History Chapter 16 Big Business And Organized Labor The Begins With Discussion The

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CHAPTER 16

Big Business and Organized Labor

1860–1900

The chapter begins with a discussion of the factors that led to a dramatic increase in agricultural and in-

dustrial production in the late nineteenth century, followed by a discussion of the entrepreneurs who pio-

CORE OBJECTIVES

1. Explain the primary factors that stimulated unprecedented industrial and agricultural growth in the late

nineteenth century.

2. Describe the entrepreneurs who pioneered the growth of Big Business, the goals they aimed to achieve,

and the strategies they used to dominate their industries.

3. Evaluate the role of the federal government in the nation’s economic development during this period.

4. Analyze the ways in which the social class structure and the lives of women changed in the late nine-

teenth century.

5. Assess the efforts of workers to organize unions to promote their interests during this era.

CHAPTER OUTLINE

1. The Elements of Industrial Growth

A. The Second Industrial Revolution

B. Corporate Farming

C. Technological Innovations

D. Railroads Leading the Way

E. Building the Transcontinentals

2. The Rise of Big Business

A. The Growth of Corporations

B. The Barons of Business

i. John D. Rockefeller

ii. Andrew Carnegie

iii. J. Pierpont Morgan

C. The “Gospel of Wealth”

3. The Alliance of Business and Politics

A. Federal and Republican Support for Business

B. Laissez-Faire Theory and Corrupt Practices

4. A Changed Social Order

A. The Ways of the Wealthy

B. A Growing Middle Class

i. Middle-Class Women

ii. Neurasthenia

C. The Working Class

i. Working Women

ii. Child labor

5. Organized Labor

A. The Great Railroad Strike of 1877

B. The Sandlot Incident

C. Toward Permanent Unions

D. The Knights of Labor

E. Anarchism

F. The Haymarket Riot

G. The Decline of the Knights of Labor

H. Gompers and the AFL

I. The Homestead Steel Strike

J. The Pullman Strike

K. Economic Success and Excess

LECTURE IDEAS

1. A lecture on the rise of Big Business in the United States can incorporate several topics critical to stu-

dents understanding of the Gilded Age, including the emergence of the managerial class, business

practices that threatened economic competition, the growth of urban areas, leading industrialists and

financiers (for example, Rockefeller, Carnegie, and Morgan), and changes in the relationship between

capitalists and laborers. You might begin with the rise of the railroad, steel, and oil industries, illustrat-

ing how they were the catalyst for economic change in American society. In preparation for this

lecture, consider reviewing the following sources:

2. The transcontinental railroad, if presented in a comprehensive lecture, allows you to cover a vast range

of topics for this period. A general lecture allows for a discussion on business practices, the role gov-

ernment plays in the economy, the expansion of the West, the impact on the Native Americans, the role

3. The rise of national unions in the United States is essential to an understanding of society, Big Busi-

ness, and politics in the late nineteenth and early twentieth centuries. Develop a comparison of the Na-

tional Labor Union, Knights of Labor, American Federation of Labor, and Industrial Workers of the

World. Focus on their leadership, philosophies, goals, and effectiveness as you survey each union’s

experiences. You can discuss each union’s position on immigrants, blacks, women, and unskilled

workers. Good sources for building this lecture include:

4. The Gilded Age witnessed the changing relationship between capitalists and labor. During this era,

laborers sought new ways to have their voices heard and to improve their economic circumstances and

working conditions. Their efforts included the creation of organized labor unions and demonstrations.

Many violent strikes erupted during the period. some of which had national implications (for instance,

the Great Railroad Strike of 1877, the Haymarket Square Riot of 1886, the Homestead Steel Strike of

1892, and the Pullman Strike of 1894). In a general lecture, explore the causes of such events and pro-

IN-CLASS ACTIVITIES / FLIPPED CLASSROOM SUGGESTIONS

1. The Industrial Workers of the World union was nearly dead by the time of World War I but managed

to survive and still exists. Do a little Internet research on the IWW of today. One place to start is the

2. Ask your students to read Andrew Carnegie’s “Gospel of Wealth” (1889) article

(http://www.fordham.edu/halsall/mod/1889carnegie.asp). How compelling are his ideas more than a

century later? What ideas “aged” well? What ones are particularly dated?

3. Lead students in a discussion related to the acquisition of wealth in the Gilded Age. Be prepared to

expand on terms such as Robber Barons to the students before launching into conversation. Ask the

students the following questions:

You might assign your students to watch H. W. Brands’ lecture “How the Rich Got Rich: The

Gilded Age in America” (Austin, June 5, 2011) outside of class in preparation

4. Assign your students to read an excerpt from “The Subjective Necessity for Social Settlements” (1892)

by Jane Addams as well as the section “Neurasthenia” in Chapter 16 of the textbook. The Hull House

Museum’s website offers a number of suggestions for resources centering on Addams’s Hull House,

including primary sources documents (http://www.hullhousemuseum.org/research/). Also, ask your

Divide the class into three groups. Have one group of students outline the importance of the settle-

ment house from the perspective of Addams. The second group will consider the importance of the so-

cial settlements from the perspective of those living in the Hull House. The third group should talk

about what the perspective of a reform Darwinist might be. Conduct a discussion among these three

DISCUSSION QUESTIONS

1. In what ways do the economic transformations of the twenty-first century compare with the ones of the

late nineteenth century? In what ways are they different?

2. Has the “communications revolution” of the early twenty-first century had any impacts that are compa-

rable to the communications innovations that affected the late nineteenth century?

3. How did the relationship between labor and capitalists change in the late nineteenth century?

4. How do the riots and protest of the twenty-first century compare with the violent protest of the late

nineteenth century? What are the similarities and differences in the protest movements of the two eras?

5. How do modern labor unions compare and contrast to those organized in the late nineteenth and early

twentieth centuries?

6. Of all the major figures identified in the chapter, who had the most significant impact? Why?

7. What was the most important development during the Gilded Age? What is the rationale behind your

answer?

PRACTICING CITIZENSHIP

This chapter makes the point that a great deal of the wealth generated in the half century following the

Civil War would have been impossible without the impetus of railroads. Most all of the industries men-

tioned—iron and steel, petroleum, electricity, banking and finance, and certainly a mail-order business

like Sears and Roebuck—owed a great deal of their success to this one major change in how Americans

moved goods and information. The chapter also tells us that the railroads would not have been possible

without significant help from federal, state, and local governments. Think about the role of government in

your daily life. Map your typical day, anonymously if you choose, and label when and where something