IIII.. IndustrializationIndustrialization(1870-1900)(1870-1900)

Transportation RevolutionJames Watt developssteam engine in 1765.

Robert Fulton’s steamboat

provided fast, easy transportationof both raw materials and finished

goods.

Industrialization Spreadsto the U.S.

1789, Samuel Slater emigrates illegally to U.S.

Builds spinning machine from memory.

1790, 1st textile factory opens in U.S.

Lowell Textile Mills

Lowell Mill Girls

Although the Industrial Revolution started in the Although the Industrial Revolution started in the early 1800’s, the nation was still largely a farming early 1800’s, the nation was still largely a farming country when the Civil War was fought. country when the Civil War was fought.

In 1860, only 1.3 million people out of 30 million In 1860, only 1.3 million people out of 30 million worked in industry. After the Civil War, industry worked in industry. After the Civil War, industry expanded rapidly as millions left their farms to expanded rapidly as millions left their farms to work in mines and factories.work in mines and factories.

Machines replaced human and animal power; Machines replaced human and animal power; new sources of power (steam); new raw new sources of power (steam); new raw

materials (coal instead of wood); new mode of materials (coal instead of wood); new mode of production (factory system).production (factory system).

The Bessemer Process• The Bessemer process was the first

inexpensive industrial process for the mass-production of steel from molten pig iron.

• The process is named after its inventor, Henry Bessemer, who took out a patent on the process in 1855.

A Bessemer converter in

Station Square, Pittsburgh, PA.

A. Inventions – helped ↑ productivity, transportation, & communication.

1. Alexander Graham Bell – 1876, invented telephone;

revolutionized communications.

2. Thomas Edison – 1877, invented the phonograph; 1879, perfected the light bulb & electric generator.

1877, Bell and others formed the Bell Telephone Co., which became AT&T. 1882, Edison Electric Illuminating Co. began supplying electric power to

NYC; Edison’s Company later merged to become today’s GE.

Alexander Graham Bell(1847-1922)

Invented the telephone in 1876.

In "The Telephone Gambit: Chasing Alexander Graham Bell's Secret," journalist Seth Shulman argues that Bell — aided by aggressive lawyers and a corrupt patent examiner — got an improperpeek at patent documents Elisha Gray had filed, and Bell was wrongly credited with filing first.

Thomas Edison (1847-1931)

Invented the phonograph (1877), the research laboratory, and improved the light

bulb (1879).

Early advertisement for phonograph,showing the inventor Thomas Edison. 1879

B. Railroads began to boom in 1862.

1. Pacific Railway Act (1862) – Lincoln approved the 1st transcontinental railroad.

Finished 7 yrs later in 1869, the two lines met at Promontory Summit, Utah. Union Pacific RR and Central Pacific RR worked on transcontinental RR. Chinese immigrants used on the railroad construction. Railroad expansion spurred American growth.

2. Land Grants (1850’s) – U.S. gov’t gave land to RR Companies.

Given 120 million acres, the size of New England, New York, and Penn combined, to help settle the West and raise money for the Railroads (covered most of constructions costs).

Cutting through the Sierras, 1865.

C. Free Enterprise.

1. Entrepreneurs – people who take risks to make a profit.

2. Laissez-faire – Gov’t should not interfere with the economy.

Laissez-faire means “let people do as they choose” in French.Laissez-faire means “let people do as they choose” in French.

Entrepreneurs.

Laissez-faire = not interfering in the business market.Laissez-faire = not interfering in the business market.

Entrepreneurs (and Robber Barons) didn’t want the government Entrepreneurs (and Robber Barons) didn’t want the government putting restrictions on business activities. putting restrictions on business activities.

3. Robber Barons (Industrialists) – People who loot an industry & give nothing back.

Newport, R.I.

John D. Rockefeller Sr., U.S. capitalist, 1917.

J. P. Morgan assaulting

photographers (hated being

photographed dueto facial

disfigurement from a skin

disease).

Political Political Cartoon Cartoon

Reflecting Reflecting Public Public

Awareness of Awareness of Railroad'sRailroad's

(Carnegie, (Carnegie, Stanford, etc.)Stanford, etc.) Control of Control of Government, Government,

1887 1887

Standard Oil Company was controlled by John D. Rockefeller until theMonopoly was broken up in 1892 due to Anti-Trust legislation. Standard later

became Exxon, Mobile, Amoco, Arco, Chevron, Sunoco, and Sohio (BP).

Just a few of the Robber Barons:• Andrew Carnegie (railroads, steel) – Pittsburgh, Pennsylvania• James Fisk (finance) – New York state • Henry Flagler (railroads, oil, the Standard Oil company) – New York City• Henry Ford (automobile) – Dearborn, Michigan and Detroit, Michigan• Collis P. Huntington (railroads) – California, Virginia, and New York • John P. Morgan (finance) - New York • Mark Hopkins (railroads) - California• John D. Rockefeller (oil) - Cleveland, Ohio • Leland Stanford (railroads) – Sacramento and San Francisco, California • Cornelius Vanderbilt (railroads, shipping) - New York City, New York

Corruption in the RR industry due to heavy gov’t funding & involvement.

