9. 13.1, page 163
Who was the Wizard of
Menlo Park?
What did he invent?
What details do you
notice in the
photograph on page
162?
10. Key Factors to Industrialization
natural resources
coal, oil, iron ore
• improved transportation
• railroad (RR), mechanized farming equipment
• growing labor force-immigration
innovation in technologies (inventions & innovation)
“social Darwinism” philosophy
• laissez-faire government policies
no income tax, no environmental controls
11. Americans Invest in New
Technology
capitalists provided $ for
scientific research that led
to new inventions
capitalists provided $ to
build RR’s, mills, factories,
machinery, supplies.....
capitalism-economic
system in which factories,
equipment, and other
means of production are
privately owned
12. Americans Invest in New
Technology
Capitalism
• patent, sole legal right to
make or sell invention
1860=36,000
• 1900=600,000
• Edison=1,093 patents
light bulb
13. Revolutionary Changes in
Communication & Transportation
telegraph lines
dramatic progress
in communication
messages sent
anywhere, quickly
Morse Code
telephones
businesses and
homes connected
with quick contact
14.
15. Revolutionary Changes in Communication &
Transportation
1900=1,000,000 miles
telegraph wires=60,000,000
annual messages
RRs & newspapers
• 1893=250,000 phones
• 1920=13,000,000
• 2011 U.S. pop 310,866,000
- 327,577,529 cell phones
• 2011 China’s pop
1,341,000,000 -
9,757,000,000 cell phones
16. Consolidated Rail Lines
Inexpensive and faster
shipping
RR companies laid
track side by side so
traffic could move in
both directions
caused time zones to
be created
23. New Ways to Manage Work
mass production
interchangeable
parts
unskilled workers
& supervisors
increase productivity
no wasted motion
assembly lines
24. News Ways to Finance &
Organize Business
factors of production
land, labor, and
capitol
capitol
any asset that can
be used to
produce an
income
25. News Ways to Finance &
Organize Business
corporations
formed to provide
businesses capitol
to expand
run by stock
owners
monopoly
a company that
dominates a
particular industry
26. example - Standard Oil
John D. Rockefeller
“bought out” & merged
with other companies
made deals to cut
prices
forced others out
of business
monopoly-controlled
90% US oil production
27. Rockefeller Created a Trust
stockholders of
independent
companies agree to
exchange shares of
stock for trust
certificates
still receive dividends,
but lose control of
management
monopoly created
28. “Big Business” (image pg. 171)
horizontal integration
joining firms together from the same field
Rockefeller & oil=bought other companies
vertical integration
taking control of every step in production and
distribution
Carnegie & steel=raw materials > manufacturing >
storage > distribution
30. Laissez-faire
“allow to do”
the market’s supply and demand will regulate itself
without gov. interference
HOWEVER, big business was limiting competition,
which hurt consumers
31. Social Darwinism
based on Darwin’s
theory of evolution
the best run business,
with the best leaders,
would prosper
“survival of the fittest”
33. What did laissez-faire and
social Darwinism have in
common?
They both discouraged the government from
regulating business practices.
34. Laissez-Faire & Social
Darwinism, Reality
gov. helped businesses
gave RRs land
sold natural
resources at low
prices
taxed foreign goods
businesses bribed gov.
free land for cash
payments
35.
36. Sherman Antitrust Act, 1890
outlawed trusts, monopolies, and forms of business
that restricted trade
vague language left the law hard to enforce
courts interpreted in favor of big business
37. The Gilded
Age
“1. covered or
highlighted with gold”
“2. a pleasing
appearance that
conceals something
of little worth”
38. Andrew Carnegie, steel
1870-1900 steel
production 77,000 tons >
11 million tons
dominated the steel
industry with horizontal
integration
1890, Carnegie made $25
million, average worker
made $440
39. Carnegie’s Philanthropy
“A man who dies rich dies
disgraced.”
Carnegie Corporation of
NY
offered grants to
support education
built more than 2,500
public libraries
San Diego library
1899, $60,000
40. John D. Rockefeller, oil
Standard Oil, used
ruthless business
tactics
formed a monopoly
using horizontal
integration
controlled 90% of oil
and raised prices
America’s 1st billionaire
& world’s richest man
41. Cornelius Vanderbilt, rr
age 16 started ferry
business
steamships NY > SF
RR stock investments
1st NY > Chicago
direct service
42. Robber Barons or Captains
of Industry?
philanthropy
ushered in modern economy
great efficiency and
productivity
created jobs
living standards climbed
Americans demanded goods
and services
47. Trusts and Government
Corruption
by 1904 319 industrialist trusts swallowed 5,300
independent companies
high tariffs
anti-union police and courts
city bosses
48. Impact of Industrialism
benefitted middle class with mid-level jobs
poor water and sewage systems
little education among factory workers
diseases in filthy cities
inflated prices at company stores
long hours and injuries on job
low pay, but better than Europe
49. Change and Discrimination
women entered workforce, but paid less
women in textile mills got 50% of men’s pay
2 million child laborers
minorities and immigrants
CA, Chinese self employed to make more $
businesses pitted minorities against each other
51. Food Contamination
fraud-narcotics sold as cures
canned foods-dangerous additives
Muckraker’s, The Jungle, McClure’s
used writing to expose corruption and wrongdoing
52. Toll on Environment
mining
clear cutting forests
overgrazing livestock
chicago river - “great open sewer”
air pollution from burning coal to power machines
