The Rise Of Industry Chapter 25

25.1 Introduction
After the Civil War, new inventions and business methods allowed U.S. to create an industry on a much larger scale. People who worked in these industries often lived and worked in miserable, dangerous conditions.

25.2 A Nation Transformed

Industrialization: growth of businesses that make and distribute products through the use of machines. Entrepreneur: someone who starts a business and is good at making money.

The Growth Of Big Business

Businesses got huge b/c of new tech. and manufacturing practices. Business tycoons believed in laissez-faire economics: government shouldnt interfere with economy. They did like the government passing high tariffs and giving out subsidies.

The Gilded Age

Mark Twain called this era of showy wealth the gilded era. Business owners amassed unbelievable fortunes. Many people were irritated with the friendly relationship between tycoons and politicians which often resulted in corruption.

25.3 Improved Technology

The Age of Steel Steel is much stronger than iron, but was costly to make. Andrew Carnegie brought the Bessemer Process to the U.S. He claimed steel is king. Steel began replacing everything previously made of iron. By 1900 he produced of the nations steel.

Electric Power
1876 Edison opened the Invention Factory which was responsible for the light bulb, phonograph, motion picture, etc. Invented the electrical power station and everything in it. He is responsible for the age of electricity.

The Telephone
1876 Alexander Graham Bell invented the telephone. Allowed producers, sellers, and customers to communicate more efficiently.

New Production Methods

Techniques of mass production, such as the assembly line, and interchangeable parts, allowed workers to produce more goods per day at less cost. By 1900, 4xs as many people worked in factories than the previous generation.

25.4 The Rise of Big Business

Growth of Corporations Big business (like RRs) depends on corporations, which are large groups of investors that help pay its initial expenses. Corps. sell parts of the company called shares, to raise money. Stockholders then receive dividends which are a share of the companys profits.

Rockefellers Oil Trust

Rockefeller introduced another type of business called a trust, which is a group of corporations controlled by a single board of directors. Drove competitors out of business and controlled a monopoly, in which he could control prices.

The Evils of Trusts

Many people felt monopolies threatened the free-enterprise system. With no competition there was little reason to improve products or keep prices low.

25.5 The Growth of Cities

Urban Tenements One effect of industrialism was urbanization, or city growth. By 1900, 2/3 of NY population lived in tenements, or cheap apartment buildings. Most factory workers lived in crowded, slum neighborhoods.

Cities Expand Upward

With the cost of land rising, developers began building vertically. This was made possible by lightweight steel beams, and the electric elevator. Most factories were located on the top floors of skyscrapers.

First Elevators

25.6 Working Conditions

Working Families The wages offered by factory owners were so low that everyone in the family had to work. Kids worked in mines, mills, and factories. They worked from 7 AM until dark for $1 to $3 per week.

Inside Factories
Fires claimed the most lives of factory workers. Most factories had no sprinkler system or fire escape.

25.7 Labor Unions

Trade unions: Labor organizations that brought together workers in the same job, to fight for better wages or working conditions.

Knights of Labor
1869, one of the first unions which had members from every trade. 1886 200,000 workers strike for 8 hour work day. At Haymarket Square in Chicago, a bomb was thrown at police and 4 workers were sentenced to death. As a result, the union faded away.

American Federation of Labor

Led by Samuel Gompers and used collective bargaining to reach goals. Collective bargaining: Negotiating between unions and employers.

Homestead Strike
Steel workers went on strike in Homestead, Pennsylvania at Carnegies plant. Both strikers and police died. Carnegie hired armed guards, fired the strikers and replaced them.

Women Organize
Largest womens union was the International Ladies Garment Workers Union. 1909 200,000 of these garment workers went on strike in New York and won a shorter work week and better pay.