SECTION 3
INDUSTRIALIZATION SPREADS
Industrial Development in the United
States
• Textile industry was the start
• Samuel Slater emigrated to U.S and built
spinning machine from memory in 1789
• Moses Brown opened first factory in
Pawtucket, Rhode Island
– Produced only one part of finished cloth-the
thread and was shipped back to England
– Brown is the Co-founder of Brown University
• 1813- Francis Cabot Lowell- mechanized every
stage in manufacture cloth. The town he opened
his factory in, renamed it after him, Lowell,
Massachusetts.
• Single women flocked to become “mill girls” in
factory towns. In these early towns, these
women found higher wages and independence.
• Shoemaking and clothing also underwent
mechanization in the US.
• Agricultural
• U.S. remained primarily
agricultural until Civil War
ended in 1865.
• Technological Boom
• Beginning in the late 1800’s:
– Wealthy natural resources (oil,
coal, iron)
– Burst of inventions (electric
light bulb, telephone)
– Increase in urban population
that consumed new
manufactured goods.
• Railroads grow the US
• Stocks Grow US
Business
• Cities like Chicago &
Minneapolis expanded
rapidly because of the RR’s
• Certain rights of ownership
of a company to raise
money
• Business owned by
• Corporations become
stockholders who share in
the leaders of American
its profits but are not
Businesses
personally responsible for
its debts.
Big Business
• Standard Oil (John D. Rockefeller) & US Steel Company
(Andrew Carnegie) sought to control every aspect of their
own industries in order to make big profits.
Continental Europe Industrializes
• Belgium
• Adopted Britain’s new
technology. Rich deposits
of iron ore, coal, and
waterways.
• William Cockerill carried
secret plans for building
spinning machinery. Son
built enormous industrial
enterprise which included
steam engines & railway
locomotives
• Germany
• Around 1835, German
states began to copy the
British model of factories.
• However, each state
separately created their
own factory/
transportation systems
• Built railroads that linked
its manufacturing cities
with coal & iron ore
deposits.
• The United German
economic strength enabled
military to grow into a
giant through industry.
• Bohemia- spinning
industry
• Spain’s Cataloniaprocessed more cotton
than Belgium
• Northern Italymechanized its textile
production, specializing
in silk.
• Moscow & St.
Petersburg- Serf labor
factories
• France- Agricultural
economy remained strong.
– Avoided great social &
economic problems until
1850 when industrialization
really started to move in
forward in France
• Other countries did not
industrialize because of
transportation problems.
The Impact of Industrialization
1. Industrialization Revolution shifted the world
balance of power in favor of Europe and the US
2. The wealth gap between industrialized and nonindustrialized countries grew incredibly.
3. Industrialized countries looked at nonindustrialized countries for steady supply of
materials for food and raw materials
4. An Age of Imperialism would begin- policy of
extending one country’s rule over many other
lands, gave even more power and wealth to
these already wealthy nations.
5. Industrialization created the need and want
for Imperialism because the need for resources
to supply the factories was a national priority for
European Countries and the US
SECTION 4
REFORMING THE INDUSTRIAL
WORLD
The Philosophers of Industrialization
• Industrial Nations followed the theory of
“Laissez Faire” which meant letting owners of
industry and business set working conditions
without interference. Free market
unregulated by government
• Governments placed heavy tariffs, in order to
make tax revenue, on foreign goods that cut
of free trade and held back the economy.
• Adam Smith
• Professor at University of
Glasgow, Scotland.
• Defended free economy
market.
• Believed in three natural
laws:
1. Law of Self-Interest
People work for their own good
2. Law of Competition
Competition forces better products
3. Law of Supply and Demand
People work for their own good
• Smith’s Free Market
• An economic system in
Ideas are not practical,
which the factors of
so his beliefs are used in
production are privately
the economic system of
owned and money is
Capitalism
invested in business
ventures to make profit.
