The Industrial Revolution

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• The Industrial Revolution
• 1850-1900

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New Products of the Industrial Revolution
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Patents

• License to make, use, or sell an invention

1790-1860 36,000 issued 1860-1890 500,000 issued
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Life in the 1860s

• No indoor electric lights
• No refrigeration
• In 1860, most mail from the East Coast took ten
  days to reach the Midwest and three weeks to get
  to the West Coast. A letter from Europe to a
  person on the frontier could take several months
  to reach its destination.

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The Railroads

• On May 10, 1869, the transcontinental railroad,
  extending from coast to coast, was finished with
  the hammering of a golden spike at Promontory
  Point, Utah.

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• The growth of railroads led to the development of
  many towns throughout the western part of the
  United States.
• In 1883, the railroads adopted a national system
  of time zones to improve scheduling. a system we
  still use today.

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Life in the 1900s

• Power stations across the country began providing
  electricity for lamps, fans, printing presses,
  and many other appliances.

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• Drilling for Oil
• Needed for factories to run efficiently
• Drilling was quicker. cheaper, and created a much
  larger supply than digging ditches or melting
  animal fat

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Telegraph

• Invented by Samuel F. B. Morse

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Telephone

• Invented by Alexander Graham Bell

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• By 1900, there were 1.5 million telephones in use
  all over the country, and Western Union Telegraph
  was sending roughly 63 million messages.

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Thomas A. Edison

• Setup research lab
• Created a system for producing and distributing
  electrical power

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Edison

• Perfected the light bulb

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Edison

• Developed the phonograph

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Edison

• Developed the motion picture camera

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George Westinghouse

• Made electricity safer and less expensive (AC
  Current)

• Developed a way to transmit it long distances
  (Transformers)

• More effective air brakes for trains

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Other Inventions

• Electric sewing machine

• Cameras

• Refrigerator

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Meanwhile on the farm

• Mechanical Reapers
• Sod busting plows
• Mechanized tractors

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The Bessemer Process

• In 1856, Henry Bessemer receives a patent on a
  process that made steel production easier and
  less expensive.
• The Bessemer process made possible the mass
  production of steel.

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• The Brooklyn Bridge, designed with steel cables
  suspended from high towers, was made possible by
  mass production.

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John Roebling

• Designed started building the Brooklyn Bridge-
  1st suspension

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Elevators

• It took another innovation to begin the
  transformation of cities

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Early Skyscrapers
Strong steel plus elevators mean that Americas
teeming cities can now grow upwards!
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Automobile

• Automobile Henry Ford made the car more
  affordable by using the assembly line
• Assembly line process where each worker does
  one task in the making of a final product

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Division of Labor

• When someone completes one task as part of the
  job
• Positive increases productivity for businesses
• Negative workers no longer take pride in work
  and removes creativity

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Compare The Idea of Making Shoes
He may never work on shoes!
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Frederick Winslow Taylor

• Organized and systemized factories
• Goal to get workers to produce more in less time

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Industrial Revolution

• Business Leaders
• Business Practices
• Business Regulations

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1. Business Leaders

• Generally classified as either a
• Robber Baron
• or a
• Captain of Industry

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I. Robber Barons

• Business leaders who made their fortunes by
  taking advantage of the public
• They drained natural resources and charged high
  prices

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• They persuaded public officials to interpret laws
  in their favor.
• They ruthlessly drove their competitors to ruin.
  

• They paid their workers meager wages and forced
  them to toil under dangerous and unhealthful
  conditions.

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• Adhered to a policy of Social Darwinism, as it
  applied to business practices

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Social Darwinismor, Laissez-Faire

• Based on Darwins Theory of Evolution (1859)
  regarding natural selection and the survival of
  the fittest
• Businessmen are justified in using any means
  necessary to become rich and powerful, and the
  government should stay out!

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• Three business practices exemplified the
  philosophy of Social Darwinism
• Monopolies
• Cartels
• Trusts

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• Monopoly
• (Vertical Consolidation)
• one company completely controls a product or a
  service, from the means of production, to
  manufacturing, to transportation, and sales

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Controlling the Market
Bobs Pizza

• Using Vertical Consolidation, Bob could control
  the Pizza market in town by controlling many of
  the costs associated with making his pizza!

