributed equally to everyone.
 Eugene Debs spreads socialism and creates his Industrial Workers of the
World union which became a radical violent group. Debs would later run
for President with the American Socialist Party in 1900.
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