Published on February 27, 2008
Slide1: By: Ms. Susan M. Pojer Horace Greeley HS Chappaqua, NY Essential Question: Essential Question Industrialization increased the standard of living and the opportunities of most Americans, but at what cost? Causes of Rapid Industrialization: Causes of Rapid Industrialization Steam Revolution of the 1830s-1850s. The Railroad fueled the growing US economy: First big business in the US. A magnet for financial investment. The key to opening the West. Aided the development of other industries. Causes of Rapid Industrialization: Causes of Rapid Industrialization Technological innovations. Bessemer and open hearth process Refrigerated cars Edison “Wizard of Menlo Park” light bulb, phonograph, motion pictures. Thomas Alva Edison: Thomas Alva Edison “Wizard of Menlo Park” The Light Bulb: The Light Bulb The Phonograph (1877): The Phonograph (1877) The Ediphone or Dictaphone: The Ediphone or Dictaphone The Motion Picture Camera: The Motion Picture Camera Alexander Graham Bell: Alexander Graham Bell Telephone (1876) Alternate Current: Alternate Current George Westinghouse Alternate Current: Alternate Current Westinghouse Lamp ad The Airplane: The Airplane Wilbur Wright Orville Wright Kitty Hawk, NC – December 7, 1903 Model T Automobile: Model T Automobile Henry Ford I want to pay my workers so that they can afford my product! “Model T” Prices & Sales: “Model T” Prices & Sales U. S. Patents Granted: U. S. Patents Granted 1790s 276 patents issued. 1990s 1,119,220 patents issued. Causes of Rapid Industrialization: Unskilled & semi-skilled labor in abundance. Abundant capital. New, talented group of businessmen [entrepreneurs] and advisors. Market growing as US population increased. Government willing to help at all levels to stimulate economic growth. Abundant natural resources. Causes of Rapid Industrialization New Business Culture: New Business Culture Laissez Faire the ideology of the Industrial Age. Individual as a moral and economic ideal. Individuals should compete freely in the marketplace. The market was not man-made or invented. No room for government in the market! 2. Social Darwinism: 2. Social Darwinism British economist. Advocate of laissez-faire. Adapted Darwin’s ideas from the “Origin of Species” to humans. Notion of “Survival of the Fittest.” Herbert Spencer 2. Social Darwinism in America: 2. Social Darwinism in America William Graham Sumner Folkways (1906) Individuals must have absolute freedom to struggle, succeed or fail. Therefore, state intervention to reward society and the economy is futile! New Business Culture:“The American Dream?”: New Business Culture: “The American Dream?” Protestant (Puritan) “Work Ethic” Horatio Alger [100+ novels] Is the idea of the “self-made man” a MYTH?? New Type of Business Entities: New Type of Business Entities Pool 1887 Interstate Commerce Act Interstate Commerce Commission created. Trust John D. Rockefeller Standard Oil Co. Standard Oil Co.: Standard Oil Co. New Type of Business Entities: New Type of Business Entities Trust: Horizontal Integration John D. Rockefeller Vertical Integration: Gustavus Swift Meat-packing Andrew Carnegie U. S. Steel Iron & Steel Production: Iron & Steel Production New Type of Business Entities: New Type of Business Entities U. S. Corporate Mergers: U. S. Corporate Mergers New Financial Businessman: New Financial Businessman The Broker: J. Pierpont Morgan Wall Street – 1867 & 1900: Wall Street – 1867 & 1900 The Reorganization of Work: The Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911) The Reorganization of Work: The Reorganization of Work The Assembly Line % of Billionaires in 1900: % of Billionaires in 1900 % of Billionaires in 1918: % of Billionaires in 1918 The Protectors of Our Industries: The Protectors of Our Industries The ‘Bosses’ of the Senate: The ‘Bosses’ of the Senate The ‘Robber Barons’ of the Past: The ‘Robber Barons’ of the Past Cornelius [“Commodore”] Vanderbilt: Cornelius [“Commodore”] Vanderbilt Can’t I do what I want with my money? William Vanderbilt: William Vanderbilt The public be damned! What do I care about the law? H’aint I got the power? The Gospel of Wealth:Religion in the Era of Industrialization: The Gospel of Wealth: Religion in the Era of Industrialization Russell H. Conwell Wealth no longer looked upon as bad. Viewed as a sign of God’s approval. Christian duty to accumulate wealth. Should not help the poor. “On Wealth”: “On Wealth” Andrew Carnegie The Anglo-Saxon race is superior. “Gospel of Wealth” (1901). Inequality is inevitable and good. Wealthy should act as “trustees” for their “poorer brethren.” Regulating the Trusts: Regulating the Trusts 1877 Munn. v. IL 1886 Wabash, St. Louis & Pacific Railroad Company v. IL 1890 Sherman Antitrust Act in “restraint of trade” “rule of reason” loophole 1895 US v. E. C. Knight Co. Relative Share of World Manufacturing: Relative Share of World Manufacturing Modern ‘Robber Barons’??: Modern ‘Robber Barons’??