Was the Industrial Revolution
“Good” for the United States?
1865-1910
The IR is a Civil War Aftermath
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How and Why this occurred?
– Natural Resources harnessed
– New Industries emerged
– New Markets Spark Rise of Consumerism
– Railroads Transform Life
– Big Business Emerges
• It’s EFFECT
• 1870-1920
– Nation’s Wealth Increased 5 ½ times
• By 1920 U.S. is Leader in
– Agricultural production
– Industrial Production
IR Evaluation
• Was this beneficial for “United States”?
– Business Owners
– Workers
– Investors
– Consumers
– Citizens
– National Economy
IR Good for
“Big Business” Owners?
Consolidation: organize to stabilize economy
• Panic 1893 : A Four Year Depression
• Vertical Integration
– By 1901 U.S. Steel Corp. producing 80% all
steel
• Horizontal Consolidation
– Standard Oil Company
• Trusts
– JP Morgan Company
Social Darwinism
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Carnegie “Rags to Riches” Story
IR Good for U.S.?
YES
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Patents Increase
Number of Industrial Workers Increased
Exports Increased
Steel Production Increased
Oil Production Increased
Railroad Tracks Laid Increased
National Wealth Increased
Gospel of Wealth
IR Good for U.S.?
NO
• Monopolies
• Political Corruption
– Social Darwinism
– Influences Laissez-Faire Policy
– Political Machines
• Tammany Hall
– Plutocracy
• Gilded Age Income Inequality
• Economic Tumult
IR Consequences for
Workers/Consumers
• Positive
– Increased number of jobs
– Increased living standard
– Decreased cost of goods
– Cultural Enhancements
– Technology Innovations (Conveniences)
– Growth of Middle Class
IR Consequences for
Workers
• Negative
– Environmental harm (Oil Drilling)
– Dangerous Working Conditions
– Exploited Child Labor
– Exploited Free Workers
• “Wage Slaves”
– Long Working Hours
– Monotonous/Repetitive Work
• “Part of the Machine”
IR Mixed Benefit Triggered Response
• Government Response
• Worker Response
• Business Owner Response
Government Regulation
b) Response to “Big Business” Behavior
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Government Regulation
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Munn v. Illinois 1877
Wabash Case 1886
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Sherman Anti-Trust Act 1890
Court Rulings Dilute Anti-trust Legislation
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Interstate Commerce Act 1887
U.S. Knight (1895)
Maximum Freight Case (1897)
Federal government consistently denied unions
recognition as legally protected organizations under
14th Amendment
Rise of National Labor Unions
b) Response to “Big Business” Behavior
– Rise of National Labor Unions
• American Federation of Labor
– National Labor Union Actions
• Collective Bargaining
• Strikes
–1877 Great RR Strike
–Haymarket Square Riot 1886
and Homestead Strike 1892
–Pullman Strike 1894
Response of Big Business Owners
c) Response to Labor Union Actions
– Employer Responses
• Yellow-dog contracts
• Closed Shops
– Public Response to Worker Strikes: Disdain
– Supreme Court Classified Strikes as Illegal Trust
– Federal Government Support of Big Business
• Combination of public disdain, federal
government opposition limit union gains for
30 years!!!
Interpretations of IR Effects
• Big Business as
– Robber Barons
• Big Business as
– Captains of Industry