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Chapter Summary netw rks


Industrialization, 18651901

ESSENTIAL QUESTION
How did the United States become an
industrialized society after the Civil War?

This chapter explains the reasons for industrialization and the growth of
big business as well as their effects on the workplace.

The Rise of Industry The practices of some big businesses in


The United States had abundant natural some cases limited competition.
resources of timber, oil, and other Small businesses could not compete with
minerals. economies of scale and large businesses.
The country had a cheap immigrant labor Retailers sold directly to consumers and
force to fill the millions of jobs. relied heavily on advertising.
Thomas Alva Edison and George Andrew Carnegie began the vertical
Westinghouse founded companies that integration of the steel industry.
supplied electricity to New York City and
Buffalo. John D. Rockefeller achieved almost
complete horizontal integration with his
Alexander Graham Bell revolutionized company, Standard Oil.
communication by inventing the telephone.
High tariffs reduced the import of foreign
Unions

Copyright The McGraw-Hill Companies, Inc. Permission is granted to reproduce for classroom use.
goods.
Low wages, long hours, and dangerous
working conditions were common in large-
The Railroads scale industries.
The first transcontinental railroad was The first large unions formed but had little
completed in 1869. bargaining power against larger
Rail networks united regions and companies.
stimulated economic growth. Unions often used strikes to improve
Cornelius Vanderbilt and James Hill working conditions and wages.
consolidated and built lines from the East The Knights of Labor opposed strikes in
to the West. favor of arbitration and boycotting.
The great wealth of railroad entrepreneurs The American Federation of Labor became
led to corruption by some. the biggest union in the country by 1900.
Women made strides in the workplace with
Big Business labor leaders, such as Mary Harris Jones.
The growth of big business led to the
development of pools, trusts, holding
companies, and monopolies.

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