Lecture 6 History 1312
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This 3 page Class Notes was uploaded by Fernanda Navarro on Tuesday February 23, 2016. The Class Notes belongs to History 1312 at University of Texas at Arlington taught by Dr. Kristen Burton in Summer 2015. Since its upload, it has received 21 views. For similar materials see U.S HIstory since 1865 in History at University of Texas at Arlington.
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Date Created: 02/23/16
Lecture #6 2/9/16 The New Industrial Order: 2 Industrial Revolution and Rise American Corporations The First Industrial Revolution 1. Steam Engine st 2. Cotton gin (critical to the 1 Industrial Revolution) 3. Late 17 century A New Industrial Economy 1. The second industrial rev. 18701914 2. U.S. Gross Domestic Product a. 1860: $9 billion b. 1890: $7 billion 3. People move from farms to factories 4. Pulls in immigrants 5. In 1870, U.S. industries produced 23.3% of the world’s manufactures a. Jumped to 35.5% by 1931 6. By 1913, the U.S. alone was producing more than the leading countries put together 7. Henry Bessemer 1859 a. Developed a burner that removed imperfections from iron, making steel, the replacement of iron 8. Steel becomes the primary industry 9. 1860: U.S. produced 13,000 tons of steel a. 28 million tons by early 20 century 10. Steel brought about railroads, which in turn began time zones across the country 11. 1880: 55 cities offered local telephone service a. 1900: approx. 1.5 million telephones in operation 12. 1885: Bell founded American Telephone and Telegraph company (AT&T) Inventions and Competitions 1. Edison filed 1,093 patents including the electric lightbulb a. Decreased the chances of house fires caused by gas lamps or candles b. Provided more nighttime activities 2. Nikola Tesla a. Initially worked with Edison b. Claimed he could improve Edison’s designs 3. Tesla Electric Company, founded 1887 a. Partnered with George Westinghouse to develop alternating current (A/C) 4. A/C vs D/C (direct current) a. “war of the currents” 5. Edison wanted to prove A/C by electrocuting animals, to show its danger a. Moved to making the electric chair 6. Tesla emerged victorious Industrial Consolidation 1. The Gilded Age, 18701900 2. “Captains of Industry” or “Robber Barons”? 3. Referred to as The Gilded Age because it appeared to be something incredible and successful, but it wasn’t so pretty on the inside 4. There was only a few wealthy individuals 5. Vertical integration a. Andrew Carnegie founded this method b. You control all of the production, shipment and manufacturing 6. Horizontal integration a. John D. Rockefeller founded this method b. Different companies do specific jobs, but are all under the ownership and direction of one corporation c. By mid19 century, Rockefeller owned 1/5 of industry with this method 7. 1901, J. P. Morgan gained control of the steel industry a. Helps Carnegie’s empire with other companies and call it United States Steel b. When U.S. Steel was founded, it became the largest industrial corporation in the world, worth about $1.4 billion at the time c. By the first decade of the 20 century his investment house had $22 million in assets 8. Trusts and monopolies a. Companies sell their stock to a board of trustees and receive certificates stating they’ll earn dividends and agree to not compete with the other companies b. Focused on interstate commerce because that is what Congress controls c. Very difficult to regulate industries with so much wealth d. More wealth consolidated into fewer people e. For example: Standard Oil Trust, 1870 9. 18801905, 80% of the nation’s firms merged 10. Sherman Antitrust Act, 1890 a. Outlawed monopolies to encourage free competition in the marketplace 11. United States v. E. C. Knight(sugar monopoly), 1895 a. The US Congress used the Sherman Antitrust Act to try and prevent the E. C. Knight company from monopolizing the sugar industry b. Supreme Court stated that because manufacturing was done on a local level, it fell under the jurisdiction of the state law, making Congress powerless c. The Act lost a lot of power after this event Modern Capitalism 1. “Rags to Riches,” and American myth? a. Working hard will lead you up the wealth ladder b. Where the American Dream began to emerge c. Those who were at the top began to justify their place using economic and social theories 2. Lassiezfaire a. Adam Smith, The Wealth of Nations (1776) b. Let it be, no government regulation c. The market would act better without government, there was an invisible hand that would guide the market, not needing outside direction 3. Business men began to equate their right to own and manage businesses with personal liberties and rights granted by the Constitution 4. Ragged Dick, Horatio Alger a. Another story of someone gaining wealth over time with hard work 5. Herbert Spencer, Social Statistics (1851) a. Theory of social evolution b. Those who were at the top of the economic ladder where closer to perfection 6. Charles Darwin, On the Origin of Species (1859) a. “Social Darwinists” b. His theory of evolution of plants and animals gets applied to people
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