Unit Two
Industrialization, Immigration and Urbanization
Natural Resources
The U.S. following the
Civil War, and still
today, had a wealth of
natural resources. How
did this abundance of
raw materials help
promote
industrialization?
Growing Urban Population
More and more people
began to move into cities
following the Civil War.
How did this migration of
people help cause rapid
industrialization?
Government Support
In the late 1800s, the
government was
favorable toward
business interests.
How did this support
help industry grow
rapidly?
President William McKinley
Inventions
Numerous life
changing inventions
were developed
following the Civil War.
How did these new
technologies help
promote industrial
growth?
Entrepreneurs
Following the Civil War,
many entrepreneurs, or
businessmen, emerged
and made great profits
from industry. How did
men like Carnegie and
Rockefeller help industry
develop in the U.S.?
Railroads
Railroads expanded greatly after the Civil War.
What role did railroads play in industrial growth?
The economic development of the United States between 1870
and 1950 helped produce the results shown in the graph above.
The trend shown in the graph is
A. increased urbanization.
B. decreased immigration.
C. advances in communication.
D. reduced population growth.
Essential Question:
What common characteristics can be found in
the early “titans of industry”?
Top 10 Largest American Companies (2006)
Company
Industry
1
Wal-Mart
Retailing
2
Exxon-Mobil
Oil and Gas Operations
3
General Motors
Automobile
4
Chevron
Oil and Gas Operations
5
Ford Motor Co.
AUtomobile
6
ConocoPhillips
Oil and Gas OPerations
7
General Electric
Conglomerates
8
Citigroup
Banking
9
AIG
Insurance
10
IBM
Software and Services
Questions:
1. What are the three largest American
companies?
2. Which industry is the represented the most
on the top 10 list?
3. Why is Wal-Mart the largest American
company when it sells everything cheaper?
4. Which companies do you think are on the
rise? On the fall?
Essential Question:
How did the “titans of industry” build their
business empires?
Andrew Carnegie
Steel Industry
created a monopoly
horizontal integration
vertical integration
What is a monopoly?
when a business is able to control all aspects
in a particular industry and eliminate
competition to maximize profit
How do they do it?
horizontal integration-business buys out
the competition
ex: AT&T buys out T-Mobile
verical integration-business buys out the
suppliers
ex: oil companies
Horizontal and Vertical Integration
Impacts of Monopolies
Pro:
Cons:
● allowed for major
growth of industry
● huge profits were made
● competition was
destroyed (prices were
higher and choices
were limited)
● created a large gap
between the owners
and the workers
Why were monopolies allowed?
● hands off business policies of the
government (laissez-faire)
● close ties between business leaders and
government leaders
Economic Impacts of Big Business
● U.S. becomes the leading industrial power in
the world.
● Despite poor conditions, more people are
earning more money than before.
● Industrialization grows as more people have
more money to buy goods.
What conditions led to the creation of labor unions?
What were working conditions in the late 1800s?
12 or more hours per day
six days a week (sometimes 7)
no vacation, sick leave, unemployment compensation,
reimbursement for injuries while on the job
injuries common
factories—dirty, poorly ventilated, poorly lit, faulty
equipment
repetitive tasks
How did the titans of industry justify
these conditions?
social darwinism
•based on work of Charles Darwin
•some individual’s flourish and pass on their traits to the next
generation; others do not
•natural selection
•justifies a hands-off approach
•appealed to the Protestant work ethic
“riches were a sign of God’s favor and therefore the poor must
be lazy or inferior people who deserved their lot in life”
So--what did workers do?
They formed unions.
2 kinds of labor unions:
craft unionism
industrial unionism
What were they hoping to accomplish?
Knights of Labor
“An injury to one is the concern of all.”
membership open to all workers
worked for an 8-hour workday and “equal pay
for equal work”
American Federation of Labor (AFL)
all skilled workers
collective bargaining
used strikes
collective bargaining
negotiation between representatives of labor
and management to reach written agreements
on wages, hours and working conditions
Strikes of the late 1800s
The Great Strike of 1877
The Haymarket Affair
The Homestead Strike
The Pullman Strike
Workers Unite to Strike
The Haymarket Affair
The Pullman Strike
The Homestead Strike
socialism
economic and political system based on
government control of business and property
and an equal distribution of wealth
Eugene Debs
Industrial Workers of the World (IWW)