1.how did america geography and physical location aid to its rise to a great industrial power? what resources did america possess that allowed for such rapid economic growth? give specific examples of regions/industries that benefited from the development of these resources?
text, pages 238,239,240
reference packet page 37,35
Colorado mountains yielded more than $1 billion dollars worth of gold and silver.
lead and rangy, the longhorn could easily survive the harsh climate of the plains, by 1865, as many as 5 million longhorns roamed grasslands
the industry grew in part because the open range, a vast area of govt owned grassland
the open range covered most of the great plains and provided land where ranchers could graze their herds free of charge and unrestricted boundaries of private farms
in 1866 ranchers rounded cattle and pushed about 260,000 cows to sedalia missouri though only a fraction of them survived the long drive
the drive was a success and cattle sold for 10 times the price it could in texas
railroads expanded in the west and gaev texas access to kansas, nebraska, montana, and wyoming.
railroad companies sold land along the rail lines at low prices and provided credit to prospective settlers
railroads opened offices throughout america and in europe where land was scarce
industrial jobs drew immigrants and rural americans to cities and caused northern cities to be formed and existing cities to grow larger
between 1870 and 1920 the urban population grew from 10 million to 54 million, 40% of the population lived in cities with populations greater than 50,000
industry in the united states benefited from several conditions including : a wealth of natural resources , government support for business, a growing urban population,which provided cheap labor and a market for new products, a transportation networks of rivers,canals,roads, and especially railroads
How did the policies of the federal government affect the process of industrialization? Did such practices as high tariffs help or hurt the American economy during this era?
A: A huge factor leading to industrialization was the railroads, because they provided access to the Great Plains. The federal government supported the settlement by passing the Homestead Acts, if you paid a $10 registration fee you were eligible to file for a homestead, tract of public land available for settlement.
The federal government kept taxes and spending low and did not impose costly regulations on industry. In other ways, the government went beyond laissez-faire and adopted policies intended to help industry, although these policies often had negative results.
Congress imposed new tariffs on imported goods to protect American industry from foreign competition. It helped American companies, however, hurt those trying to sell goods overseas because foreign countries raised their tariffs against U.S. goods.
The high tariffs negatively affected farmers the most because they were the ones who sold their goods to Europe. Disputes erupted over labor relations, currency, tariffs, patronage, and railroads. The most momentous political conflict of the late 19th century was the farmers' revolt. Drought, plagues of grasshoppers, boll weevils, rising costs, falling prices, and high interest rates made it increasingly difficult to make a living as a farmer. Farmers responded by organizing Granges, Farmers' Alliances, and the Populist Party.
The Civil Service Act sought to curb government corruption by requiring applicants for certain governmental jobs to take a competitive examination. The Interstate Commerce Act sought to end discrimination by railroads against small shippers and the Sherman Antitrust Act outlawed business monopolies.
Burdened by heavy debts and falling farm prices, many farmers joined the Populist Party, which called for an increase in the amount of money in circulation, government assistance to help farmers repay loans, tariff reductions, and a graduated income tax.
Text, pgs. 239, 240, 245
http://www.digitalhistory.uh.edu/era.cfm?eraid=9&smtid=1 What new inventions were brought to market because of industrialization? How did these inventions change the lives of ordinary Americans?
A: New inventions led to the founding of new corporations, which produced new wealth and jobs.
The most important invention was the patent because it gave the right to the inventor to protect their invention.
In 1876, Alexander Graham Bell established the telephone, which revolutionized both business and personal communication. Bell and others organized the Bell Telephone Company, which later came known as American Telephone & Telegraph (AT&T).
In 1877, Edison invented the phonograph, dictaphone, duplicating machine, and typewriter this benefited the lives with entertainment and work.
In 1879, Edison also perfected the lightbulb and the electric generator this benefited the lives of the people because before the lightbulb their homes were lit by candles.
Later Edison invented the battery and motion picture
After the Civil War, Thaddeus Lowe invented the ice machine
1870s, Gustavus Swift hired and engineer to create a refrigerated railroad car.
The expansion of railroads, the invention of barbed wire, the improvements in windmills and pumps attracted ranchers and farmers to the Great Plains in the 1860s and 1870s
Electric trains and trolleys were great and efficient transportation inventions.
4. How did the new forms of business combination (corporations, trusts, vertically and horizontally integrated companies) affect industrialization? Were these types of businesses good or bad for America? Were they both?
Before the 1900’s, businesses including mainly factories. But after that, everything had taken a different turn. Bug businesses dominated the economy, operating vast complexes of factories, warehouses, offices, and distribution facilities.
Corporations are organizations owned by multiple people but treated by law as if only one person owned it. Therefore, one person’s act is accountable for the others’. Stocks implemented a new change on industrialization, allowing corporations to raise a large amount of money but spreading risk throughout the entire business, placing the blame on others. To keep up with consumer values, it created an industrial workforce. Corporations would invest in new technologies, hire a large workforce, and purchasing many machines increasing their efficiency.
