Industrialism

1. Industrialism The 2nd Industrial Revolution 1865 – 1905

2. Wealthy Americans–Middle Class –Lower Class 1800s America’s 3 Groups • The smallest group controlled almost ALL of the wealth: the Upper Class. • Unlike today, the Middle Class was a very small group of people • Lower Class Americans earned very little pay and worked long hours at difficult jobs and usually lived in poor housing. They worked for these wealthy businessmen.

3. Social Darwinism • “Survival of the Fittest” for businesses and people. Belief that some classes of people are superior and rule over the rest. • English Social Philosophy developed by Herbert Spencer • Any attempts to help the poor or less capable actually slowed social progress • People who couldn’t survive the natural competition in society would not last, thereby making society stronger.

4. American Industrialists Andrew Carnegie John D. Rockefeller Cornelius Vanderbilt George Westinghouse George Pullman

5. Founder of the Carnegie Steel Company Built his vast wealth through Vertical Integration Acquiring companies that supply materials and services to the main business Sold Carnegie Steel in 1901 for $500 million Carnegie Steel = $11.4 Billion Today 2nd Richest Person in the History of the World The Gospel of Wealth Society needs wealthy people The wealthy have an obligation to give opportunities to those less fortunate Andrew Carnegie

6. Vertical Integration Carnegie Steel Company Coal Mines Railroads Andrew Carnegie controlled each stage of production to lower costs and sell his steel at a much lower price than his competitors. Carnegie Steel Company Iron Mines Steamship Lines

7. Industrialists – Andrew Carnegie $9.5 Billion adjusted to today’s money • “The Gospel of Wealth” • Gave away about $381 Million to charity • Built at least 3,000 public libraries and established hundreds of pensions and trust funds for educational research

8. Standard Oil Company Used Vertical Integration, expanded his business through Horizontal Integration Acquired smaller companies to eliminate competition - Monopoly By 1880, the Standard Oil Company controlled 90% of all US petroleum-refining capacity. Also a Philanthropist – Donated about $550 million to charity throughout his life Industrialists – John D. RockefellerRichest Man in the History of the World $13.8 Billion adjusted to today’s money

10. Horizontal Integration Standard Oil Company Sellers Oil Co. Gray Oil Co. Standard Oil Company Standard Oil Company Standard Oil Company Standard Oil Company The Standard Oil Company became one of America’s first trusts. Trusts and monopolies – businesses that exclude all competition Tabor Oil Taylor Petroleum

11. Industrialists – Cornelius Vanderbilt • Railroad tycoon • In 1877, he owned over 4,500 miles of RR track • His personal fortune was approximately $100 million Donated $1 Million to Central University in Nashville, TN, which was later named after him. Equal to $200 million today

12. Westinghouse Air Brake Company built the compressed-air brake Became standard on ALL RR cars Pullman RR Cars Made long distance travel more comfortable Sleeping Cars, Dining Cars, Luxury Cars Pullman, Illinois – site of his company town where the cars were made Industrialists –George Westinghouse & George Pullman – RR Suppliers

14. Richest People in History John D. Rockefeller - $336 Billion You remember this list from Populism…these are the richest people in the world today. • Carlos Slim Helu, Mexico, - $69 Billion • Bill Gates, USA - $61 Billion • Warren Buffett, USA, - $44 Billion • Bernard Arnault, France - $41 Billion • Amancio Ortega, Spain - $37.5 Billion When you adjust the incomes into today’s dollars, our Industrialists dwarf this list from last week. Andrew Carnegie - $309 Billion Cornelius Vanderbilt - $185 Billion

15. 1800’s Industrialists = MEGABUCKS!!! • Were these men Robber Barons, who made as much money as possible to support a lavish lifestyle at the expense of their workers??? • Or … Were they Captains of Industry, who generously gave their resources away to the less fortunate???

16. “Not evil, but good, has come to the race from the accumulation of wealth by those who have the ability and energy that produces it.”Industrialist Andrew Carnegie used which one of the following terms to describe the economic philosophy in the quotation above? • Socialism • Bimetallism • Gospel of Wealth • Social Darwinism

17. Writing Assignment • Do you agree with Carnegie’s Gospel of Wealth? Should people be obligated (forced) to make donations to the less fortunate? • Directions: Develop a logical argument for or against the belief of the Gospel of Wealth. • Come up with 3 good reasons, list them, then write your explanation in paragraph form for your answer. 2 PARAGRAPHS TOTAL. • Turn in for a DAILY GRADE when finished.

