Unit 2: The Changing Political Landscape Chapter 6 Essential Question: How did the Industrial Revolution lead to big business, monopolies, and trusts? 6-1: The Expansion of Industry Industrial Revolution The US had many advantages when it came to industrialization – Factors of Production • Land- the US has lots of open land ready for development • Natural Resources- the US had wood, oil, and iron, everything a nation needed to become an industrial power • Government Support of Businessthe government had a “hands off” approach to business and was willing to provide the wealth necessary for business to develop • Cheap Labor- with a large population, the US could provide cheap labor (immigrants) and plenty of markets to sell goods • Rail Roads- contributed to the most growth between cities 2 6-3: Big Business and Labor IndustrialistRefers to a businessman, investor, or entrepreneur who has reached a prominent place in society. The goal was to gain complete control over an industry. Robber Baron– Industrialist manipulated the US economy for their own profit. – They used questionable business practices to become powerful or wealthy. 3 Big Business and Labor The Robber Barons: Andrew Carnegie• Began his career by owning railroads • Left the RR industry to go into steel production • Carnegie Steel soon dominated the steel industry through “shady” business practices – Vertical Integration – Horizontal Integration 4 Big Business and Labor The Robber Barons (continued) • Vertical Integration – Process in which a company buys out its suppliers to have total control over quality and cost of a product. • Horizontal Integration – Process in which a company buys out, or merges with its competitors to gain control over its competitors. – These allow the “parent company” to dominate the market and set its own prices, free from competition 5 Big Business and Labor The Robber Barons (continued) • J.P. Morgan controlled the largest holding company, J.P. Morgan Bank • At its peak, J.P. Morgan Bank controlled 80% of the nations production companies • Companies would buy or sell stock to holding companies that would then “merge” the companies into one large monopolistic company 6 Big Business and Labor The Robber Barons (continued) – John D. Rockefeller • Began his career by owning the Standard Oil Company (today it is called Chevron/ ExxonMobile) • Through the use of trusts, Rockefeller was able to control 90% of the US oil market • He would sell oil for far less than it cost to produce it so his competitors were forced to shut down, then he would raise the prices well above normal and reap HUGE profits 7 Big Business and Labor The Sherman Anti-Trust Act – In 1890, Congress passed a law that made it illegal to form a trust that interfered with free trade between states or with other countries – The act was difficult to enforce • The law did not make it clear what constituted a trust • Companies like Standard Oil could simply reorganize every time Congress sought to prosecute and avoid the prosecution by forcing Congress to start their cases all over again • Also, many of the owners of big business invested money into the political campaigns of politicians that were loyal to them, thus weakening the power of Congress to prosecute 8 Big Business and Labor Industrialization ignores the South – Northeastern cities became the most industrialized – The South did not change much. It was still trying to recover from the Civil War – The South remained mostly agricultural – Farmers were at the mercy of the RR’s who charged high rates to transport goods 9 Unit 2: The Changing Political Landscape Chapter 7 Essential Question: Why might people leave the familiarity of their homeland and move to a new country? 7-1: The New Immigrants Through the Golden Door – Millions of immigrants entered the US in the late 19th and early 20th century, lured by the promise of a better life Why they came – Escape difficult conditions • Famine (starvation) • Land shortages • Persecution (religious or political) – “Birds of Passage” • Came temporarily with plans to make money then return home 11 The New Immigrants European Immigrants – Between 1880 and 1930 approximately 20 million Europeans arrived in the US • Prior to 1890(before 19th century), most immigrants came from countries in western and northern Europe (England, France, Ireland, and Germany) • After 1890(late 19th century), increasing numbers arrived from eastern and southern Europe (Italy, Russia, and Austria-Hungary) – Why they came • Opportunity- with US industrialization, jobs were plentiful • Escape religious persecution- many countries led pogroms (government led acts of hatred) against Jewish communities 12 The