Chapter 9 Industrialization

Economies of scale

Corporations make goods more cheaply because they produce so much so quickly using large manufacturing facilities

Economies of Scale

Corporations would use this to make goods more cheaply because they produce so much so quickly using large manufacturing facilities.

Fixed Costs

Costs a company has to pay whether or not it is operating.

Operating Costs

Costs that occur when running a company such as wages, shipping charges, or buying raw materials.

why was petroleum in such high demand even before cars were common?

Could be turned into kerosene for lamps

How were female industrial workers treated differently than male workers in the late 1800s?

Even if they decided to work outside of the home, they were only allowed to take on jobs that reflected society's view of suitable jobs. They worked as domestic servants (1/3), teachers, nurses, sales clerks, secretaries (1/3), industrial workers (1/3, only in 'suitable' jobs such as garment industry); Even when they had the same job as a man they earned less because it was assumed that they had a husband to support them

Women's Trade Union League

Founded by Jane Addams and Lillian Wald, this was the first national association dedicated to promoting women's labor issues.

Laissez-Faire

French phrase meaning, "let people do as they choose." Allowed United States to industrialize rapidly due to hardly any government interference. Relies on supply and demand to regulate prices and wages

Land Grants

Given to many railroad companies by the federal government, these companies would later sell the land to settlers, real estate companies, and other business to raise money they needed to build railroads.

Do you think government policies at this time helped or hindered industrialization? Why?

Government policies helped the industrialization because they practiced laissez-faire economics, kept the taxes low, and did not impose costly regulations on the industry, and they did not control wages or prices

What factors led to the construction of the transcontinental railroad?

Increased industry and products created a need for a way to transfer these goods throughout America,

Thaddeus Lowe

Invented the ice machine, which would later be the basis for the refrigerator.

Stock

Issuing stock allows a corporation to raise large amounts of money for big projects while spreading out the financial risk.

How did the population boom affect industrialization?

It created a large workforce and greater demand for consumer goods that factories produced.

Why did industrial unions fail in the late 1800s?

Lack of organization; Interference of government

Why did the American Railway Association divide the country into four time zones?

Local time interfered with scheduling and sometimes even passenger safety. (Scheduling errors)

What aspects of industrial life caused frustration for workers in the late 1800s?

Machines replaced skilled labor and work became monotonous; workers could take little pride in their work Working conditions are unhealthy and dangerous; uneven division of income

The "Big Four"

Made big fortunes by investing in the Central Pacific portion of the transcontinental railroad. Leland Stanford, Charley Crocker, Mark Hopkins & Collis Huntington.

Why were some Americans suspicious of Unions?

Many people associated the Unions with revolution and anarchism. These feelings added to the presence of Nativism (anti immigrant feelings). People were suspicious of all the immigrants coming into the country as they associated them and the unions with these values.

The Pullman Strike

National railroad strike that interrupted US mail and government ordered them to stand down or be arrested.

The Union Pacific workers who worked on the transcontinental railroad included

civil war veterans, immigrants from Ireland, frustrated miners and farmers, cooks, adventurers and ex-convicts

Morrill Tariff

increased tariffs after the Civil War

Alexander Graham Bell

invented the telephone.

Pacific Railway Act

signed by Abraham Lincoln intended to build a transcontinental railroad by 2 railroad companies-the Union pacific and the Central Pacific

Knights of Labor

the first nationwide industrial union.

Marxism

the theory created by Karl Marx and Frederich Engels that centers on communism and its inevitability.

Thomas Alva Edison

*Most famous inventor of the 1800's -phonograph, lightbulb and electric generator, battery and motion picture -Company is now GE

Changes in the clothing industry

1. Northrup automatic loom allowed cloth to be made faster 2. bobbins now changed automatically 3. ready-made clothes in standard sizes 4. power driven sewing machines 5. mass production of shoes with faster equipment (caused many cobblers to lose their jobs)

Name 2 reasons for the US's industrial success

1. abundant natural resources 2. large human workforce

cons of tariffs

1. discourages trade 2. reduces consumer choice

What did the supporters of laissez-faire believe?

1. government should not interfere in the economy 2. A free market leads to greater efficiency and wealth for everyone 3. they support low taxes 4. limit government debt

Why did the US population triple between 1860 and 1910?

1. large families 2. a flood of immigrants

pros of tariffs

1. promotes American products because they are less expensive 2. Increased income for government

Holding Company

A company that owns the stock of companies that do produce goods.

Crédit Mobilier

A construction company set up by several stockholders of the Union Pacific, this company greatly overcharged Union Pacific for the work it did.

Haymarket Riot

A demonstration of striking laborers in Chicago in 1886 that turned violent, killing a dozen people and injuring over a hundred.

tariff

A government tax on imports or exports

trust

A legal concept that allows one person to manage another person's property

Trust

A legal concept that allows one person to manage another person's property.

Bessemer Process

A new process for making high quality steel efficiently and cheaply.

Petroleum

A new resource in high demand because it could be turned into kerosene for lamps

Closed Shops

A policy in which companies could only hire union members.