18. Union Pacific Central Pacific Westinghouse General Electric “GE” Lightbulb Transcontinental RR “Horseless Carriage” Thomas Edison Central Power Stations TRANSPORTATION ELECTRICITY Bessemer Process – a process for purifying iron that results in stronger, but lightweight steel Airplanes – Wright Bros. Changes in Daily Life 1865 – 1905 Refined Oil Fuel COMMUNICATION INVENTIONS Typewriter Telegraph Telephone Patent Bessemer Process Alexander G. Bell Samuel Morse Exclusive rights given by the govt to develop and sell an invention Steel Western Union

20. Worked at simple machines, no chance for advancement Very long hours, physically demanding, very low pay Being paid by how much you can produce WOMEN PIECEWORK FACTORY LABOR Life for Factory Workers DIVISION OF LABOR CHILD LABOR SWEATSHOPS Performing the same task over and over and over… Children made up 5% of the total US workforce Workers are overworked, underpaid, horrible conditions

22. Can you define these terms? • Use your textbook to add these definitions to your notes: • Corporation • Laissez-faire • Trust • Entrepreneur You might have to use the index.

23. American Federation of Labor • White males only, skilled workers only • Knights of Labor • All races, men or women, skilled or unskilled workers were welcomed AFL – Samuel Gompers Knights of Labor – Terence Powderly & Mary Harris Jones • The Great Upheaval 1886 • Union leaders became more willing to strike. • 1,500 strikes. Over 400,000 workers involved. WORKERS UNITE TO FORM LABOR UNIONS Homestead, PA – Carnegie Steel Company Homestead Union (AFL) workers went on strike to protest a wage cut. The workers were locked out and scabs (non-union workers) were hired. Violence broke out between strikers and factory guards, with 16 people killed. Pullman, IL – Town destroyed – Geography activity

24. A Striker Confronts a Scab!

25. The Great Upheaval 1886 The Haymarket Riot • Most notorious strike of the Great Upheaval • 40,000 Chicago workers struck for an 8-hr workday • Political radicals (Communists, Socialists, and Anarchists) took over and confronted police. • Bombs exploded, over 60 policemen injured. • An extreme event that damaged the labor union movement because of the violence. • Anarchy – opposition to all forms of govt by violence

26. The Pullman Strike • George Pullman built a town for his factory workers to live in: Pullman, Illinois • In 1894, he cut wages but did not lower prices and rent costs in his town. • Eugene V. Debs, head of the American Railway Union, (ARU) led the workers on strike. • Result was a complete shutdown of RR traffic throughout the entire Midwest. • The US Govt ended the strike because of the severity of the shutdown. ARU officials that ignored the govt and kept striking were jailed, which ended the strike.

28. Would it seem restrictive to live in a city like this, built around the factory???

30. Closed Shop Workplace where ALL employees must belong to a labor union Many people that favored this type of workplace advocated Socialism Anti-Capitalists Wanted worker-owned or government-owned industries Open Shop Workplace where union membership is NOT required The Open Shop was protected by the Taft-Hartley Act in 1947. 22 states currently enforce “right-to-work” laws (MS) Labor Unions

31. Industrial Workers of the World • 1905 Union opposed to Capitalism • Socialists – believes that workers (the Labor Union) should own industries • “Wobblies” • Eugene Debs & Mary H. Jones

33. What’s the Difference BetweenCapitalism – Socialism – Communism??? • Capitalism – Economic system where competition determines prices and wages • Property and businesses are owned by private citizens • Laissez-faire, free enterprise • Adam Smith, Alexander Hamilton • What is the government’s role in this type of economy???

34. What’s the Difference BetweenCapitalism – Socialism – Communism??? • Socialism – economic system in which the govt or the workers own most of the businesses in a country • Ownership of property and businesses is mixed between the govt and private individuals • Eugene V. Debs • The govt uses its power to attempt to manage the economy.

35. What’s the Difference BetweenCapitalism – Socialism – Communism??? • Communism – govt ownership of all property and businesses • Extreme form of Socialism • Classless society • Workers around the world should gain power and ownership through Communist revolution • Karl Marx, Friedrich Engels, Vladimir Lenin “Workers of the World, Unite! You have nothing to lose but your chains!”

36. NOTES OR PAGES 118 – 121 Daily Grade Create A Bubble Map Fact about all 3 events Fact about all 3 events Haymarket Riot Homestead Strike Pullman Strike Fact about Haymarket Fact about Homestead & Haymarket Fact about Homestead & Pullman Fact about Pullman Homestead Fact Fact about Homestead & Haymarket Fact about Homestead & Pullman Fact about Haymarket Fact about Pullman Homestead Fact