The triumph of American Industry!
1865-1900…..
• Background:
– Gilded Age
– 2nd American Revolution
Worried critics decry the
similarities between the
corruption-laden late 19thcentury American Gilded Age
and the crony capitalism of
today.
Factors leading to industrialization
• Civil War
– First “modern war.”
• Steel, rails, cannons.
• The war forces the North to Industrialize.
• Industrialization receives support from the public,
congress, the Supreme Court and the media!
Factors leading to industrialization
• Agricultural Revolution
– Productivity increases
• Technology to make up for smaller workforce.
– steel plow, mechanical reaper, grain elevators.
» With this technology farmers can feed urban centers and
a new market is opened up:
• The farm implement market.
Factors leading to industrialization
• Key natural resources located in convenient
areas.
– Coal, iron-ore, copper, timber
Factors leading to industrialization
• Technological Advancements
– Telephone, electric lights, internal combustion..
Factors leading to industrialization
• Large Labor Force
– USA Population 1870: 38.5 Million
– USA Population 1890: 76 Million
• Population increases through immigration and
child bearing.
– 12 million immigrants come to America between
1870-1890!
Factors leading to industrialization
• Rapidly Expanding Markets
– Increased demand for industrial goods.
• Domestic and Foreign Markets expand!
• Steel is king!
Factors leading to industrialization
• Capital
– Capital is financial investment into an industry.
• Capital is provided by:
– Individuals—American and Foreign
» Americans save and invest 13% of their income
– US government
– Banks
Factors leading to industrialization
• Great Managerial Skills
– Related to outstanding education and literacy*
*as compared with the rest of the world
Factors leading to industrialization
• America avoids any foreign war (1865-1898)
– Very little is spent on national defense.
**All these factors come together at the right time
leading to an explosion in national economic
output! Now read pp. 169-172. Be prepared for an
open notes quiz tomorrow!
Open Notes Quiz. 1/29
• Create a poem, rap or song which identifies
the significance of four of the 9 of the
factors which led to American
Industrialization (1865-1900).
• Work independently, quietly and using YOUR
notes—no electronic devices
• When you finish, start reading 169-175.
take notes, feel free to annotate in the
book!
Open Notes Quiz-reading
pp. 169-175 Zinn
• 1. Identify 4 inventions or innovations that
occurred during this time period.
• 2. What happened in Rock Springs Wyoming in
1885?
• 3. Why were “efficient businessmen of the late
nineteenth century sometimes called “Robber
Barons?”
Case Studies:
•
•
•
•
•
1. Cornelius Vanderbilt
2. Gustavus Swift
3. James Duke
4. F.W. Woolworth
5. Gail Borden
Why Is Vanderbilt Significant?
•
•
•
•
1. “Rags to Riches” Story
2. Shipping—Ships and Railroads
3. minimize costs, maximize profits
4. Monopoly
– Foreshadows new business ethic
– Undersell, buy out, raise prices
• 5.Established Vanderbilt University, 1877
SPLIT TODAY
•SPLIT OPPOSITE
OF YESTERDAY!
Why is Gustavus Swift Significant?
•
•
•
•
1. Meat Packing genius
2. Railroad
3. Industrialized meat packing
4f. Known for 3 important trends:
– Uniformity
– Specialization
– Integrated large scale industry
• “economy of scale”
Why is Gail Borden Significant?
• 1. Recognizes the need for portable
“foodstuff”
– Meat Biscuit  #nasty
• 2. Condensing
– Borden Condensed Milk Company
– Infant mortality
• 3. Mobility
James Duke?
• 1. 1880’s- American Tobacco Co.
• 2. Cigarette
– Ideal industrialzed society vice
• 3. Advertizing
– Cigarette cards
– Green Stamps
F.W. WOOLWORTH
• 1. 1890’S-”5 and Dime Store”
• 2. Display, Impulse, quantity over quality
• 3. 1913-builds the tallest building in the
world!
• 4. Creates the model for modern stores:
– JC Penny's, Sears, Wal-mart
Significance of Industrialization
• 1. Redefines supply and demand.
– Excessive market power by corporations.
• Monopolies (horizontal, vertical, bi-lateral)
• 2. Destroys classical American Individualism.
– Individual is deemphasized
– Harder to break out of poverty
Significance, continued
• 3. Creates new trends toward discipline and
order.
– Decrease in:
• Leisure time, traditions, creativity, Pride in work, quality
of products.
– Increase in:
• Discipline, Order, Inculcation education, Boredom,
Alcoholism, Savings (economical and emotional),
Middle Class*
• John Harvey Kellogg
Significance continued…
• 4. The Populist and Progressive movements
– Organized labor movement
– Push back on Industry…..