hello class Welcome to our first in uh a 15p part series of videos I'm creating for your class uh to be able to be viewed by you anytime you'd like or as often as you like um I'm going to be covering the Powerpoints one at a time lecturing on them in video form uh it would be a good idea I think to have the PowerPoint open when you watch the video and follow along uh I think that'll probably be more productive for you uh so this is the first one it's the first PowerPoint in your unit found under content in D2L uh the title of it is business and labor the industrial era the time period we're talking about is post Civil War so 1860s to about 1900 this period which will cover at least in the next three uh chapters is also called the Gilded era of American development um very important time period uh lots of things happened so many things happen um mostly driven by industrialization which is in full steam here in the latter half of the 19th century in America uh this is when America becomes the world power the world economic power during this time period um so during this Gilded Age uh 1860 1870 to 1900 because of industrialization lots of stuff happening populations are soaring because of industrialization and capitalism and the creation of wealth people are living longer lives uh infant mortality is going down so this is causing populations too sore agricultural production doubled in this time period because of the uh Innovations and technologies that come about in the latter half of the 1800s manufacturing increases incredibly highest uh rate of economic growth in history for America um America dominates so many world markets during this period steel oil wheat cotton uh in some other areas also we see massive uh migration of people from rural and Countryside life to cities and this causes uh large industrial cities like Chicago Pittsburgh Cleveland uh uh to rapidly grow and expand um many new technologies developing in metal alloys like uh uh very refined steel production that will allow for skyscrapers to be built for the first time um Communications Railways uh Plastics electricity new chemicals like uh fertilizers which also allow uh agricultural production to greatly increase uh and the automobile and then the airplane are just around the corner uh from this time period um so uh different Innovations in Industry uh different changes largely on scales of things as uh as well uh bananza Farms were large corporate Farms that spread out throughout the Midwest so instead of traditionally throughout all of history have these little small uh individually owned Farm farms uh corporations start buying up farms and farming huge swaths of territory and land Al together these were bananas of farms um economies of scale what economies of scale means is uh it's an increased efficiency of production whereby if I produce one thing of an item let's say I'm creating this product called a widget and I make one well my cost of that widget might be $5 a unit so I have to sell it for seven eight n $10 when I start Mass producing widgets though my cost drops when I'm producing 500 widgets at a time instead of $5 per widget maybe my cost drops down to $1 per widget so that's an economy of scale meaning if when I'm Mass producing something my cost of production per unit goes down meaning I can produce it cheaper and sell it cheaper to uh uh my customers um 275 new patents in the 1790s 100 years later there's 235,000 thousand new patents uh we'll talk about lots of people Alexander granbell invents the telephone Edison doesn't invent the light bulb but he perfects the light bulb the first commercially viable light bulb um George Westinghouse and his Innovations with Nicholas Nicola Tesla in electric power um uh all these people will come about and uh become very well known and productive and famous people during the Gilded Age um Telephone Bell Alexander began uh Bell began working on that uh in when he was about 28 years old in the 1870s um he patented a Talking Machine the uh the first message ever sent over the telephone was actually kind of I by accident he called for his assistant Mr Watson to come in here he said I want to see you and Watson came in and said I heard you over the device so he just didn't hear his voice coming going from room to room he said I heard you over this device that will be called the telephone it will actually be the most valuable patent ever issued uh will be the telephone uh light bulb like I said Edison uh didn't invent it there are many precursors to him people have been working on this uh problem this of electric light or artificial light for decades in in Europe and in the Americas um Edison no formal scientific education he had uh his Factory and research facility would grow in Meno Park New Jersey uh he'll have well over a thousand patents just in under his own name um perfecting light bulb makes America far more productive if you think about for all of human history you were limited to daytime work hours you needed light sunlight uh the electric light bulb now made work available or possible 247 uh huge increase in the ability to produce um devis the way to illuminate entire city Edison invents so many things from the Stock Market ticker to the phonograph the electric chair storage battery uh um just some motion picture camera uh tornado proof housing guy was just a a real genius uh not necessarily a nice guy but a Real Genius um 1983 or uh 18 uh actually 1800 uh not 1900s uh that's a mistake on the slide which I have to correct uh the Chicago's world world's fair is the first time that a city is lit up by Electric uh light or artificial