Bobs Trucking Company
Bobs Cheese Factory
Bobs Farm
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• Monopoly
• (Horizontal Consolidation)
• One company buys out each of their competitors,
  and therefore owns every outlet for a certain
  product

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Controlling the Market
Bobs Pizza
Delaware Pizza
Happy Time Pizza
Pizza Pizza

• Using Horizontal Consolidation, Bob could control
  the Pizza market in town by buying the other
  Pizza shops!

Bobs Pizza
Bobs Pizza
Bobs Pizza
Bobs Pizza
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• Cartel a loose association of businesses in a
  similar field or that make the same product and
  agree to limit supply to drive up prices

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• Trust
• multiple companys selling the same product
  agreed that rather than compete with each other
  over prices and profits, they would agree to set
  their prices, and then split the profits evenly

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II. Captains of Industry

• Still practiced the theory of Social Darwinism to
  a certain extent to increase their fortunes, but
• They increased the supply of goods by building
  factories.
• They raised productivity and expanded markets,
  further lowering prices

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• They created jobs at decent wages and in safe
  factories that enabled many Americans to buy new
  goods and raise their standard of living.

• They also funded museums, libraries, and
  universities, many of which still serve the
  public today.

Carnegie Hall
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III. A Compromise?The Gospel of Wealth

• Philosophy that states a person should be able to
  make as much money as they can, BUT they should
  also use their wealth to improve society.

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Andrew Carnegie
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Andrew Carnegie

• Captain of Industry for steel production in
  Pittsburgh
• Used Bessemer Process to produce stronger steel
• Utilized vertical consolidation for business
  purposes
• Born in Scotland

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Carnegie as a Philanthropist

• A Philanthropist uses wealth to improve society
• Carnegie funded the building of libraries,
  education facilities, and music/arts facilities

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John D. Rockefeller

• Formed Standard Oil Company

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John D. Rockefeller and the Standard Oil Company

• Wealthy individual who saw the oil industry as a
  way to get richer
• Made illegal deals with railroads to transport
  oil cheaper, thus weakening other refineries that
  he would eventually buy
• Utilized horizontal consolidation for business
  purposes

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Business Cycle
growth peak recession depression

• The growth and contraction of a nations economy
• A new concept in the mid-late 1800s

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• While big business urged the federal government
  to adopt a Laissez-Faire attitude, many consumers
  and workers called for a Social Welfare policy
  to be enforced

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Social Welfare

• It is the governments responsibility to control
  big businesses in order guarantee quality
  products at fair prices for consumers, and fair
  pay and decent hours for workers

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Sherman Antitrust Act

• Enacted in 1890
• Effort by Congress to end trusts
• Ineffective due to lack of enforcement

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Survival Guide for Poor Families

• Send children as young as age 6 to work
• Force children to leave school
• Ask for aid from a private charity (church, etc.)
  because
• Government Welfare is non-existent at this time!

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Workday Length

• Typically 12 hours/day, 6 days/week
• After 1868 Government employees were guaranteed
  an 8 hour day (did not apply to private
  businesses)

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Piecework

• Used by some companies
• Paid by how many items you produce
• Faster workers made more

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Frederick Winslow Taylor

• Organized and systemized factories
• Goal to get workers to produce more in less time

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Jacob Riis

• Illustrated the negative impact of children
  working in mines and factories
• Published photos of working children in How the
  Other Half Lives
• Wrote Children of the Poor

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Lewis Hine

• Traveled around the country to photograph child
  workers in factories, mills, mines, and
  canneries.
• Documented the plight of working children
• Photos were used as evidence (to the public and
  government) of the need for child labor reform

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Ida Tarbell

• Journalist who investigated and exposed
  misconduct among political and/or business leaders

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Ida Tarbell

• Focused on Drilling, shipping, refining, and the
  sale of oil

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Ida Tarbell

• Idas father was forced out of business by
  Standard Oil
• Perhaps this was revenge???