Transcript The Rise of Industry

The Rise of Big Business
US History
Quality Core Standards
• QC-C1B - Identify and evaluate the influences on
business and industry in the late nineteenth and early
twentieth centuries.
• QC-C1C - Identify labor and workforce issues of the late
nineteenth century, including perspectives of
owners/managers and Social Darwinists.
• QC-C1D - Explain the challenges and contributions of
immigrants of the late nineteenth century
• QC-C1E - Explain the causes and impact of urbanization
in the late nineteenth century
I. US Industrializes
A. Industrial Revolution
1. Although the industrial revolution began in the
early 1800’s, much of the US was primarily
agricultural until the end of the Civil War.
2. By the early 1900’s, the US had become the
leading industrial nation.
I. US Industrializes
B. Reasons
1. Natural Resources
A. Abundance of resources led to American industrial
success.
2. New Inventions and Technology
A. Led to the new founding of corporations which
produced wealth and jobs
3. Large Workforce
A. Large families and Influx of immigrants helped
factories to increase their production
New Technology
II. Government
A. Free Enterprise
1. Laissez – Faire
A. The idea that the government does not interfere in
the economy.
B. Government regulations cause problems
C. Profit Motive
2. Entrepreneurs
A. Those who risk their own capital to run a business.
Entrepreneurs
III. Big Business
A. Corporation
1. An organization owned by many people but
treated by law as if it were a single person.
A. Stakeholders – people who own the corporation
because they own shares of stock
B. With the money they raised from the sale of stock,
corporations would invest in new technologies.
III. Big Business
B. Monopolies and Trusts
1. Vertical integration – owning all of the
businesses in which a company depends for its
operation.
2. Horizontal integration – combining many firms
engaged in the same type of business into one
large corporation.
3. Monopoly – when a single company achieves
control of an entire market.
III. Big Business
B. Monopolies and Trusts
4. Soon Americans became leery of large
corporations and monopolies, many states
began passing laws against them.
5. Trusts – Allows one person to manage another
person’s property.
A. Instead of stockholders, investors were known as
trustees.
IV. Social Darwinism
A. Opinion
1. Many people criticized the industrialists and
their supporters.
2. They believed they were just the best men for
the job
3. Social Darwinism – the idea that these men
were “fittest” for success and that others were
just weaker.
IV. Social Darwinism
B. Gospel of Wealth
1. Not all industrialists believed taking and not
giving.
A. The idea that the rich had a responsibility to put their
money to good use.
B. Rich people should give back to society.
V. Immigration
A. Old vs. New (Page 337)
1. Old Immigrants – Mid 1800’s
A. Northern and Western Europe
B. Mostly farmers who spoke English
C. Easy to assimilate
2. New Immigrants – Late 1800’s Early 1900’s
A. Southern and Eastern Europe
B. Varying religions, laborers, who spoke little to no
English.
C. Difficult to assimilate
V. Immigration
B. Reasons
1. Push Factors –
A. Population Growth led to overcrowded cities,
lack of jobs and food shortages
B. Scarcity of Land
C. Religious Persecution
V. Immigration
B. Reasons
2. . Pull Factors
A.
B.
C.
D.
Democratic Society
Ample Farmland
Booming Industry
American Letters- helped to persuade many people
to come to America.
V. Immigration
B. Reasons
3. Improvements in Transportation
A. Steamships allowed for faster travel
1. Steerage – Many immigrants could only afford the bottom
rooms which were unsanitary and lacked space
V. Immigration
C. Immigration Station
1.
2.
3.
4.
Port of entry for most European immigrants
Most would face medical exams and legal interviews
Those with incurable diseases would be deported.
After leaving Ellis Island, most immigrants found
their way to major cities surrounding themselves
with those with common interests.
Ellis Island
V. Immigration
D. Asian Immigration
1. Severe unemployment, poverty and famine led
several Chinese immigrants to arrive in the US
in the mid 1800’s
2. Japanese immigrants began to arrive in the early
1900’s
3. Most worked as laborers, servants, or on the
railroads
V. Immigration
D. Asian Immigration
1. To accommodate Asian immigrants, Angel Island
was opened in San Francisco
2. Not nearly as “pleasant” as Ellis Island.
V. Immigration
E. Nativism
1. New wave of immigrants led to an increase
feeling of nativism.
A. Nativism – preference for native born people and
desire to limit immigration
2. Opposition of new immigrants for many reasons
A. Fear of the Catholic church
B. Labor unions disliked immigrants who they feared
would be “scab” labor.
VI. Impacts of Urbanization
A. New Urban Environment
1. Skyscrapers and Mass Transit–
A. Owners began expanding their businesses upward
instead of outward.
B. Louis Sullivan – skyscraper architect
C. To transport large people, several types of mass transit
emerged.
1.
2.
Electric trolleys
Elevated railroads
VI. Impacts of Urbanization
B. Separation by Class
1. High Society – wealthy families established
fashionable districts in the hearts of cities.
2. Middle Class – doctors, lawyers, engineers,
managers, social workers, etc. Created “suburbs”
3. The Working Class – Most of Americas city
dwellers were extremely poor
A. Tenements – dark, crowded multi family apartments.
VI. Impacts of Urbanization
C. Urban Problems
1. Rise in crime, violence and disease
2. Nativism – Americans blamed immigrants for this
crime.
3. Pollution and Poverty – improper sewage
disposal and contaminated water caused
epidemics of contagious disease.
VI. Impacts of Urbanization
D. Politics
1. Cities began to grow much faster than their
governments. This led to the rise of political
machines.
A. In exchange for votes, political machines and the Party
bosses that ran them provided necessities to the poor.
B. Machines controlled city finances, as a result many
bosses grew rich as a result of graft.
1.
2.
Graft – getting money through dishonest means
Many corrupt bosses had city officials on their pay rolls.
VI. Impacts of Urbanization
D. Politics
2. Tammany Hall
A. The most famous political machine, NYC.
B. William M. “Boss” Tweed – the corrupt leader of
Tammany Hall.
1. Thomas Nast – blasted bosses through political cartoons for
their corrupt behavior.
VI. Impacts of Urbanization
E. Federal Government Scandals
1. Credit Mobilier
A. Corruption in which investors signed contracts with
themselves, making millions off of work done by the
Union Pacific.
2. Whiskey Ring – Conspiracy of distillers to defraud
the federal government of excise tax.
VI. Impacts of Urbanization
E. Federal Government
3. Many people felt as though the spoils system
prevented the government from addressing the
nation’s issues.
4. Pendleton Act – allowed the president to decide
federal jobs based upon merit or civil service.