Growth of Industry Review Packet 23 KEY

Factors Contributing to U.S. Industrial Power by 1901:

  • Availability of Natural Resources: The U.S. was rich in essential natural resources such as coal, iron, and oil. These resources provided the raw materials necessary for industrial growth and built the foundation for various industries, including steel and energy.

  • Technological Innovations and Inventions: During this period, America saw significant technological advances, including the development of the telegraph for communication and the steam engine for transportation. Innovations such as the assembly line and electricity revolutionized production methods, making businesses more efficient.

  • Growing Labor Force: A substantial influx of immigrants and rural migrants provided cheap labor, fueling industrial expansion. Many immigrants settled in urban areas to work in factories, contributing to the labor force's growth.

  • Expansion of Railroads: The railroad system expanded rapidly across the nation, facilitating the transportation of goods and raw materials. This not only connected producers to markets but also encouraged westward expansion and development of new towns and cities.

  • Government Policies Supporting Business: Tariffs were enacted to protect American manufacturers from foreign competition, while subsidies were offered to support infrastructure projects such as railroads. This favorable government stance helped industries thrive.

Monopolies and Trusts

  • Definition of Monopoly: A monopoly arises when a single company gains control over an entire industry, effectively eliminating competition. This can lead to higher prices and reduced innovation.

  • Examples:

    • Standard Oil, led by John D. Rockefeller, utilized aggressive business practices to dominate the oil industry and control prices.

    • Carnegie Steel, founded by Andrew Carnegie, became a major player in the steel industry through innovative production techniques and strategic acquisitions.

Problems of Big Business:

  • Higher Prices: The lack of competition often led to inflated prices for consumers. Monopolistic practices allowed companies to charge more than they would in a competitive market.

  • Job Loss: Corporations often focused solely on efficiency and profit margins, which resulted in layoffs and a reduced workforce as businesses sought to cut costs.

  • Political Power: Large corporations wielded significant political influence by making substantial campaign contributions and lobbying for favorable legislation, thereby entrenching their interests in government.

Essential Questions

Labor Problems

  • Working Conditions: Workers faced long hours—typically 12-hour days for six days a week—and low wages, often bringing home only $5-$12 weekly. Conditions in factories were hazardous, with many employees at risk of injury or illness due to poor sanitary conditions, particularly in industries like textiles and coal mining.

  • Child Labor: Child labor was widespread, with children often working in sweatshops under similarly poor conditions as adults, sacrificing their education and welfare.

Government Response to Monopolies

  • Sherman Antitrust Act (1890): This landmark legislation aimed to combat monopolistic practices by outlawing contracts, combinations, or conspiracies in restraint of trade. However, it was not vigorously enforced until the early 1900s, with President Theodore Roosevelt taking a more active stance against monopolies.

  • Muckrakers: Investigative journalists like Ida Tarbell and Jacob Riis played a crucial role in exposing the corrupt practices of monopolies and the harsh realities faced by workers, using their platforms to advocate for social reform.

Worker Hardships during the Gilded Age (1870-1900)

  • Labor Union Goals: Labor unions emerged as a response to the exploitation of workers. Their primary goals included advocating for better wages, a shorter workday (an 8-hour workday), and safer working conditions.

  • Tactics Used by Labor Unions:

    • Strikes: Organized cessation of work to compel employers to meet their demands.

    • Picketing: Workers protested outside job sites to raise awareness for their causes and attract public support.

    • Triangle Factory Fire: NYC in 1911; unsafe sweatshop conditions led to 146 deaths;EFFECT- more laws passed to promote safer working conditions

Key Vocabulary Terms and Important Figures

  • Industrialization: The transition from an agrarian economy to a manufacturing-based economy in the U.S. from 1860 to 1900, marked by rapid growth in industry and urbanization.

  • John D. Rockefeller: A prominent industrialist who established Standard Oil and is often regarded as a symbol of monopolistic business practices.

  • Laissez-faire Capitalism: An economic philosophy advocating minimal government intervention in business affairs, promoting free market principles.

