The Industrial Movement & Immigration

Unit 7 & 8 The Industrial Movement & ImmigrationUnit 7: Industrial MovementThe Rise of Big BusinessImportant Business LeadersThe Impact of Big BusinessAmerican Responds to Big BusinessEssential QuestionsTimeline: Industrial Movement18641868187218741878188218861890189418981902Civil War ends Reconstruction period beginsThe Grange is founded 1867Munn v. IllinoisRailroads regulated 1877Interstate Commerce Act passed 1887

Farmers organize the Populist Party1891Pullman Strike1894The Rise of Big BusinessFactors Promoting Big Business in America:Abundant Natural ResourcesNew TechnologiesTransportationCheap LaborEconomic EnvironmentSocial AttitudesAbundant Natural ResourcesCoal OilIron OreWater

New TechnologiesFactory SystemSteam EnginesRailroads and SteamshipsNew Machines and ToolsInterchangeable Parts

TransportationCanals, steamships, and especially railroadsGreatly improved the ability to transport both raw materials and finished products

Cheap LaborLarge families and the arrival of immigrants meant a huge population needed workThe high demand for jobs kept the cost of labor down for businesses

Economic EnvironmentInvestment Capital: Local and International investors saw a bright future for American Industry (Many investors ad made their money through the triangle trade)Laissez Faire: the government did not get involved in the setting of prices or wages the market was allowed to control this through the process of supply and demandFederal Government SupportHigh tariffs kept foreign goods out of US marketsGave away lands to railroad companies to promote railroad developmentSold lands to mining companies for less than real valueStayed out of the affairs of most businesses allowed free-enterprise to take placeSocial AttitudesSocial Darwinism:1. The ideas of Survival of the Fittest to the business community2. The strong should survive and the weak businesses should fail3. Applied to government thoughts to help the poor was seen as against the laws of nature

Horatio Alger Myth:1. Based on books by Horatio Alger2. His characters embodied the Puritan Ethic hard work equals success3. Often featured the idea of a poor boy becoming a successful businessmen

Characteristic of Big BusinessNew ways begin at this time to organize business1.) Incorporation:a. Corporations are businesses that have many investors owning shares of the businessb. Shareholders hope to receive a share of the profits at a future timec. Losses are spread out to only what a shareholder ownsd. Increased investment in American Industry

2.) Trusts:a. A group of corporations in a related field, like railroads and oilb. Later they were made illegal

3.) Department Stores:a. Putting several small stores under one roof more efficient shopping4.) Mail Order Catalogs:a. Sears and Montgomery Ward opened up department stores shopping to rural areasCase Study: Important Business LeadersAndrew Carnegie

John D. Rockefeller

Andrew CarnegieEarly Life:- Immigrant from Scotland- Worked in textile mill at age 12

Big Break:- Familiarized himself with process of Steel making

Industry:- Steel

Reasons for Success:- Vertical integration merging steps of production to cut costs of production- Acquired coal mines, iron ore fields, etc- his prices were lower than all other companies

Later Life:- Sold company for a quarter billion dollars- believed the wealthy had an obligation to society and gave away millions of dollars - philanthropyJohn D. Rockefeller Early Life: - born and raised in NY State- focused on accounting from an early age

Big Break:- moved to Cleveland, got involved in off business at its beginnings- merged oil businesses together (horizontal integration)

Industry:- Oil refining (controlled 90% worldwide)

Reasons for Success:- Horizontal integration merging companies that produce the same product- Single minded, goal oriented focus- Formed trusts in response to anti-monopoly legislation

Later Life:- Nations first ever billionaire

Andrew CarnegieJohn D. Rockefeller Impact of Big BusinessUrban Growth1. Why they came:- for jobs and better housing- visions of improved opportunities and prosperity2. Where they went:- Immigrants tended to settle in the port city where their boat landed3. Influx of foreign immigrants- Old Immigrants: Early 1800s North and West Europe- New Immigrants: Late 1800s South and East Europe4. Problems:- Crowding and poor living conditions- Increased crime rates- Political corruption and they did not improve the lives of the peopleWork and the WorkersFactory Working Conditions:1. Long hours2. Low pay3. Unsafe conditions machine, factories, mines4. Replaceable workers

Child Labor1. Kids were used when possible because business owners could pay them less

2. Conditions were more dangerous to kids that often had difficulties operating machines and working long hours

Two Wage Earners:

1. New opportunities for women to work came about at this time

2. Women took jobs out of economic necessity or to take a greater role in society3. Paid less than men were paid for similar jobs

Abuses of Big Business:

1. Monopolies: attempts by companies to eliminate competition and corner the market for a certain business sector

2. Influence on Government: contributions to campaigns and candidates at a state and federal level in hopes to gain favorable legislation

3. Anti-organized labor: government sided with management against unions at this time

4. Unsafe products: companies often took advantage of lack of regulations on products

America Responds to Big BusinessPopulist Movement:- The populist movement originated with farmers that wanted changes in national politics that would make their situation easier.

