Unit TwoIndustrialization, Immigration and Urbanization

Natural ResourcesThe U.S. following the Civil War, and still today, had a wealth of natural resources. How did this abundance of raw materials help promote industrialization?

Growing Urban Population

More and more people began to move into cities following the Civil War. How did this migration of people help cause rapid industrialization?

Government Support

In the late 1800s, the government was favorable toward business interests. How did this support help industry grow rapidly?

President William McKinley

InventionsNumerous life changing inventions were developed following the Civil War. How did these new technologies help promote industrial growth?

EntrepreneursFollowing the Civil War, many entrepreneurs, or businessmen, emerged and made great profits from industry. How did men like Carnegie and Rockefeller help industry develop in the U.S.?

Railroads

Railroads expanded greatly after the Civil War. What role did railroads play in industrial growth?

The economic development of the United States between 1870 and 1950 helped produce the results shown in the graph above. The trend shown in the graph is

A. increased urbanization.B. decreased immigration. C. advances in communication. D. reduced population growth.

Essential Question:

What common characteristics can be found in the early “titans of industry”?

Top 10 Largest American Companies (2006)

Company Industry1 Wal-Mart Retailing

2 Exxon-Mobil Oil and Gas Operations

3 General Motors Automobile

4 Chevron Oil and Gas Operations

5 Ford Motor Co. AUtomobile

6 ConocoPhillips Oil and Gas OPerations

7 General Electric Conglomerates

8 Citigroup Banking

9 AIG Insurance

10 IBM Software and Services

Questions:1. What are the three largest American

companies?2. Which industry is the represented the

most on the top 10 list?3. Why is Wal-Mart the largest American

company when it sells everything cheaper?

4. Which companies do you think are on the rise? On the fall?

Essential Question:

How did the “titans of industry” build their business empires?

Andrew CarnegieSteel Industrycreated a monopoly

horizontal integrationvertical integration

What is a monopoly?when a business is able to control all aspects in a particular industry and eliminate competition to maximize profit

How do they do it?horizontal integration-business buys out the competition

ex: AT&T buys out T-Mobile

verical integration-business buys out the suppliers

ex: oil companies

Horizontal and Vertical Integration

Impacts of MonopoliesPro:● allowed for major

growth of industry● huge profits were

made

Cons:● competition was

destroyed (prices were higher and choices were limited)

● created a large gap between the owners and the workers

Why were monopolies allowed?

● hands off business policies of the government (laissez-faire)

● close ties between business leaders and government leaders

Economic Impacts of Big Business

● U.S. becomes the leading industrial power in the world.

● Despite poor conditions, more people are earning more money than before.

● Industrialization grows as more people have more money to buy goods.

What conditions led to the creation of labor unions?

What were working conditions in the late 1800s?

12 or more hours per daysix days a week (sometimes 7)no vacation, sick leave, unemployment compensation, reimbursement for injuries while on the jobinjuries commonfactories—dirty, poorly ventilated, poorly lit, faulty equipmentrepetitive tasks

How did the titans of industry justify these conditions?

social darwinism• based on work of Charles Darwin• some individual’s flourish and pass on their traits to

the next generation; others do not• natural selection• justifies a hands-off approach• appealed to the Protestant work ethic“riches were a sign of God’s favor and therefore the poor must be lazy or inferior people who deserved

their lot in life”

So--what did workers do?They formed unions.

2 kinds of labor unions:craft unionismindustrial unionism

What were they hoping to accomplish?

Knights of Labor “An injury to one is the concern of all.” membership open to all workers worked for an 8-hour workday and “equal pay for equal work”

American Federation of Labor (AFL) all skilled workers collective bargaining used strikes

collective bargainingnegotiation between representatives of labor and management to reach written agreements on wages, hours and working conditions

Strikes of the late 1800sThe Great Strike of 1877

The Haymarket Affair

The Homestead Strike

The Pullman Strike

Workers Unite to Strike

The Haymarket Affair

The Pullman Strike

The Homestead Strike

socialismeconomic and political system based on

government control of business and property and an equal distribution of

wealth

Eugene DebsIndustrial Workers of the World

(IWW)