🗽US History Unit 18 – Industrialization and Big Business (1870-1900)

Key Events and Timeline

• 1870s: Second Industrial Revolution began in the United States, marked by rapid industrialization and technological advancements
• 1876: Alexander Graham Bell invented the telephone, revolutionizing long-distance communication
• 1879: Thomas Edison invented the incandescent light bulb, leading to widespread electrification
• 1882: John D. Rockefeller's Standard Oil Company controlled 90% of the US oil refining industry, exemplifying the rise of monopolies
• 1886: American Federation of Labor (AFL) was founded, becoming one of the largest labor unions in the United States
  • Led by Samuel Gompers, the AFL focused on improving working conditions and wages for skilled workers
• 1892: Homestead Strike occurred, a violent labor conflict between the Carnegie Steel Company and the Amalgamated Association of Iron and Steel Workers
• 1893: Panic of 1893 began, a severe economic depression that lasted until 1897, leading to widespread unemployment and social unrest
• Late 1800s: Rapid urbanization occurred as millions of immigrants arrived in the United States, seeking employment in the growing industrial cities

Industrial Revolution Overview

• The Second Industrial Revolution (1870-1914) transformed the United States from an agricultural to an industrial economy
  • Characterized by rapid industrialization, technological advancements, and the rise of big business
• Factors contributing to the Industrial Revolution in the United States:
  • Abundant natural resources (coal, iron, oil) fueled industrial growth
  • Expansion of transportation networks (railroads) facilitated the movement of goods and people
  • Influx of European immigrants provided a large labor force
  • Government policies (tariffs, land grants) supported industrial development
• The Industrial Revolution led to significant changes in the American economy and society
  • Shift from small-scale production to large-scale factory manufacturing
  • Emergence of new industries (steel, oil, electricity) and the decline of traditional crafts
  • Rise of urbanization as people moved from rural areas to industrial cities for employment
• The Industrial Revolution also had negative consequences, such as poor working conditions, income inequality, and environmental degradation

Technological Advancements

• Bessemer process (1856) revolutionized steel production, making it cheaper and more efficient
  • Enabled the mass production of steel, which was used in the construction of buildings, bridges, and railroads
• Electricity and the invention of the light bulb (1879) transformed both industry and everyday life
  • Allowed factories to operate longer hours and increased productivity
  • Led to the development of new industries, such as electrical appliances and power generation
• Internal combustion engine (1876) paved the way for the automobile industry and modern transportation
• Telephone (1876) and telegraph (1844) revolutionized long-distance communication
  • Facilitated the growth of business and commerce by enabling faster information exchange
• Typewriter (1868) and cash register (1879) improved office efficiency and business operations
• Mechanization of agriculture (reapers, tractors) increased farm productivity and freed up labor for industrial work

Rise of Big Business

• The Industrial Revolution led to the emergence of large corporations and monopolies
  • Economies of scale and vertical integration allowed companies to dominate their industries
• Trusts and holding companies were used to consolidate power and eliminate competition
  • Example: Standard Oil Company controlled 90% of the US oil refining industry by 1882
• Robber Barons, such as Andrew Carnegie (steel) and J.P. Morgan (banking), amassed enormous wealth and influence
  • Critics accused them of exploiting workers and engaging in unethical business practices
• Laissez-faire capitalism and limited government regulation enabled the growth of big business
  • However, this led to income inequality, poor working conditions, and monopolistic practices
• The rise of big business also had positive effects, such as increased efficiency, lower prices for consumers, and the development of new technologies and industries

Labor Movements and Unions

• The Industrial Revolution led to poor working conditions, long hours, and low wages for many workers
  • Child labor and exploitative practices were common in factories and mines
• Labor unions emerged to advocate for workers' rights and improve working conditions
  • Example: Knights of Labor (1869) and American Federation of Labor (1886)
• Unions used strikes, boycotts, and collective bargaining to negotiate with employers
  • Homestead Strike (1892) and Pullman Strike (1894) were notable labor conflicts
• The government often sided with employers during labor disputes, using injunctions and military force to break strikes
• Despite setbacks, labor unions gradually gained recognition and improved working conditions
  • Example: Eight-hour workday, restrictions on child labor, and workplace safety regulations
• The rise of labor unions also contributed to the growth of the middle class and the development of the American consumer economy

Immigration and Urbanization

• The Industrial Revolution attracted millions of immigrants to the United States, primarily from Southern and Eastern Europe
  • Immigrants sought economic opportunities and escape from poverty and political oppression
• Immigrants often worked in low-paying, dangerous jobs in factories, mines, and construction
  • Faced discrimination, poor living conditions, and limited access to education and social services
• Rapid urbanization occurred as people moved from rural areas to industrial cities for employment
  • Example: New York, Chicago, and Pittsburgh experienced significant population growth
• Urbanization led to overcrowding, poor sanitation, and the growth of slums
  • Tenements and ghettos emerged as low-income housing for immigrant and working-class families
• Urban reformers, such as Jane Addams and Jacob Riis, worked to improve living conditions and provide social services
  • Settlement houses, such as Hull House in Chicago, offered education, healthcare, and community support
• The influx of immigrants and the growth of cities also led to cultural diversity and the emergence of new social and political movements

Social and Economic Impacts

• The Industrial Revolution had far-reaching social and economic consequences
  • Widening income inequality between the wealthy industrial elite and the working class
  • Emergence of the middle class, consisting of skilled workers, professionals, and small business owners
• Urbanization and immigration led to cultural diversity and the growth of ethnic neighborhoods
  • However, it also resulted in social tensions, discrimination, and nativism
• The rise of consumerism and mass marketing transformed American culture
  • Department stores, mail-order catalogs, and advertising promoted the idea of conspicuous consumption
• The Industrial Revolution also had negative environmental impacts
  • Pollution, deforestation, and the depletion of natural resources
  • Example: The Cuyahoga River in Cleveland, Ohio, caught fire in 1969 due to industrial pollution
• Progressive Era reformers sought to address the social and economic problems of industrialization
  • Example: Muckrakers, such as Upton Sinclair and Ida Tarbell, exposed corporate abuses and advocated for reform

Key Figures and Innovators

• Andrew Carnegie (1835-1919): Scottish-American industrialist and philanthropist, known for his role in the steel industry and his charitable contributions
  • Founded the Carnegie Steel Company, which later merged to form U.S. Steel
  • Believed in the "Gospel of Wealth," which held that the wealthy had a moral obligation to give back to society
• John D. Rockefeller (1839-1937): American industrialist and philanthropist, founder of the Standard Oil Company
  • Pioneered the use of trusts and horizontal integration to dominate the oil industry
  • Later in life, he became a prominent philanthropist, donating much of his wealth to education and medical research
• Thomas Edison (1847-1931): American inventor and businessman, known for his contributions to the development of electricity and the light bulb
  • Held over 1,000 patents and founded the General Electric Company
  • His inventions, such as the phonograph and motion picture camera, had a profound impact on modern culture
• Henry Ford (1863-1947): American industrialist and founder of the Ford Motor Company
  • Pioneered the use of the assembly line and mass production techniques in the automobile industry
  • Introduced the Model T, which made automobiles affordable and accessible to the middle class
• J.P. Morgan (1837-1913): American financier and banker, known for his role in the consolidation of the railroad and steel industries
  • Helped to finance the formation of major corporations, such as U.S. Steel and General Electric
  • Played a key role in stabilizing the American economy during the Panic of 1907