The Industrial Revolution in America Industrialization : the substitution of machines in place of humans or animals to produce something o Communications revolution The importance of the railroad o Technological innovation The 1860, 36,000 patents had been issued 1860-1890, 440 thousand were o Raw materials – why the west was handy Local and Federal government gave away about 1/10 of all federal lands to the railroad o Favorable legislation o Large internal market o Large labor pool – the “new” immigrants Trends in Industrial America o Population triples from 1860-1910 o By 1880s, farmers constitute less than ½ the country's labor force. The last federal censes that put a majority of the workforce in agriculture was 1870 o Manufactuing production expanded by 12.5 times, 1860 to 1914 o Industrial landscape dominated by “big business” one percent of the nation's firms owned 1/3 of the nation's productive capacity The vertically integrated firm o Purchase or grow raw materials -> o Transport materials to factory -> o Fabricate these into goods -> o Retail your products to customers Ex: Swift meat packing Bought cows -> Slaughtered them -> Transported meat in refrigerated cars -> Owns warehouses -> Markets beef to stores and consumers The horizontally integrated firm o As more firms produce more of the same good, supply will exceed demand and prices will drop below production costs, so... Cutthroat competition The cartel, or trade association (not protected in the US) The trust (Ownership can be held together between businesses) Ex: Rockefeller’s oil company o Formed the standard oil company 1867 o National refiner's association 1872 o Pioneered the “horizontally integrated” firm (aka the “trust” -- 1882) Ex: Carnegie Steel (both vertical and horizontal) o Acquired sources for coal, iron ore ->
o Steamship fleet and rails to carry raw materials to steel plant o “form the moment these crude stuffs were drug out they followed in a stream of liquid steel in the ladles, there was never a price, profit, or royalty paid to an outsider” J.H. Bridge He had to get rid of the competition The Industrial Workforce Why immigrants came: o Mostly economic reasons o Agricultural competition with Canada, U.S, Australia forces peasants off land (In favor of mechanization) o Railroads and other businesses actively recruited immigrants o Advent of steam vessels reduced travel time and cost of passage (also meant that a lot of people returned to their homelands too because they just came to make money to go back home and buy status) o Some 60 million people left Europe between 1815 and 1914, 34 million of whom went to the US o People came from new areas of Europe than before Urban Workforce o Environment was gross, living was harsh o Work was hard, dangerous, not paid a lot Kids worked to help family get by o Triangle fire 1911 Agricultural Employees o 1607-1870 480 million acres cultivated o 1871-1900 431 million additional acres cultivated o
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