SEC ON D I NDU STRI AL REVOLUT I ONTH E RI SE OF B I G B USI NESS

LAB O R STRI V ES T O OR GANI ZETH E TRA NSFO RM ATI ON OF AM ERI C AN SOC I ETY

TH E UR B AN WO RLDDAI LY L I F E I N TH E C I T I ES

Unit 1: Rise of Modern America:Industrialism and Urbanization

1865-1910

The Rise of Modern America

The beginning of what America is today: Positive and negatives Technology and science Expansion: Continental US, the World = conflict Industry, Urbanization, Big Business, Immigration

New ways of owning, buying, selling, working New roles in society:

Class, race, gender, nationality New roles of government and politics New American culture and society

CREATES POLARIZATION AND CHANGES WHO WE ARE, WHAT WE DO, HOW WE THINK

Basic Ideas of Capitalism

Adam Smith: The Wealth of Nations (1776)All economic activity based on NATURAL LAWS

Limited resources =/= Unlimited demands Concept and reality of “supply and demand”

Increase supply and lower demand = prices fall Decrease supply and higher demand = prices rise

The government, according to capitalists, SHOULD NOT do anything to interfere with these natural laws: The government should NOT get involved “Laissez-faire” = “Just let it go” Unregulated

Basic Foundations of Capitalism

1) Free market system= No government involvement

2) All based on supply and demand3) All based on earning profits4) Competition in the market place

(Social Darwinism=survival of the fittest)5) All of society (the consumer) benefits6) Cycles of “boom” and “bust”7) Big business = big corporations

A) Producing and selling B) Buying and selling

Industries ExpandTechnology = Science and industry

Communication Transportation CHANGES HOW WE

LIVE Power

Leads to MASS PRODUCTION MASS Consumption

1700s-1800s: Steam Engine (Robert Fulton)Late 1800s: Oil (Drake, Lucas, McCoy)Early 1900s: Electricity (Edison)/Steel

(Bessemer)

Electrical Power and Communication

Telegraph—Samuel Morse (1840s)Transatlantic cable—Cyrus Field (1866)Typewriter—Christopher Sholes (1867)Telephone—Alexander Graham Bell (1876)Lots of Stuff—Thomas Edison Others: Cash register, calculating machines,

sewing machines

Electrical Power and Transportation

Railroads—cheap steel leads to growthTranscontinental Railroad 1869Compressed air brake—G. WestinghouseStandard gauge tracksTime ZonesCars (1913 30,00 produced; 1915 300,000

produced)Airplanes (Wright Brothers, 1903)

“Spin-Off Effect”

Industrialists and Capitalism

With the boom in industry, titans of industry rose to the top of the socio-economic pyramid

Andrew Carnegie, John D. Rockefeller, Cornelius Vanderbilt, etc.

Took advantage of a capitalist society

What is Capitalism Again?

Economic system in which private business runs most industries, and competition determines how much goods cost and workers are paid

Starbucks!

Capitalism Continued…

During the Second Industrial Revolution, Capitalism created groups of “Haves” and “Have-Nots”

Rise of Big BusinessConcept of CORPORATION

Stockholders buy shares = investment money Profits put back into companies = growth If a corporation has control over an entire industry

= monopoly (gov. does not interfere) A few businesses will suceed, most will fail Survival of the Fittest (Social Darwinism)

Two Ways Monopolies Are Formed

1) Vertical Integration: A corporation controls all of the production aspects of a particular industry Carnegie Steel He controlled all the steps needed

to make his final product2) Horizontal Integration: A corporation

controls a particular market Standard OilRockefeller controlled the entire oil

industry

Tactics Used: Pools, Trusts, Mergers, Price Fixing, Bribes and Rebates

Titans of Industry

Cornelius Vanderbilt—RRLeland Stanford—RRAndrew Carnegie—US SteelJohn D. Rockefeller—Standard

Oil

Two Interpretations of These Kinds of Businessmen

Positives“Captains of Industry”Built big businessesUS #1 in manufacturing by 1892Huge fortunesAmerican DreamHoratio

AlgerPhilanthropistsGospel of WealthTrue CapitalistsHuge profitsBest of the

what they did

Two Interpretations of These Kinds of Businessmen

Negatives“Robber Barons”Unfair competitionRuthlessnessSelfish, greedyActually went against capitalismdestroyed

competition 1900: 2% of US companies made 50% of all the

products made in the US

Carnegie’s Home, Libraries, Workers

Carnegie’s Home, Libraries, Workers

Carnegie’s Home, Libraries, Workers

Government Gets Involved

Takes steps to control and regulate these big businesses Anti-Laissez Faire

1887: Interstate Commerce Act1890: Sherman Anti-Trust Act1913: 16th Amendment (Income Tax)

Recap

Who would support capitalism?Why?Who would oppose capitalism?Why?

