Please enable JavaScript.
Coggle requires JavaScript to display documents.
L2: Industrialization (1865-1901) - Coggle Diagram
L2: Industrialization (1865-1901)
The rise of industry
1.1 U.S. industrializes
began in the 1800s
industry expanded after the Civil War
people left their farms for factories
U.S. is the leading industrial nation by the end of 1800s
1914-the gross national product(GNP) was 8 times greater than the starting point
1.1.1 Natural resources
abundance of raw materials
obtained cheaply; no need to import from other countries
located at the west
both the settlement and the railroads helped to accelerate industrialization
high demand in petroleum
petroleum can be turned into kerosene-fuel for lanterns and stoves
oil production rose-->economic expansion
1.1.2 large workforce
available human workforce
1860-1910: population tripled
provided industrialization more workforce
created a bigger demand for good manufactured by workshops
cause of the triple population: large families; immigrants
large families-->better living condition-->more children will survive until adulthood-->more workers
immigrants: usually people who escaped from government oppression or religious persecution; more than 17 million people arrived
increase workforce, increase production, became consumers
1.2 New inventions
increase productivity
improve transportation
improve communication network
1.2.1 Bell and telephone
Alexander Graham Bell, Scottish immigrant
1874, suggested the idea of telephone
experimented
succeeded in1876
telephone-business and personal communication
1.2.2 Edison, Westinghouse, and Electricity
Thomas Alva Edison
leading pioneer
invented phonograph, lightbulb
improved major devices
George Westinghouse
engineer and industrialist
invented air-brake system
continuous brake system
safer traveling
developed alternating current system
electricity using transformers and generators
1.2.3 technology's impact
changed the way people live
e.g. ice machine----refrigerator, refrigerated railroad car
textile industry
machine: Northrop automatic loom
increase productivity
Power-driven sewing machines
improved communications
e.g. cable cross Atlantic--->instant contact between America and Europe
1.3 Free enterprise
late 1800s, laissez-faire---“let people do as they choose.”
laissez-faire
no gov. interference in economy
gov. ONLY protect private properties and maintain peace
relies on the support and demand
believed to be: free market---better efficiency---more wealth for everyone
supporters advocate: low taxes, limited gov. debt
Entrepreneurs appeared
more people invest in railroads and factories
U.S.: low taxes, policies for better economy
North: high tariffs
protect the manufacturers from foreign competition
support federal subsides for certain companies
South: low tariffs
promote trades
better cost for imported objects
policy: Morrill Tariff
tripled tariff
high tariffs contradict the laissez-faire
harder to export
The Railroads
2.1 linking the nation
1865, 35,000 miles of railroad
after civil war, railroad expanded
1990, 200,000 miles
2.1.1 The Transcontinental Railroad
1862, President Abraham Lincoln signed the Pacific Railway Act
act that provided cross continental railroads
gov. provided land for railroad companies to encourage construction
Central Pacific Railroad
engineer Theodore Judah
stock to the "big four"
shortage labor of CA--->hiring harborers from CH
all equipments shipped for using
Union Pacific Railroad
engineer Grenville Dodge
1865, pushing westward from Omaha, Nebraska
laborers working in bad conditions (rough, dangerous, gambling etc.)
completed within 4 years
joined the two railroads
2.1.2 Railroads Spur Growth
industrial growth
increased the markets for products in other nations
stimulated economy by the use of materials
multiple small was took over by a big railroad
railroad consolidators was Cornelius Vanderbilt
merged many railroads
directed railroad service
different time zone threat safety
cause collision
solution: American Railway Association placed the countries into 4 time zones
railroad tech
locomotive technology
air brakes
more efficient, safer
pro: religion
making people homogenous
connecting different cultures---> changing the society
2.2 Robber Barons
railroads through the Great Plains
federal gov. giving land grants to companies
the great wealth led to accusations, e.g. Jay Could manipulating stock
Bribery
occurs frequently
people discovered that money comes faster from land grant rather than railroads
---->began bribing members of Congress
2.2.1 The Crédit Mobilier Scandal
Crédit Mobilier: construction company setup by several stockholders
Oakes Ames: a member of the Congress
many people acting for both the Mobilier and the Union
basically signing contracts with themselves
Mobilier overcharged the Union and added more miles to the railroad
resolution: the investors became millionaires; the railroad bankrupted
Ames sold some stock the other members of the Congress to earn more land grant
effect: investigation through the Congress members; affected the outcome of the election
2.2.2 The Great Northern Railroad
James J. Hill
no robber baron
built and operated the Great Northern Railroad
offered low fares for settlers on his route----> increased business
used railroads for trading between west and east
without gov. subsides
The Great Northern Railroad: most successful transcontinental railroad
Big Business
3.1 The Rise of Big Business
before civil war; small business
after civil war; big businesses appeared
corporation: business owned by many stockowners by treated as one by law
issuing stocks allowed the company to raise money for their project
1830s, few corporation because of the legislature
stock sold allows: investing in new technologies, hire large workforces, and purchasing many machines
achieve economies of sale: goods quickly produced in large quantities so that the manufacturing cost decreased
fixed cost: cost that has to be payed regardless of the operating (taxes, mortgages)
operating cost: cost for running the company (shipping costs, buying supplies)
small manufactures: low fixed cost, high operating cost--->cheaper to shut down