The Rise of Socialism
• Utilitarianism
• A belief system of Jeremy
Bentham
• Believed people should judge
ideas, institutions, and
actions on the basis of their
utility or usefulness.
• John Stuart Mill- a philosopher and economist, led the
utilitarian movement. Mill wished to help ordinary
working people with equal division of profit.
• Favored cooperative system of agriculture, women’s
rights, right to vote.
• Also pushed for reforms in the legal and prison system
and in education.
• Robert Owen
• From Scotland, he built
houses which he rented for
low rates.
• He prohibited children
under ten working in the
mills and provided free
schooling for them.
• In 1824, traveled to New
Harmony, Indiana. And
founded a cooperative
community and intended it
to be call his “Utopia”.
Only lasted 3 years.
• Socialism
• New economic system
which develops where the
factors of production are
owned by the public and
operate for welfare of all.
• Grew out of an optimistic
view of human nature,
belief in progress, and
concern for social justice
• This system government
should plan the economy
rather than depend on free
market capitalism.
• Socialists want the
government to control
factories, mines,
railroads, and other key
industries that would
promote equality and
end poverty for
everyone
• Public ownership would
help workers.
Marxism: Radical Socialism
• Karl Marx- German journalist. Believed capitalist
system would destroy itself.
• Factories drive out small artisans.
• Large proletariat (workers) would revolt, seize the
factories and mills then produce what society needed.
• Workers would share in profits, bring economic
equality for all people, would control government but
would wither away as a classless society developed.
• Marx final phase was Communism.
• A form of complete socialism which the means of
production- all land, mines, factories, railroads, and
businesses- would be owned by the people.
• Private property would not exist.
• All good and services would be shared equally.
• The Communist Manifesto was published in 1848 by
Karl Marx and Friedrich Engels on their ideas.
• In the 1900’s Marxism inspired revolutionaries such
as Russia’s VI Lenin, China’s Mao Zedong, and
Cuba’s Fidel Castro.
Labor Unions and Reform Laws
• Unions- workers joined together in voluntary
labor associations to be united for better
working conditions & higher pay.
• Collective Bargaining- negotiations between
workers in unions and their employers
• Strike- workers refuse to work
• Skilled workers led the way forming unions
Unions Gain Power
• British government repealed the Combination Acts of
1799 & 1800 in 1824 that allowed unions and strikes.
• In U.S. the American Foundation of Labor (AFL) formed
in 1886 that won members higher wages and shorter
hours.
• Child Labor reform came when Parliament passes
Factory Act of 1833. This made it illegal to hire children
under 9. Children 9-12 wouldn’t work more than 8
hours a day. Children 13-17 only 12 hours a day.
• Mines Act in 1842- prohibited children & women from
working underground.
Unions Gain Power
• Hours Act of 1847- Limited workday to ten
hours for women and children who worked in
factories.
• National Child Labor Committee in U.S. set up
in 1904 to end child labor.
• However, in 1919, U.S. Supreme Court
objected that the federal child labor law as it
interfered with states’ rights to regulate
The Reform and Movement Spreads
• Abolition of Slavery- William Wilberforce
fought to end slavery and Britain abolished
slavery throughout the empire in 1833.
– However Britain would have plenty of labors to
take advantage of throughout the world
•
•
•
•
Slavery ended in U.S. in 1865 after Civil War
Puerto Rico in 1873
Cuba in 1886 (controlled by Spain)
Brazil in 1888
Women’s Rights
• Women received higher wages working in
factories than at home but still only a third
(1/3) of what men were paid.
• Movement for women’s rights began in the
United States in 1848 at the Seneca Falls
Convention in New York. The International
Council for Women formed in 1888.
Reforms Spread to Many Areas of Life
• Public Education & Prison reform were seen as
needed changes in the U.S. and Western Europe
• Free public school system began in the 1850’s.
• Reform prisons emphasized the goal of providing
prisoners with the means to lead to useful lives
upon release.