Gilded Age

Expansion of IndustryAge of RailroadsBig Business Urbanization and ImmigrationPoliticsProgressive Era

Expansion of Industry: Industrialization

Main IdeaAt the end of the 19th century, natural

resources, creative ideas, and growing markets fueled an industrial boom.

Technological developments of the late 19th century paved the way for the continued growth of American industry.

Friendly Definition of Industrialization Industrialization—expansion of industry

Process of converting production from man and animal power to machine power.

Industrialization The process in which a society or country (or world)

transforms itself from a primarily agricultural society into one based on the manufacturing of goods and services. Individual manual labor is often replaced by mechanized mass production and assembly lines replace craftsmen. Characteristics of industrialization include the use of technological innovation to solve problems as opposed to superstition or dependency upon conditions outside human control such as the weather, as well as more efficient division of labor and economic growth.

Expansion of IndustryFueling the “industrial Boom” at the turn

of the 19th century. Abundant Natural Resources Technical improvements and Inventions Creation of a National Market—expansion

in transportation and communication Government support for business An Adequate Labor Supply—migration &

immigration

Abundant Natural Resources Oil, steel, coal, and lumber became the

building blocks of industrialization.Coal and Lumber were always

available. However, improvements in the obtaining and refining of steel and oil, increased the pace of industrialization.

Abundant Resources Black Gold

Oil had very little use early in its discovery

Kerosene became best use for refined oil but it was too expensive

Edwin L. Drake used the steam engine to drill oil beneath the Earth’s surface

Oil, a better source of energy, became cheap due to the increased supply.

Abundant Natural Resources Age of Steel

Henry Bessemer discovered how to remove the carbon from Iron in order to make steel. (Lighter, flexible, and rust resistant)

Uses for steel: railroads, Joseph Glidden’s barbed wire, farm machinery, bridges (Brooklyn), and skyscrapers

Steel Industry

Technical Improvements and Inventions Thomas Edison

Patented the light bulb in 1880 and later Invented a way to distribute electricity with George Westinghouse (cheap & safe)

Electricity revolutionized the way we lived: (1890)

Transportation Efficient workforce Allowed businessmen

to build plants where ever

Technical Improvements & Inventions

Christopher Sholes (1867) Invented the typewriter

Alexander Graham Bell (1870) Invented the telephone

Inventions Effect on Society Technology boom created new

jobs, made laborers more efficient, and improved standard of living

Improvements in communication, transportation, mass-production, and the availability of energy contributed greatly to industrialization.

The Age of the Railroads

The Age of Railroads

Main IdeaThe growth and consolidation of

railroads benefited the nation but also led to corruption and required government regulation.

Railroad made possible the expansion of industry across the United States

Transcontinental Railroad May 10, 1869

Unites the U.S. in a physical sense

Railroads Effect on AmericaExpands other industries: Steel, coal,

lumber, growth of towns, and helped establish new markets (unified economy)

Creates a Standard Time Zone Professor C.F. Dowd proposed that the earth

had 24 time zones November 18, 1883 America synchronized

their watches

The Romance of the Railroad Brought dreams of available land,

adventure, and the chance at a fresh start

Isolated cities, towns, and settlements could now share some interdependence

Individual towns began to specialize in certain markets

Big Business and Labor

Big Business

Main IdeaThe expansion of industry resulted in

the growth of big business and prompted laborers to form unions to better their lives.

Big Business—large-scale, corporate-controlled, financial or business activities.

The Emerging American Economy: Market EconomyAdam Smith’s Wealth of Nations (1776)The economy when left alone, without

government intervention, will become more efficient and prosperous to all.

Self-Interest will drive the economy while Competition regulates it. (Invisible Hand in the market place)

The Devices of IndustryGovernment support of business

Laissez faire- “to let do”, emphasized government hands off

1. Funding Railroad expansion 2. high tariff rates reduced foreign

competition 3. Loans and tax breaks 4. National banking system

Devices of Industry Vertical Integration- the process of buying out

suppliers and distributors of resources and finished products

Horizontal Integration- the process of buying out competitors

Monopoly- Complete control of an industries production, wages, and prices

Trust- companies in-trust their stocks to a board of trustees. Companies would receive dividends of profits. (1870)

Holding Companies- when trust were found illegal, corporations found holding companies which bought stocks of other companies.

Captains of Industry Robber Barons or Captains of Industry

Late nineteenth century industrialist who modernized the American economy by making it more productive and efficient.