  • Captains of Industry: A term used to describe influential industrial leaders, including Carnegie and Rockefeller, who were seen as key figures in driving economic growth.

  • Gilded Age: A period from 1860 to 1900 characterized by significant economic expansion alongside marked social issues and inequality.

  • Ida Tarbell: A leading muckraker known for her detailed investigative writings on monopolistic practices, particularly her work on Standard Oil's unethical business strategies.

  • Mucraker: (Keppler) drew political cartoons ,took photographs (Hine), and wrote books (Tarbell) to expose the problems of the industrial period.

  • Trust: A giant organization of big business under one umbrella. As son as Standard Oil became a trust, it could legally own virtually the entire oil industry making it a monopoly. J.D. Rockefeller invented the idea of a trust.

  • Gilded Age : A time after the Civl War [ 1870-1900] when a political machines and industralists. When you gild something you are covering it with thin layer of gold. Mark Twain called the late 1800s the Gilded Age because it appeared the society was very rich beacuse of the many wealthy business tycoons. However,most people were poor. This period was followed by the Progressive Era after Theodore Roosevelt became president.

  • Xenophobia prejudice against people from other countries. Rising xenophobia during the Gilded Age led to discrimination againsts immigrants. A hatred towards immigrants is called nativism and is considered an enduring issue becuase many people today still blame immigrants for their nations’ troubles.

  • Tenement: A large apartment building usually found in a poorer part of town; often over populated and rundown.

  • J.P Morgan A wealthy and powerful American banker who organized many large business mergers beginning in the 1890s. His bank were so successful that he often lent money to other banks and even government.

  • Andrew Carnegie: An Industrialist who led the expansion of the steel industry in America from the 1870s to the early 1900s and later wrote” The Gospel of Weath” about the need for the rich to create and donate to charities. This was known as philanthropy.

  • Political machines: A political organizationn that recruits members using incentives like money or jobs in exchange for votes. The most notorious political machine in US history was Tammany Hall. They controlled New York City politics throughout the 19 century.

  • Infrastructure: the basic system in a country or region, like buildings, roads, electricity, that are needed for function.

  • Monopoly: exclusive[ total or near total] control over service or product on the market.

  • Triangle Factory Fire: NYC in 1911; unsafe sweatshop condtions led to 146 deaths; EFFECT- more laws passed to promote safer working conditions.

  • Lewis Hine: muckraker who focused on exposing the problems of chld labor during the early 1900’s by taking photographs of coal mines,textile mills,newsies.

  • Sherman Antitrust Act: out lawed monopolies and trusts not enforced until 1904

Industry Structure and Worker Conditions

  • Corporations: Large organizations owned by investors who purchase shares and have limited liability. This structure allowed for economic growth and the pooling of resources.

  • Muckrakers: Investigative journalists who uncovered societal problems, notably in industry and labor; a key force in raising public awareness on these issues.

  • Robber Barons: A term used to describe unscrupulous industrialists whose aggressive tactics often prioritized profit over ethical considerations.

  • Trusts: Legal entities that enable companies to collaborate in ways that limit competition, consolidating control over an industry.

  • Sweatshops: Factories characterized by poor working conditions and low pay, where laborers, often including children, endured long hours.

  • Triangle Factory Fire (1911): A tragic fire that erupted in a garment factory, killing 146 workers and underscoring the dire need for labor law reforms regarding safety standards in the workplace.

Historical Context

  • Power of Monopolies and Trusts: Largely facilitated by laissez-faire policies that permitted large enterprises to form monopolies through tactics such as horizontal integration and secret negotiations.

Labor Union Dynamics

  • Key Labor Terms:

    • Strike: A method used by workers to achieve their demands by refusing to work.

    • Picket Line: A form of protest where workers gather outside a workplace to demonstrate solidarity and attract public attention.

    • Scabs: Replacement workers who are hired to work in place of striking employees.

  • Public Perception of Labor Unions: Labor unions were often met with skepticism and hostility, regarded as instigators of violence and labor disruption, as seen in events like the Haymarket Riot and the Pullman Strike. During the Gilded Age, the government frequently sided with big business over labor, often responding to strikes with law enforcement force.