industrialization. american industrialization machine production rather then by hand high...
TRANSCRIPT
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Industrialization
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American Industrialization
• Machine production rather then by hand• High involvement of population in production• Production in large factories• New technology and innovations• Specialization in economics
• Expanded markets, no longer localized• Growth in nationwide transportation based in railroad• Money saved for investment • Steady increase in urban centers (cities)• Growth in big business
http://home.earthlink.net/~gfeldmeth/lec.indust.html
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America After:
• Population shift away from rural communities and into urban centers– People move closer to factories
• Shift from cottage industry to factory production– Assembly line
• National business rather then local business– Trusts and monopolies replace partnerships
• Specialized work changes– Machine can do what artisan and craftsmen used to do
and for cheaper– One man to do what it used to take ten to do.
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Business at the turn of the Century
• Proprietorships - small business owned by individuals or families.
• Partnerships – Businesses owned by two or more individuals .
• Trusts – a group of companies that turn control over to a board of directors.– Also known as combinations
• Monopolies – a trust that gains exclusive control over an industry.
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Bigger = Better
• Proprietors and partnerships were not large enough to control the spread of large industry
• Could not afford to support expensive ventures such as railroads, steel, or oil.
• Corporations – money is raised by the selling of shares – Stockholders receive
shares of the profits• Ability to raise huge sums
of money to finance business
• Limited Liability - Stockholders don’t assume company debt
• More stable - corporations exists no matter who owns the stock
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The Government
• With laissez faire government, no control over trusts and monopolies
• Government actually taxed foreign goods to help promote American sales
• Attempts to control monopolies resulted in the Sherman Anti-Trust Act, but was to difficult to enforce.
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John D. Rockefeller• Early founder of Standard
Oil – created the first American trust
• Used vertical integration to make himself more competitive– He acquired the companies
that supplied him with the supplies he needed to be competitive
• Used horizontal integration to expand his business– One company’s ownership
of other companies in the same business.
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Andrew Carnegie – America’s richest man!
• Scottish immigrant who established Carnegie Steel Company
• Used the concepts of buying and producing in bulk to make money– Economics of scale
• Used vertical integration• Combined all his
companies into one corporation, and then could sell steel for less then his competitors because he owned every step of the process
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Workers
• Millions of workers were needed:– Production in factories– Acquisition of raw materials– Transportation of goods
• Women and African Americans met with especially fierce inequality– 1891 – 7400 Southern blacks have industrial jobs
• Remember – there were 4million freed slaves in 1865…
• Unskilled labor had dirty, disgusting jobs
• Women and children worked too – out of necessity– Husbands could not bring home enough money to appropriately care
for their families.
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Owner opinion of labor
• Employees were inputs into the product– 6 days a week, many hours, bad conditions, little pay
– no humane considerations
• Owners felt no responsibility
• Company towns – paid in scrips– Similar to sharecropping
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How to combat such injustice?• Knights of Labor
– Open to workers traditionally excluded from other unions– Women, men, skilled, and unskilled, and later, African
Americans too…– BUT NEVER CHINESE WORKERS
» Fits in with Chinese Exclusion Act – prejudice – need based entry
– Mother Jones – labor leader
• KOL were looking for • 8 hour days• Equal pay for equal work• End child labor
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Great Upheaval
• Workers needed rights – huge wage cuts • In response, 1886 – 1500 strikes involving
400,000 workers
• Chicago workers – Haymarket Square – organized by anarchists -met with violence when a bomb exploded
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How did companies fight back?
• Blacklists
• Yellow Dog Contracts
• Lockouts
• Strikebreakers
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In response to the Knights’ cause
• American Federation of Labor (AFL) was created– Restricted to skilled labor
• Disassociate themselves with the trouble makers
– Samuel Gompers (the guy from the Triangle Shirtwaist factory packet)
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Famous Strikes
• Homestead – Strike – lockout / strikebreakers (“Detectives”)
- violence
• Pullman– Company town prices went up, wages went
down, workers boycotted, trains were hooked up to mail cars, fed gov forced boycotts end!
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Rural Progressivism
• Problems farmers faced:– Overproduction shrank profits and demand, prices
continue to drop
– Families bought more land to produce more (to make more money) but dropped prices even more
– Families could not pay loans
– Bank repossessed their land
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Why were the farmers mad?
• Everyone got something good out of the deal except the farmers:– Cheap food
– Eastern banks made out quite well
– Which led to the creation of the …
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Grange movement
• Farmers attempted to organize to help themselves – formed “cooperatives” – tried to increase profit
• Interstate Commerce Act• stopped RR from giving rebates• Created the Interstate Commerce Commission
» Random note – because of trains we have time zones…
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Question of Money
• Farmers wanted more paper money (wanted inflation) - easier for debts
• Bankers wanted money backed by the gold standard – made repayment better for them – no inflation
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Outcome of these Rural happenings was the Populist Party (populism)
• Farmers, labor leaders, reformers• Graduated income tax• Bank regulation• Government ownership of RR and
communication mediums• Immigration restrictions
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Progressive Movement
• Increasing gap between rich and poor• Progressives were the urban populists
– Publicized the ills of industrial society!!!
• Wanted to:• Focus on urban problems• Unsafe working conditions• Bad sanitation• Corrupt political machines
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Progressive Ideals
• Social justice – federal graduated income tax
• Different view of social darwinism
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Reforms
• Inspired by mass-circulation journals:– Cosmopolitan magazine
• Muckrakers – realism!!!– Ida Tarbell – The History of Standard Oil– Jacob Riis – How the Other Half Lives– Upton Sinclair, The Jungle
• Seeking to solve some of the major social problems of the era
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Reforming the workplace
• Considerations paid to:– Hours– Wages (national minimum wage – 1938)– Who was working?
• Laws were passed but they were hard to enforce
• Argument against laws:• “used 14th Amendment – “prohibits states from depriving any
person of life, liberty, pr property without process of law” – it was unfair to take away their livelihoods
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Fighting for reform:
• AFL (still)– Growing in power– Fighting for closed shops (not open)
• International Workers of the World (Woblies)– Socialist – very radical – many did not like!– Bill Haywood
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Societal Reforms
• Book publishing, movie production, baseball
• City planning
• Prohibition - 18th amendment – repealed in 1933
• Women’s suffrage (19th Amendment) 1920 (we’ll come back to this)
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Race Related Reforms
• W.E.B. DuBois
• National Association for the Advancement of Colored People
• American Indian progressives
• Jane Addams too