Chapter 16- The second Industrial Rev. * guided reading* APUSH

Industrial Empires

" Second Industrial Rev." resulted in the growth of large scale Industry. A major shift in the nature of Industrial Production occurred

wage earners

- 2/3 of all working americans ( worked for wages ) - 10hr/6day week, wages determined by laws of supply and demand, usually large supply of immigrants competing for factory jobs, wages were barely above level needed for bare subsistence - Low wages: justified by David Ricardo (1772-1823) "iron law of wages" - real wages rose steadily in the late 19th century - most wage earners couldn't support a family decently on one income

Andrew Carnegie

- A Scottish-born American industrialist and philanthropist who founded the Carnegie Steel Company in 1892. By 1901, his company dominated the American steel industry. - employed 20,000 workers and produced more steel than any mill in Britain

J.P. Morgan

- A highly successful banker who bought out Carnegie. With Carnegie's holdings and some others, he launched U.S Steel and made it the first billion dollar corporation. - quickly moved in to take control of the bankrupt railroads and consolidate them

Granger Laws

- A set of laws designed to address railroad discrimination against small farmers, covering issues like freight rates and railroad rebates. - overturned by the courts

Jay Gould

- A speculator who laid down RR tracks to force a rival line to buy it at inflated prices. He bought & sold RR's like toys, watered his stock, and milked his assets. - entered the railroad business for quick profit, and made millions

According to president grover cleveland, what was the main problem created by industrialization in the late 19th century? the factors that enabled the rapid growth of the american economy included...

poor treatment of the ordinary person and 1. raw materials needed for industrialization 2. abundant labor fueled by immigration 3. largest market for industrial goods 4. europeans assisted in investing in economic expansion 5. labor saving technologies 6. business benefited from friendly gov't policies 7. talented entreprenuers and vast enterprises

inventions

telegraph, transatlantic cable, typewriter,telephone, cash register, calculating and adding machines,camera, fountain pen, safety razor and blade

laissez-faire capitalism

the idea of gov't of business was alien to the prevailing economic, scientific, and religious beliefs of the late 19th century.

of these 7 factors, which one had the greatest impact on rapid economic growth? smallest impact?

when the United states became the largest market for industrial goods; raw materials

Edison and Westinghouse

worked with electricity Edison: -possibly the greatest inventor of all time -invented more than a thousand patents -established the world's 1st modern research technology Westinghouse: - held more than 400 patents -responsible for developing an air brake for railroads

The concentration of Wealth

- By the 1890s, the richest 10 percent of the U.S. population controlled 90 percent of the nation's wealth. - Industrialization created a new class of millionares.

U.S. Steel Corporation

- JP Morgan bought out Carnegie Steel and expanded the trust. - Carnegie sold his company for more than $400 million to Morgan - first billion dollar company - employed 168,000 - controlled more than 3/5 of the nation's steel business

Impact of Industrialization

- Led to significant changes in work, education, and family life - growth of American industry raised the standard of living for most ppl. - growth also created sharper economic and class divisions among the rich, middle-class, and poor

Antitrust Movement

- Middle citizens feared the trusts' unchecked power and urban elites (old wealth) resented the increasing influence of the new rich. - congress passed the sherman- antitrust act

US vs EC Knight Co. (1895)

- supreme courts case in which the court ruled that E.C. Knight, a company that controlled 98% of the sugar confining plants US, did not violate the sherman antitrust act because local manufacturing was not subject to congressional regulation of interstate commerce

Federal Land Grants

- the federal gov't provided railroad companies w/ huge subsides in the form of loans and land grants

Interstate Commerce Act

- the first government attempt to regulate business. (1887) required railroads to charge fair rates and to publish those shipping rates. - first deemed ineffective, but were later given the powers needed in order to protect public interest

Horatio Alger Myth

- the idea that most Americans can easily move up in the social class system

Rockefeller and the Oil Industry

- took charge of the chaotic oil refinery business - extorted rebates from railroad companies and temporarily cut kerosene prices - 1881- 90% of the oil refinery business was controlled by his business - established a board of trustees to manage the trust

Labor Discontent

- workers suffered from factory work, highly structured, just one step of the process, monotonous, had to learn the tyranny of the clock, exposed to chemicals, unstable and mobile workplace, changed jobs often, absenteeism, qutting - protest by joining labor unions

Working Women

- working for wages, most young and single - 5% married women worked outside the home - "proper role" was to stay home raising children - women moved into formerly male occupations as secretaries, bookkeepers, typists and telephone operators - occupations/professions that became feminized usually lost status and recieved lower wages and salaries

Western Railroads

-Coincided w/ the settlement of the last frontier - played critical role in developing west, promoted settlement on the Great Plains, linked the West and East by creating a national market

Transcontinental Railroad

-Railway extending from coast to coast. It provided a faster way to ship goods, lowered the cost of production and created a national market. -Congress authorized the building of 2 railroads to connect california to the union. The Union pacific employed war veterans and Irish Immigrants. 4 more transcontinental railroads were constructed in 1883-1893 to assist w/ western settlement

Eastern Trunk Lines

A trunk line was the major route between cities; w/ smaller branches reaching w/ outlying towns (result of diff. gauges pre-civil war) -Vanderbilt capitalized on connecting these

The expanding middle-class

Industrialization helped expand the middle class by creating jobs for accountants, clerical workers, and salespeople. The increase in the number of good-paying jobs after the Civil War significantly increased the size of the middle class.

Marketing Consumer Goods

Kellogg and Post became common items in American homes. Advertising and new marketing techniques not only promoted a consumer economy, but also created a consumer culture in which shopping became a favorite past time

The business of Railroads

Nation's first big business, created a market for goods that was national in scale, resources used in railroad construction promoted the growth of other industries, four time zones were created

Competiton and Consolidation

Railroads suffered from mismanagement and fraud. Financial panic forced 25% of all railroads to go bankrupt. 7 giant systems controlled 2/3 of the nations railroads

Social Darwinism

The application of ideas about evolution and "survival of the fittest" to human societies - particularly as a justification for their imperialist expansion.

"Commodore" Cornelius Vanderbilt

Used millions earned from a steamboat business to merge local railroads into the New York Central Railroad (1867)

options for labeling this era

a. second industrial revolution b. railroad era c. last frontier d. gilded age e. indian wars

conservative economic theories

businesses should be regulated by the "invisible hand"

The wealth of nations, adam smith, 1776

economist adam smith argued in the wealth of nation's that business shouldn't be controlled by the gov't, but by the "invisible hand " of the law of supply and demand

Gospel of Wealth

found religion to be more convincing than social darwinism -wealthy had a god given responsibility to carry out projects of civic philanthropy for the benefit of society

overview...

historians have labeled the period in many ways

Technology and innovations

new inventions were vital to industrial progress

The steel Industry

new process for making larger quantities of steel caused major break through - new process for creating higher quality steel. - Coal reserves and access to coal created a new center of steel production

alternate view...

one limitation to ending the period in 1898 is that it fragments the early reform movements that started in the late 1800s, but produce few results until the progressive era from 1900 to 1917