6.1 The age of invention and economic growth
Thomas A. Edison's Workshop
● Built in 1876 in Menlo Park, New Jersey
● Produced important inventions of the century
● Edison's greatest invention was the light bulb
● Pioneer work in power plant development was immensely important
Light Bulb and Power Plants
● Allowed for the extension of the workday (previously ended at sundown)
● Wider availability of electricity
● Created new uses for electricity for industry and home
Age of Invention
● Last quarter of 19th century known as Age of Invention
● Many technological advances made (e.g. Edison's)
● Advances generated greater opportunities for mass production
Economic Growth
● Economy grew at a tremendous rate
● People known as "captains of industry" (or "robber barons") became extremely rich and
powerful
● Owned and controlled new manufacturing enterprises
Industrialization: introduction of faster machines in manufacturing leading to economies of
scale and decreased cost per unit.
● Assembly line production: employees performing repetitive tasks leading to increased
efficiency but also dangerous working conditions and long working hours.
● Corporate Consolidation: large businesses resulting from economies of scale and lack of
government regulations, leading to monopolies and holding companies.
● Horizontal Integration: combining smaller companies within the same industry to form a
larger company through legal buyouts or illegal practices.
● Vertical Integration: one company buys out all the factors of production from raw
materials to finished product, still allowing competition in the marketplace.
● Problems with Consolidation: required large amounts of money leading to financial
panics and bank failures, public resentment, and government response in the form of
antitrust legislation.
● Sherman Antitrust Act of 1890: law forbidding "restraint of trade" combination,
ambiguous wording leading to pro-business Supreme Court interpretation.
, ● U.S. v. E. C. Knight Co. 1895: Court ruled that E. C. Knight, controlling 98% of the
sugar refining plants, did not violate the Sherman Antitrust Act.
● Gospel of Wealth: idea that wealth should be used for the betterment of society and not
just for personal gain, advocated by Andrew Carnegie.
Factories and City Life
● Factories were established in cities in the 19th century to reduce labor costs and
maximize profits
● Women and children were hired, as well as newly arrived immigrants in search of work
● As a result, the cities suffered from poverty, crime, disease, and a lack of livable housing
● Factories were dangerous, and there was no insurance or workmen's compensation
● Middle class moved away to nicer neighborhoods, leaving mostly immigrants and
migrants in the city
● Majority of immigrants arrived from Southern and Eastern Europe starting from 1880
● Ethnic neighborhoods, tenements were common, and minorities faced prejudice and
limited job opportunities
● Municipal governments were practically nonexistent, and services for the poor were
provided by churches, private charities, and ethnic communities, or by corrupt political
bosses
● Bosses helped the poor find homes, jobs, apply for citizenship, and voting rights but at a
high cost of criminal means
● William "Boss" Tweed of Tammany Hall in New York City was a notorious political boss
who embezzled millions of dollars through corruption
● Widespread misery in cities led to the formation of labor unions to improve treatment of
workers
● Labor unions were considered radical and faced opposition from the government,
businesses, and the courts
● Knights of Labor was one of the first national labor unions, founded in 1869
● Goals of the Knights of Labor included an 8-hour workday, equal pay for equal work,
child labor laws, safety and sanitary codes, federal income tax, and more.
Knights of Labor
● Advocated arbitration over strikes
● Became increasingly violent in efforts to achieve goals
● Popularity declined due to violence and association with political radicalism
● Terrence Powderly, failed strikes, and Haymarket Square Riot contributed to decline
● Public saw unions as subversive and violent
Homestead Steel Strike
● Workers protested wage cut, refusal to form a union
● Factory manager Henry Clay Frick locked out workers, hired replacements, and called
in Pinkerton Detective force
Thomas A. Edison's Workshop
● Built in 1876 in Menlo Park, New Jersey
● Produced important inventions of the century
● Edison's greatest invention was the light bulb
● Pioneer work in power plant development was immensely important
Light Bulb and Power Plants
● Allowed for the extension of the workday (previously ended at sundown)
● Wider availability of electricity
● Created new uses for electricity for industry and home
Age of Invention
● Last quarter of 19th century known as Age of Invention
● Many technological advances made (e.g. Edison's)
● Advances generated greater opportunities for mass production
Economic Growth
● Economy grew at a tremendous rate
● People known as "captains of industry" (or "robber barons") became extremely rich and
powerful
● Owned and controlled new manufacturing enterprises
Industrialization: introduction of faster machines in manufacturing leading to economies of
scale and decreased cost per unit.
● Assembly line production: employees performing repetitive tasks leading to increased
efficiency but also dangerous working conditions and long working hours.
● Corporate Consolidation: large businesses resulting from economies of scale and lack of
government regulations, leading to monopolies and holding companies.
● Horizontal Integration: combining smaller companies within the same industry to form a
larger company through legal buyouts or illegal practices.
● Vertical Integration: one company buys out all the factors of production from raw
materials to finished product, still allowing competition in the marketplace.
● Problems with Consolidation: required large amounts of money leading to financial
panics and bank failures, public resentment, and government response in the form of
antitrust legislation.
● Sherman Antitrust Act of 1890: law forbidding "restraint of trade" combination,
ambiguous wording leading to pro-business Supreme Court interpretation.
, ● U.S. v. E. C. Knight Co. 1895: Court ruled that E. C. Knight, controlling 98% of the
sugar refining plants, did not violate the Sherman Antitrust Act.
● Gospel of Wealth: idea that wealth should be used for the betterment of society and not
just for personal gain, advocated by Andrew Carnegie.
Factories and City Life
● Factories were established in cities in the 19th century to reduce labor costs and
maximize profits
● Women and children were hired, as well as newly arrived immigrants in search of work
● As a result, the cities suffered from poverty, crime, disease, and a lack of livable housing
● Factories were dangerous, and there was no insurance or workmen's compensation
● Middle class moved away to nicer neighborhoods, leaving mostly immigrants and
migrants in the city
● Majority of immigrants arrived from Southern and Eastern Europe starting from 1880
● Ethnic neighborhoods, tenements were common, and minorities faced prejudice and
limited job opportunities
● Municipal governments were practically nonexistent, and services for the poor were
provided by churches, private charities, and ethnic communities, or by corrupt political
bosses
● Bosses helped the poor find homes, jobs, apply for citizenship, and voting rights but at a
high cost of criminal means
● William "Boss" Tweed of Tammany Hall in New York City was a notorious political boss
who embezzled millions of dollars through corruption
● Widespread misery in cities led to the formation of labor unions to improve treatment of
workers
● Labor unions were considered radical and faced opposition from the government,
businesses, and the courts
● Knights of Labor was one of the first national labor unions, founded in 1869
● Goals of the Knights of Labor included an 8-hour workday, equal pay for equal work,
child labor laws, safety and sanitary codes, federal income tax, and more.
Knights of Labor
● Advocated arbitration over strikes
● Became increasingly violent in efforts to achieve goals
● Popularity declined due to violence and association with political radicalism
● Terrence Powderly, failed strikes, and Haymarket Square Riot contributed to decline
● Public saw unions as subversive and violent
Homestead Steel Strike
● Workers protested wage cut, refusal to form a union
● Factory manager Henry Clay Frick locked out workers, hired replacements, and called
in Pinkerton Detective force
