Rise of Industrial America presentation.ppt

Rise of Industrial America presentation.ppt

1. Rise of Industrial America
Chapter 18

2. The Gilded Age
Mark Twain’s Novel that
satirizes the time period, era
of industrial expansion
Happened due to:
1)Vast Coal Deposits
2)New Technology
3)Low production costs due
to unskilled worker’s
wages
4)Rule by a few
corporations (oligopolies,
monopolies drive
economy)

3. Industrial Statistics
Table 1
Percentage Distribution of the World's Manufacturing Production,
1870 and 1913
(percentage of world total)
1870 1913
USA 23.3 35.8
Germany 13.2 15.7
U.K. 31.8 14.0
France 10.3 6.4
Russia 3.7 5.5
Italy 2.4 2.7

4. Industrial Expansion

5. 5) The Entrepreneur -Robber
Baron v. Philanthropist
•Robber Baron–the
Gilded Age
entrepreneur takes
away money from the
economy through
exploitation and illegal
activities
•Philanthropist –the
Gilded Age
entrepreneur gives
money that they earn
back to the economy
and the community

6. The Entrepreneurs of the Gilded
Age
•With the entrepreneur you are given:
1) What did he accomplish during the
Gilded Age?
2) Was the person a “robber baron” or a
“philanthropist”? Explain.
Research using books and phones

7. Railroad Innovations
1)Political –bribed politicians,
fought off government laws
(rate discrimination,
Interstate Commerce Act
and ICC, Wabash v. Illinois)
2)Social –communication and
travel network
3)Economic –controlled
movement of goods, set
rates on businesses and
farmers, led way in
consolidation of business,
developed new accounting
and managing methods

8. Railroad Entrepreneurs
Jay Gould
Collis Huntington

9. The Interstate Commerce Act
railroad rates be "reasonable and
just," but did not empower the
government to fix specific rates.
A failed attempt to control the railroads, showing the political power
that the railroads had at the time

10. Carnegie’s Steel
Carnegie’s use of vertical and horizontal
integration to dominate the industry was a
new economic tactic
Carnegie attached
himself politically
to the railroads
and helped the
railroads create
their social
market network
through his steel
product

11. Rockefeller’s Oil Trust
Creates the first trusts, which are politically challenged by
the Sherman Anti-trust Act (ineffectively due to the US v. EC
Knight case)
A trust affects economics by not only consolidating
companies but ruthlessly driving out competition using
aggressive policies involving adopting new technology and
claiming all of the resources

12. Rockefeller and Standard Oil

13. Sherman Anti-trust Act
Section 1:
"Every contract, combination in the form of trust or otherwise, or
conspiracy, in restraint of trade or commerce among the several
States, or with foreign nations, is declared to be illegal."
]
Section 2:
"Every person who shall monopolize, or attempt to monopolize, or
combine or conspire with any other person or persons, to monopolize
any part of the trade or commerce among the several States, or with
foreign nations, shall be deemed guilty of a felony [. . . ]"

14. EC Knight Case
limited the government's power to
control monopolies.
That which belongs to commerce is within
the jurisdiction of the United States, but
that which does not belong to commerce is
within the jurisdiction of the police
power of the State. ... Doubtless the
power to control the manufacture of a
given thing involves in a certain sense
the control of its disposition, but . ..
affects it only incidentally and
indirectly.

15. Inventions During the Gilded Age
Inventions such as
the telephone by
Alexander Graham
Bell helped grow
the economy

16. Thomas Edison’s Inventions

17. Aggressive Advertising
Specialized products and advertising
also led to economic growth and
expanded sales of new products

18. Pros and Cons of Gilded Age
Pros –healthy
economy, wide array
of new products, lower
prices for consumers
Cons –destruction of
small businesses,
exploitation of
workers,
environmental
destruction, inability
for money supply to
keep up with economy

19. The New South and the “Creed”
The New South dealt with many obstacles regarding Gilded Age
development:
1)Destruction of southern credit, capital during the Civil War
2)Federal government policies that help factories up North, not
agricultural South (high tariffs)
3)Poor education and low literacy rate in South
The “New South Creed” attempts to solve this by:
1)Providing tax exemptions, industrial fairs for businesses
2)Using natural resources in the South

