u.s. history lecture: the industrial revolution 1865...

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U.S. History Lecture: The Industrial Revolution 1865-1900 AP STUDENTS: PRINT AND READ Test Your Global Knowledge by Trying these Questions! Textbook: Chapter 13 (454-472) Sections 1-2 EQ: What were the causes and effects of the Industrial Revolution? 1. Challenges Capitalism is an economic system in which the government plays little to no role and prices and wages are determined by the marketplace. Supply and demand dictates the market. In theory the idea is the best business will succeed which is better for consumers. Competition between businesses will also benefit consumers in theory resulting in better, cheaper prices. The United States, today, has adopted a mixed economy. We have elements of capitalism but we also realize their is a role for government to regulate the economy in order to protect consumer interests as well as worker and national interests. Examples of "socialism" elements can be seen in the existence of unions, a minimum wage and anti trust laws as well as countless government regulations such as pollution controls and safety standards. In 1860, none of these regulations or laws existed it was every man for themselves and a few did very well while most Americans toiled at the bottom of the food chain. This system of Social Darwinism is described in this lecture. The Industrial Revolution will present a number of challenges to the United States. Here are some critical challenges. a• In capitalism the desirable environment is one of competition. The Industrial Revolution leads to the growth of monopolies and giant corporations that controlled the market. Does the Federal Government have a role in regulating these industries in order to promote competition? If so, how is this accomplished constitutionally and as a matter of fact? b• Industry creates jobs and an open immigration policy in the late 19th

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U.S. History Lecture: The Industrial Revolution 1865-1900

AP STUDENTS: PRINT AND READTest Your Global Knowledge by Trying these Questions!

Textbook: Chapter 13 (454-472) Sections 1-2

EQ: What were the causes and effects of the Industrial Revolution?

1. Challenges

Capitalism is an economic system in which the government plays little to no role and prices and wages are determined by the marketplace. Supply and demand dictates the market. In theory the idea is the best business will succeed which is better for consumers. Competition between businesses will also benefit consumers in theory resulting in better, cheaper prices. The United States, today, has adopted a mixed economy. We have elements of capitalism but we also realize their is a role for government to regulate the economy in order to protect consumer interests as well as worker and national interests. Examples of "socialism" elements can be seen in the existence of unions, a minimum wage and anti trust laws as well as countless government regulations such as pollution controls and safety standards.

In 1860, none of these regulations or laws existed it was every man for themselves and a few did very well while most Americans toiled at the bottom of the food chain. This system of Social Darwinism is described in this lecture.

The Industrial Revolution will present a number of challenges to the United States. Here are some critical challenges.

a• In capitalism the desirable environment is one of competition. The Industrial Revolution leads to the growth of monopolies and giant corporations that controlled the market. Does the Federal Government have a role in regulating these industries in order to promote competition? If so, how is this accomplished constitutionally and as a matter of fact?

b• Industry creates jobs and an open immigration policy in the late 19th

century provided corporations with cheap labor. What role does the Federal Government have in protecting that worker from potential abuses?

2. Nuts and Bolts

Now lets take a look at some of the nuts and bolts of the Industrial Revolution:

a• Prior to 1865, the U.S. office of Patents, which handles new inventions, had issued 36, 000 patents. In the next 35 years it would issue 500,000 thousand. New Inventions 1850-1899: Click Here

Think of the 1870's like the age of the Internet. New inventions and technologies were being rapidly developed. Those with money (capital) were able to take control over these new industries creating corporations and monopolies.

b• For its era, this revolution in technology changed America in complex ways, much like the Internet has changed our world. From electricity, to communication, business models, consumerism, transportation and everything in between, the U.S. changed the way it existed.

c• While we will take a look at various new inventions, we will concentrate on the transcontinental railroad.

3. THE TRANSCONTINENTAL RAILROAD

A) Prior to the Civil War, the nation had a railway system. It was primarily in the Northeast and there were few compatible trains. With no safety laws, they were dangerous and unreliable. Lincoln and the Republican Party believed in economic nationalism, which meant they believed that the Federal Government should invest in new markets to kick-start the economy. The Homestead Act is an example of this. Under this act, the government gave settlers 160 acres of free land in return for a promise to stay and farm

it. This government action was designed to improve the economy.

B) SUBSIDIESA SUBSIDY IS another Government way to get economic expansion. The federal Government controlled by Republicans passed bills which authorized the transfer of hundreds of millions of dollars in loans and land to the Union Pacific and Central Pacific Railroad Companies. In return they would built this TRANSCONTINENTAL RAILROAD which would connect the East with the West and spur incredible economic payoffs. (Hence ECONOMIC NATIONALISM)

C) The Central Pacific Railroad was built from California west to Utah over the Rockies. It was dangerous and hard work for low pay. Much of this workforce was made up of new Chinese immigrants.. During the building of the railroad thousands would be injured and killed. When it was done, many Californians began to resent the Chinese and helped to push for the Chinese Exclusion act (1888), an example of xenophobia (fear of foreigners)

D) The Union Pacific would built from Nebraska west to Utah to join the Central Pacific. It was built primarily with the sweat of Irish and German immigrants.

E) The effects of the Transcontinental Railroad deserve its own list

1) The end of the Plain Indians. In 1888 the Dawes Act would be passed and force ALL Indians onto reservations. The railroads brought hundreds of thousands of settlers west, many would shoot thousands of Buffalo for fun along the rails. Their presence and the end of the Buffalo led the Indians to starvation and extinction.

2) New markets for goods. With shipping costs lowered goods could be shipped easily.