Labor Strives to Organize

Worker’s Problems Low wages and long hours Women and children working too long and hard Machines displaced workers Workers had to work at the pace of the machines Unsafe, unsanitary working conditions Capitalism is unfair in many ways

Knights of Labor (1869)

Uriah Stephens, Terence Powderly, Mary Harris Jones

All workers included—skilled and unskilled

Pushed for 8 hour day, end to child labor

700,000 members by 1886, several strikes

Decline after 1886—Haymarket Square Riot

American Federation of Labor

Samuel GompersOnly skilled workers

(harder to replace in a strike)

Organized into separate craft or trade unions

Not very political—pushed for basic economic benefits

Overall concept of collective bargaining/closed shop v. open shop

Labor Strives to Organize

Worker’s Tools: Unionize Strike Collective Bargaining Boycott Violence

Homestead Strike

Workers at Carnegie Steel went on strike to protest a wage cut

Managers instituted a lockout

Violence ensued-16 deaths

Labor Strives to Organize

Employer’s Tools: Fire employees Blacklist Hire Scabs Lockout Violence Injunction

Different Economic Systems

Free Market (Capitalism) Government makes ZERO decisions

Mixed Economic (Socialism) Combination of Free Market and Command

Command (Communism) Government makes all the economic decisions

Production Pricing Distribution

No concern with Supply and Demand Too unfair, too unequal

Different Economic Systems, cont’d…

Free Market (Capitalism)—Profits are key So…Mass production and mass consumption

1870s early 1900s (bulk purchasing = lower prices) Department stores (1860s-1870s)

Marshall Field-Chicago R.H. Macy-NYC

Chain Stores (almost a monopoly) Woolworths A&P Grocery

Mail Order Catalogs Sears and Roebuck

Transformation of American Society

Immigration: 1880-1915 = Massive change in immigration patterns

Old Immigrants v. New Immigrants

Old Immigrants 1770s-1890s Northern and Western

Europe Mostly Protestant Sought economic

opportunity and religious freedom

New Immigrants 1890s-mid 1900s Southern and Eastern

Europe Jews, Catholics,

Orthodox Came for the same

reasons but had MANY challenges

Immigration

New Immigrants Differ physically Language barriers Cultural differences Concentrated in big cities

Could these new immigrants be “Americanized?”

Melting PotPros and Cons of diversity?

Immigration, cont’d…

From 1905 to 1907: 10,000 immigrants per day at Ellis Island

By 1890: 15% of all Americans were foreign born NYC: 80% Chicago: 75% Boston: 65%

New Immigrants & Difficulties

Resentment Political, economic, cultural, religious reasons

Difficulties: Long expensive journal New unknown life in US = culture shock Loved ones left behind or separated upon arrival Housing issues = ethnic slums (Little Italy) Racism and religious persecution Language issues = job issues General issues: Stay true or fit in?

New Immigrants& Difficulties, cont’d…

Xenophobia: Fear of foreignersNativism: Disrespect for cultures not yoursImmigrants seen as:

Too different Anarchists Radicals Socialists Communists

Competition for jobsImmigrants paid less Many joined unions=seen as anti-American

Attempts to Restrict Immigration

1873: Economic depression in US Dennis Kearney set a Workingman’s Party to keep out Chinese

workers1882: Congress passes Chinese Exclusion Act1894: Immigration Restriction League proposes literacy

tests—Congress passes a law1906: Asian children in San Francisco removed from

public schools1907: Agreement between US and Japan

Japan agrees not to let any more Japanese emigrate to America (1907: 30,0001909: 3,000)

1913: Alien Land Law in California Since immigrants are not eligible for citizenship, they cannot own land

Daily Life in the Big Cities

Increased immigration brought about a larger lower class and a smaller upper class

Culture

The influx of immigrants brought various religious, social, and cultural practices and customs to the United States

Created a “melting pot”

Social Class Pyramid

Social Class Pyramid Breakdown

BOTTOM PORTION: New Immigrants Lived in ghettos/tenements

Chinatown, Little Italy, “Jewtown” Factory workers

Little pay, bad hours, bad conditions

Jacob Riis--How the Other Half Lives

Social Class Pyramid Breakdown

MIDDLE PORTION Old Immigrants (Fluently spoke English) Store owners, doctors, lawyers, teachers, etc. Women

Secretaries Nurses Teachers

MAIN REASON FOR THE EMERGENCE OF THIS CLASS IS COMULSORY EDUCATION LAWS

Education

Education: 1860s: Compulsory Education Laws = educated people are

necessary for democracy # of public school kids from 7-15 million

Education could also help immigrants assimilate Learn about American culture, history, English 1870: 160 public high schools/500 colleges 1900: 6,000 public high schools/1000 colleges

Since more education = more reading = publishing and advertising 1865: 500 Daily newspapers 1910: 2600 Newspapers

William Randolph Hearst/Joseph Pulitzer (Yellow Journalism)

Social Class Pyramid Breakdown

TOP PORTION: Old Money Modeled lives after British Victorian Culture Nouveau Riche (Newly Rich) Conspicuous Consumption

Spent money just to show off Social Gospel

Applied Christian principles to social problems Social Darwinism

Argues that society progresses through competition, with the fittest rising to positions of wealth

Daily Life in the Big Cities

More money = more leisure time/entertainment Reading Parks—Central Park in NYC 1857 (Frederick Law Olmsted) Sports—Baseball, football, boxing, basketball Theater—Vaudeville variety shows Music—Jazz, combines cultural diversity

Scott Joplin Jelly Roll Morton Louis Armstrong

Amusement Parks—Roller coaster (1884); Coney Island; Ferris Wheel (1893 in Chicago)

Skyscrapers—Elisha Otis (1853); Louis Sullivan (1890)