Goal 5

Goal 5Industrialization, Monopolies, Immigration, City Life and Rise of Labor UnionsGilded AgeTime period after Civil WarMade famous by author Mark TwainTime of rapid industrialization, immigration and changing city lifeMonopoliesMonopolyDefinition- when one business controls the entire industryTwo types of monopoliesVertical Integration- person controls all factors of production for one industry (used by Carnegie Steel)Horizontal Integration- person controls all competition in the same industry (used by Rockefeller Oil)

MonopoliesVertical IntegrationWhen one company owns all factors of production and can charge lower pricesExample- Andrew Carnegies Steel CompanyCarnegie owned the iron mines, the shipping and the steel millsHe could charge less because he didnt have to pay the extra fees for using other companies

MonopoliesHorizontal IntegrationWhen one company completely controls an industry by buying all competitionExample- Rockefellers Oil CompanyRockefeller would buy companies and give their owners stock in his companyTrust- group of advisors for a company (control and set prices)

MonopoliesJohn Rockefeller- OilAndrew Carnegie- SteelCornelius Vanderbilt- RailroadsJP Morgan- banksCaptain of Industry vs. Robber BaronCaptain of IndustryOwners praised for business skills and donating back to society (Carnegie)Robber BaronOwners who became rich illegally or unethically and did not care about workers or society

Social DarwinismTheory used by rich to defend their wealthBased on Charles Darwins theory on survival of the fittestRich said they deserved to be rich because they worked harder and were smarter than othersHoratio Alger- wrote tales of underprivileged youths who became wealthy through being honest and hard-working

S-

P-

A-

M-

ImmigrationFirst Wave- 1820s to 1860sMainly from Northern and Western EuropeScandinavia (Sweden, Norway), Ireland, BritainExample- Many Irish will come due to Potato FaminesSecond Wave- 1890s to 1920sMainly from Southern and Eastern EuropeItaly, Russia, HungarySeen as different- most are Catholic or Orthodox religions, darker skinned, poorer classesMany Jewish groups for religious freedomTheoriesMelting Pot- immigrant groups give up their own ethnic identity and blend into one American identityCultural Pluralism- immigrant groups keep parts of their own culture and also adopt parts of the American cultureNativism- groups that were anti-immigrant Chinese Exclusion Act- banned Chinese laborers from immigrating to US until 1902

Theories

Melting Pot TheoryChinese Exclusion ActGrowth of CitiesCities grow tremendouslyKnown as urbanization (rapid growth of cities)Immigrants will settle in ethnic neighborhoodsExamples- Chinatowns, Little Italy, etcMost will live in tenement buildingsOne room apartmentsOvercrowded, dirty, no fire escapes, no plumbing, disease widespread, unsafe, unsanitary

Growth of Cities

Responses to Tenement LivingJacob RiisWrite How the Other Half LivesExpose living conditions in tenements in NYCJane AddamsBegin Hull House in ChicagoHelp poor immigrants learn English and other necessities (money, etc)SweatshopsMost immigrants work in sweatshopsLittle pay, long hours, dangerous conditionsResponsePeople band together to form labor unionsLabor UnionsFight for higher pay, better conditions and shorter hoursMost do not like immigrants because they work for low wages

Labor UnionsLabor Union- group of workers who want to improve economic and social well-being of its membersCraft Union- organizes workers in the same craft or occupation (Ex.- carpenters union, brickmasons union)Trade Union- includes different kinds of workers (Ex- Union for all building trade- include painters, builders, carpenters, etc)

Early Labor UnionsEarly UnionsKnights of Labor- organized in 1869Will lose popularity after the Haymarket StrikeAmerican Federation of Labor (AFL)Craft union organized by Samuel GompersLater led by Eugene DebsUnion TacticsCollective Bargaining- unions and management try to negotiate on an acceptable contractStrikes- workers stop working and try to shut down companyScabs- during strike, company hire workers to cross strike lines and continue workingInjunction- court order to stop a strikeMediation- if collective bargaining fails, a 3rd party will be called to help settle differencesEach side (labor and management) state their case and the 3rd party gives recommendationsNot binding decisionArbitration- involves a 3rd partyEach side states their case and 3rd party makes decisionDecision made is binding and must be accepted

Government ControlsAttempt to address monopoliesSherman Anti-Trust Act- government outlaws trustsNot very effective

Government CorruptionPolitical machines and big city politicsMachine- one group who uses bribes and corruption to control governmentEx- Boss Tweed and Tammany Hall in NYCPatronage- give government jobs based on political support (spoils system)Pendleton Act- create a civil service systemCivil Service System- government jobs given based on merit (usually by taking a civil service test)

Boss Tweed and Tammany Hall

S-

P-

A-

M-