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Industrialization Study Guide APUSH
Terms in this set (49)
private companies run most businesses; supply and demand determine what is produced and what workers are paid
philosophy of little government regulation of business; "let alone"
one company that completely controls an industry
Economics of Scale
means that large corporations can more cheaply produce products than smaller businesses
Supply and Demand
companies will only produce goods and services people are willing to buy
a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law
A business with public stock can fail without any one person losing all of their money. It attracted man new investors
companies combine in the same field of business Example: AT&T buys Verizon
combines companies in different but related fields. Mergers usually involved raw materials needed for the industry
a consortium of independent organizations formed to limit competition by controlling the production and distribution of a product or service
a discount on shipping rates between 25-40%
Chief financier of the period, created US Steel, Loaned the Federal government money during the Panic of 1873
a railroad built west from Omaha, built using mostly Irish labor, and built by 1,086 miles of track. Joined with Central Pacific at Promontory Point, Utah for the creation of the first transcontinental railroad. Central Pacific chief tapped a golden spike into a hole on the last tile.
inventor of air brake(allowed all cars to stop at the same time) for trains who first developed the alternating-current system in 1886, which allowed electric currents to travel long distances
U.S. vs EC Knight
Supreme Court case of United States v. E.C Knight ruled that the Sherman Act could only be applied to commerce, not manufacturing. This made it difficult to conflict companies of creating a monopoly.
secretary of war who acted as a spy for the radicals in cabinet meetings; when President Johnson asked him to resign in 1867, his dismissal led to the impeachment of Johnson because Johnson had broken the Tenure of Office Act.
Alexander Graham Bell
created the first telephone
inventor of the incandescent light bulb and phonograph. He established Menlo Park.
a British inventor who created the Bessemer converter, a machine that turns iron to steel
A process for converting iron into the much more durable and versatile steel; it consisted of blowing air through molten iron to burn out the impurities
a form of government in which the government partially controls business.
government completely controls business
Interstate Commerce Act
Made pooling, rebates, and higher rates for shorter hauls illegal.
Rates had to be "fair and just".
Created Interstate Commerce Commission to enforce. (ICC) first regulatory commission in American history
Difficult to enforce because the ICC was given little power.
Sherman Antitrust Act
It was aimed at Rockefeller. It made monopolies(also known as trust) illegal. It broke up the Standard Oil Company.
Gospel of Wealth
Carnegie's belief in giving money to charity
John D. Rockefeller
Considered a "robber baron" or "captain of industry". In Ohio, in 1870, he organized the Standard Oil Company. By 1877, he controlled 90% of the oil refineries in the United States. Expanding vertically, he bought oil fields, bought railroads and tankers to transport oil, and manufactured stoves.
Captain of Steel Industry
Pioneered Bessemer Process
Manufactured more steel than all of Great Britain
Organized business- vertical integration
1st real tycoon/Captain of Industry
Created w/ growth of railroads
Called Commodore due to early fortune in Steamboats
Expanded and consolidated New York Central Railed
Great service and low rates
Endowed Vanderbilt University
Standard Oil Company
John D. Rockefeller's company, formed in 1870, which came to symbolize the trusts and monopolies of the Gilded Age. By 1877 this company controlled 95% of the oil refineries in the US. It was also one of the first multinational corporations, and at times distributed more than half of the company's kerosene production outside the US. By the turn of the century it had become a target for trust-busting reformers, and in 1911 the Supreme Court ordered it to break up into several dozen smaller companies
started in California, and pushed eastward; eventually connected with the Union Pacific Railroad in Promontory Point, Utah
wrote stories about Self-made men
economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's individual citizens and businesses. There is little government intervention or central planning.
Compromise of 1877
ended the Reconstruction era; moved federal troops out of the South which allowed Southern Democrats to regain control of the government; paved the way for Jim Crow Laws and segregation
Why: abolished slavery
Effect: Whites could no longer had control over blacks.
Why: Any person born in the U.S is a citizen
Effect: Allowed blacks to be seen as citizens more than a property.
Why: males of any race or color gained the right vote
Effect: Blacks were able to vote, but later on whites did not want blacks to vote because they had more power when they were able to vote. This caused violence(KKK) and illiteracy test(recite constitution) and grandfather clauses
Munn v. Illinois
Supreme court ruled that Granger laws were constitutional because they served the public interest
Significance: Government could interfere with business if it served public interest
Wabash v. Illinois
Supreme Court ruled that states could not regulate traffic that moved across state lines.