20. Development of the South
Agriculture's Share of the Labor
Force by Region, 1890
Northeast 15%
Middle Atlantic 17%
Midwest 43%
South Atlantic 63%
South Central 67%
West 29%
The “New South Creed” to bring industry to the area was difficult due
to agricultural labor force, but the “cotton mill” economy was
relatively successful because it combined agriculture and industry

21. Southern Industry Results
As well as the new “cotton
mill” industry, other
results were:
1)Increased iron, steel
production in Southern
cities
2)Job increase for blacks
and poor whites, but
up to 50% less pay
than Northern workers
leading to debt
problems
The South advanced much more slowly than
the North, and Northern companies like the
Burlington Coat Factory from Burlington,
VT took much of the Southern capital

22. Discussion Question
•Is the economic growth during the Gilded
Age worth the problems that it causes?

23. Industrial Labor Hardships
Child Labor
Railroad Workers -Chinese
Triangle
Shirtwaist
Factory
after the
Fire
1)Diseases (black lung)
2)Frequent accidents
(long hours, children)
3)No workers
compensation or laws

24. Immigrants and Women in Industry
Immigrants had the
lowest-paid, most
dangerous jobs
Women were hired for
unskilled work over
men due to lower pay
(17% of workforce)

25. “Rags to Riches” (Carnegie)
Student and Schoolmate
published “Ragged Dick”
by Horatio Alger, a story
about a poor boy’s rise to
wealth
In reality, 95% of executives came
from wealth, and the top 10%
owned 73% of US wealth

26. Labor Unions
Knights of
Labor Seal
American Federation of Labor seal
Unfavorable working conditions caused the rise of labor unions:
1)NLU (William Sylvis) –first labor union but dies out quickly
2)Knights of Labor (Terrence V. Powderly) –pushes for new social
reforms (equal pay, child labor laws, graduated income tax, etc.)
3)AFL (Samuel Gompers) –promotes skilled workers (wages, hours)

27. Chinese Exclusion Act, 1882
Labor union success was
spotty, but they did
succeed in pushing for the
Chinese Exclusion Act,
which kept Chinese from
getting jobs
However, the union
divisions of skilled v.
unskilled, religious,
ethnic, goals, etc. hurt the
overall union agendas

28. Labor Violence
1877 Railroad Strike
Haymarket Riot –The Bomb
Labor unions used violent strikes
to try to achieve their goals when
other attempts failed

29. Yellow Dog Contracts
This agreement has been well named. It is yellow
dog for sure. It reduces to the level of a
yellow dog any man that signs it, for he signs
away every right he possesses in the Constitution
and laws of the land and makes himself the
truckling, helpless slave to the employer
Businesses responded with:
1)Yellow Dog Contracts –keep workers from striking
2)Police Forces (Government forces, injunctions)
3)Public Opinion (most people didn’t like the violence, blamed it on
labor)
4)Lockouts, Blacklists

30. Social Darwinism
Every progress of the whole must be preceded by a
partial weakening. The strongest natures retain
the type, the weaker ones help to advance it. To
this extent, the famous theory of the survival of
the fittest does not seem to me to be the only
viewpoint from which to explain the progress of
strengthening of a man or of a race.
[
Social Darwinists (Spencer, Carnegie in “Gospel of Wealth”, Sumner,
Smith) believed in laissez-faire government and survival of the fittest
(no help to poor)
Others believed that human-made problems must be solved (Lester
Ward, Henry George, Edward Bellamy) through regulation of business,
tax reform, and cooperation
Socialists (Karl Marx, Eugene V. Debs) believed in the overthrow of
capitalism to create an equal society

31. Labor Essay Question
•Analyze the impact on labor of industrial
development in the post-Civil War period. Your
answer can include the effects on skilled,
unskilled, southern, immigrant, and women
workers.
•Have at least a:
1) Thesis
2) At least two body paragraph opening sentences
and two specifics listed for each
3) Concluding sentence