After the Civil War, the North and After the Civil War, the North and West grew quickly. Railroads West grew quickly. Railroads
helped the West grow, while helped the West grow, while industrial cities sprang up all over industrial cities sprang up all over
the north employing many the north employing many children and immigrants.children and immigrants.
Pre-Civil War: Early 1800sPre-Civil War: Early 1800s Post-Civil War: Late 1800s
•“Industrial Revolution”
•Water Power
•Machines replaced hand tools
•Interchangeable Parts
•More Factories
•Move towards cities
•More movement to cities (urbanizations)
•Railroads used to deliver supplies
•New inventions
•Electricity
•Increase in immigration, more workers
•More money to invest
CapitalMoney invested in business equipment
TransportationCanals, Roads, Boats, RailroadsNew Technology/ InventionsAssembly Line (Henry Ford)Bessmer Process (Carnegie & Steel)
Natural ResourcesLumber, Water, Oil,Coal, Silver, CopperLand!
New Business Practices: Corporations
How did railroads spur industrial How did railroads spur industrial growth?growth?
Steel & Coal were needed to run the railroads, so those businesses grew along with the demand for lumber.
Jobs were Jobs were createdcreated
Towns were born along
railroad tracks
Cornelius VanderbiltCornelius Vanderbilt
What do I care about law? Ain't I got What do I care about law? Ain't I got the power? the power?
- Cornelius Vanderbilt- Cornelius Vanderbilt
-He linked all the Railroads lines in the Great Lakes area
-Forced smaller companies out of business by offering lower prices, but then raised them once the competition was gone
-Used rebates – discounts to companies, to get corporate business
Carnegie Steel Company-Big $$$$$$$$$
-Used the Bessemer Process – made good steel at a low cost
-He owned everything needed to produce steel! – Vertical Integration
Owning all steps in the production process, so Owning all steps in the production process, so you can charge HIGH PRICESyou can charge HIGH PRICES
Carnegie Iron Ore
Carnegie Limestone
Carnegie Coal
CarnegieSteamships
CarnegieRailroad
Carnegie Steel Mills
Carnegie Warehouses And Sales Outlets
Big $$ for Carnegie, but no one could compete – this was unfair to consumers!
Standard Oil Trust controlled 95% Standard Oil Trust controlled 95% of oil refining in the United States.of oil refining in the United States.
A Monopoly is a business that controls all similar businesses.
If you wanted oil…you could only buy it from Rockefeller – that’s not fair to consumers!
The Problems with The Problems with MonopoliesMonopolies
No competition
means higher
prices!They control
prices!
Force small companies out of business
Poor working conditions
Low wages
Wide gap Wide gap between between rich & poorrich & poor
-A Business owned by many people called -A Business owned by many people called investorsinvestors (people who buy stock in the company).(people who buy stock in the company).
Corporations raise $ by selling stocks, or ownership in the company. People who buy stocks are called stockholders. The money they receive when the company makes a profit is called a dividend.
Robber BaronsRobber BaronsCornelius Vanderbilt, Andrew Cornelius Vanderbilt, Andrew Carnegie, and John Rockefeller Carnegie, and John Rockefeller were seen as were seen as Robber BaronsRobber Barons because they made LOTS of because they made LOTS of money, but their workers made money, but their workers made little and worked in harsh little and worked in harsh conditions.conditions.
They gave $ to charity, does that make their actions better?
New Technology!New Technology!Thomas EdisonThomas Edison – Invented a new light – Invented a new light
bulb, phonograph, and much more!bulb, phonograph, and much more!
Alexander Graham Bell: Invented the telephone
Henry FordHenry Ford: Defined the modern age by providing jobs on an assembly line, and producing affordable cars (Model T) by mass production.
Poor Working Poor Working ConditionsConditions
-Crowded-Fire Hazards-No Emergency Plans-Child Labor
-Low Wages-Long Hours-Locked Doors
SweatshopsSweatshops
How to improve the working How to improve the working conditions?conditions?
Join a UnionJoin a Union!: an organized group of workers who would negotiate (collective bargaining)
-Knights of Labor (no strikes, too violent) Leader: Terrence Powderly
-American Federation of Labor (AFL) Leader: Samuel Gompers *Used Strikes (refusal to work) to pressure the boss. Often
became violent.
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