illumination imagine for all of human history you've never seen this you've never seen a lit up City boom you go to the World's Fair in Chicago and the whole thing is lit up uh really really amazing um there'll be a a a competition between Tesla Who as a young man and young promising scientist and inventor came across the seas from Europe to work for an Edison um they ended up having a falling out and they parted ways and it was largely over the this new current uh electric current that they'd been working with there was direct current developed by Edison and Tesla invented alternating current a see that's DC and AC current ACDC if uh you know the Australian rock band um they end up having a falling out Tesla leaves Edison and uh gets hired by George Westinghouse who has a lot of money uh and is very entrepreneurial and wants to develop this electricity this new electricity thing um AC current ends up being more viable and uh powerful over long dist distances and his AC current will eventually win a 8year house is powered by alternating current not direct current um and this uh this ability to drive electricity long distances over wires allows factories and and uh businesses to be built anywhere not just close to uh cold deposits or water sources you could build them anywhere uh and create electricity for them railroad re Revolution always hap also happens during this time by 1900 there's 200,000 miles of track in the United States um so you can move Goods faster people faster farther cheaper um we actually the the Transcontinental rail road which uh extended from Shore to Shore in the United States from coast to coast um the uh uh actually was the reason for the creation of time zones the uh transcontinental rail Road being able to travel by train all the way across the country was the first time in human history that humans could outrace the sun trains became faster than the sun when traveling across the country and thus required the need for uh time zones to be created um like 200,000 miles of track in in 1900 just 30 years earlier there was only 35,000 miles of track so this is a a a really big push with the railroad industry Transcontinental Railroad like I said you had a Congress passed the Pacific Railway act in 1862 so this is during the Civil War they want to complete this uh rail line all the way to California um they hired they contracted two companies to start at opposite ends and to meet in the middle they would end up meeting in prator Summit Utah and driving in the final Spike which was actually made of gold it's called called the Golden Spike that connected the two ends uh the Union Pacific Railroad started from Omaha and Nebraska going towards California and the Central Pacific Railroad started in Sacramento California going Eastward uh like I said until they connected in prator Utah prator Summit Utah uh strange fact about this railroad industry and just let you know how how government works uh the government PL paid both companies per mile of TR track laid so do you think they built the tracks as efficiently as possible we know the the fastest wave between two points is a straight line but if you're getting paid per mile of track laid do you want to lay a straight line or a zigzag line all over the place because you're getting paid for extra every extra mile and in fact that's what they did incredibly inefficient incredibly costly um and much of the track had to be repaired and redone after the golden spike was laid because of this um large numbers of immigrants will come during this period in the late 1800s especially Chinese immigrants from the West coming to the West Coast California um almost all males they will largely work in the railroad industry um Chinese workers the nickname was they were called coolies um lots of problems out west especially especially before the railroad was completed with delays um weather Indian raids tunnel collapses they're trying to build through mountains um strike sickness disease um but when they're they're done uh it really transforms the country and especially the Southwest um stations are built along the way to supply the trains keep them running smoothly smoothly these stations will eventually uh spring into towns and some even into major cities um but corruption in the railroad industry was really really uh huge and rampant um uh both with government contracts and with fraud fraud frauding the government uh and with treatment of workers things like that uh needed to be cleaned up and we'll talk about that at a later date big business this is where we come uh the part in in the industrial revolution where we have big business corporations large massive corporations will come about in the late 1800s um a corporation is just a legal entity that separates the ownership uh of the company from its management um selling St shares of stock which is actually a a Dutch creation from centuries before um but it's being perfected at this time it represents if you own a share of stock you own a very small percentage in that company um but you have no management function or Sal in the company you just own a little piece of the company that's what a stock certificate is um uh legal limited legal liability stockholders um means you you have uh you enjoy profits if the company is profitable but you're not responsible for debts uh one common name for the uh huge Business Industrial magnets who will grow during this period and come to be like Johnny Rockefeller uh J Pierpont Morgan Vanderbilt and others they're called Barons of business um they and almost all of these guys when you study them came to America