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Chapter 6 -3 Big Business vs. Labor Eugene Debs JD Rockefeller Andrew Carnegie Samuel Gompers
Guess how kids do on the 1 st test… • Horribly! • Guess why? • They don’t study…. . • How do you study?
At the beginning of each day…. 1. Get handouts on front table 2. Please have these on your desk: üPen or pencil üTextbook üNotebook **no backpacks, purses, clutter, etc.
At the end of each day…. 1. Please put glue, scissors away. 2. Pick up any trash, papers near your desk. 3. Stay in your seats until the bell rings.
Skills we need to work on… 1. 2. 3. 4. 5. Speaking respectfully. Listening respectfully. Waiting your turn to speak. Keeping your hands to yourself. Beginning class without instructions.
Notebook • 10% of notebook grade is organization • The Table of Contents is your guide • Keep things in the right order
The Big Question Was Industrialization good for America? Let’s examine the evidence……
FQ: Sept. 26 Was Industrialization good for America? Make your argument.
Todays Objective • To learn about how Industrialization prompted the growth of big businesses and how that led caused workers to form unions to improve their lives. • Important b/c workers rights, like minimum wage, are important topics today.
What will we learn? ü The growth and power of big business ü Workers unite and form unions to get better wages and working conditions Why? üFairness in the workplace requires both parties have a voice üWhat would you risk your life for? A job? üPeople want a voice
Focus Q: Sept. 27 • Why do you think workers wanted to form unions? • Are unions good for workers? Why? • Are unions bad for businesses? Why?
Focus Q • What have you heard students say to respectfully correct each other? • When would this be appropriate?
Focus Q Thurs. 9/19 • What have you learned in this chapter? • Write at least a ½ page. • Think about: Was industrialization good for America? Business? Workers? Cities? Environment?
Focus Q Tues. 9/17 Was industrialization good for the United States? Why or why not? üThink inventions, impact of the RR, the environment, expansion west, cities, jobs, certain industries Was industrialization good for the workers? Why or why not?
Focus Q: prelude to a 1 page paper • Make a graphic organizer showing how industrialization was good for America. • Make a graphic organizer showing how industrialization was bad for America.
Andrew Carnegie’s ideas…… 1. VERTICAL INTEGRATION üCarnegie bought all suppliers—coal, iron ore mines, ore freighters, RR’s – control everything necessary to make a product (steel, gas, coal, sugar, whiskey, etc. ) – Why? —control quality and cost of the product
Andrew Carnegie’s ideas…… 2. HORIZONTAL CONSOLIDATION übuy your competitors – Carnegie bought other steel companies – by 1901, he produced 80% of US Steel – This eliminates competition Why? Create monopolies? – eliminate competition
Andrew Carnegie ideas……. 1. **bought suppliers 2. Bought competitors 3. Increased quality of steel** …. . and reduced prices**
Carnegies success led to stories like… Rags to riches!! You can do it!
Social Darwinism 1. Based on Charles Darwin’s theory of evolution (1859) 2. Some indiv. have traits that allow them to do well and reproduce, others in that species don’t 3. “natural selection” weeds out those less fit for their environment
Social Darwinism 1. Herbert Spencer applies Darwin’s theory to explain human evolution. 2. Used to support no govt regulation of business 3. It supports the idea of: – indiv responsibility and blame – Supports Protestant work ethic – Riches were a sign of God’s favor – The poor must be lazy or inferior
**Laissez Faire** ü(allow to do) üwas the US economic policy 18651900 ish*** ülaissez faire meant no govt regulation of business • Min. wage, safety regulations, no child labor
Why did business support Social Darwinism? • Govt regulations are expensive— min. wage health benefits fire escapes safety regulations sprinklers handicap ramps, etc.
Define monopoly. **Monopoly** • 1 company completely controls over an industries production, quality, wages paid, prices charged • purpose: eliminate competition • Monopolies cause prices go up for consumers
Monopolies **Business leaders form monopolies to eliminate competition**
Who had the advantage?
In the last slide…. Who is battling? Who has the advantage? How can you tell? **Big business has advantages over labor**
What is J. P. Morgan doing?
**In the late 1800, business leaders try to eliminate competition by…. • Forming monopolies and trusts** • Sound familiar?
John D. Rockefeller 1. **industrialist, forms Standard Oil** 2. Controls over 90% of oil refining business by – drove competitors out of business by selling oil lower that it could be produced, then raised prices b/c no competition What is unfair about this?
A little humor…… • Yo momma's so stupid, she put two quarters in her ears and thought she was listening to 50 Cent. • Yo momma is so stupid she climbed over a glass wall to see what was on the other side.
What is Standard Oil in this cartoon?
What’s the social studies term for companies like Standard Oil? • **A monopoly**
Because of the actions of Standard Oil, Carnegie Steel, and RR’s there was a demand for……? • It’s the opposite of laissez faire. • …will make the workplace safer…. • …require min. wage…. . much later…. GOVT REGULATION OF BUSINESS
What good things did Rockefeller and Carnegie do? – Rockefeller--$500 M, Rockefeller Foundation, Rock. Center (NYC), $80 M to U. of Chicago – Carnegie $325 M, 3000 libraries, gave 90% of his wealth, Carnegie Hall, Carn. Foundation, “Gospel of Wealth, ” “man who dies rich dies disgraced” Some say great businessman others call them Robber Barons— which would you call them?