BUT, their achievements were not without cost:

Exploitation of the working class Eliminated competition, reducing the supply of

goods Added to the pollution in America Manipulated the Government

Captains of IndustryCornelius

Vanderbilt(1794-1877) Railroad industry Controlled

majority of the Railroads in the Northeast

“Conspicuous Consumption”- wasteful spending

Captains of Industry Andrew Carnegie Carnegie learned at

young age how to make his money work for him

“adopt every improvement, have the best machinery and know the most about your field”

1872 adopted the Bessemer Process, which made the production of steel better and cheaper

Captains of IndustryCarnegie hired the best scientist and

hired the best managers to produce the best steel

He believed in vertical integration- (controlling every aspect of production to supplying)

1892 produced 25% of the nations steel

Captains of Industry John D. Rockefeller Very organized and

determined man Was an investigator for

possible drilling sites Lied about sites then

invested himself in those same sites

1862 started an oil refinery business in Cleveland

Captains of IndustryRockefeller was able to manipulate train

fares and establish enough wealth that he began buying out smaller refineries

Rockefeller also believed in vertical integration and began to buy up pipelines, barrel making factories, ships, etc.

By 1890 Standard Oil controls 90% of the oil production in America

Captains of Industry J.P. Morgan Largest banker of his

day Born into wealth In the 1880’s he bought

out struggling R.R. and steel companies

Bought out Carnegie for 480 million dollars

1901 Morgan formed U.S. steel and produced 3/5 of the nations steel

How they justified it!Laissez-faire- philosophy that means

business should run without government regulation or control

Social Darwinism- philosophy which states that companies, like organisms, struggle for survival, and government should not interfere with the natural process

How they Justified It!

Gospel of Wealth- philanthropy Philosophy which justifies earning great

wealth but carries with it a social responsibility to the community

Once the Captains of Industry have accumulated enough money it is there social duty to take care of humanity

Immigration and Urbanization

Immigration and Urbanization Immigration in Waves Reasons: famine, land shortage, freedom

from religious or political persecution, and “birds of passage” Travel: Atlantic (1 week) Pacific (3 weeks) Lived

in steerage, never got to go up top, slept in lice-infested bunks, shared toilets, and disease spread quickly. Many people died before reaching America

ImmigrationArrival

Atlantic (Ellis Island) Had to pass inspection first. Some waited two to three days.

Pacific (Angel Island) very similar to Ellis Island

Survival: Had to rely on each other for help. Had to find a place live, a job, and try and understand the language. Many people sought out people who spoke the same language

Immigrants Face Hard Times Immigration Restrictions

Melting Pot of people who blended together by abandoning their native languages and customs

Nativism- philosophy of native born Americans that pushed for restrictions on immigration. Why?

Chinese Exclusion Act (1882-1902) Gentlemen’s Agreement- limitations on

Japanese Immigration.

Urbanization

What must a city have in order to grow and function?

Chapter 16 Section 1: A,B & C

Page 482-485

Urbanization Urbanization-growth of cities Americanization Movement sought to better

assimilate immigrants by teaching English and American History

Migration from the country to the city also attributed to growth of cities

Urbanization Urban Problems

Housing: (tenements) cramped living environments and very unsanitary

Transportation: Electricity improved mass transit, but could not keep up with the demand

Water: Shortage of drinking Sanitation: Horse manure piled up, open sewage,

smoke filled the air, people threw trash in the streets

Crime: Police force to small; crime ran a muck Fire: Due to lack of water and no organized fire

system fires often times just had to burn out. (Chicago Fire)

Struggles of Labor

Struggles of LaborExploiting of the lower classes

Owners wanted to cut cost and increase profits

Cheap labor (8-12 dollars a week) Immigration made cheap labor possible

Unsanitary and dangerous working environment

12-14 hour days/ 6-7 days a week Accidents on the job were the workers fault

Struggles of LaborFamily Business

Due to low wages and expensive living conditions the whole family had to work

Most children began work at the age off 10, but many started much sooner

Large percentage of women worked Both made less than men (Children $.30

Women half of men)

Labor UnionsLabor Union- organization of workers

who wanted to improve status Abolition of child labor Abolition of contract foreign labor Collective bargaining (boss v. worker) Arbitration (negotiator in between) Worker compensation (insurance) Better working conditions, shorter hours,

higher wages

Labor Unions Two types:

Craft (horizontal union) workers who share the same job

Industrial (vertical union) workers of the same industry

Problems Organizing Languages Cultural differences Black workers Women Foreign-born workers Radicals

Labor UnionsOrganizations

The National Labor Union (1866-1872) The Knights of Labor (1869-1881) American Federation of Labor (1886-

present) Industrial Workers of the World (1905-?)

Labor Unions Industrial leaders and government

believed that unionization threatened the capitalistic system.

Confrontation-Led to violence and poor public opinion of unions Railroad Strikes of 1877 Haymarket Incident (1886) Homestead Strike (1892) Pullman Strike (1893)

Gilded Age Politics

Gilded Age Politics

Political Bosses: Manipulated immigration, controlled jobs, business licenses, and influenced courts and other municipal agencies. They did some good as well. (Built parks, schools, hospitals, and orphanages)

Political Machines rigged elections, and swindled money from the government.

Gilded Age Politics In a climate influenced

by Social Darwinism, cities were receptive to the Political Machine- organized group that controlled the activities of a political party and bribed voters and businesses for financial support.

Boss

Ward Boss

Captain