INDUSTRIALISM
THE CHANGE FROM FARMING TO FACTORIES -
TO BECOME INDUSTRIALIZED YOU NEED:
RESOURCES
LABOR SUPPLY
TRANSPORTATION
BIG CORPORATIONS EMERGE - THEY SELL STOCK TO RAISE CAPITAL.
BIG BUSINESSES MERGE & GET BIGGER TO CRUSH COMPETITION.
BUSINESS CONSOLIDATION LEADS TO MONOPOLISTIC PRACTICES.
(A GOOD EXAMPLE IS JOHN D. ROCKEFELLER
WORKERS GET THE "RAW END OF THE DEAL" - as we'll see later
CORPORATIONS HAVE "LIMITED LIABILITY"
INDUSTRIALIZATION LEADS TO:
MASS PRODUCTION
DIVISION OF LABOR
ASSEMBLY LINE PRODUCTION
INVENTION OF MACHINES
TECHNOLOGICAL UNEMPLOYMENT
Heavy immigration during the late 1800's leads to a large (cheap) labor supply. This creates tremendous competition for jobs. The end result is disdain for immigrants.
NATIVISM
INDUSTRIAL CAPITALIST OF THIS ERA - p. 422-423
ANDREW CARNEGIE - Steel / vertical integration & horizontal consolidation
JOHN D. ROCKEFELLER - Standard Oil Co. / total control over the oil industry
J. DUKE - Tobacco
J.P. MORGAN - investment banker / he bought out Carnegie & formed US STEEL
GUSTAVUS SWIFT - Meat Packing
C. VANDERBILT - Railroads
ROBBER BARONS or CAPTAINS OF INDUSTRY - Page 424
PHILANTHROPIST - millions given away
Local example is McEachern High School
THE GILDED AGE
MARK TWAIN COINED THE PHRASE
EVERYTHING SEEMED TO BE COVERED IN GOLD :
MONEY IS EVERYWHERE / MONEY IS EVERYTHING
A LOT OF EXAMPLES OF RAGS TO RICHES - Horatio Alger Books,
THIS ERA IS KNOWN FOR CORRUPTION IN GOVERNMENT
SOCIAL DARWINISM - HELPED EXPLAIN THE "PROCESS"
Political Machines -
Political Corruption & Scandals
What Caused It?
Increased Immigration
Industrialism
Urbanization
Labor Movement
Corruption In Cities...
Development of Political Machines
Growth of Cities
Increased Need For Services
Difficult to Control
Results:
Graft - thievery in office
Political Machines - controlled by political parties
Kickbacks - under the table money
POLITICAL CORRUPTION / SCANDALS
DURING THE TIME PERIOD
CORRUPTION IN THE FEDERAL GOV'T
THE U.S SENATE IS NICKNAMED "THE MILLIONAIRES CLUB"
GOV'T JOBS FOR CASH BRIBES
CORRUPTION IN THE GRANT ADMINISTRATION - Major Scandals
Credit Mobilier Scandal
Union Pacific contracted to lay track
Received contracts from the federal gov't.
Sold stock at ½ price to Congressmen
Congress votes more money for the company
Indian Scandals
Shady deals with the Indians
Sec. of War William Belknap
Whiskey Ring
Bribes federal officials NOT to pay the excise taxes on liquor
EXAMPLES OF STATE / LOCAL CORRUPTION
"Boss" Tweed - N.Y.C.
Meeting place was called "Tammany Hall"
Corruption was uncovered by Thomas Nast - a cartoonist for the local newspaper - page 454
Attempts to reform government............
Mugwumps - Believed in laissez-faire
Opposed Spoils System
Tried to implement Civil Service / Merit System
People like Thomas Nast
Did not work - but it did help change public opinion
Rutherford B. Hayes Administration (1876)
Split in the Republican Party due to Hayes' actions -
James A. Garfield Administration (1880)
Stalwarts (status quo) vs Mugwumps (reformers)
Assassinated by Charles Guiteau - a Stalwart because he didn't get a government job that he wanted. He was hanged!!! -
Chester Arthur becomes President
Pendleton Act is passed creating the Civil Service
Must pass exam / not political / abolishes Spoils System
Grover Cleveland / Benjamin Harrison / Grover Cleveland
1884 - Cleveland defeats Blaine in a "mudslinging" campaign
Ma! Ma! Where's my pa?
Gone to the White House,
Ha, Ha, Ha!
B. Harrison Administration - 1888 - Surge of economic growth
Workers Unite -
Workers are Exploited
Typical worker - 12 hour day / 6 day work week
No sick leave
No vacation time
No unemployment compensation
No reimbursement for "on-the-job" injuries - Very Hazardous Conditions
In 1882, there was an average of 675 workers killed each week
Wages are so low that most families can "survive" unless everyone in the family works
20% boys / 10% girls under the age of 15 held full time jobs during this time period
Women & children abused the most (27 cents for a 14 hr. work day)
LABOR UNIONS ARE FORMED
KNIGHTS OF LABOR, 1868 -
Uriah Stephens / Terrance Powderly founders
THE WORKER vs THE COMPANY - TACTICS USED ??
RAILROAD STRIKE - The Great Strike of 1877
workers are striking over the 2nd wage cut in six months
Strike turns violent
President Hayes orders federal troops in to restore order / favors company
HAYMARKET RIOT - 1886
a protestor is killed / a bomb is "tossed" into the crowd / police are killed
Public opinion turns against unions due tothe violence
HOMESTEAD STRIKE - 1892
a strike against Carnegie's Steel Company in PA
workers are striking over a wage cut
four month strike with constant violence / several killed
public opinion again is against the union / strike
workers lose / compnay wins..............again
PULLMAN STRIKE - 1893 - the national economy is hurting
5,000 employees "laid off" - wage cuts of 25-40%
most workers are making less than $6 a week
after an economic upturn, many workers are rehired
wage cuts are kept in place - workers are outraged
Eugene Debs enters the picture - wants to keep it peaceful
Violence erupts and President Cleveland send in federal troops
EUGENE DEBS - SOCIALIST PARTY
advocates gov't. control of business
AMERICAN FEDERATION OF LABOR - SAM GOMPERS
major gains will be made
shorter work week / higher wages