A trust is a legal concept that allows one person to manage another’s property. This arrangement caused an effect in which one large company can control many others. Power like this made industrial occupations much more liable when it came to the increase in America’s industrial standing. Especially when a U.S Oil Company would become a trustee for many independent oil refineries.
Vertical integration is when one business depends on other companies for its own success. Instead of paying companies for materials like coal, a business would instead buy coal mines for its production of products.
Horizontal integration is the combining of many small corporations into one large one. When companies would begin to lose stocks and shares, they would sell out to their competitors and form a larger corporation. This provided the chance for a company to obtain a monopoly, which is when one company achieves control of an entire market.
*For the first time, banking becomes an important standard in the American lifestyle.
5. Provide biographies of leading industrialists of this era (eg: John D. Rockefeller, Andrew Carnegie, J.P Morgan). These men are often called “robber barons”. Were they?
John D. Rockefeller: He was the creator of Standard Oil Companies. Under his accord, Standard Oil entered into trust agreements with competing oil companies. But through corrupt practices, he gained his wealth by paying his employees low wages. John devised a plan to sell oil at a price far lower than what he originally bought it for, this eliminated all of his competition. And once other oil companies went out of business, he raised his oil prices substantially because he became the only recognized only producer at this time. Due to Rockefeller’s corrupt plans, by the 1880’s Standard Oil controlled 90% of the oil refining business.
Andrew Carnegie: He was a Scottish immigrant who went from originally being a bobbin boy in a textile factory, to the owner of a steel company in Pittsburgh, Carnegie Steel. He found ways to make better products through cheaper methods. Through vertical integration, Andrew bought out his suppliers so he owned the coal fields and iron mines. After becoming a powerful industrial power, he bought out competing steel manufacturers, implementing horizontal integration. With vertical integration, Andrew controlled resources, manufacturing, and distribution of steel, allowing his company to become a monopoly. Carnegie Steel became the largest steel manufacturer in the country.
J.P Morgan: He consolidated competing railroad lines and many other industries. Morgan had a cutthroat method towards industrialization. He organized syndicates which soon gave birth to large companies like AT&T, and soon became a leading corporate business man. He spent over $60 million on his own personal expenses. Many detested him for his ruthless methods. But during a financial panic in 1893, Morgan bought many bankrupt companies to keep them up and running. And another financial crisis in 1907, which threatened that nation’s banks, Morgan took charge and redeemed himself. He bought Carnegie’s steel company for $480 million dollars, saving it during its time of need.
Through many tactics, these men were robber barons. This term was applied to businessmen who used exploitative practices to gain wealth. By squashing competition and paying low wages, their schemes were unethical and cruel. Thus causing them to be labeled as robber barons, as some of the greatest capitalists were the worst criminals of big business.
“We hear now on all sides the term ‘Robber Barons’ applied to some of the great capitalists...”
-Lida F. Baldwin
Text pgs. 248-249
Reference Packet, pg. 35
http://www.digitalhistory.uh.edu/disp_textbook.cfm?smtID=5&bioid=16 6. Workers attempted to organize themselves against these new, large corporations by forming unions. What problems of industrialization were unions trying to solve? What was wrong with industrialization how were people hurt by the jobs, working conditions, and living conditions of the time?
After industrialization really took hold in America, factory workers started to see the dangers and downsides to working the low paying jobs that were given to them so they organized themselves into groups known as unions in an attempted to change the harsh working and living conditions.
Working Conditions: On average, a factory worker would work a 12 hour day, six day a week. These long tedious work hours combined with the use of large and dangerous machinery led to many workplace accidents and health problems. Sweatshop workers usually worked the longest hours with no breaks and earned the lowest pay. This harsh work wasn’t restricted to only men, women and children worked these jobs too. There were over 1.5 million workers under the age of 15 and because of this hard work they experienced many injuries and stunted growth.
Living Conditions: The new industrial jobs drew immigrants and rural Americans to the cities causing overcrowding. This overcrowding induced many problems such as inadequate housing, poor transportation, crime, and the lack of clean water and sanitation. people began to move into crowded multifamily tenements which lacked any sanitation between the people living inside along with poor light and ventilation.
Why Unions Failed: In most countries unions had a great affect on the industrial jobs, but in America the government would usually take the side of the companies for a few reasons. A main issue was that most factory workers were imegrants and considered less trustworthy than American citizens with crazy, foreign, and radical ideas that would corrupt the American way if they listened to them. Secondly the rich had more of an influence in the American government and when the unions attempted to change the way they ran their companies they could sway the opinions of those in the higher ranks of the government. The factory owners used they argument that the factories were their property and strikers were infringing on their constitutional rights by stopping production. Although unions had a small impact on the working conditions, compared to those in European countries it was almost insignificant.
preference packet page 27
Maybe people, including some workers disliked unions. Why did people oppose unionization? Were these unions successful despite this opposition?
In the 1920’s, however, organized labor fell into decline as the nation basked in widespread prosperity and unions no longer seemed so necessary.