honors american history chapter 4 honors american history chapter 4

Honors American History

Chapter 4

Honors American History

Chapter 4

Which of the following do you most agree with?

• Industrial growth in the US improved conditions for workers.

• Industrial growth in the US created great wealth for both workers and entrepreneurs.

• Industrial growth in the US benefited only wealthy entrepreneurs.

• Industrial growth in the US caused tension between employers and labor unions.

Essential QuestionEssential QuestionIndustrialization

increased the standard of living and the opportunities of most Americans, but at what cost?Was it worth it?

Industrialization increased the

standard of living and the opportunities of most Americans, but at what cost?Was it worth it?

New Business CultureNew Business Culture1. What is “Laissez Faire” the ideology of

the Industrial Age.

1. What is “Laissez Faire” the ideology of the Industrial Age.

Individual as a moral and economic ideal.

Individuals should compete _______ in the marketplace.(Capitalism)

The market was not man-made or invented.

No room for __________ in the market!

Individual as a moral and economic ideal.

Individuals should compete _______ in the marketplace.(Capitalism)

The market was not man-made or invented.

No room for __________ in the market!

Basic Principles of Capitalism

• ________ ownership of business

• Individual economic freedom

• ______Market• Supply and ________• What is the primary

motivator = _______

Supply and Demand

Causes of Rapid IndustrializationCauses of Rapid Industrialization

1. Oil Boom-______ ______1859 Titusville PennsylvaniaHow did it change America?

2. Technological innovations. Steel - _______ and open hearth

process Why important?

Refrigerated cars

1. Oil Boom-______ ______1859 Titusville PennsylvaniaHow did it change America?

2. Technological innovations. Steel - _______ and open hearth

process Why important?

Refrigerated cars

1st oil well in Titusville Pa.


3. The ________ fueled the growing US economy:

First big business in the US. A magnet for financial investment. The key to opening the _____. How? Aided the development of other

industries. What major industry is tied to this industry?---____________

3. The ________ fueled the growing US economy:

First big business in the US. A magnet for financial investment. The key to opening the _____. How? Aided the development of other

industries. What major industry is tied to this industry?---____________

Railroad ConstructionRailroad ConstructionRailroad ConstructionRailroad Construction

4. Unskilled & semi-skilled ______ in abundance.

5. Abundant _______.(What is this?)6. New, talented group of businessmen

[___________] and advisors. (risk takers)7. Market growing as US ________ increased.8. ______ willing to help at all levels to

stimulate economic growth.(“______ _____”)9. Abundant natural ________.

4. Unskilled & semi-skilled ______ in abundance.

5. Abundant _______.(What is this?)6. New, talented group of businessmen

[___________] and advisors. (risk takers)7. Market growing as US ________ increased.8. ______ willing to help at all levels to

stimulate economic growth.(“______ _____”)9. Abundant natural ________.


Thomas Alva EdisonThomas Alva Edison

“_____ of ____ Park” “_____ of ____ Park”

What did he invent?

The Light BulbThe Light Bulb

The Phonograph (1877)The Phonograph (1877)

The Ediphone or Dictaphone

The Ediphone or Dictaphone

The Motion Picture CameraThe Motion Picture Camera

Communication Revolution

• Telegraph

Who? When? What did it do? How did it change life?

Alexander Graham BellAlexander Graham Bell

Invented the __________ (1876)Invented the __________ (1876)

Transportation Revolution

• What led to the development of mass transit systems?

• Streetcars

• Subways

Automobiles

• What invention was key to the development of the automobile?

• Who built the first practical American motorcar?

Model T AutomobileModel T Automobile

Henry Ford-______ ______ of the automobile

I want to pay my workers so that they can afford my product!

Henry Ford-______ ______ of the automobile

I want to pay my workers so that they can afford my product!

The AirplaneThe Airplane

Wilbur ______ Orville _______ Wilbur ______ Orville _______

Kitty Hawk, NC – December 7, 1903 Kitty Hawk, NC – December 7, 1903

The Rise of Big Business

Section 4.2

New Type of Business EntitiesNew Type of Business Entities1. Corporation – What is it? Who owns it? Who

runs it? How does it raise money?