Describe the natural resources that helped America industrialize.
Describe the building of the Transcontinental Railroad and the government incentives to build it.
The idea was deadlocked in the 1850's over a Northern route (from St. Louis) or a Southern route (from New Orleans). When the South seceded, the North pressed through with the northern route. The railroad was expensive and required government subsidies. The government gave gifts of land and money for every mile of track laid, and it granted land in a checkerboard fashion of 1 mile sections on both sides of the railroad. It became a competition between the Union Pacific and the Central Pacific Railroad. Union Pacific-mostly Irish labor and built west from Omaha; Central Pacific-mostly Chinese labor and built east from Sacramento. It was completed at Promontory Point, Utah on May 10, 1869. Cut travel time across the U.S. from months to 2 weeks.
How did the government aid the growth of industry?
They provided land grants to railroad companies and sided with big business. They let the businesses do what they wanted without interference.
Describe the inventions that aided industrialization.
Thomas Edison: light bulb, Christopher Sholes: typewriter, Alexander Graham Bell: telephone, development of the airplane, expansion of the railroads, mass production of automobiles, widespread use of steamboats
Describe the economic system and philosophy of the United States during the late 19th century and both the positives and negatives.
The economic system during the late 19th century was capitalism. The U.S. functioned under a market economy and Laissez-Faire. Laissez-Faire was a philosophy of little government regulation of business ("left alone"). This means government rarely got involved in economics or business. The government usually sided with big business, and them not regulating business, things like child labor went on. Large corporations evaded the law, bribed officials, and destroyed labor unions and the environment. Also, when labor unions formed and strikes were made to protest against unfair policies, the government even sent in troops to break them up. On the other hand, capitalism allowed private companies to run most businesses. Supply and demand determines what is produced, and workers are glad.
Describe the problems of labor.
Long hours and low pay, Company Towns that required workers to live, dangerous working conditions, child labor, job insecurity(panics and recessions resulted in layoffs and booms resulted high demand for labor)
Describe the purpose of and tactics of labor unions. Contrast the Knights of Labor and American Federation of Labor.
Bad conditions in factories led to Labor Unions
Labor Unions- were created to help workers improve working conditions
Unions work for fair wages and safer conditions
People saw labor unions as socialists and there was also collective bargaining ( negotiations between the union and the employer)
Open shop- non union members could work, Closed shop- all-union labor
Ways to stop the unions
Blacklists- lists of troublemakers. Used to prevent unionists from getting work.
Lockouts- locking the factory and bringing in Scabs or replacement workers.
Yellow-dog contracts- contracts in which workers pledged to not join a union
Employers viewed unions as controlled by socialists
Knights of Labor
A universal union
Allowed blue collar(construction,mechanics, manual labor/high school education), white collar(accounts, big businesses,doctors/have college education, children, women, and black americans.
Prefered arbitration to strikes.
Arbitration- negotiations between employer a labor union, and a third party.
Supported temperance, women's suffrage, abolition of child labor.
Led by Terance V. Powderly.
A craft union-only allowed members of a certain skill or trade.
Led by Samuel Gompers
Focused only on higher wagers, shorter hours, and benefits for disabled workers.
Describe the Haymarket Square Riot, Railroad Strike of 1877, Pullman Strike, and Homestead Strike.
Haymarket Square Riot-
The Knights of Labor protested in Chicago's Haymarket Square to support striking workers of the McCormick Harvesting Co.
A bomb was thrown into a group of police as the protest broke up.
The police fired into the crowd. Seven people were killed.
The Knights became associated with anarchists(terrorists) due to this event.
Led to the decline of the Knights of Labor.
Railroad Strike of 1877-
A group of railroad workers on the Baltimore and Ohio Railroad rose up and began to strike due to wage cuts. This spread up and down the railroad line across the nation. Railroad roadhouse were torched. President Rutherford B. Hayes sent in troops to stop the strike. 100 people died in the strike
Caused when George Pullman responded to low profits by laying off workers and cut the wages of the rest.
He did not lower their rent in the company town.
The American Railway Union supported the strike and shut down all trains west of Chicago.
Rioting started when the president sent in troops to protect the mail trains(money).
Eugene V. Debs was put in jail for refusing to obey an injunction to end the strike.
Without Debs the strike fails
Really a lockout-1893
Carnegie and Henry Frick brought in Scabs to replace striking steel workers in Homestead Steel Works.
Violence leads to deaths and national guard being sent in.
Union was broken.
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