Industrialization led to a demand for financing

What do you know about Hanes? -in general -specifically related to Winston Salem

Textile Mills in NC

What about Duke?

What about Reynolds? And Winston?

During the Gilded Age, Large companies railroad construction bought small railroads, boomed, led by tycoons standardized gauges and like Cornelius Vanderbilt schedules, and pooled cars Cornelius Vanderbilt (3.47)

Railroad expansion led to a boom in the economy Railroads connected the East, South, and West and allowed for national trade and regional specialization

The 1st transcontinental Eastern railroads were railroad was finished in 1869 connected to the West Railroads stimulated demand by 4 great trunk lines for coal, oil, iron, and steel

• Essential Question: –What factors led to the rise of the American Industrial Revolution from 1870 to 1900?

Industrialization led to a demand for iron and steel

Steel led to skyscrapers, longer bridges, stronger railroads, and heavier machinery

The iron and steel industries were dominated by Andrew Carnegie Carnegie converted his mills to the Bessemer process and made the highest quality steel at the lowest price

Carnegie Steel Company produced more steel than all the steel factories in Great Britain combined Carnegie best represented the American dream by rising from poor a immigrant to richest man in the world

Carnegie did not pay his employees very much and did not allow unions in his factories… …but he was a philanthropist who gave money to New York City libraries, colleges, and performing arts institutions Andrew Carnegie (2.11)

Industrialization led The oil industry during the to a demand for oil Gilded Age was dominated for lubrication and John D. Rockefeller’s kerosene lighting Standard Oil Company Rockefeller used ruthless tactics to buy out competing companies Standard Oil lowered costs and improved the quality of its oil products By 1879, Standard Oil sold 90% of the oil in America John D. Rockefeller (2.51)

Rockefeller took advantage of his workers & used his fortune to influence the national gov’t… …but Rockefeller gave away $500 million to charities, created the Rockefeller Foundation, and founded the University of Chicago

Industrialization led to a demand for financing so banking became a significant part of the Gilded Age American finance was dominated by JP Morgan He was so influential that he bailed out the railroad industry when companies were in trouble He helped ease an economic depression during the Panic of 1907 JP Morgan (3.08)

Industrialists like Vanderbilt, Carnegie, Rockefeller changed the way businesses were organized Businesses hired professional managers to oversee employees, improve efficiency, and manage finances Corporations became a more common business structure Holding Board of Company Trustees Company A

Company Company B Manager

Company C

Company Company Company Employees Company Employees Company Employees Employees D E F G H

Corporations used boards of trustees (“trusts”) to manage the company… …and holding companies to manage other subsidiary companies

Corporations used mergers to increase profits

Companies like Standard Oil used horizontal integration to buy similar companies to reduce competition

Companies like Carnegie Steel used vertical integration to buy companies in order to gain materials needed to make or deliver their products

Corporate mergers  giant Because most monopolies companies called monopolies were run by boards of that controlled the majority trustees, monopolies of an industry… became known as “trusts”

Monopolists justified their wealth in a variety of ways

The “Gospel of Wealth” argued that it is God's will for some men to gain great wealth so they could serve the public

Social Darwinism taught that natural competition weeds out the weak and allows the strong to survive The government used laissez faire policies toward big business… …the lack of regulation allowed businesses to become very powerful and exploitive

Conclusions • America was changed by the Industrial Revolution: – The United States led the world in industry, innovation, and wealth – Laissez-faire gov’t policies &new business tactics –> Monopolies • Monopoly= the exclusive possession or control of the supply or trade in a commodity or service.

– But the gap between the wealthy monopolists and their poor immigrant workers grew wider – Economy grew by more than 400% between 1860 and 1900

Were “Robber the industrial capitalists the Gilded Barons” of the of Gilded Age Age “robber barons” or “captains of industry”? Weigh their positive and negative effects

The Impact of the Industrial Revolution

Working Conditions and Wages

Working Conditions and Wages • The factory system was a major change for workers: Factory work became less skilled Factory conditions were dirty, dangerous, and unhealthy Workers worked long hours (12-16 hr day) Factory workers were not paid well; Women & children were paid less than men Owners required workers “clock in” & limited their breaks to increase production

Conditions in the Coal Mines

Conditions in Coal Mines • The invention of the steam engine increased demand for coal: Coal production grew from 5 million tons in 1750 to 23 million tons in 1830 Men, women, children were used in mines Mines were unhealthy & dangerous: Lung disease, poison gas, drowning, explosions caveins were common for workers

Child Labor • The Industrial Revolution changed the lives of many children: Rather than working for their parents on family farms, many children in the cities worked in factories, brickyards, or mines Living in cities was expensive so poor families needed their kids to work Child workers earned 10% of an adult wage, worked long hours in dangerous conditions, were often beaten

Changing Role of Women

Changing Role of Women • The Industrial Revolution changed the lives of many women: Rather than working with their husbands on family farms and taking care of children, poor women in cities worked in factories Some women worked as domestic servants Factory jobs for women required long hours away from their children and could leave women crippled, sick, or deformed Women were paid ½ or ⅓ of a man’s salary

Urbanization

Urbanization • Urbanization increased dramatically: The increase in population and enclosure of farms forced people to move to cities Poor families lived in poorly constructed apartments built by factory owners called tenements in neighborhoods called slums Many families shared cramped apartments that lacked running water or sanitation Hard factory jobs and disease led to short life expectancies for urban workers

Changing Class Structure

Changing Class Structure • During the Industrial Revolution, the social class system changed as ownership of land stopped being the most important factor: At the top were the industrial capitalists who gained wealth by owning factories The middle class grew as engineers, managers, shopkeepers The bottom class grew because of the size of the urban poor who worked for low wages in factories

Stereotype of the Factory Owner

“Upstairs”/“Downstairs” Life