John D. Rockefeller – Owned the Standard Oil company (90% of U.S. oil refining industry = Monopoly).

Andrew Carnegie – Philanthropist used to further social progress.

Treated by the law as a single person (pros & cons). People who own the Corporation are called stockholders; own shares

of stock in the Company. Increased popularity in 1830 with new/easier legislation; forced some

small business to close.

Stockholders

Company President

Board of Directors

Managers

4. Corporations – Organization owned by many people.

D. Labor Unions – try to improve working conditions; industrial workers came together beginning in 1800’s.

Workers in the 1800’s often faced unhealthy and unsafe working conditions. Although industrialization brought an improvement to the standard of living

for Americans, the uneven division of income between rich and poor caused resentment.

No laws to allow for Unions; labor leaders could be jailed for “conspiracy in restraint of trade.”

20072007

1. American Federation of Labor (AFL) in 1886, led by Samuel Gompers, united 20 trade

unions. a) Collective Bargaining –

negotiate as a group.b) Closed shop – only hire

union members.c) 8-hour days; 40-hr weeks.

Industrial Unions were not as successful; faced lockouts, blacklists, & army sent to restore order during a strike.

By 1900, the AFL was largest trade union in nation with 500,000 members (15% of non-farm workers).

Adam Smith and

the Wealth of Nations

It is widely considered to be the first modern work in the field of economics. The work is also the first comprehensive defense of free market but not

laissez faire policies as so many have come to believe.

There are three main concepts that Adam Smith expands upon in this workthat forms the foundation of free market economics: division of labor,

pursuit of self interest, and freedom of trade.

E. Opposition from Karl Marx (Marxism) – Class struggle between workers & owners; workers revolt & take control of

factories, overthrow the gov’t, and leave a Communist society with no classes.

Karl MarxKarl Marx

Diego Rivera mural showing Leon Trotsky, a known Communist (Marxist).

Karl MarxKarl Marx (1818 – 1883) was a 19th century philosopher, (1818 – 1883) was a 19th century philosopher, political economist, and revolutionary.political economist, and revolutionary.

Communist ManifestoCommunist Manifesto (1848): “ (1848): “The history of The history of all hitherto existing society is the history of class all hitherto existing society is the history of class strugglesstruggles”. ”.

Marx is the co-founder of Marxism (with Engels) Marx is the co-founder of Marxism (with Engels) and is often called the and is often called the father of communismfather of communism. .

Marx believed that Marx believed that capitalism will be displaced capitalism will be displaced by communismby communism, a classless society., a classless society.

Marx argued that the analysis of capitalism revealed that the Marx argued that the analysis of capitalism revealed that the contradictions within capitalism would bring about its own end, giving contradictions within capitalism would bring about its own end, giving way to communism.way to communism.

Marx influenced Lenin, Stalin, Trotsky, Mao Zedong, Fidel Castro, Che Guevara, and many others.

Memorial to Memorial to Karl Marx in Karl Marx in Moscow. TheMoscow. The

inscription reads inscription reads ““Proletarians of all Proletarians of all countries unite!” countries unite!”

Communism is the doctrine of the liberation of the working class.

Frida Kahlo painting, Marxism Will Give Health

to the Sick, 1954.

Diego Rivera mural showing V.I. Lenin, a Communist leader.

Diego Diego Rivera Rivera mural mural

showing showing the the

struggle of struggle of the the

classes. classes. Palacio Palacio

National, National, Mexico Mexico

City.City.

Industrial Capitalism – economic system based on manufacturing.

Middle Class – skilled workers, professionals, lawyers, & doctors.

Working Class – laborers, work 12-16 hours/day, 6 days/week, 30 min. lunch & dinner, low wages, fired anytime.

Industrial Class structure

F. Working Women – Over 18% of workforce in 1900.

1/3 worked as domestic servants; another 1/3 as teachers, nurses, sales clerks, & secretaries; remaining 1/3 in light industrial jobs (garment industry & food processing plants).

Women were paid less than men when performing the same job.

1. Mary Kenney O’Sullivan & Leonora O’Reilly –

Women’s Trade Union League (WTUL)

in 1903 to promote women’s labor issues.

First national association for women’s labor issues: 8-hour work day, creation of minimum wage, end to evening work for women, abolish child labor.

Henry Ford Father of modern assembly lines used in mass production (1913). "Fordism", Efficiently produced many inexpensive cars using the

assembly line (specialization); paid high wages ($5/day in 1914). Ford assembly line, 1913.

“You can paint it any color, so long as it's black.” -- Henry Ford

Model T from 1908-1927.

By 1914, the U.S.’s gross domestic product (GDP) – value of all goods & services By 1914, the U.S.’s gross domestic product (GDP) – value of all goods & services produced by a country – was 8 times higher than at the end of the Civil War.produced by a country – was 8 times higher than at the end of the Civil War.

Vast natural resources, large workforce (many immigrants), free enterprise, and new Vast natural resources, large workforce (many immigrants), free enterprise, and new inventions.inventions.

• Production by 1916 was over 700,000 model T's -- twice the output of all competitors combined.

• The increased efficiency allowed Ford to cut prices by a third, selling the car for $850 in 1909, and $290 by 1924.

• Ford made 15 million model T's by 1927.