or grew up in America extremely poor uh especially uh carnagi from Scotland uh Rockefeller both very very poor and made themselves into some of the richest people in history um they create incredibly am incredible amounts of wealth incredible amount numbers of job um jobs industry uh being able to mass produce things like I said before uh economies of scale brings down costs per good allowing more and more people to afford things that they couldn't afford before um really really gamechanging here in the late 1800s in America uh the idea of L Fair capitalism L fair means the French term meaning hands off meaning the government should keep its hands off of business let business grow and produce all by themselves and they'll produce great things big business and government uh since the Constitution went into effect in 1789 the government has always imposed tariffs that's a tax on imported goods there's no income tax in the 1800s income tax doesn't come about till 1913 so the government receives its Revenue largely from tariffs on taxes on imported goods um lobbying when you start having big businesses grow you start having lobbying which kind of is created in this period in American Business political uh the America uh business and political realm lobbying where businesses start going to Washington DC sending representatives to Washington DC to make their case so elected officials will make laws and legislation that will benefit them still going on today and of course a huge huge problem today almost every corporation even midsize corporations in America have a lobbying interest uh in Washington DC um the uh uh the growth of big business will cause Congress to pass uh big legislative acts regarding the economy that were never uh a consideration before and a couple of them are mentioned in the slides like the legal tender act uh the national Banking Act the Homestead Act the Homestead Act is actually of 1862 so these all happened during the Civil War the uh Homestead Act was a land grant act it made all this land out west available to people um and we'll talk about that a little bit later too uh but the Homestead Act really uh distributes so much land in west of the Mississippi to new settlers from the East EXs slaves too um open to everybody in the west it will all be almost all be farming land uh but that will be under the Homestead Act I mentioned John D Rockefeller uh he's born in uh uh into extreme poverty um raised by a single mother um he forms what would be called the Standard Oil Company uh when I was a kid this was calledo Esso but it was came it was originally calledo for Standard Oil blo uh uh morphed intoo Esso and then became Exon so Exxon was John D rockefeller's company Standard Oil um he was far more efficient than all his other competitors made his products affordable um hired massive amount of people uh uh supported so much business and labor um wealth creation uh he was really became the master of certain things called like one called horizontal integration um that's the practice of buying out competitors you can only buy out your competitor if they're less efficient than yours are less profitable than you're if they're more profitable they'd be the ones trying to buy you out so Rockefeller was so efficient and profitable the way he ran his businesses that he was able to buy out other competitors uh if you buy out too many competitors or take too big of the market you will be uh accused of having a monopoly over that industry uh and this will become a thing in the late 1800s um strange thing I'll mention uh automatically you've probably heard or when you hear the word Monopoly you think a negative thing um several economists years ago AR were arguing about monopolies two of them took a bet up with the other one uh where they researched every American Business in history and they never found a single instance of a monopoly raising prices as to an exorbitant level it's never happened so it's kind of a kind of a myth it's a uh a boogeyman myth that monopolies are bad and if you don't believe me think about this what company is the biggest most powerful brick and mortar building uh uh company in the world it's Walmart Walmart the actual not an online company a brick and mortar stores uh the most powerful Behemoth giant out there in the economy uh so if anyone has a monopoly in brick and mortar sales it's Walmart who has has the cheapest prices Walmart um again there's no case of monop someone gaining Monopoly and then raising price because if you raise prices too high you invite new new competitors to come in and buy in and compete with you if you have a monopoly and you keep prices down no one will bother coming into the market and you can keep it forever uh theoretically uh who's the biggest online retailer who is the most massive online retail that can controls online marketing that's Amazon who has the cheapest prices Amazon uh again this monopo thing is really kind of a myth of uh economics another thing that Rockefeller excelled at was something called vertical in uh integration that means investing in all sectors of your industry so he was an oil magnet originally he had to transport his oils on trains and train tracks he started buying up trains and train tracks so that he was running his oil on his own trains and eventually reducing costs so that's vertical integration um the uh uh buying up or investing in businesses that affect your business uh Sherman Anti-Trust Act is passed by Congress this uh 1890s this was a fear of monopolies so they they passed this law basically saying making it illegal to Corner the market or create