2. Trust What is it? Who runs it? What can this lead to?

3. Partnership -4. Sole Proprietorship -

1. Corporation – What is it? Who owns it? Who runs it? How does it raise money?

2. Trust What is it? Who runs it? What can this lead to?

3. Partnership -4. Sole Proprietorship -

Standard Oil Co. John D. Rockefeller

Standard Oil Co. John D. Rockefeller

The Corporation

• A business that is owned by a number of people (share profits and risks)

• Share of stock

• Why did the corporation emerge at this time?

New Type of Business Entities


2. Trust: Horizontal Integration John D.

Rockefeller

2. Trust: Horizontal Integration John D.

Rockefeller Vertical Integration:

o Gustavus Swift Meat-packingo Andrew Carnegie U. S. Steel

Vertical Integration:o Gustavus Swift Meat-packingo Andrew Carnegie U. S. Steel

Horizontal Integration

Vertical Integration

Oil Wells Transportation

RefineriesRetail

All owned by Standard Oil of Ohio

U. S. Corporate Mergers

U. S. Corporate Mergers

What does this graph illustrate?

Standard Oil Co.Standard Oil Co.

Rockefeller used both horizontal and vertical.

“On Wealth”“On Wealth”

Andrew Carnegie – What does the cartoon

depict about Carnegie?

Andrew Carnegie – What does the cartoon

depict about Carnegie?

$ The Anglo-Saxon race is superior.

$ “Gospel of Wealth” (1901).

$ Inequality is inevitable and good.

$ Wealthy should act as “trustees” for their “poorer brethren.”

$ What industry did he control? What company?

$ The Anglo-Saxon race is superior.

$ “Gospel of Wealth” (1901).

$ Inequality is inevitable and good.

$ Wealthy should act as “trustees” for their “poorer brethren.”

$ What industry did he control? What company?

Cornelius [“Commodore”] Vanderbilt

Cornelius [“Commodore”] Vanderbilt

Can’t I do what I want with my money?Can’t I do what I want with my money?George Pullman – sleeper cars (Why important?)

He also built a company town near Chicago.

Pullman CarsPullman Cars

A Pullman A Pullman porterporter

New Financial BusinessmanNew Financial BusinessmanThe Broker:

J. Pierpont _______ (banker) Bought Carnegie Steel for $480 million

The Broker: J. Pierpont _______ (banker) Bought Carnegie Steel for $480 million

The Captains of IndustryWhat does this term imply about these men?

Cornelius Vanderbilt

(Railroads, Steamships)

John D. Rockefeller

(Oil)

J.P. Morgan

(Finance)

Andrew Carnegie

(Steel)

Business Legacy Today



John D. Rockefeller

(Oil)

J.P. Morgan

(Finance)

Andrew Carnegie

(Steel)

The ‘Robber Barons’ of the Past

The ‘Robber Barons’ of the Past

Are they “robber barons” or “captains of industry”?

Philanthropy



John D. Rockefeller

(Oil)

University of Chicago

J.P. Morgan

(Finance)

NY Met. Mus. Of Art

Andrew Carnegie

(Steel)

Modern ‘Robber Barons’??Modern ‘Robber Barons’??

What company is the cartoon referring to?

Why?

2. Social Darwinism2. Social Darwinism British economist. Advocate of

laissez-faire. Adapted Darwin’s

ideas from the “Origin of Species” to humans.

Notion of “_____ of the _______.”

British economist. Advocate of

laissez-faire. Adapted Darwin’s

ideas from the “Origin of Species” to humans.

Notion of “_____ of the _______.”Herbert SpencerHerbert Spencer

2. Social Darwinism in America

2. Social Darwinism in America

William Graham SumnerFolkways (1906)

William Graham SumnerFolkways (1906)

$ Individuals must have absolute freedom to struggle, succeed or fail.

$ Therefore, state intervention to reward society and the economy is futile!

$ Individuals must have absolute freedom to struggle, succeed or fail.

$ Therefore, state intervention to reward society and the economy is futile!Do you agree with this

philosophy?

4.3 – Organized Labor MovementWorkers Organize

• 1890 10% of population has 75% of wealth

• Sherman Antitrust Act– What did it do?– Was it effective?

• ICC-1887 – What is this? Why was it important?Immigrants and children worked in factories

Why did they begin to join unions?

