Topic 4Second Industrial Revolution

Standard

• SS.912.A.3.2-Industrial Revolution: Examine the social, political, and economic causes, course, and consequences of the Second Industrial Revolution that began in the late 19th century.

Also Assessed

• SS.912.A.3.3: Compare the first and second Industrial Revolutions in the United States.

• SS.912.A.3.4: Determine how the development of steel, oil, transportation, communication, and business practices affected the United States economy.

• SS.912.A.3.5: Identify significant inventors of the Industrial Revolution including African Americans and women.

• SS.912.A.3.7: Compare the experience of European immigrants in the east to that of Asian immigrants in the west (the Chinese Exclusion Act, Gentlemen's Agreement with Japan).

• SS.912.A.3.8: Examine the importance of social change and reform in the late 19th and early 20th centuries (class system, migration from farms to cities, Social Gospel Movement, role of settlement houses and churches in providing services to the poor).

• SS.912.A.3.9: Examine causes, course, and consequences of the labor movement in the late 19th and early 20th centuries.

• SS.912.A.3.10: Review different economic and philosophic ideologies.

• SS.912.A.3.11: Analyze the impact of political machines in United States cities in the late 19th and early 20th centuries.

• SS.912.A.3.12: Compare how different nongovernmental organizations and progressives worked to shape public policy, restore economic opportunities, and correct injustices in American life.

• SS.912.A.3.13: Examine key events and peoples in Florida history as they relate to United States history.

• SS.912.A.3.3: Compare the first and second Industrial Revolutions in the United States.

• SS.912.A.3.5: Identify significant inventors of the Industrial Revolution including African Americans and women.

First and Second Industrial Revolution

• First Industrial Revolution (1790s-1840s)

• 1. Common sources of power included wind, horse, man, and water.

• 2. Marked the change from the home system to the factory system

• 3. Started by Eli Whitney, Samuel Slater, and others who developed simple machines and factories to create fabric, and machine parts.

• 4. Confined to New England because New England had mountains, which offered waterfalls, which offered power.

• 5. Pulled women off the farms to work in factories, the most famous of which was that located in Lowell, Massachusetts (started by Francis Lowell)

• 6. Helped lead to the Second Great Awakening in which reformers attempted to reform society of the evils this interest in marketing and money created. Women, children, slaves, and immigrants were helped by reformist causes at this time

First and Second Industrial Revolution

• Second Industrial Revolution (1870-1910)

• 1. Started as a result of the increased demand for goods following the Civil War with the rebuilding of the South, the building of the railroads west, and the move off the farm to the cities in the north

• 2. Involved gasoline-powered motors and electrical-powered engines and turbines.

• 3. FACTORIES now took the place of small shops with one or two machines. Now the workers had to adapt to the factory and not the factory adapt to the worker

• 4. Led by John C. Rockefeller, Andrew Carnegie, Cornelius Vanderbilt, J.P. Morgan, and Thomas A. Edison.

• 5. Thanks to the electric light now factories could stay open for 24 hours if necessary to pump out an endless stream of goods.

• 6. Led to the age of overseas imperialism and expansion as America needed larger and larger markets in which to sell these goods and FROM which to extract the raw materials necessary to power these growing factories

• 7. Led to the Progressive Movement in which reformers attempted to clean up the evils brought on by the thirst for wealth and power generated by the above-mentioned 'robber-barons.'

Foundations for Economic Growth

• Reasons:

1. Natural resources

2. Free Enterprise System

3. Role of Government

4. Legacy of the first industrial revolution

5. Economic Stimulus Provided by the Civil War

• Free Enterprise System- capitalist system, people are free to buy and sell goods, also called a market economy.

• Social Darwinism-the strongest survive in society, rich are superior (top of the food chain)

• Role of Government- “laissez-fare” capitalism, the government was supposed to interfere in business as little as possible

• Patent-sole legal rights to an invention and its profits

• patent system-encouraged inventions by ensuring protection

• tariffs- protect American businesses from foreign competition

Civil War Legislation encouraging growth

• Morill Tariff 1861

• National Banking Acts 1863-1864- created national banking system

• Homestead Act 1862

• Morrill Act 1862- gave land grants to states to support technical and agricultural colleges