The Grange:- originally organized as a social organization for farming families- eventually turned into a powerful lobbying organization for pro-farmer legislation- developed into a co-op for agricultural communities to help regulate farm product prices

The Government RespondsMunn vs. Illinois (1877)- reactions against railroads charging unfair prices to farming industry- the issue was whether or not a state could regulate prices of railroad activities- 7-2 decision in favor of the states gave states power to regulate local business

Interstate Commerce Act (1877)- First federal government regulation of big business- marks and end to laissez faire- Created Interstate Commerce Commission to monitor and regulate interstate business (especially railroads) and began to end the abuses in industryThe Growth of Labor Unions1. Early National Labor Unions- Knights of Labora. led for many general reforms: 8 hour days, end to child labor, equal pay for womenb. declined in power after a few unsuccessful strikes and competition from the AF of L- A.F. or L.a. American Federation of Laborb. fought hard for basic rights and conditions for workersc. did not welcome women, immigrants or African Americans

Objectives of Labor UnionsBetter wages for workersBetter working conditions: less hours and safer conditionsBetter associated benefits like health care, sick days, vacation timeConflict and StruggleTools of ManagementYellow-dog contracts: owners required workers to sign oaths to not join a unionDetectives were often hired to search our union organizers then fire themLock-outs prevented workers from working and getting paidOwners often hired replacement workers (scabs) during a strikeBlack lists: owners often shared names of troublemakers wouldnt hire themTools of UnionsCollective Bargaining third party representatives used to negotiate contractsStrikes organized action of not reporting for work by employeesPicket standing near business with signs to call attention to unfair conditionsBoycott organized action of not buying products of a business

Major StrikesPullman Strike:Striking workers of railway-car makers clogged up the railways in much of the countryPresident Cleveland sent in federal troops to keep the trains moving because they carried US MailThe Supreme Court case of US vs. Debs decided the federal government had a right to support the general welfare of the American people

Other Labor UnionsCIO: Congress of Industrial Organizationsa. organized skilled and unskilled laborers in various Industriesb. American Railway Union, United Mine Workers

AFL-CIO Merger:a. 1955 two largest labor unions in America merged to form an even more powerful labor organization become largest in the worldEssential QuestionsIn what way can it be said that America was destined to have Big Business?- Natural transportation systems- Plenty of raw materials and resources- Government policies that were favorable to business (laissez-faire)- A base of capital investors (American and Foreign)- A strong labor force was available- The rugged individualism of the American character2. How did industrial growth and the rise of business in America produce both positive and negative results?

Positive:- Dramatic increases in industrial production becoming the world leader- Improvement in quality and availability of affordable goods for consumers- Set the stage for an increased role as a world power

Negative:- Harsh working and living conditions- Little to no rights for workers- Growth of monopolies- Big business had too much influence over governmentUnit 8: ImmigrationMapDifferent Period of Immigration: Old Immigrants, New Immigrants, NAO Period, and Recent ImmigrationImportant TermsEssential Questions

Different Periods of Immigration in AmericaTime:- Old Immigration (Colonial Period, The Great Migration)

Who Came?- Dominated by the English- Other English speaking people: Scotch, Irish- Western and Northern Europeans: Dutch, Scandinavians, Germans- Africans as labor

Reasons Why?- Most came for religious or political freedoms- Many came to improve economic situation- Opportunities of a new land

Reactions by US- These people became the US- They generally worked together and supported one another as newcomers in a new land- They often had common enough cultural traditions to reduce significant conflicts from occurringTime:- New Immigration Late 1800s to Early 1900s

Who Came?- More from Eastern and Southern Europe- Asians: from Japan and China

Reasons Why?- Better economic opportunities in the industrial centers of America- Religious freedoms (Russian Jews)- Some for political freedoms

Reactions by US- Increase in anti immigration feelings or Nativism- The first wave of immigrants considered themselves to be the true or native Americans and resented the new immigrants from other areas of the world- created prejudice and bigotry- many feared the erosion of the original American way of lifeTime: - NAO Period 1925-1965

Who Came?- Mostly Europeans- England- Italy- Germany

Reasons Why?- World War II

Reactions by US:- Strict regulation of immigration during this period- maximum numbers established to be allowed into America- Severally restricted new immigrants- favored northern and western Europeans not eastern and southernTime: - Recent Immigration

Who Came?- Latin Americans (illegal crossing of Mexican/American border- Caribbean (Cuba, Haiti, Dominican Republic)- Asians (China, Philippines. Vietnam, S. Korea, India, Pakistan)

Reasons Why?- Economic opportunities, Political oppression, fleeing conflicts

Reactions by US:- Illegal Immigration Reform Act (border patrols, punish employers that hire illegals- Immigration Act (set maximum allowed immigrants in US each year; set fair system to determine who would be allowed in)

Immigration TermsOld Immigrants:The first wave of Europeans coming to the Americas (1700s). Usually came from Northern and Western parts of Europe. Usually came with money. Came for a more independent life. New Immigrants:The second wave of Europeans coming to the United States (1800s). Usually from Eastern or Southern Europe. Usually came poor looking for oppotunitiesNativists:Americans that rejected the new immigrants coming to America. They considered themselves the true Americans and did not like the new wave of foreigners and their different cultures

Know Nothing Party:Also called the American Party, they opposed new immigrants in America. They feared the loss of jobs, and as most Protestants, they feared a Catholic influence and possible control of America by the PopeThe Yellow Peril:A term used to describe the influx of Asian, especially Chinese, immigrants to the US. Also called the Yellow TerrorEllis IslandIsland in New York Harbor where immigrants first arrived to be registered

Assimilation:- the process of blending in to the dominant society in this case the process of becoming Americanized; Immigrants chose, or were sometimes forced, to learn English, accept new foods, and adapt to other cultural differences

Naturalization:- the formal process to become and American citizen

The Melting Pot:- a metaphor to describe the old belief that immigrants blended easily into the American culture that the various cultures mixed to make a new cultural identityThe Salad Bowl:- a more accepted metaphor that describes how various cultural groups coexist in America, living together but retaining their original cultural identity

Cultural Pluralism:- a term that is in line with the Salad Bowl metaphor above. The idea that various cultural groups can exist within one larger cultural identity

Refugee:- a person who flees one nation for another in search of a more peaceful situation