a monopoly um Rockefeller also creates the holding company uh to get around the new law was a company created merely to buy and hold stock in other companies so uh to show at least on paper he didn't have a monopoly he would create holding companies where he would divide up his company among smaller companies but in fact they were all under the umbrella of Rockefeller um Andrew Carnegie another one he's born in Scotland uh came to the America's absolutely dirt poor in 1848 um worked 12 14 hours a day in a cotton mill when he was just a young teenager um he will find the Carnegie Steel company to become the world's the largest in the world by 1900 he emplo over 20,000 workers um and if you think when you're that massive of a company you're employing 20,000 workers that's 20,000 people that are making a living off you but so are all the periphery business all the the railroads and coal miners and all the other Industries are also uh in business because of you so the the Reon each of these massive uh businesses and corporations is as far as wealth creation and job creation is is really really massive J Pon Morgan um unlike the rockfeller and Carnegie he was actually born into wealth um his father had a very profitable investment company he's a banker investment kind of guy um he will form us Steel Corporation in the late 1890s he will become the first billion doll Corporation he will employ 168,000 work workers U way back in the uh about 1900 um carig and rockfeller greatly believed in an idea called The Gospel of wealth it was actually an essay written by Carnegie before the 1900s saying that it's their moral Christian duty to give charity and philanthropy to give a lot large portion of their wealth away and they did both of them did both Carnegie and Rockefeller not necessarily Rockefeller for uh always char means sometimes it was self- serving and we talk about that a little bit later um uh but they did give most of their money away especially to education medicine uh Museum creation of museums libraries things like this um Rockefeller donated more than $500 million during his lifetime that's you know over hundred years ago uh when $500 million was a huge amount of money not that it's not now um carne retires at the age of 65 and spent the rest of of Life Giving all his money away um he just he he funded 2,500 libraries churches Parks hospitals uh so that was the Gospel of wealth meaning that the the you were obligated by your Christian charitable duty to give money away and help others um the Homestead Act which we talked about a little bit earlier its purpose is to develop the West uh the West is wide open you want to develop farms and towns and cities and railroad tracks and connectivity and jobs and all the sort of markets to be able to trade and sell and buy um Congress granted 160 acres to any male citizens widows single women immigrants uh former slaves uh for free blacks uh immigrants pledging to become citizens uh the only requirement is you had to work the land you had to improve it and build a residence 5,000 homesteads were given to former slaves during the guilded Age post Civil War age because of industrialization you have the middle class grow the huge middle classes formed just so you know for all of history there really isn't wasn't a middle class for all of history think of surom for a thousand years in Europe you had the upper nobility the aristocrats and then you had peasants and surfs at the bottom there's not really a middle class there's Kings and Nobles and upper clergy in the upper class and peasants and surfs at the bottom there's no really a middle class in history to speak of until the 1800s and the Industrial Revolution um credible rise in the middle class distinct class between the abject poor and the very very wealthy a distinct class lots of new jobs come about during this period like Office Clerks accountants bookkeepers attorneys Physicians uh professors journalists nurses social workers all this sort of stuff um many new colleges and universities come about in this time period um women are on a larger scale are going to college at this time um one very famous woman at this time was Jane Adams who founded Hull House in Chicago uh to Aid immigrants coming to America uh you see a lot of this during the 1800s uh there's the government is not taking care of society ills uh uh former prisoners or newly arrived immigrants or people with diseases or widowed ladies or orphan children these are all being taken care of by charitable private organizations by the thousands all throughout the country and Jane Adams was one of those very very prominent uh women she also she shows this began the trend at that time of women working outside of the home outside getting having a job and purpose outside of the home which will become huge during the late 1800s um so you have big business rise of big BS big business bus corporations uh so you also have the rise eventually of organized labor this means workers and labors grouping together to try to use their their Collective power to bargain with management and ownership for a better wage and better situation um and this happens throughout railroads factories mines Mills slaughterhouses um both with unskilled labor and with skilled workers uh they will uh eventually band together and organize into unions uh to help cause wages to Rise um wages rise significantly in the guilded age for unskilled workers but especially for skilled labor um at that time the average worker worked about 59 hours a week that'll be a major thing over the next couple decades where they will try to negotiate down a