Period 6 (1865- 1898) Flashcards
Economies of scale
as more and faster machines became available to manufacturers, businessmen discovered that their cost per unit decreased as the number of units they produced increased.
What was the downside of economies of scale?
required employees to work as efficiently and repetitively as machines- Ford’s assembly line production
corporate consolidation
profits continued to increase by large margins, government did not enforce regulations
holding company and what it led to
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 selling the product. led o monopoly- complete control of entire industry
horizontal and vertical integration
horizontal integration created monopolies- Standard Oil created by Rockefeller, several smaller companies within the same industry are combined to form one larger company
vertical integration- allows other companies in the same industry to survive and compete in the marketplace- one company buys out all factors of production, from raw materials to finished product
As businessmen became more powerful, public resentment increased and the government responded with laws to restrict monopolies, which were weakened by the courts. What is an example of this?
Sherman Antitrust Act- law that forbid any “combination or conspiracy in the restraint of trade”
Andrew Carnegie and his beliefs
steel mogul, promoted a philosophy based on evolution- argued that in business, as in nature, unrestricted competition allowed only for the “fittest” to survive- SOCIAL DARWINISM
Gospel of Wealth
Carnegie asserted that great wealth brought with it social responsibility- Gospel of Wealth
How did manufacturers cut costs?
hired women and children, as well as newly arrived immigrants. a lot of poverty
What did advances in mass transportation allow for?
allowed middle class to live in nicer neighborhoods and commute to work. As a result, immigrants and migrants made up he majority of city populations
Prejudice against Southern and Eastern European immigrants was widespread, resulting in what?
many immigrants settling in ethnic neighborhoods, usually in tenements.
political bosses and political machines
helped the poor find homes and jobs, apply for citizenship and voting rights, but in return expected community members to vote as instructed
Widespread misery in cities caused the creation of what
labor unions, such as Knights of Labor
What were the goals of the Knights of Labor?
- 8 hr workday
- equal pay for equal work for men and women
- child labor laws
- safety and sanitary codes
- federal income tax
- government ownership of railroad and telegraph lines
American Federation of Labor
formed as a confederation of trade unions- most refused to accept immigrants, blacks, and women among their memberships
settlement houses
founded in poor neighborhoods, became community centers, provided schooling, childcare, and cultural activities