Title: The Incorporation of America
1The Incorporation of America
2Political Changes of the Gilded Age
- Changes due to INDUSTRIALIZATION
- Business corrupts politics
3Social Darwinism
- British economist.
- Advocate of laissez-faire.
- Adapted Darwins ideas from the Origin of
Species to humans. - Notion of Survival of the Fittest.
Herbert Spencer
4New 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!
5The Bosses of the Senate
6Regulating the Trusts
- 1887 ? Interstate Commerce Act
- Creates Interstate Commerce Commission
- Attempts to regulate the Railroads
- 1890 ? Sherman Antitrust Act in restraint
of trade rule of reason loophole
7Causes of Rapid Industrialization
- Technological innovations. Bessemer and open
hearth process - Refrigerated cars
- Edison ? Wizard of Menlo Park
? light bulb, phonograph, motion
pictures.
8Causes of Rapid Industrialization
- The Railroad fueled the growing US economy
- First BIG business in the US.
- The key to opening the West.
- Moving raw materials and consumer
products was much easier - Increased demand for all products
- INCREASED DEMAND INCREASED PRODUCTION
9Thomas Alva Edison
10Electricity
- Reliable Energy
- Powered factories
- Causes industrial Expansion through faster
production - Creates lots of new factory jobs
George Westinghouse
11The Light Bulb - 1880
- Greatest American Inventor
Wizard of Menlo Park
Thomas Edison
12Alexander Graham Bell
Telephone(1876)
Communication helps to speed the growth of
business
131866, CARNEGIE INVESTED IN THE BESSEMER
PROCESS.
- JULY 1892 WITH 25,000,000 CREATED CARNEGIE
STEEL CORPORATION - PRODUCED 1/4 OF THE WORLDS STEEL.
14Geography
The abundant natural resources of America fuel
the growth of big business
15Free Enterprise System
- 1. Unskilled semi-skilled labor in abundance.
- 2. Abundant capital.
- 3. 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.
16John Jacob Astor Fur Trading, Real Estate, and
Opium
17Andrew Carnegie - Steel
18William Vanderbilt
- The public be damned!
- What do I care about the law? Haint I got the
power?
19Cornelius Commodore Vanderbilt
Cant I do what I want with my money?
20Cornelius Vanderbilt The Biltmore Largest
House in the U.S.
21Wealth Concentration Held by Top 1 of Households
22New Type of Business Entities
- Horizontal Consolidation ? John D.
Rockefeller
Vertical Consolidation
Andrew Carnegie ? U. S. Steel
23New Type of Business Entities
- Trust ? (monopolies) Combining multiple companies
to create larger companies - Trusts allow profits to skyrocket!
THE RICHEST MAN EVER
24- Because of increased profits, companies had money
to invest in research, which leads to MORE
technological advancements and greater efficiency - Time Study Analysis
25The Reorganization of Work
The Assembly Line
26The Phonograph (1877)
27The Ediphone or Dictaphone
28The Motion Picture Camera
29The Telegraph - 1844
30The Robber Barons of the Past
31B. Social Darwinism
- British economist.
- Advocate of laissez-faire.
- Adapted Darwins ideas from the Origin of
Species to humans. - Notion of Survival of the Fittest.
Herbert Spencer
322. Social Darwinism in America
- Individuals must have absolute freedom to
struggle, succeed or fail. - Therefore, state intervention to reward society
and the economy is futile!
William Graham SumnerFolkways (1906)
33- ANDREW CARNEGIE
- IMMIGRANT FROM GLASGOW, SCOTLAND
- WORKED IN PITTSBURGH, BOBBIN BOY FOR 1.20 A
WEEK. - SAVED MONEY CHARMED INVESTORS TO ENTER THE
RAILROAD BUSINESS. - 1861 STARTED 1ST BUSINESS IN IRON.
34On Wealth
- Gospel of Wealth (1901).
- Inequality is inevitable and good.
- Wealthy should act as trustees for their
poorer brethren. - Gave away his vast Fortune
- Education/Arts
Andrew Carnegie
35The Gospel of WealthReligion in the Era of
Industrialization
- Wealth no longer looked upon as bad.
- Viewed as a sign of Gods approval.
- Christian duty to accumulate wealth.
- Should not help the poor.
Russell H. Conwell
36- E. JOHN D. ROCKEFELLER
- HARD WORKING
- GREAT MIND FOR S AND
- MATH
- IRON NERVES, DECISIVE,
- PRECISION, CAUTION,
- GREAT STRATEGIST AND
- FORECASTER
37- STARTED OWN BUSINESS AT 20.
- 1865 - ENTERS THE OIL BUSINESS
- HIRES HIS BROTHER
- OPENS STANDARD WORKS.
- 1868 - ROCKEFELLER IS THE LARGEST
- OIL REFINER IN THE WORLD
- 1870 - CREATED
- STANDARD OIL COMPANY
38Standard Oil Co.
39- 1879 REFINED 90 OF THE OIL IN U.S. 70 EXPORTED
OVERSEAS. - 1904 - 80 OF AMERICAN TOWNS SERVICED BY
- STANDARD OIL COMPANY
- 1912 ROCKEFELLERS FORTUNE PEAKED AT
900,000,000 !! - DIED WITH 26,410,237 AND GAVE MOST AWAY TO
FOUNDATIONS AND HEIRS.
40The Protectors of Our Industries
41The Work Force
- Immigrants
- Women
- Children
42Sweat shop
- Long Hours, low wages, unsafe conditions
43The Work Environment
- Dirty
- Dangerous
- Long Hours
44Children at Work
- Jacob Riis
- Work was very dangerous for kids
- Dirty work environment led to health problems for
kids
45- Kids couldnt attend school
- Families needed the money
- Kids were paid less
46(No Transcript)
47Growing Gulf Between the Rich and the Poor
Karl Marx
- Socialism redistribution of wealth
48Rise of Labor Unions
- Labor unions began to form to protest worker
wages, safety and hours
- American
- Federation of Labor
- (AFL)
49Railroad Strike of 1877
50Haymarket Riot - 1886
51Homestead Strike 1892
52Pullman Strike 1894
- Government helps Big Business because the
strikers are interfering with the mail. - This sets the pattern of government response to
strikes for years to come.
53- Public sympathize with the strikers until the
anarchists arrive - The public begins to associate unions and strike
with anarchists and violence