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historyteston12-22-8
history industrialization study guide
| Question | Answer |
|---|---|
| Characteristics of industrialization (know interdependence and two others) | interdependence - everyone is dependent on everyone else for life's necessities;One man now does the job of many;One company forms from many small ones (mergers) |
| Components (major industries of industrialization | Railroads Steel Electricity Automobiles Machines Oil |
| Technological advancements (especially assembly line, electricity, machinery) | Henry Ford created the assembly line which allowed for mass production of goods – especially cars. "Thomas Edison set up an invention company which created hundreds of new products. Most used electricity to transmit light, sound and images" (310). |
| Technological advancements continued | In 1908, Ford sold 10,000 cars. In 1913, he sold 248,000.Higher production at lower costs.Large-scale production is most efficient – Only large companies can afford new machines which they used to out-compete small businesses. |
| Technological advancements continued continued | Large companies also got discounts for buying raw materials in bulk and shipping in bulk. |
| Changin status of Labor - 3 ways that it changed | Workers produce more but are paid the same wage.Workers are seen as extensions of the machine by employers.Workers no longer saw themselves as producers, like farmers and craftsmen used to. |
| Social Darwinism | In the late 1800s, some applied this idea to business in order to justify laissez-faire practices. Free competition will ensure the success of the best businesses, ideas and people.Bad ideas and lazy people will die out. |
| Social Darwinism continued | A strong economy and society will result.Government should stay out of business entirely.Wealth is God’s reward for hard work.Poor people are inferior, lazy and deserve their lot in life. |
| Social Darwinism continued continued | Companies still lobbied for subsidies, tax cuts and loans to encourage economic growth. |
| Gospel of Wealth - pros and cons | Phrase coined by Andrew Carnegie (wealthy steel tycoon)Argued that wealth carried a moral responsibilityThe rich should give back to society to promote future progress.Carnegie gave millions to education and arts |
| Gospel of Wealth - pros and cons continued | Carnegie thought this would help Social Darwinism.Workers resented this idea. |
| Depressions - causes, severity, solutions | The late 19th century economy was very unstable. There were three major depressions in 30 years.The Depressions were caused by several factors:Underconsumption – as the poor class grew, fewer people could afford new products. |
| Depressions - causes, severity, solutions continued | Overproduction – factories were making more goods than could be sold. This led to low prices and lower wages.Overinvestment – companies bought too much machinery as they falsely assumed that growth would infinitely continue. |
| Depressions - causes, severity, solutions continued continued | Machines had to be paid for regardless of whether or not they were being used, so they were kept producing.Competition – companies had to compete with each other’s low prices, driving profits even lower. |
| Depressions - causes, severity, solutions continued continued continued | In summary, SUPPLY WAS TOO HIGH AND DEMAND WAS TOO LOW.Each depression was fixed after enough companies failed and supply was sufficiently reduced.The third depression was fixed partly by seeking new foreign markets in Asia and Central/South America. |
| Plight of the worker - 3 reasons why being a worker in the late 1800's was miserable | Wages were very low.Many workers had to buy goods on credit because they couldn’t afford them. This caused a cycle of debt from which they could not escape.Families generally spent half of their income on food. |
| Plight of the worker - 3 reasons why being a worker in the late 1800's was miserable continued | Employees were fined for slacking off or being late.Working conditions were very dangerous. Businessmen regularly bribed politicians to avoid business regulation. Harsh conditions, long hours, child labor, and scrips all enhanced profits. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company | Companies adapted to the erratic economy by joining together with others. Larger ships are more likely to survive stormy weather. Companies did this in several ways:Corporations - Legal entities that are separate and distinct from its owners. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company continued | The most important aspect of a corporation is limited liability. Corporations were given protection by the 14th Amendment.This protected them from gov’t regulation and interference. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company continued continued | In summary, corporations have all the benefits of a big business with NO RISK TO THE COMPANY’S LEADERS.When things went badly, the board of directors would take their money and disband the company with no personal loss. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company continued continued continued | Pools – In order to stabilize erratic markets, large companies came together to form pools. In a pool, member companies agree on set prices and production levels.They also shared profits. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company continued continued continued continued | Pools worked fine during prosperous periods, but members often violated agreements during a depression. Trusts – A trust is formed when the board of directors of one company owns most of the stock of other companies in the same industry. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company continued continued continued continued continued | This merging is called horizontal integration. Often, members of the board would sit on boards of several companies. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company continued continued continued continued continued continued | Holding companies – Like a trust only stock from companies A, B, and C are held by corporation D instead of the board of directors of corporation D. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company continued continued continued continued continued continued continued | Holding companies usually consisted of vertical integration, where one company would own all or part of its interdependent companies. |