a lesser work week uh hour- wise um uh many industries were also dangerous uh railw workers Factory workers uh the death toll or in iny severe injury toll was really bad at that time remember all these things are new uh they're new to ownership too um so all these new Industries um working out the Kinks will take a while on both sides management ownership and labor um you also have women and children entering the workforce in large numbers um which would be largely unskilled Labor uh by 1900 there's 2 million child laborers in the country under the age of 14 this is true in Europe too it's not just America um with organized labor eventually you will start having strikes meaning uh workers will unite to not work to shut down the factory to shut down the railroad to stop the owner and management from making money hoping that that will force them into giving the workers a better deal or higher wage or safer work conditions or lower hours um so the strike will come about 1877 you have the great Railroad Strike uh this follows the financial Panic of 1873 in the 1800s a panic was a recession or depression that's what they called them um so owners feared a recession cut workers wages by 35% um by 1877 there's a full-blown depression and the and the union and the workers strike because of their cut wages and cut jobs when you think about we H management ownership bad when there's a depression and nobody's buying goods and you're losing money what choice really does the management have it management ownership gets hurt labor gets hurt but this is generally when things are going economically bad that's when people rebel and that's when the union workers would strike uh Baltimore and Ohio Railroad workers walked off the job in Martinsburg West Virginia they prevented other workers from replacing them the strike spread to many other towns this is the great Railroad Strike um violence Pittsburgh Strikers burn down 39 buildings they burn railroad cars looted um non- Strikers are assaulted it end up getting so bad this great Railroad Strike of 1877 that the president at the time raford B Hayes had to send federal troops to put down the uprising first time federal troops are used in this manner to put down labor strikes unions are formed National unions local Regional unions but also National unions to try and the more people you think strengthen numbers the more workers you can get under your umbrella all working in locks step together um you you usually would think you would have a better result so National labor unions are formed a National Labor Union first formed in Baltimore in 1866 one of the very first ones an attempt to uniting a Federation of workers um of all different jobs uh to fight for better wages working conditions hours things like that um but you'll find many uh many many more unions uh many unions will also take to Marxism and socialism they'll be driven by the theories of marks um where they think uh think and believe that labor should have more power and uh maybe even beat running businesses and econ uh economies to a very large extent um there's a lady named Mother Jones uh she was an Irish immigrant uh she saw her husband and four children die of yellow fever uh her dress shop uh was destroyed by the in Chicago there was a great fire of 1871 which we'll talk about uh in a second to um she joins the Knights of Labor becomes a prominent spokesperson and organizer she's arrested numerous times uh even at the age of 83 in Colorado so this is the rise of organized labor and unions at this time like I mentioned the Great Chicago Fire of 1871 um so much of the city brand new city you know young and growing city but uh young cities in early cities back then were largely made of wood um buildings were made of wood rageed for 3 Days in October killed hundreds of people destroyed miles of of structures and buildings and land um Legend has it it's not confirmed but this has been the legend ever since that Mrs O's cow in the barn kicked over a kerosene lantern that sparked the fire um the strange thing and interesting thing about the Great Chicago Fire is this entire city or huge portion of the city is burned donations and workers from all over the world came to Chicago to rebuild it and they make the first really modern city um steel buildings um uh really using modern steel um the even donations from England built the Chicago Public Library um so this becomes be after the fire the first real uh uh modern city um and the strange thing is none of it was built by government or with government money it was all uh private workers and donations and charity uh that built Chicago um more riots and Strikes very famous ones the Hay Market riot in 1886 this is where uh 40,000 Chicago workers went on strike uh looking for a shorter eight hour work day the companies would hire scabs a scab was a non-un worker to come in and work in your place a substitute worker to fill in for the strikers of course the union Strikers would beat the scabs attack the scabs often sometimes even killing the scab workers they saw them as traitors to their cause um anarchists uh people who wanted uh no government No Authority um no rules no law uh were very huge in the organized protest uh of the eight late 1800s and they were in the Hay Market Square ride uh as well someone uh an anarchist uh leader threw a bomb killing several people and police police officers um and uh eventually seven Anarchist leaders were sentenced to death a lot of the uh leaders and extreme antagonists of these strikes in the 1800s were uh very recent immigrants from Europe uh who were anarchists Samuel gers becomes