Child LaborChild Labor

A “Compan

yTown”:

Pullman, IL

A “Compan

yTown”:

Pullman, IL

Labor Unions

• Prices lower, but workers still can’t afford consumer goods – start to organize

• Employers see labor movement as a threat

• COLLECTIVE BARGAINING – __________

• Tactics – used _________

• 1834 National Trades Union – didn’t last long

MARXISM – refers to Marx’s MARXISM – refers to Marx’s ideas; adaptations & variations ideas; adaptations & variations came latercame later

Marxism was the dominant Marxism was the dominant form of the 19form of the 19thth c. socialism c. socialism

Marx collaborated w/ Marx collaborated w/ FRIEDRICH ENGELS FRIEDRICH ENGELS – Both – Both were German but lived and were German but lived and wrote in England, esp. in the wrote in England, esp. in the industrial city of Birminghamindustrial city of Birmingham

1848 – 1848 – “________ “________ ________” ________” is is published for the Communist published for the Communist LeagueLeague

Marx chose the term Marx chose the term “communist” since it sounded “communist” since it sounded radical: it implied the abolition radical: it implied the abolition of _______ property & the of _______ property & the reorg. of society based on a reorg. of society based on a workers’ ___________workers’ ___________

Marx’s Ideas

History advances through conflict – the Haves vs. the Have-Nots.

The Haves will not give up their wealth without revolution!!!

Workers of the World, UNITE!!!

Marx thought Marx thought history was cyclical history was cyclical and that the time and that the time for comm. had for comm. had arrived – he arrived – he advocated achieving advocated achieving comm. in a violent comm. in a violent rev. where the rev. where the workers workers ((__________________) would ) would overthrow the overthrow the capitalist/owners capitalist/owners ((__________________________))

Knights of LaborKnights of Labor

Terence V. ________Terence V. ________

An injury to one is the concern of An injury to one is the concern of all!all!

Knights of LaborKnights of Labor

Knights of Labor trade cardKnights of Labor trade card

Accepted unskilled, women, and African-Americans

Goals of the Knights of Labor

Goals of the Knights of Laborù Eight-hour workday.Eight-hour workday.

ù Workers’ cooperatives.Workers’ cooperatives.

ù Worker-owned factories.Worker-owned factories.

ù Abolition of _____ and prison labor.Abolition of _____ and prison labor.

ù Increased circulation of greenbacks.Increased circulation of greenbacks.

ù Equal pay for men and women.Equal pay for men and women.

ù _____ codes in the workplace._____ codes in the workplace.

ù Prohibition of contract foreign labor.Prohibition of contract foreign labor.

ù Abolition of the National Bank.Abolition of the National Bank.

The American Federation

of Labor: 1886

The American Federation

of Labor: 1886

Samuel _______Samuel _______

How the AF of L Would Help the

Workers

How the AF of L Would Help the

Workersù Catered to the skilled worker.Catered to the skilled worker.

ù Represented workers in matters of Represented workers in matters of national legislation.national legislation.

ù Maintained a national strike fund.Maintained a national strike fund.

ù Evangelized the cause of unionism.Evangelized the cause of unionism.

ù Prevented disputes among the many Prevented disputes among the many craft unions.craft unions.

ù Mediated disputes between Mediated disputes between management and labor.(won wage management and labor.(won wage increases and shorter workweeks)increases and shorter workweeks)

ù Pushed for Pushed for closed shopsclosed shops..

The Great Railroad Strike of 1877




Army sent in to end the strike

Haymarket Riot (1886)

Haymarket Riot (1886)

McCormick Harvesting Machine Co.McCormick Harvesting Machine Co.

Haymarket MartyrsHaymarket MartyrsWho is blamed for the bombing?

What was the result of the riot?

Homestead Steel Strike

(1892)

Homestead Steel Strike

(1892)

The Amalgamated The Amalgamated Association of Association of

Iron & Steel WorkersIron & Steel Workers

Homestead Steel Homestead Steel WorksWorks

What were the results of the strike?

The Pullman Strike of 1894


President Grover Cleveland

President Grover Cleveland

If it takes the entire army and navy to If it takes the entire army and navy to deliver a postal card in Chicago, that card deliver a postal card in Chicago, that card

will be delivered!will be delivered!



Government by injunction!Government by injunction!

What was the government reaction?

What happened to the workers?

The SocialistsThe Socialists

Eugene V. DebsEugene V. DebsHead of American Railway Union

honors american history chapter 4 honors american history chapter 4

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