Industrial Age.

Chapter Overview

  • Title: Winding Large Rotating and Stationary Armatures

  • Timeframe: 1877-1890

  • Theme: The Industrial Age

Page 2: Do Now

  • Questions to Consider:

    1. Define the term Urbanization.

    2. Analyze how America would be affected by the rise of factories and urbanization.

Page 3: Pre-Civil War Era

  • Industrial Revolution Origin:

    • Originated in Great Britain.

  • Key States:

    • Primarily developed in the northern states due to the demand for guns, ammunition, clothing, and other supplies during the Civil War.

  • Important Industries in America:

    1. Textile Industries

    2. Iron Industry

    3. Railroads

Page 4: The Rise of American Business, Industry, and Labor

  • Historical Context:

    • Industry has always existed in Colonial America.

    • As the Colonial period declined, specialization in crafts emerged, leading to the creation of factories.

  • Industrial Revolution Explained:

    • Transition from an agricultural society to one based on large-scale production of goods and the factory system.

Page 5: The Industrial Age in America

  • Why the Industrial Age Flourished:

    • America had the necessary resources, termed the Means of Production:

      1. Land (natural resources)

      2. Labor (skilled workforce)

      3. Capital (money and tools)

      4. Entrepreneurs (investors)

  • Economic System:

    • Based upon a capitalist system known as capitalism.

Page 6: Understanding Capitalism

  • Definition:

    • Economic system centered on private ownership of production means, focusing on initiative, competition, and profit.

  • Capital:

    • Refers to money used for investment.

  • Adam Smith's Ideas:

    • Advocated for limited government interference in business, as presented in "Wealth of Nations" and the Invisible Hand Theory.

Page 7: Changes in Business Structure

  • Pre-Civil War Business:

    • Characterized by sole proprietorships (single owners managing the business).

  • 19th Century Transformation:

    • Emergence of new business structures, notably the corporation.

Page 8: Corporations and Stock

  • Function of Corporations:

    • Allow businesses to raise money by selling stock, providing partial ownership to investors.

  • Investor Benefits:

    • Stockholders receive dividends based on their shares of the profits.

Page 9: Example of Corporate Structure

  • Standard Oil Company:

    • Notable corporation example with a capital stock of $83,500,000.

Page 10: Understanding Monopolies

  • Definition of Monopoly:

    • A company or group with complete control over a market sector, often leading to high prices and reduced competition.

  • Robber Barons:

    • Wealthy business magnates who utilized financial strategies to eliminate competition and establish corporate empires.

Page 11: Types of Business Organizations

  • Conglomerate:

    • A collection of unrelated businesses owned by a single corporation.

  • Pool:

    • Competing companies agree to fix prices and divide regions.

  • Trust:

    • Companies in related fields operate under a single trustee board, limiting shareholder input.

  • Holding Company:

    • Acquires stock in related firms, becoming a major shareholder and influencing operations.

Page 12: Evolution of Business Types

  • Transition Types:

    • From Sole Proprietorships to Corporations and Monopolies (trusts & conglomerates).

  • Types of Trusts:

    1. Transportation (railroads)

    2. Steel Industry

    3. Coal

    4. Oil

    5. Electricity

Page 13: Notable Entrepreneurs

  • Definition:

    • Individuals who take risks in organizing and running new business ventures.

  • Examples of Entrepreneurs:

    1. Andrew Carnegie

    2. John D. Rockefeller

    3. J.P. Morgan

    4. Henry Ford

    5. Cornelius Vanderbilt

Page 14: Humble Beginnings of Business Titans

  • Early Life:

    • Many influential entrepreneurs started from modest backgrounds, relatable to average Americans.

Page 15: Andrew Carnegie

  • Industry Influence:

    • Entered the steel industry, benefiting from the railroad expansion.

  • Business Practices:

    • Controlled all aspects of steelmaking, becoming the leading producer in the U.S.

  • Philanthropy:

    • Later in life, focused on giving back to society through public venues and educational institutions.

    • Advocated the Gospel of Wealth, believing wealthy individuals have a responsibility to contribute positively to society.

Page 16: John D. Rockefeller

  • Monopoly Formation:

    • Established a monopoly in the oil industry, leading the Standard Oil Company and driving out competitors.

Page 17: Visual Representation of Business Holdings

  • Standard Oil Co. Structure:

    • Illustrates various businesses under its control, forming an extensive network.

Page 18: J.P. Morgan's Influence

  • Business Strategy:

    • Grew wealth by providing loans to emerging businesses and taking charge of bankrupt railroads to reorganize and profit from them.

Page 19: Henry Ford's Innovations

  • Revolutionary Techniques:

    • Transformed auto manufacturing via the moving assembly line, significantly lowering production costs and promoting mass production.

Page 20: Cornelius Vanderbilt's Journey

  • Background:

    • Started in shipping/railroad, began working under his father before establishing his own business.

Page 21: Attitudes Toward Business

  1. Cotton Mather:

    • Emphasized Puritan Work Ethic; hard work signified predestination for a better afterlife.

  2. Horatio Alger:

    • Wrote novels about impoverished boys growing rich through diligence and favorable circumstances.

Page 22: Laissez-Faire Economics

  • Definition:

    • Concept of minimal government intervention in business, promoting free enterprise and market decision-making.

  • Adam Smith's Contribution:

    • Advocated for laissez-faire principles in "The Wealth of Nations."

Page 23: Social Darwinism

  • Concept Origins:

    • Drawn from Darwin's theory; suggests natural competition results in strong businesses thriving and weaker ones failing.

Page 24: Wealth Disparity Concerns

  • Robber Barons' Critique:

    • Accumulated wealth at the expense of working-class individuals, with lifestyles reflecting significant social inequality during the Gilded Age (1865-1900).

  • Symbolism of the Gilded Age:

    • Externally lavish yet internally flawed.

Page 27: Government Policies Toward Business

  • Rising Concerns:

    • Criticism regarding business practices led to public demand for government intervention in breaking up monopolies and curbing corporate greed.

Page 28: Munn v. Illinois

  • Context:

    • Supreme Court case addressing discriminatory practices by railroads against farmers.

  • Ruling's Significance:

    • Established states' rights to regulate private property with public interest, validating Illinois railroad shipping regulation.

Page 29: Interstate Commerce Act (1887)

  • Purpose:

    • Aimed to eliminate railroad abuses like pools and rebates; facilitated investigations into railroad company practices.

Page 30: Sherman Antitrust Act (1890)

  • Legislative Goal:

    • Prohibited monopolies and any business combinations that restricted trade.

  • Significance:

    • Established the government's role in dismantling trusts and monopolies.

Page 32: Innovations and Inventions

  • Key Inventions:

    • Samuel B. Morse: Telegraph (1844)

    • Transatlantic Cable (1866)

    • Alexander Graham Bell: Telephone (1876)

    • Others include typewriters, cash registers, and the Kodak camera.