APUSH-Chapter-16-and-17-Outline (1).docx - AP United States History II Chapter 16 Outline Americas Gilded Age 1870-1890 I II A B C D E Introduction The

AP United States History II Chapter 16 Outline America’s Gilded Age, 1870-1890 I. Introduction II. The Second Industrial Revolution A. The Industrial Economy  Rapid expansion of factory production, mining, and railroad construction  By 1913, the United States produced one-third of the world’s industrial output  1880 Census found a majority of workforce engaged in non-farming jobs  By 1890, two-thirds of Americans worked for wages  Manufacturing took place in cities that were key for financing industrialization: 1. New York 2. Great Lakes Region 3. Pittsburgh 4. Chicago B. Railroads and the National Market  The railroad made possible the ‘second industrial revolution’  By 1890s, five transcontinental lines carried products of western mines, farms, ranches, and forests to eastern markets, and manufactured goods to the West  The growing population formed an expanding market for mass production, mass distribution, and mass marketing of goods C. The Spirit of Innovation  Technological innovations spurred rapid communication and economic growth  Creations of inventors Thomas A. Edison and Nikola Tesla D. Competition and Consolidation  Dramatic and volatile economic growth  World economy suffered prolonged downturns in the 1870s and 1890s: Great Depression  Businesses engaged in ruthless competition  Attempted pools, trusts as means to stabilize the marketplace  More corporations battled to control entire industries in order to avoid cutthroat competition  Economic concentration peaked between 1897 to 1904: 4,000 firms vanished into larger corporations that exercised unprecedented degree of control over market E. The Rise of Andrew Carnegie  Rise of business leaders who accumulated major fortunes and economic power  Under leadership of Thomas A. Scott, the Pennsylvania Railroad stretched across the continent and pioneered modern techniques of business organization  During the depression, Andrew Carnegie set out to establish a ‘vertically integrated’ steel company- one that controlled every phase of the business- and by 1890s, he dominated the steel industry

F. The Triumph of John D. Rockefeller  John D. Rockefeller dominated the oil industry  Drove out rival firms through cutthroat competition, arranging secret deals with railroad companies, and fixing prices and production quotas  Rockefeller began with “Horizontal” expansion- buying out competing oil refineries but soon established a vertically integrated monopoly  Industrial leaders were either ‘captains of industry’ or ‘robber barons’ G. Workers’ Freedom in an Industrial Age  For a minority of workers, the rapidly expanding industrial system created new forms of freedom  Worker’s economic independence determined by technical skill  Most workers (semi-skilled) faced with economic insecurity: lost jobs or accepted reductions of pay- many labored sixty-hour weeks with no pensions, compensation for injuries, or protections against unemployment 