1900: big businesses dominate economy large factory complexes and distribution centers ...
TRANSCRIPT
BIG BUSINESS VS. UNIONS
The Rise of Big Business
1900: Big Businesses dominate economy Large factory complexes and distribution
centers Corporations: organization owned by
many, but treated as single person by law
Economies of Scale: cost decreases as products are made quickly in large quantities Big Business=high fixed cost, low operating
cost Small businesses find it hard to compete,
falling prices help consumers, corps. form “pools” to control prices
Consolidating Industry
Andrew Carnegie and Steel Vertical Integration (Page 102)
John D. Rockefeller & Standard Oil Monopoly Trust Holding Companies
J.P. Morgan Investment Banking Buys Carnegie Steel and others, forms U.S.
Steel
Working Conditions
Poor working conditions: repetitive tasks, dangerous work environment, unhealthy conditions, machines not meant for safety
1860-1890: wages rise 50% 1900: 22 cent/hour average pay
Deflation: rise in the value of money Companies cut wages, prices continue to fall
Workers unhappy about conditions, wage cuts, high wages for executives—want to organize
Rise of Organized Labor
Two types of workers: Craft workers: skilled workers, higher wages Common laborers: unskilled, low paid
Craft workers form unions Business leaders oppose unions, but
forced to negotiate for needed labor Industrial Unions: especially disliked Business leaders “lockout” union members
Force used to break up strikes
Union Force
Great Railroad Strikes Knights of Labor
Favor boycotts and arbitration More strikes, government injunction American Federation of Labor (AFL)
Closed shops 1900: Women = 18% of workforce
Women paid less than men Women’s Trade Union League