What did **Henry Ford** contribute to industrialization? • He didn’t invent it • **the assembly line** • Used it on a larger scale
Define Sherman Anti-trust Act. Why wasn’t it successful? • SAA said you can’t form trusts (big companies, grouped together, run as one company) • *hard to enforce* – trusts not defined – Supreme Court sides w/ big business—through 7 of 8 cases the govt brought against trusts – if companies felt pressure from the govt. they just broke up into indiv. companies
Give 4 examples of poor working conditions. 1. 12 hrs. /6 days, 7 days in steel industry 2. No sick days, vacation, unemployment, workman’s comp 3. Lots of injuries— 1882— 675 died/week in workrelated accidents 4. Factories were dirty, poorly ventilated, poorly lit, smoky 5. wages were low, all family members had to work, often dawn to dusk
In 1900, 20% of boys, 10% of girls
More poor working conditions…. . • Why do you think kids got hurt frequently? • (1899) average man $498, women $269, Carnegie $23 M w/ no income tax • Again, adult wages were so low, kids had to work
On a different topic…. . Sophie Winiarski, The Chaweenie
When did the urban pop. overtake the rural population ?
Who was Samuel Gompers? President of…. . • **labor leader, President: American Federation of Labor (AFL)** • Focus on collective bargaining Strikes are a major tactic • organize skilled workers from many industries to form AFL
What is collective bargaining? • **group negotiations** to get better wages and working conditions
A little humor…… • What do you call an elephant that doesn’t matter? • Irrelephant
AFL and Gompers • Win shorter work week and higher wages for skilled workers – Btwn 1890 -1915 wages up $17. 50$24/week in union industries – work week 54. 5 hrs to 49
What did labor groups like the AFL do in response to the below situation?
What did labor groups like the AFL do in response to the above cartoon? Organized skilled workers into unions
Who do you think would support…. “Eight hours for work, eight hours for sleep, eight hours for what we will. ” **Organized labor**
Eugene Debs • **Labor leader** • Turned to socialism to solve workers problems
*Socialism* **economic and political system that features ügovt. control of business and property and üequal distribution of wealth**
Eugene Debs: any questions? • Ran for President: 1900— 1904— 1908— 1912— 1920 • Got 1 million votes in 1920—was in jail !! • Jailed b/c he refused to end the Pullman Strike
Socialism Capitalism • Govt own the means • Private citizens own factories, farms, RR’s, of production • factories, farms, RR’s, etc, • no private property • More of an equal distribution of wealth etc. • People can make huge profits • Some will be poor • Supports strong work ethic
Great Strike of 1877 What industry? How did it end? The Great Strike of 1877 (July) • B & O RR workers strike—spread to all RR’s east of Miss. River • 50 K miles of track affected • Riots (violence) in Baltimore, Pittsburgh, Chicago, St. Louis, San Fran. • President Hayes orders troops in, end strikes
How is the strike ending?
Homestead Strike, June 1892 • Carnegie steel plant—Henry Frick planned to cut wages • Hired Pinkerton guards to protect the plant so he could hire SCABS— strikebreakers (replacement workers) to keep the plant operating
Homestead Strike • Violence left 3 guards and 6 workers dead • Steelworkers ousted the guards until the National Guard arrived on July 12 • Strike continued until November, workers give in • Would take 45 years for steel workers to mobilize again
Frederick Remington sketch of Homestead Strike What do these strikes have in common?
The Pullman Company Strike • During the Panic of 1893, Pullman laid off 3000 of his 5800 workers and cut wages 25 -40%, but did not cut the cost of housing. Nice guy Most workers took home less than $6/wk. • After the depression lifted and business improved, Pullman hired back 2000 workers, but didn’t raise wages or cut rent
Pullman cont……. . • Workers called for a strike—Pullman refused to negotiate • Debs urged strikers and the boycott to remain non-violent until Pullman hired scabs • President Cleveland sent in troops to end the strike
**In the late 1800 s disputes btwn labor and management often resulted in? ** *use of VIOLENCE on both sides*
Triangle Shirtwaist Fire NYC (3 -25 -11) • • 7 th, 8 th, 9 th floors on fire Fire starts on 8 th floor Those that died worked on the 9 th floor all but 1 exit door blocked to prevent theft and keep union organizers out— unlocked door was blocked by fire
Triangle Shirtwaist fire cont…… • no sprinkler system, the 1 fire escape collapsed, doors open to the inside • over 146 die (Jewish, Italian immigrants)—burned, some jump to their death • factory owner is acquitted of manslaughter • NY legislature enacted strict fire codes, 54 hr. max work week for females and minors, no Sunday work, no child labor under 14
Results • Led to improved factory safety standards • Blanck and Harris acquitted in criminal trial • Paid $75 to families of those who died • Received $60 K from insurance company
Triangle Shirtwaist Factory
Some jumped to their deaths. Checking for survivors.
Hard to fight fires in 1911. Why?
Identifying loved ones
Identifying loved ones
What is the artists’ message?
Who is to blame?
6 -3 creative side: Was Industrialization good for America? 1. Write a 1 page, 2 paragraph paper. ü 1 st paragraph: How was industrialization GOOD for the US, business, citizens, cities, environment, workers, women, and kids. ü 2 nd paragraph? How was industrialization BAD for the US, business, citizens, cities, environment, workers, women, and kids. ØAddress some of these issues in your paper.
Industrialization…. . good or bad? 2. Each paragraph with have a topic sentence and details. 3. Please use transitions like: however, for instance, first, in addition, next, etc.