Social studys, chapter 20
What two reasons did people begin to question the corporations/trusts?
Monopolies eliminated competition which was viewed as necessary to a capitalist economic system. Without competition prices would increase. Americans grew suspicious of the interaction between business and politics. Many politicians were viewed as "bought off" by big business.
Leadership:
Knights of Labor American Federation of Labor Terence Powderly Samuel Gompers
Goals:
Knights of Labor Eight-Hour Work Day, Equal Pay for Equal Work, End of Child Labor, Government Ownership of Railroads and Telegraph Lines, and Graduated Income Tax American Federation of Labor Bread and Butter Issues: Better Wages Better Hours Better Working Conditions
Membership:
Knights of Labor Opened only to skilled in the beginning, but progressively allowed African Americans, Unskilled, and even women to join American Federation of Labor Samuel Gompers
Compare and Contrast the issues for the Knights of Labor and the American Federation of Labor.
Knights of Labor Terence Powderly Opened only to skilled in the beginning, but progressively allowed African Americans, Unskilled, and even women to join Eight-Hour Work Day, Equal Pay for Equal Work, End of Child Labor, Government Ownership of Railroads and Telegraph Lines, and Graduated Income Tax The Haymarket Affair effectively disbands the Knights of Labor because of their association with some of the Anarchists. American Federation of Labor Samuel Gompers Only allowed skilled white males to join Bread and Butter Issues: Better Wages Better Hours Better Working Conditions Eventually merged with the CIO (Congress of Industrial Organizations) to form the AFL-CIO the largest union in the United States.
Outcomes:
Knights of Labor The Haymarket Affair effectively disbands the Knights of Labor because of their association with some of the Anarchists. American Federation of Labor Eventually merged with the CIO (Congress of Industrial Organizations) to form the AFL-CIO the largest union in the United States.
What is Liberty of Contract? How does it interact with Collective Bargaining?
Liberty of Contract is an idea, pushed by business owners, that only they and an employee can negotiate a contract, contrary to that is Collective Bargaining which states that workers, collectively, should be able to negotiate a contract because it eliminates worker competition and keeps wages high.
Pullman Strike
Major strike that led to a nation wide halt of railroad lines until the Federal courts ordered workers to return to their job. Federal troops sent in to force workers back to work.
Samuel Gompers
President of the American Federation of Labor
Frederick W. Taylor
an efficiency engineer who wrote The Principles of Scientific Management which encouraged managers to view workers as interchangeable parts in the industrial process.
Andrew Carnegie
Founded Carnegie Steel
Leland Stanford
Founded Central Pacific and later in life believed workers should own and manage businesses cooperatively.
John D. Rockefeller
Founded Standard Oil
Patents
exclusive right to make or sell and inventions.
Knights of Labor
the first national labor union founded in the 1870s. More radical than the American Federation of Labor. (See chart below)
Haymarket Affair
During a major union strike, a rally was held in which someone threw a bomb and killed eight police officers. Eight anarchist, who have ties to the Knights of Labor, are executed. The eight-hour movement disbands until World War II.
American Federation of Labor
Early labor union founded in the 1870s. More conservative than the Knights of Labor. (See chart below)
Electricity
Edison's light bulb and competition with George Westinghouse allowed the U.S. to electrify their homes.
How did capitalists apply social Darwinism to economics?
Capitalists who believed in social Darwinism applied the concept of "survival of the fittest." Social Darwinists through that "survival of the fittest" decided which human beings (and businesses) would succeed and which would fail. Only the strongest survive.
Automobile
Henry Ford's assembly line reduced prices of automobiles
How is a corporation managed? Describe the entire process.
In a corporation people are able to buy shares of stock which represent a percentage of a company. If the company profits, the shareholders profit in proportion to their ownership of the company. Shareholders can lose money if the company does not profit. Over 50% ownership grants a person controlling interest. Most companies hire CEOs or CFOs to manage the company.
Henry Ford
Innovated the assembly line process
Thomas Edison
Invented the lightbulb
Wilbur and Orville Wright
Invented the modern airplane
Alexander Graham Bell
Invented the telephone
Mary "Mother" Jones
Irish immigrant who worked for better conditions in mines.
What effect did The Principles of Scientific Management by Frederick W. Taylor have on working conditions?
Taylor's Principles of Scientific Management created conditions in which work for laborers became monotonous and repetitive. It also placed most of the power in floor foreman by giving them the power to determine when action is done rather than the individual worker. Taylor also advised wage increases, but not in proportion to work done. Schmidt's pay was increased from $1.15 to $1.85 and his tonnage moved was increased from 13 tons to 47½.
What effect did new inventions have on the United States in the late 1800s?
Telegraph/Telephone - connected the U.S. and other countries; Sub-marine cable Electricity - Edison's light bulb and competition with George Westinghouse allowed the U.S. to electrify their homes. Automobile - Henry Ford's assembly line reduced prices of automobiles Airplanes - The Wright Brothers airplane would eventually be used in WWI.
What separates the First Industrial Revolution from the Second Industrial Revolution?
The First Industrial Revolution was powered by water and steam and was less mechanized. The Second Industrial Revolution was powered by oil and coal and was more mechanized and produced monopolies.
Airplanes
The Wright Brothers airplane would eventually be used in WWI.
Homestead Strike
Union workers protested plans of Andrew Carnegie to buy machinery that would put their jobs in jeopardy.
What is the difference between vertical and horizontal integration? Be able to tell the difference between the two based on a given scenario.
Vertical integration is the process of purchasing all necessary goods for the production of a commodity whereas horizontal integration is the buying of one's competition to create a monopoly.
Sherman Antitrust Act
a law that made it illegal to create monopolies or trusts that restrained trade
Trust
a legal arrangement grouping together a number of companies under a single board of directors.
Second Industrial Revolution
a period of rapid growth in U.S. manufacturing in the late 1800s.
Social Darwinism
a view of society based on scientist Charles Darwin's theory of natural selection. "Survival of the fittest" decided who succeed.
Corporations
businesses that sell portions of ownership, called stock.
Telegraph/Telephone
connected the U.S. and other countries; Sub-marine cable
Bessemer Process
innovation by Henry Bessemer that allowed steal to be produced cheaply and quickly by blasting hot air through melted iron to remove impurities.
Monopoly
or total ownership of a product or service
Vertical Integration
ownership of businesses involved in each step of a manufacturing process.
Horizontal Integration
owning all businesses in a certain field
Collective Bargaining
workers acting together to negotiate a contract; higher success of negotiating a successful, labor-beneficial contract.