Industrialization. January 25th & 26th

Transcription

1 Industrialization January 25th & 26th

2 Warm Up - January 25th & 26th Based on what we have talked about with Jim Crow South, Westward Expansion, Urbanization, and Immigration Is progress a good or bad thing? (Pick a side and think about relevant examples to prove your argument a thesis is 1-2 sentences. Write on back of notes page you just picked up!)

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4 New Tools of Industrialization Before the Civil War, most American businesses were owned by a single person or a partnership After the Civil War, industry (mills, factories, railroads, mines) now needed more capital (MONEY) for investment than one person or a few partners could raise What s the solution?

5 Corporations Purpose to raise capital (MONEY) It is a business in which many investors own shares called stocks In exchange for their investment, each stockholder receives a dividend, or part of the corporation s profits This limits investor losses If a corporation fails, each investor only loses his or her investment

6 Types of Corporations (pics on notes page) Transportation Building materials Energy Communications

7 Wall Street $$$$

8 Monopoly Purpose Company or small group of companies that has complete control over a particular industry A monopoly often allowed a company to raise prices to almost any level it desired OUTCOMES: Competitors forced out of business Government tried to control them

9 What do you think the cartoon is saying about these men?

10 Trusts - Standard Oil Trust Purpose To get around government regulation of monopolies, companies combined their management into trusts Shareholders in the corporations received dividends from the trust but lost any say in its operation A way to get around laws regulating monopolies

11 Who were the industrial leaders? Andrew Carnegie Steel JP Morgan - Finance (investment banker)

12 More Industrial Leaders John D. Rockefeller - Oil Cornelius Vanderbilt Railroads

13 How did they get so powerful? Maximized profits Minimized costs Controlled entire industries Got rid of competitors Controlled prices Kept worker pay VERY LOW with long hours Controlled suppliers and transportation costs (they owned all parts of their industry) Had no government interference!

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15 Laissez-Faire Capitalism: industry controlled by private owners for profit, rather than by the state/government Government should not interfere with business Free-Enterprise System - private individuals make the economic decisions Government is hands-off

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17 Social Darwinism Based on Charles Darwin s theory of evolution Social Darwinists thought life was a struggle for the survival of the fittest Free-enterprise competition (laissez-faire) would lead to the strongest businesses surviving Government regulation would let the weak survive, so it was bad in the eyes of Social Darwinism Government programs to aid the poor or workers would let the weak survive, so the programs were also considered bad in the eyes of a Social Darwinist

18 How laissez-faire was it really? Government Policy towards business was it really laissez-faire? Land grants to railroads No limits on immigration (at first remember what we talked about last class with immigration quotas?) Supported business owners during strikes

19 Robber Barons? Those who got rich at the expense of the poor and the working class Fancy lifestyles of the rich mansions, show off their wealth

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21 Carnegie s Mansion in NYC

22 Vanderbilt Mansion, NY

23 Rockefeller Mansion

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26 or Philanthropists? But the Robber Barons also used their money to help society (philanthropy) Can you think of places/things with the names Rockefeller, Carnegie, Vanderbilt?

27 Government Regulates Monopolies 1. Sherman Anti-Trust Act (1890) a. b. c. 2. Tried to prohibit monopolies and trusts It prevented any business structure that restrained trade Problem: It was too vague. Corporations got around the act by forming other types of companies Clayton Anti-Trust Act (1914) a. b. Fixed the Sherman Anti-Trust Act This one worked

28 So what about this Gilded Age? Gilded means - covered thinly with gold leaf or gold paint So how does this connect to Urbanization, Immigration, Industrialization? We know there is opulence and wealth aka the Robber Barons But what s hidden underneath the gold leaf/gold paint??? Poor working conditions Unsanitary lifestyles Immigration restrictions