Arbitration

A process in which an impartial third party helps workers and management reach an agreement.

Deflation

A rise in the value of money.

Jay Gould

A robber baron who often practiced "insider trading."

Lockout

A tactic companies used when their workers formed unions, companies would not allow union workers on the property and refused to pay them.

horizontal integration

A technique used by John D. Rockefeller. Horizontal integration is an act of joining with ones competitors to create a monopoly. Rockefeller was excellent with using this technique to monopolize certain markets. It is responsible for the majority of his wealth.

Robber Baron

A title given to those accused of of building their fortunes by swindling investors and taxpayers, bribing government officials, and cheating on their contracts/debts.

Natural Resources

Abundant in the US (water, timber, coal, iron & copper) which meant that companies could get them cheaply and did not have to import them from other countries.

What innovations did retailers introduce in the late 1800s to sell goods to consumers?

Advertisement (big screens with bold writing and images instead of small ads in the newspaper) Department Stores (bringing together a huge array of different products in a large building) Chain Stores (focused on thrift, offering low prices instead of elaborate service and décor) Mail-Order Catalogs (used pictures to advertise goods to people living in rural areas

In the late 1800's the buying power of the worker increased What caused this to happen?

Advertisements, department stores (variety in 1 building), chain stores (focusing on thrift), mail-order catalogs

Pools

Agreements to maintain prices at a certain level.

James J. Hill

An honest railroad entrepreneur who operated the Great Northern Railroad

Corporation

An organization owned by many people but treated by law as thought it were a single person (The Blaustein corporation)

High tariffs resulting from the Morrill Tariff did what to the laissez-faire ideas

Contradicted them because this was government involvement

Grenville Dodge

In charge of building the Union Pacific Railroad of the transcontinental railroad

What factors led to the rise of big business in the United States?

Big companies had more advantages than small companies: they could produce goods more cheaply and efficiently, they could continue to operate in poor economic conditions by cutting prices to increase sales, many were able to negotiate rebates with the railroad company (even lower operating costs)

Cornelius Vanderbilt

Bought and consolidated railroads

Theodore Dehone Judah

Had the idea of the Central Pacific Railroad

Samuel Gompers

He was the creator of the American Federation of Labor. He provided a stable and unified union for skilled workers.

Leland Stanford

One of the Big Four and found Stanford university.

Woolworth's

One of the first chain stores that opened in America, it was one of the most retail chain stores in American history.

Entrepreneurs

People who risk their capital in organizing and running a business.

vertical integration

Practice where a single entity controls the entire process of a product, from the raw materials to distribution

Scabs/Strikebreakers

Replacement workers companies would hire when their union workers would go on strike.

Mail-Order Catalogs

Retailers began issuing these to people who lived in remote locations so they could order items from chain stores they were far away from.

Andrew Carnegie

Scottish born immigrant who came up with a way to produce cheap high grade steel for construction Built a steel mill empire; US STEEL

Time Zones

The American Railway Association came up with these regions so that the rail services could be safer/more reliable.

How did oil production affect the American economy?

The American Society was built on a demand for kerosene (lights); this fueled the economic expansion

How did the use of electric power affect the economic development of the United States?

The economy developed rapidly because of the invention of electricity, there were many new opportunities (electric machines etc.); mass production and consumption resulted

American Federation of Labor

The first federation of labor unions in the United States. Founded by Samuel Gompers in 1886

What does it mean when a government has a laissez-faire economic policy?

The government does not interfere with the economy except to provide private property rights and maintain peace

Edwin Drake

The man who had a hand in drilling the first oil well near Titusville, Pennsylvania.

Gustavus Swift

The man who hired an engineer to come up with the refrigerated railroad car.

trustee

The person who manages another person's property

Why were many workers on the Central Pacific Railroad recruited from China

There was a shortage of labor in California

Irish

These immigrants were recruited especially for the task of building more railroads.

How did the government help finance railroads?

They gave land grants to the railroad companies so they could sell it to settlers, real estate companies etc.

Why were many workers on the Central Pacific Railroad recruited from China?

They were recruited because there was a worker shortage in California

Stockholders

Those who owned a corporation because they had stock/ownership in the company (you, Emma, daddy and me)

Gross National Product

Total value of all goods and services produced by a country.

Differences between trade unions and industrial unions

Trade unions were limited to skilled workers.Industrial unions organized workers industry wide including skilled with unskilled workers

Industrial Unions

Unions opposed by large corporations because it united all craft workers and common laborers in a particular industry.

Trade Unions

Unions that are limited to people with specific skills.

What techniques did corporations use to consolidate their industries?

Vertical Integration (buying up all companies needed to make a specific product) Horizontal Integration (Purchasing competing Companies in the same industry) Trusts (legally official way of managing another person's property, without owning anything) Holding Factories (owns the stock of a producing company)

Monopoly

When a single company gains control of an entire market.

air brakes

enabled longer and heavier trains; invented by George Westinghouse

The Great Railroad Strike of 1877

what was the first nationwide labor strike/protest