corporations: high fixed cost, low operating cost---> produce more goods in a cheaper way, operate in poor economic times
corporations caused small businesses to be forced out
3.2 Consolidating Industry
pools
agreement to kept price at the same range
lasted shortly
broke whenever a person but the price for markets
1870s, competition reduce companies to large corporations
3.2.1 Andrew Carnegie and Steel
Andrew Carnegie
starting working at the age of 12
bobbin boy--> messenger-->secretary for a superintendent-->superintendent
bought shares and invested for the railroad business (500,000 per year)
quit the job for his own business
met Sir Henry Bessemer
learned the Bessemer process for making better steels
opened a steel company
made his company a vertical integration--owning of different businesses for one operation
saved more money
3.2.2 Rockefeller and Standard Oil
horizontal integration: combining companies in the same area into one big corporation
John D. Rockefeller
oil was discovered-->decided to build a oil refinery
began buying other companies
controlled about 90% of the oil refining industry
formed a monopoly--a company that controls of an entire market
3.2.3 New Business Organizations
some people fear monopolies (reason: sell goods at any prize)
some people believe that (monopolies have to keep prices low in case of competitors)
states passed laws to make horizontal integration illegal
others ways are discovered
trust-legal way of merging businesses
trustee-who manages the property(stock)
stock give away to trustees to management
trustees managing the property(stock) without owning it
stockholders in exchange get profits from the trust
holding companies-doesn't produce any itself but organize stocks from others
managing and merging the companies
investment banking
J. P. Morgan
helping issuing stocks and sell it to who needs it for a profit
bought out Andrew Carnegie and merged all the steel companies
3.2.4 Selling the Product
retailer-who sell their product directly to the consumers
attract customers using ads
department store
using ads
provided lots of housing
chain store
stores by retailers of the same company
focusing on low prices
mail-orders
sending emails online
focusing on people living in the rural areas without stores beside
Unions
4.1 Working in the United States
hard life for laborers
uneven division of income between the wealthy people and the workers
deflation-rise of value of money
wages are cut--->laborers formed union for bargaining
4.1.1 Early Unions
craft workers-- special skills and training-->higher wages
common laborers--few skills-->lower wages
1830s, craft workers forming trading unions
industry opposes unions
employers have to negotiate with unions
industrial unions-uniting all workers in a certain industry
opposed by business leaders
ways of stopping unions: take oaths and signing contracts; hiring detectives to find organizers; strikers fired and placed on the blacklists; lockouts to lock the worker's property; strikebreakers
political and social opposition
no laws for forming unions and negotiating
union often succeeded
Karl Marx---Marxism
believed that workers should take over the factories
capitalist society--->socialist society
supported by laborers
anarchism.
believed that gov. shouldn't interfere
assassination of officials
anti-immigrants
European immigrants coming for unions
suspicious of unions
4.2 Struggling to organize
union rarely succeeded
led to violence and bloodshed
4.2.1 The Great Railroad Strike
panic of 1873, struck the economy, caused forced wage cutting
workers striking
affect 2/3 of the railroads
violent strike
police officers were sent
many people injured and some died
pointed out the need of peace to settle the workers
4.2.2 The Knights of Labor
leader, Terrence Powderly
opposed strikes
preferred boycotts
arbitration- third party inference for agreements
eight-hour workday; equal pay for women; abolition of child labor; creation of worker- owned factories
early success
The Haymarket Riot
supporters of the eight-hour workday
nation wide strike
police interfered, firing
the speech: violence
4.2.3 The Homestead Strike
labor dispute
steel mill owned by Andrew Carnegie in Homestead
managed by anti-union business partner, Henry Clay Frick
contract expired--> cutting wages, locking employees
arrange the Pinkerton Detective Agency for replacement workers
violence between the Pinkertons, strikers and the strikebreakers for land
4.2.4 The Pullman Strike
leadership of Eugene V. Debs
American Railway Union (ARU)
tried to organize the worker of the Pullman Palace Car Company
the company laid off workers and slashed wages
the strike began
the workers refused to handle the cars (boycott)
the U.S Mail Cars and Pullman Palace was connect by the railroad managers
boycotts the Pullman Palace-->interfere the U.S mail--->violation of the law
issued a injunction-formal court order
both parties collapsed
4.3 New Unions Emerge
4.3.1 The Rise of the AFL
American Federation of Labor (AFL): dominated union
focusing on promoting the interest
Samuel Gompers --the first president
steer way from controversy
focusing on simple unionism
preferred to negotiate rather than striking
convince companies to agree for collective bargaining
closed shops-companies could hire union members
promoted an eight-hour workday
4.3.2 The IWW (Industrial Workers of the World )
created by labor radicals who are socialists
none distinction between skilled or unskilled workers
preferred using strikes
led a successful strike of textile workers
succeeded rarely
condemn the organization as subversive.
4.3.3 Working Women
after civil war, more women began working
constituted “women’s work.”
domestic servants; teachers, nurses, and sales clerks; industrial workers
paid less even though performed the same jobs as men
believed that women were helped by men
believed that men need more money for their family
women were excluded from unions
Mary Harris Jones
labor organizer for the Knights of Labor
very successful organizer
the International Ladies’ Garment Workers Union was found
advocates for better wages for women
the Women’s Trade Union League (WTUL)
an eight- hour workday; creation of a minimum wage; end to evening work for women; abolition of child labor.