• Pacific Railway Act-gave loans to build the transcontinental railroad

Emergence of the Modern industrial Economy

• Spread of the Railways

• Technological Innovation

• Steel

• Communications

• Electricity

• Oil

• Other Industries

• Women and African-American Inventors

• A Growing Population

• The Emergence of a National Market

• New Business Practices: The Rise of Corporation

• The Entrepreneurial Spirit

Significant Inventors

• Person-Invention-Date

• James Watt- First reliable Steam Engine 1775

• Eli Whitney Cotton Gin-Interchangeable parts for muskets 1793, 1798

• Robert Fulton-Regular Steamboat service on the Hudson River 1807

• Samuel F. B. Morse- Telegraph 1836

• Elias Howe- Sewing Machine 1844

• Isaac Singer- Improves and markets Howe's Sewing Machine 1851

• Cyrus Field- Transatlantic Cable 1866

• Henry Bessemer-”Bessemer process”-made steel out of iron

• Alexander Graham Bell- Telephone 1876

• Thomas Edison ("Wizard of Menlo Park") Phonograph, incandescent Light Bulb, motion picture machine 1877, 1879

• Nikola Tesla- Induction Electric Motor 1888

• Rudolf Diesel- Diesel Engine 1892

• Orville and Wilbur Wright- First Airplane 1903

• Henry Ford Model T Ford, Assembly Line 1908, 1913

• Peter Cooper built the first steam locomotive

African Americans and Women

• Elijah McCoy, an African-American inventor, invented an oil-dripping cup for trains (1872).

• Other inventors tried to copy McCoy's oil-dripping cup. But none of the other cups worked as well as his, so customers started asking for "the real McCoy." That's where the famous expression comes from.

• Madam C. J. Walker, and African-American woman, invented a hair-growing lotion for black woman to use in order to relax their hair. Walker grew up poor. But she became the first female African- American millionaire. By 1916, she employed over 20,000 African American women across the country

• Sarah E. Goode was the first African-American woman to receive a patent for her invention of the cabinet bed in 1885.

• Inventor Mary Anderson received a patent for her car-window cleaning device in 1903. She invented window wipers.

A Growing Population

• Industry needed workers (pull factor)

• More people=more need for goods

• Need for goods=need for more people

• Population in 1860- 31 million

• 1920- 106 million

Emergence of a National Market

• Railroads connected everything

• There was new marketing and advertising techniques

• Department stores started and bought items in large quantities from producers and was able to sell to many people

New Business Practices: The Rise of the Corporation

• Corporation-organization owned by many people and treated by law as a person

• Stocks-shares of ownership in the corporation

• Larger business=larger production=large workforce=specialization of labor (workers only doing one thing not the whole process)

• Vertical Integration-owning everything from the raw materials to sales

• Horizontal Integration- growth by buying competition

Entrepreneurial Spirit

• Entrepreneur-people who risk their capital to organize and run businesses

• In the Second Industrial Revolution, entrepreneurs considered themselves to be “captains of industry” who adopted new technologies and took advantage of new forms of corporate organization to make cheaper and better products. Sometimes ambition was above of ethics. Critics called them “Robber Barons”

• Robber Barons-term for businessman who exploited workers, used dishonest tactics, and exercised their monopoly control over individual industries to overcharge the public

• Philanthropy-charity

Gilded Age

• 2nd Ind Rev started the gilded age

• Gilded means layered with gold but concealing cheap metal beneath

• The Gilded Age was a term to criticize the corruption of American society. Life was very good for the rich but everyone else did not enjoy the same benefits

Entrepreneurs

• Andrew Carnegie-steel (vertical integration), wrote Gospel of Wealth after he sold his company. Gospel of Wealth became the belief that if you are rich you should give away your wealth in your lifetime. Not money to poor people but to for self-improvement organizations like libraries, colleges,

• JP Morgan- banking

• John D Rockefeller- oil (horizontal integration)

• In 1873 there was railroad speculation, this led to a financial collapse called a depression.

• Depression-a prolonged business downturn with high unemployment

• Falling prices and cutthroat competition-lowering prices temporarily to drive competitors out of business, led to rival companies joining together

Pools, trust, hold

• Pooling agreement-informal agreements to fix prices (railroads did this)

• Trusts-Companies making the same product enter a trust and get control over the business of that product

• Holding company- a company that owned a controlling number of shares in other companies

Monopoly

• Monopoly-complete control over the production of a good or service

• This made less incentive to improve products since they faced no competition

• They could raise their prices at any time to earn excessive profits. Consumers had no choice but to pay because of the lack of alternative products

Government Regulating

• Munn v Illinois 1877- states can regulate businesses affecting the public, like railroads

• Wabash v Illinois 1886- congress is to regulate “interstate commerce”

• Interstate Commerce Act 1887-pooling is illegal. Railroads must pay same reasonable rates

• Sherman Antitrust Act 1890-trust illegal

• US v E.C Knight Company 1895-monopolies cannot be controlled, weakening Sherman Antitrust Act