one of the first real major labor union organizing figures of the late late 1800s he founds the AFL the American Federation of lab um it's for skilled laborers um the uh gomers was born in England but he uh came to the US uh and uh very very powerful in forming and organizing uh powerful influential labor unions uh at its peak in the 1920s the AFL had four million members um really really influential uh a little bit later 1892 in Pittsburgh you have the homestead steel strike so this is at Carnegie's Mill Carnegie is off on vacation hunting in Scotland uh he leaves his plant manager Henry Clay Frick uh there to handle any problems there's a uh Labor Management is really bickering and fighting Labor's demanding lots of things like higher wages shorter Work Week frick does a lockout so a lockout is the opposite of a strike a strike that the workers instigate it they decide to not work a lockout management instigates it they shut the doors and say you can't come in and work today no pay no work no paycheck um so it's management instigated um he ends up even constructing a high wooden fence around the factory in Pittsburgh it was called Fort Frick um he hires the pink Pinkerton which were a private detective and Security Agency to ensure plant safety the Pinkerton at one point will sail down the uh uh managa Hala River in Pittsburgh and end up having a 14-hour gun battle with strike were 11 people were killed uh the Pinkerton actually ended up losing that battle but uh one in the long run um Pennsylvania Governor ends up dispatching uh troops to the mill the strikers were tra chased off the strike continued for months but eventually it was unsuccessful a Lithuanian Anarchist remember so many of these real antagonists in these strikes are recent immigrants and anarchists from Europe Europe uh attacks Frick in his office uh shoots him in the neck stabs him several times but frick was able to fight him off and actually still live um after the strike and after that attack on Frick um the the strikers and the union had a really bad reputation in the public in the media and the union was disbanded um like I said the entire time Carnegie was hunting in Scotland uh just after that two years later is the Pullman Strike in sh uh uh in Illinois um really really huge famous strike Pullman uh he created this town it was a working uh uh corporate town uh it was owned by the Pullman Palace car company George Pullman was the founder um it's in a suburb of Chicago so the town the entire town was where the factory was but Pullman built housing where his workers lived stores where his workers shop um his workers their rent was paid to Pullman their electricity water their bills were paid to Pullman they shopped in Pullman stores it was a Pullman town was very very idilic and and worked very well early Pullman would make train cars but sleeping train cars for longdistance travelers that was their expertise making comfortable sleeping cars for longdistance travels uh along the transcontinent railroad um that's what they did um they uh very early on the Pullman City Town Factory everything's going great eventually though uh the people start feeling trapped everything they make and own uh they there kids are educated in Pullman schools like I said there all their groceries they're buying Pullman groceries uh Pullman starts raising prices on them especially when uh depression hits um he ends up having to lay off thousands of workers now you're laying off thousands of workers but they're living in your housing and still having to pay you rent water electricity things like that so of course a huge strike takes place uh in uh 1894 in Chicago um Eugene V Debs he will be the next one after gers the real big labor union uh um influential labor union leader uh Debs will actually run for president several times uh especially under the Socialist Party he'll never win he'll be arrested several times um everyone on both sides though when they talked about Deb said he was a very likable nice man um he was president of the union he encouraged workers to be nonviolent and Obey laws he always tried to negotiate first um Pullman in this case refused uh they ended up having a strike and it end up being a 27 State strike meaning all railroad workers all in in half the country more than half the country at that time way more than half the country refused to handle or unload or load Pullman train cars um so uh really really massive strikes during a depression um which also meant people all over the country couldn't get basic supplies milk food meat um their mail uh things like that uh supplies to run their businesses because of the strike people couldn't get those things um president Grover Cleveland he's the first president ever to serve two split terms not back-to-back terms he's president loses then his president again uh in a couple days we're about to have the second president to do that Donald Trump won was president lost to Biden and now he won again he'll be only the second president after Cleveland to serve split terms um but Grover Cleveland like Hayes earlier before him the previous president uh sent federal troops to the area and the strike was called off uh like I said Debs will run for president numerous times five times never winning uh but that concludes our first video Lesson on our first PowerPoint um thanks for hanging in there with me uh watch it over and over again if you have to as many times as you want pause take notes use this to fill in your packets your uh names to know and terms to know for the first PowerPoint um and I will see you for the next one thank you so much