Lecture 1: Business and Labor during the Industrial Era

Introduction

• First in a series of 15-part video lectures
• Follows along PowerPoints in D2L under "Business and Labor: The Industrial Era"
• Covers post-Civil War period, 1860s-1900
• Also known as the Gilded Era

Key Developments

• Industrialization

  • America becomes a world economic power
  • Population growth due to improved health and lower infant mortality
  • Doubling of agricultural production
  • Innovation in manufacturing and technology
  • Dominance in global markets (steel, oil, wheat, cotton)
  • Urbanization: Growth of cities like Chicago, Pittsburgh, Cleveland

• Technological Innovations

  • Development in steel, railways, electricity, and plastics
  • Key inventions: telephone (Alexander Graham Bell), light bulb (Edison)
  • Competition between Edison (DC) and Tesla (AC) for electric power

Railroad Revolution

• Expansion of railroads: 200,000 miles by 1900
• Transcontinental Railroad: Union Pacific and Central Pacific met in Utah
• Led to the creation of time zones

Rise of Big Business

• Corporations and Business Tycoons
  • Growth of corporations: Separation of ownership and management
  • Key figures: John D. Rockefeller (Standard Oil), Andrew Carnegie (Steel), J.P. Morgan (U.S. Steel)
• Economic Concepts
  • Economies of scale: Cost reduction through mass production
  • Horizontal integration (Rockefeller) and vertical integration (Carnegie)
  • Laissez-faire capitalism: Minimal government intervention

Labor and Social Changes

• Middle Class Emergence

  • Growth of a distinct middle class
  • Rise in new professions and higher education
  • Increasing role of women in the workforce and education

• Labor Movements

  • Formation of labor unions in response to industrial growth
  • Key strikes: Railroad Strike of 1877, Homestead Steel Strike, Pullman Strike
  • Key figures: Samuel Gompers (AFL), Eugene V. Debs
  • Labor issues: Child labor, working conditions, strikes

Legislation and Government Action

• Key legislative acts: Legal Tender Act, National Banking Act, Homestead Act
• Government contracts and issues of corruption, especially in railroads

Notable Events

• The Great Chicago Fire of 1871: Rebuilding led to modern city development
• Labor unrest: Hay Market Riot, Homestead Strike, Pullman Strike

Philanthropy and the Gospel of Wealth

• Notion that wealthy individuals have a duty to contribute to society
• Notable philanthropists: Carnegie and Rockefeller

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Key Takeaways

• Industrialization transformed the American economy and society in the late 19th century
• Major technological advancements created new industries and cities
• The emergence of big business and labor movements shaped economic policies and social structures
• Philanthropic efforts by industrial leaders left lasting educational and cultural legacies.