New Immigrants The arrival – Ellis Island • Immigrants coming from Europe arrived at Ellis Island, New York – Most immigrants had to wait 1 day before being processed and allowed entry to the US (less than 2% were denied entry) – Angel Island • Immigrants arriving from Asian (mostly China) passed through Angel Island in San Francisco – Unlike Ellis Island, the processing at AI was a slow, uncomfortable process ─ Racism played a role in the denial of many Asian immigrants 13 The New Immigrants Nativist Favored the interests of nativeborn people over foreign-born people. Reason for Nativism • Religious persecution- many people were opposed to Catholic and Jewish beliefs • Economics- immigrants provided a cheap source of labor which worried labor groups 14 7-2: The Challenges of Urbanization Urbanization (the rapid growth of cities) – Immigrants settled in the city because the cities offered inexpensive places to live . – Big cities provided access to steady work in the mills and factories. – Immigrants also settled in the city because people from their country were also there. The Americanization Movement – In an effort to help newly arrived immigrants assimilate (become part of American Society) the government and volunteers created schools and community centers that taught immigrants skills that would help them learn the ways of native-born Americans 15 Politics in the Gilded Age Immigrants and the Political Machine(a group that controlled the political party in a city) – Political bosses used their influence to help immigrants find jobs, housing, and achieve citizenship – In return the immigrants would vote the way the boss told them – The use of immigrant voters enhanced the power of the bosses and their organizations 16 Politics in the Gilded Age Political Boss System – a political system that represented a source of support and jobs. The bosses and their organizations embodied political corruption. Boss Tweed and Tammany Hall – William Tweed (aka Boss Tweed) led New York's most powerful political machine – He was convicted of stealing over $10 million through bogus construction projects 17 Unit 3: The US Emerges as a World Power Chapter 9 Essential Question: What conditions might cause the need for reforms such as those of the Progressives? 9-1: The Origins of Progressivism 4 Goals of the Progressive Movement 1. Provide social welfare • Provide help for the poor through the creation of schools, charities, and churches 2. Promote moral improvement • Many Progressives believed that poverty was caused by a lack of morals – The Prohibition Movement sought to ban alcohol (18th amendment will pass in 1919) 19 The Origins of Progressivism 3. Create Economic Reform • The gap between the rich and poor widened during the Industrial Revolution • Some Americans began to see capitalism as a cause of the social and moral decay and turned to more socialist ideas 20 The Origins of Progressivism 4. Foster (improve) Efficiency • Improvements in industry caused a dramatic change in the way people lived and worked • Assembly lines increased production • Work hours were shortened • Schools began to be run like factories 21 9-2: Women in Public Life Women’s lives improve • The Triangle Shirtwaist Factory fire in New York City, was one of the largest industrial disasters in the history of the city of New York, causing the death of 146 garment workers. The fire led to legislation requiring improved factory safety standards • In 1920, Congress passed the 19th Amendment granting women the right to vote 22 9-3: Teddy Roosevelt’s Square Deal Teddy Roosevelt (A rough-riding president) • Roosevelt’s views of government – Roosevelt believed that the federal government must provide for the national welfare – The president has the legal right to do whatever is necessary to carryout the will of the people 23 Teddy Roosevelt’s Square Deal The Square Deal (Roosevelt’s many Domestic Reforms) – Roosevelt would see that the common people were given a fair (square) deal, he protected them from big business Roosevelt as a Bad Trust-buster – Taking on corporations • Previous attempts at using the Sherman Antitrust Act to limit the power of monopoly’s had failed • Roosevelt would only breakup the trusts that harmed the common people 24 Teddy Roosevelt’s Square Deal Roosevelt on Health – The meat packing industry • Upton Sinclair, wrote book detailing the unsanitary practices of the meat industry • Roosevelt, after reading Sinclair’s The Jungle, appointed a commission to investigate Sinclair’s claims • After witnessing firsthand the terrible conditions in America’s meat packing industry, Roosevelt pressured Congress into passing the Meat Inspection Act of 1906 25