Industrialization, Corporate Consolidation, and the Gospel of Wealth (1865-1898) – Flashcards
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Economies of Scale
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where large companies produce a cheaper product and thus put even more pressure on the "little guy"
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Assembly Line production
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required workers to perform a single task repeatedly, often for 12 to 14 hours a day
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How dangerous were factories?
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machine malfunctions and human error typically resulted in over 500,000 injuries to workers per year
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How dangerous were factories?
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machine malfunctions and human error typically resulted in over 500,000 injuries to workers per year
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Why did the businesses in the late 19th century have almost no restraint?
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the courts of the era were extremely pro-business
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corporate consolidation
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merger and acquisition of many smaller companies into much larger ones; many companies did this in the late 19th century
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holding company
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owned enough stock in various companies to have a controlling interest in the production of raw material, the means of transporting that material to a factory, the factory itself, and the distribution network for the selling the product
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monopoly
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complete control of the entire industry
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horizontal integration
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created monopolies within a particular industry
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process of horizontal integration
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several smaller companies within the same industry are combined to form one, large company, either by being legally bought out legally or by being destroyed through ruthless business practices such as cutthroat competition or pooling agreements
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inventor/creator of horizontal integration
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John D. Rockefeller with Standard Oil Company
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vertical integration
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one company buys out all the factors of production, from raw materials to finished product
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problems that arose from businesses consolidation of power
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bank failure that resulted from businessmen borrowing huge sums ; their businesses failing; monopolies created a class of extremely powerful men whose interests clashed with those of the rest of society
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Although irresponsible investors caused the multiple panics of the 19th century, who suffered the most and why?
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the lower classes suffered the most, as jobs and money became scarce
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Sherman Antitrust Act of 1890
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forbade restraint of trade and did not distinguish good from bad trusts; ineffective due to lack of enforcement mechanism
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Example of how the pro-business Supreme Court at the time to interpret the Sherman Antitrust Act of 1890 as it saw fit
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in 1895, the Court ruled that E.C. Knight, a company that controlled 98% of the sugar refining plants in the US, didnt violate the Sherman Antitrust Act because local manufacturing was not subject to congressional regulation of interstate commerce
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Andrew Carnegie
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promoted a philosophy based on the work of Charles Darwin; steel mogul; discovered how to mass produce steel; Advocated philanthropy, as by building libraries and museums or funding medical research, but not charity
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Social Darwinism
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in business, as in nature, unrestricted competition allowed only the fittest to survive
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Gospel of wealth
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Promoted social Darwinism; wealth among the few was the natural most efficient result of capitalism; great wealth brought responsibility
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What is one way manufactures cut costs and maximize profits?
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Manufacturers reduced labor costs by hiring women, children, and immigrants
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How did factories affect cities?
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As factory spring up, cities became dirtier and generally less healthy environments; poverty levels in cities rose
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Examples of advances in mass transportation
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Expansion of railroad lines, streetcars, and the construction of subways
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Why did poverty levels rise in cities?
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Advances in mass transportation allowed the middle class to live in nicer neighborhoods outside of the cities
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How did the origin of immigrants differ from later 1880 to before 1880?
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New immigrants were from Southern and Eastern Europe and old immigrants were from Northern and Western Europe (old immigrants considered Anglo-Saxons)
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Where did immigrants settle?
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In ethnic neighborhoods usually in tenements
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Political bosses
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Helped the poor find jobs; helped immigrants apply for citizenship in voting rights; built parks, funded auxiliary police and fire departments, constructed roads and sewage lines
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What did political bosses expect in return for helping the immigrants?
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Committee members to vote as they were instructed
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Political machines
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Organizations in which the political bosses were apart of
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Most notorious of the political bosses
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Boss Tweed of Tammany Hall in New York City
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Why did labor unions form?
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To try to counter the poor treatment of workers
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How were the labor unions perceived?
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Radical organizations by many, and the government was wary of them
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Knights of labor
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One of the first national labor unions; founded in 1869 by your Uriah Stephens, a Philadelphia tailor
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Goals of the knights of labor
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An eight hour workday; equal pay for equal work for men and women; child labor laws, including the prohibition of working under the age of 14; safety and sanitary codes; a federal income tax; and government ownership of railroad and telegraph lines
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Terrence Powerdly
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Let a series of unsuccessful strikes which declined the popularity of the Knights of Labor; American public began to associate unions with violence and political radicalism
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Haymarket Square Riot
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1886: bomb was thrown at protest rally and led to police shooting of the protesters thus causing animosity in employers for workers unions
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American Federation of labor (AFL)
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Led by Samuel Gompers; focused on bread and butter issues as higher wages and shorter workdays; formed as a confederation of trade unions