| Corporate Consolidation - why do it? corporation - benefits of Trust Pool Holding Company continued continued continued continued continued continued continued continued | For example, a steel company would buy up mining companies to get cheaper raw materials and railroad companies for cheaper transportation of raw and finished goods. |
| Sherman Anti-Trust Act - what was it supposed to do, what did it do? | Made illegal “every contract, combination in the form of trust or otherwise or conspiracy in the restraint of trade.” Was made purposely vague in order to attract more support – did not define “restraint of trade.” |
| Sherman Anti-Trust Act - what was it supposed to do, what did it do? continued | Interpretation was left to the courts who were strong allies of business. Prosecution of trusts was rarely effective.Sherman Anti-Trust Act was later used to successfully prosecute Labor Unions. |
| Demands of Labor | More pay – workers were paid just enough to survive. A standard minimum wage would allow a bit of comfort.Shorter working hours – this would both increase the quality of life of workers while creating more jobs. |
| Demands of Labor continued | Better working conditions – workers were fed up with the dangers of the workplace |
| Enemies of Labor | The rich – most rich did not sympathize at all with the poor. They believed that a person’s wealth depended entirely upon their abilities and effort. More importantly, each goal of the workers would result in fewer profits. |
| Enemies of Labor continued | The government – almost every politician came from a rich background and thus shared the above sentiments.Many had strong connections to businesses including campaign contributions and bribes. |
| Enemies of Labor continued continued | The courts also sided with big business – most federal judges were former lawyers for major corporations.The police – labor protests often turned violent. |
| Enemies of Labor continued continued continued | The police also saw it as their duty to protect the property of the rich and believed violence was an effective method. |
| RR Strikes of 1877 Baltimore Pittsburgh St. Louis | Massive meetings and demonstrations took place in large cities across the country.1877 was the most violent year.In 1877, violent RR strikes occurred in a dozen cities after massive wage cuts pushed workers to the limit. |
| RR Strikes of 1877 Baltimore Pittsburgh St. Louis continued | a train station in Baltimore was siezed in 1877 by a crowd that was too large for the police to control so the state militia stepped in but they ended up joining the mob so it continued to control but was stopped by the army... |
| RR Strikes of 1877 Baltimore Pittsburgh St. Louis continued continued | who were paid by J.P. Morgan to come. In Pittsburgh RR workers jammed the tracks. this was followed by a gun fight between the mob and the militia. militia then retreated to the freighthouse which was later burned along with some RR cars and... |
| RR Strikes of 1877 Baltimore Pittsburgh St. Louis continued continued continued | some surrounding buildings. Mill workers, auto workers, miners, laborers and steel workers joined the strike and began to destroy company property. some buildings were burned to the ground, 9,000 national guardsmen were called in... |
| RR Strikes of 1877 Baltimore Pittsburgh St. Louis continued continued continued continued | but couldn't reach the city due to the roads being blocked by workers.Most of the guardsmen surrendered their arms after being surrounded and outnumbered. Some even joined the workers. |
| Labor Revolts | Similar incidents occurred across NY, NJ, PA, MD, OHIn St. Louis, workers from every industry seized control of the gov’t and set up a socialist/communist government. They stole from the rich and gave food, money and medicine to the poor. |
| Labor Revolts continued | Federal troops stormed in a few days later and arrested 70 people accused of organizing the coup.In each city and town, the mob ruled. Production was shut down and nothing moved. Small businesses and homes were remarkably untouched. |
| Labor Revolts continued continued | RRs eventually withdrew the wage cuts and order was restored. Most companies beefed up their security forces while small National Guard “forts” were built to ensure that it wouldn’t happen again. |
| Labor Revolts continued continued continued | RR strikes and violence were toned down a bit but massive strikes and violence continued for over a decade in many other industries.From 1881 to 1885, strikes averaged about 500 each year with a total of about 150,000 strikers each year. |
| Labor Revolts continued continued continued continued | In 1886, there were 1400 strikes involving 500,000 workers.In 1893, the worst depression yet happened. 16,000 business closed down, 642 banks failed, unemployment reached 20%. |
| Labor Revolts continued continued continued continued | City streets, public parks, city halls and police stations were filled with homeless and unemployed people clamoring for jobs and relief. |
| 3 ways that the Labor movement changed through the 1880's and 1890's | Labor became much more organized, intelligent and political through the next two decades.Labor Unions became increasingly popular.Workers voted into office candidates that represented them. |
| Realization of Buisinessmen | Rich businessmen began to realize that they could not win the fight if they continued on their current path which could result in a socialist state.They realized a compromise must be reached.New markets must be found to sell their goods. |
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hgrady
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