3) Meat. Refrigerated cars allowed for cowboys to travel north to the railroad along the Chisholm Trail and ship it to markets tot he east and west. Eventually with the invention of barbed wire, cattle ranches closer to the railroads would replace the cowboy across the plains.

4) Increased migration to the west. This will help to complete MANIFEST DESTINY. An example of a law passed to encourage manifest was the HOMESTEAD ACT in 1862. This law gave settlers free land as long as they promised to farm it. This led to hundreds of thousands of new settlers to move west.

5) IMMIGRATION THESIS: During the late 1800’s the Federal Government recognized the need corporations had in terms of labor. Hence our immigration policy was OPEN DOOR IMMIGRATION.

Millions of “NEW IMMIGRANTS” were allowed entry and these immigrants were from Nations which were previously excluded. Italians, Poles, Germans and other foreign sounding peoples poured through Ellis Island. Most of these immigrants will fill American Northern cities like Chicago, NY and Boston. Cities unable to deal with problem saw massive pollution and unsanitary conditions eventually leading to a city reform movement. But for the time being many immigrants were stuffed into tenement housing which saw 10-15 people per room in buildings which housed thousands of these poor new immigrants.

The effect will be Urban centers busting from the seams and a rise in NATIVISM (Hey ! You don’t look like an AMERICAN!) and XENOPHOBIA (Fear of Foreigners) The Chinese Exclusion Act passed in 188 after the railroad was built halted Chinese immigration to the US. The Chinese also faced massive racism on the west coast

.

4) Robber Barons or Captains of Industry

Two individuals stand out in the amount of wealth and power they accumulated during this Industrial Era; they are Andrew Carnegie and John Rockefeller. Steel and Oil.

a EVIL CAPITALISTS PIGS

The criticism of these two corporate leaders is that they were robber barons, they built their wealth on the backs of the poor and disadvantaged and crooked business practices. While building their monopolies and business trusts to control and kill competition they paid their workers little and fought to kill unions and worker protections. While they made hundreds of millions of dollars their workers fought to live day by day.

b PATRIOTIC CHAMPIONS OF THE ECONOMY

Some view them as Captains of Industry. By building such large empires they created thousands of jobs and built a new national economy. They also contributed millions to private charities such as universities and libraries. This is called philanthropy.

c THE RACIST ELEMENT

Social Darwinism: Carnegie and Rockefeller, its pretty sick, adopted this belief. I guess you need to believe in something when your super rich and the word around you suffer. So they believed like the law of the jungle and evolution that there was a reason for their success. The rich are the strong and the poor and the weak for a reason. So like when the lion eats the bird, the rich can and should take advantage of the poor. Survival of the fittest is not just for the jungle but society too.

d KILL COMPETITION

Trust Cartoons to practice

Trusts and Monopolies: Thought their capital $) these two men could use it too do many things to get even richer

● Trusts/Monopolies--------Trusts and monopolies are types of corporations. The defining aspect of a corporation is that it is owned by stockholders. The company exists to make money for those stockholders. The stock holders are represented by board members. With a Board of Directors, you form your corporation, like Disney. When your corporation is so big it is ready to expand into different industries you form a trust. Trust allows for one “company” to own many different types of industries. Once you own enough of an industry you can lower your prices...... really low. When the other guy has to close up shop then raise your prices with no competition. Buy out all the businesses that supply you so you control the whole darn thing.

5. HOW UNCLE SAM RESPONDS (OR DOESN’T)

LAISSEZ FAIRRE

A) This is a big one! What the heck was the Federal Government doing during all of this crazy economic growth? Well the Republicans, the Party of Lincoln, believed that economic growth was number one. (This is the old party of the Federalists) so their philosophy was let business grow, invest in them, and help them and then HANDS OFF Laissez Fairre). They even allowed CHILD LABOR !

In fact the only time they acted was in support of these industries. Called economic nationalism, the Feds supported big business through all of the following previously covered terms● national bank● tariffs● homestead act● railroad land for free

B) Eventually the public got restless and demanded change. Congress using the interstate commerce act and the preamble of the Constitution "to promote the general welfare" too action. (They felt the tugging of the maddog collar) Finally in the 1883, the Congress passed the Sherman Anti Trust Act. It was designed to break up unfair trust of industries into smaller businesses to promote competition and lower prices for consumers. In fact it wouldn’t be used for that reason for 15 years, it would be used to break up UNIONS that workers were organizing across different trades. Congress was ready to take action but remember that Congress Passes the law but it is the President who enforces it!

C) HANDS OFF THE UNION PROBLEM. When it comes to unions, which are workers who band together to get something out of the management, the Federal Government would oppose them and up to the 100’s always support the business owners. As Socialism and Karl Marx was spreading in Germany and Russia, many Americans saw unions as a form of socialism. We will cover Unions in a different lecture. For unions to work they need legitimacy and that means the gov. needs to be hands down. We will not get real union support from a President until 1900 under Teddy Roosevelt. When hands are up it is good for business but bad for workers. Workers have little capital and must rely on their numbers to protect their numbers and to do that they need the government to use its hands to allow it, they won't.

The Lesson.The Industrial Age can be an ugly one, it is called the Gilded Age because of its large numbers of poor and overcrowded cities while it is portrayed as tuxedos as big business. While industrialism was necessary and did provide for some benefits (jobs, expanded economy, the railroad, westward settlement, philanthropy) for most Americans it was a bleak existence. Without government aid/regulation the people were left to the theory of social Darwinism and its cruel fate.