Professional Documents
Culture Documents
Laissez- • As early as 1776, the economist Adam Smith had argued in "The Wealth of
Nations" that business should be regulated, not by government, but by the
Faire "invisible hand" of the law of supply and demand. If government kept its
hands off the economy, so the theory went, businesses would be motivated
Capitalism/ by their own self-interest (competition) to offer improved goods and
services at low prices. In the 19th century, American industrialists appealed
Free to laissez-faire theory to justify their methods of doing business.
Enterprise • Talented entrepreneurs emerged during this era who were able to build and
manage vast industrial and commercial enterprises.
System
• Vital to the industrial process were new inventions. These led to greater
productivity in the workplace and mass-produced goods
• Lightbulb (Thomas Edison): Allowed for factories to stay open longer after
New dark
• Telegraph (Samuel B. Morse): Allowed for instant communication around
Technology/ the world
Inventions • Beesemer Steel Process (Henry Beesemer): High quality steel produced
which was needed for construction
• Railroad Expansion: Goods could be transported faster= Opened new
markets, especially in the western regions of the United States
Effects of Industrialization
Definition: Industrialization is the process by which an economy is transformed from primarily agricultural to
one based on manufacturing and factories.
Mass
manufacturing/
production Immigration to
Factories opened
became possible= urban areas Urbanization Population in the
more jobs that
Industrialization goods became
required unskilled
(cities) for factory (Cities began to U.S. cities U.S. ecoomy grew
easier, faster, and jobs and better expand) increased
labor
cheaper to opportunities
produce (more
effecient)
•Big Buisness- Little to no governmental •Corrupt Politics- In an urban atmosphere •Dangerous Working Conditions- Due to the
regulations in the U.S. economy resulted in where the access to power was unequally lack of governmental interference in the
the rise of monopolisitic trusts which distributed, political machines thrived, in part economy, buisnesses began to exploit their
undercut the very competition needed for by providing immigrants and the poor with workers. There were practically no labor laws
natural regulation. By the 1890s, the richest social services to protect the working class. Factory working
10 percent of the U.S. population controlled hours were long and dangeours and child
90 percent of the nation's wealth. •Tammany Hall was the Democratic Party labor was often used.
political machine that played a major role in •Tenements- Slum housing in urban areas.
controlling New York City and New York •Immigration- Immigrants to the U.S. were
•Robber Baron or Captain of Industry?
State politics and helping immigrants, most often treated poorly as nativisit attitudes
•Andrew Carnegie (Steel Trust) notably the Irish, rise up in American politics/ spread. The U.S. set strict immigration quotas
•John D. Rockefeller (Oil Trust) led by Boss Tweed at its height. such as the Chinese Exclusion Act of 1882.
Social Darwinism
Social Darwinism Charles Darwin's theory of natural selection in biology offended the
beliefs of many religious conservatives, but it bolstered the views of economic
conservatives. Led by English social philosopher Herbert Spencer, some people argued for
Social Darwinism, the belief that Darwin's ideas of natural selection and survival of the
fittest should be applied to the marketplace. During this era, many believed that
concentrating wealth in the hands of the "fit" benefited everyone. An American Social
Darwinist, Professor William Graham Sumner of Yale University, argued that helping the
poor was misguided because it interfered with the laws of nature and would only weaken
the evolution of the species by preserving the unfit. Social Darwinism gave some during this
period a "scientific" sanction for their racial intolerance. Race theories about the superiority
of one group over others would continue to produce in problems in the 20th century.
Early Solutions
Early Big Idea
Solutions
Labor Strikes A labor union is an organization of workers formed to promote collective
and Labor bargaining with employers over wages, hours, benefits, job security, and
working conditions
Unions
Sherman Anti- U.S. federal law that forbade any organizations that interfered with free trade by
Trust Act prohibiting monopolies or any activity that hindered business competition
(1890)
Interstate U.S. federal law that was designed to regulate the railroad industry which
Commerce Act required railroad rates to be “reasonable and just”
(1887)
Pendleton Act U.S. federal law requiring federal jobs to be awarded on the basis of merit rather
(1883) than the spoils system
Settlement Many women, like Jane Addams, worked in settlement houses to help
Houses immigrants adapt to U.S. language and customs.
Some business leaders argued that the wealthy had a moral obligation to help the
Philanthropy less fortunate and improve society, as articulated in the idea known as the
Gospel of Wealth by Andrew Carnegie, and they made philanthropic
contributions that enhanced educational opportunities and urban environments.