The Growth of Big Business 1865-1900

 1. Where did the Industrial
Revolution begin?
 2. What kind of conditions were
needed for industrialization?
After the Civil War, the United States went
through a period of industrialization
Big businesses were formed, such as the
banks, railroads, oil and coal companies
Industrialization helped the U.S. grow, and
many immigrants came to the U.S., but for
workers life was very difficult
As businesses grew, some
began to develop ways to
limit competition
Carnegie Steel—founded
in the 1870s by Andrew
Steel was used for
railroads and skyscrapers
Carnegie Steel used the vertical
integration strategy to create a
monopoly in the steel industry
Vertical integration is when a
company owns all the factors of
production (all the things you need to
make a product)
Carnegie Steel could produce steel
cheaper than his competitors
Standard Oil Company—
founded in the 1870s by John
D. Rockefeller
 Originally produced kerosene
as heating oil
Today, the following
companies used to make up
Standard Oil:
 ExxonMobil
 Chevron
 BP
Standard Oil
gained a monopoly
through horizontal
• Horizontal
Integration is when
one company buys
or takes over its
• These
monopolies were
also known as
Do Now
Put your
answers on ½
sheet of paper.
You will hand
this in for a
quiz grade!
Explain the difference
between horizontal and
vertical integration.
Do you think monopolies are
good or bad for America?
Give examples to support
your answer.
Many industrial leaders
viewed themselves in a
positive way compared to
everyone else
 They believed in “Social
 This idea means that
those who get wealthy are
better than those who
 This idea justified laissezfaire capitalism
Many industrialists, like
Carnegie and Rockefeller,
gained more wealth than
they could ever spend
 They gained wealth by
cutting costs in any way
 Low wages for workers
 Poor working conditions
 Unethical business
They often became
known as “Robber
Barons” because of this
Some industrial leaders
also were known as
“Captains of Industry”
 Carnegie, Rockefeller,
Vanderbilt and others
used much of their wealth
to contribute to society
 They were considered
“philanthropists” (people
who give away their
Vanderbilt University
Carnegie Hall
Rockefeller Center
Rockefeller donated $450
million before he died
 Carnegie donated enough
money for 2,500 libraries
to be built
1. Explain why industrialists like Carnegie
and Rockefeller would have supported the
concept of Social Darwinism, while workers
would have opposed it.
2. a) Compare and contrast vertical and
horizontal integration.
b) How did they lead to the creation of
Some industrialists thought
their wealth should not be left
to their descendants
Andrew Carnegie wrote the
“Gospel of Wealth” in 1889
Labor Union
A group of workers who
unite to improve their
wages, working
conditions and benefits
 They were created
because of low wages and
poor conditions in
Workers had few rights
and no protection from
the government
How did labor unions get
better conditions, wages, etc?
 Collective bargaining
 Negotiations between the
owners and workers
 Strikes
 Boycotts
“Whether you're a union
member or not, you have
benefited from labor unions.
They have set a national and
local standard for working
conditions, i.e., the 40-hour
work week, the five-day work
week, collective bargaining,
fair grievance procedures,
minimum wage, acceptable
working conditions,
insurance, retirement
packages, sick leave, paid
vacations and much more.”
--Green Bay Gazette, February 28, 2011
List some of the benefits that all
workers have gained as a result of
labor unions.
Two different types of
labor unions emerged:
1. Unskilled Unions
Unions that allowed all
workers to join regardless
of skill or profession
Allowed women and
Knights of Labor
2. Skilled Unions
Workers organized by
their particular skill
 Ex. Carpenters,
 The American
Federation of Labor
 Founded by Samuel
Gompers in 1886
Haymarket Strike 1886
Homestead Strike 1892
Pullman Strike 1894
The government
supported the owners,
not the workers in labor
"In the first place, we should insist that if
the immigrant who comes here in good
faith becomes an American and assimilates
himself to us, he shall be treated on an
exact equality with everyone else, for it is
an outrage to discriminate against any such
man because of creed, or birthplace, or
origin. But this is predicated upon the
person's becoming in every facet an
American, and nothing but an
American...There can be no divided
allegiance here. Any man who says he is
an American, but something else also, isn't
an American at all. We have room for but
one flag, the American flag... We have
room for but one language here, and that
is the English language... and we have
room for but one sole loyalty and that is a
loyalty to the American people."
1. Do you think this
quote is from
 A. before the Civil
 B. after the Civil War
 C. the modern day
2. Why do you think
it’s from the time
period you chose
3. Which group of
immigrants do you
think this quote is
This is a quote
from Teddy
Roosevelt in
Do you think
the quote
reflects opinion
For all the noise and anger that
too often surrounds the
immigration debate, America has
nothing to fear from today’s
immigrants. They have come
here for the same reason that
families have always come here–
for the hope that in America,
they could build a better life for
themselves and their families.
Like the waves of immigrants
that came before them and the
Hispanic Americans whose
families have been here for
generations, the recent arrival of
Latino immigrants will only
enrich our country
 --Barack Obama
– when
people leave
their own
country for a
new country
Until the 1840s, most
immigrants came from
Northwest Europe (England,
Scotland, etc) and Africa
(forced because of slavery)
From the 1840s to 1860s,
there were many immigrants
from Ireland (largely Catholic)
Why did many
come to the
United States?
Better job
After the Civil War
(1865-1914), millions
of immigrants came to
the U.S.
 Many came from
Southern and Eastern
Europe (Italy, Russia,
the Balkans) and Asia
Many immigrants
during this period
experienced Nativism
Nativism –
discrimination by
Americans against
 1850’sthe KnowNothing Party was
created as an antiimmigrant political
party (against Irish
Why did nativism
Competition for
factory jobs
Lower wages
Ethnic, cultural, and
religious differences
Fear of new ideas like
communism, and
Why would big
business support
more immigration?
More workers
Lower wages (cheap
Over 12 million
immigrants came to the
U.S. through Ellis Island
At the turn of the century,
why did most immigrants
to the United States settle
in cities?
A. Jobs were readily
 B. Government relief
programs required
immigrants to settle in
 C. Labor union leaders
encouraged unrestricted
 D. Immigrants were not
permitted to buy farmland.
In the late 19th century, the
pattern of United States
immigration changed in that
A. far fewer immigrants arrived
in the United States than in
previous years
 B. most immigrants chose to
settle in the rural, farming
regions of the western United
 C. increasing numbers of
immigrants came from eastern
and southern Europe
 D. most immigrants were
political refugees
Urbanization – the
movement of people
from the country (rural)
to the cities
Why did people move to
the cities?
People moved to the
cities because of the
abundance of factory
 Immigrants and farmers
Political machines
develop to help
immigrants adjust to life
in America
 Provide basic services
(jobs, housing) in
exchange for political
 Political machines were
very corrupt as a result
 Ex. Tammany Hall in NYC
Urbanization led to
other negatives
 Poor living conditions
(tenement buildings)
 Unsanitary conditions
(no running water, or
sewage systems) led
to disease
Many reformers
helped immigrants
adjust to American life
 Jane Addams (Hull
Create a chart that
lists the positive and
negative effects of
urbanization in
America during the
Industrial Revolution