Title: The
1The Incorporation of America
By Ms. Susan M. PojerHorace Greeley HS
Chappaqua, NY
2Causes of Rapid Industrialization
- Steam Revolution of the 1830s-1850s.
- The Railroad fueled the growing US economy
First big business in the US. A magnet for
financial investment. The key to opening the
West. Aided the development of other
industries.
3Causes of Rapid Industrialization
- Technological innovations. Bessemer and open
hearth process - Refrigerated cars
- Edison --gt Wizard of Menlo
Park --gt light bulb,
phonograph, motion pictures.
4Thomas Alva Edison
5The Light Bulb
6The Phonograph (1877)
7The Ediphone or Dictaphone
8The Motion Picture Camera
9Alexander Graham Bell
Telephone (1876)
10Alternate Current
George Westinghouse
11Alternate Current
Westinghouse Lamp ad
12The Airplane
Wilbur Wright Orville Wright
13Model T Automobile
Henry Ford
14Model T Prices Sales
15U. S. Patents Granted
1790s ? 276 patents issued.
1990s ? 1,119,220 patents issued.
16Causes of Rapid Industrialization
- Unskilled semi-skilled labor in abundance.
- Abundant capital.
- New, talented group of businessmen
entrepreneurs and advisors. - Market growing as US population increased.
- Government willing to help at all levels to
stimulate economic growth. - Abundant natural resources.
17New Business Culture
- Laissez Faire --gt the ideology of the Industrial
Age.
Individual as a moral and economic
ideal. Individuals should compete
freely in the marketplace. The
market was not man-made or invented.
No room for government in the market
but..
182. Social Darwinism
- Herbert Spencer
- British economist.
- Advocate of laissez-faire.
- Adapted Darwins ideas from the Origin of
Species to humans. - Notion of Survival of the Fittest.
192. Social Darwinism
William Graham Sumner
20New Business Culture
- Protestant (Puritan) Work Ethic Horatio
Alger
21New Type of Business Entities
- Pool railroads
- Focus organizing integrated systems by building
feeder lines to bring business to main line - Vanderbilt- NY Central, Jay Gould in SW, James J.
Hill in W - Trunk lines interconnect- standardization
- Cooperative agreements between companies on rates
- Positive effects
- Negative effects
- Trust --gt John D. Rockefeller
Standard Oil Co.
22Standard Oil Co.
23New Type of Business Entities
- Trust Horizontal Integration --gt John D.
Rockefeller
Vertical Integration A. Gustavus
Swift--gt Meat-packing
B. Andrew Carnegie--gt U. S.
Steel
24Iron Steel Production
25New Type of Business Entities
26U. S. Corporate Mergers
27Industrial ConsolidationIron Steel Firms
28New Financial Businessman
- The Broker J. Pierpont Morgan
29Wall Street 1867 1900
30The Reorganization of Work
Frederick W. Taylor The Principles of Scientific
Management (1911)
31The Reorganization of Work
The Assembly Line
32Wealth Concentration Held by Top 1 of Households
33 of Billionaires in 1900
34 of Billionaires in 1918
35The Protectors of Our Industries
36The Bosses of the Senate
37The Robber Barons of the Past
38The Gospel of WealthReligion in the Era of
Industrialization
- Wealth no longer looked upon as bad.
- Viewed as a sign of Gods approval.
- Christian duty to accumulate wealth.
- Should not help the poor.
Russell H. Conwell
39On Wealth
- The Anglo-Saxon race is superior.
- Gospel of Wealth (1889).
- Inequality is inevitable and good.
- Wealthy should act as trustees for their
poorer brethren.
Andrew Carnegie
40Worlds Industrial Output
41R/R hurt small western farmers
- The Grange (1887)- Oliver H. Kelley
- Social cultural function
- Political- state legislatures- Granger Laws
- Munn v. IL. (1887)
- Interstate Commerce Act (1887)
- Interstate Commerce Commission
42Americans reactSocial Labor Party
- Laurence Gronlund
- The Cooperative Commonwealth
- Daniel DeLeon
- The People newspaper
43Americans reactAuthors present radical new views
- Henry George
- Progress and Poverty
- Problems of the unequal distribution of wealth,
advocated a single tax - Edward Bellamy
- Looking Backward, 2000-1887
- utopia socialist America with planned economy
- Henry Damarest Lloyd
- Wealth Against Commonwealth
- Attacked Standard Oil, Social Darwinism,
Laissez-Faire -
44Regulating the Trusts
- 1877 --gt Munn. v. IL
- 1886 --gt Wabash, St. Louis Pacific RR
Co. v. IL - 1890 --gt Sherman Antitrust Act in restraint
of trade rule of reason loophole - 1895 --gt US v. E. C. Knight Co.