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