UNIT 6: INDUSTRIAL REVOLUTION
The Industrial Revolution was a time when the invention of steam power, new agricultural technology, and machines led to the growth of factories. Mass production allowed people to make products faster and sell them cheaper. Railroads spread across the country, allowing goods and people to move easily.
Government Supports Railroad Expansion
During the 19th century, the federal government gave railroad companies free land to help encourage construction.
1. During the late 19th century, the Federal Government helped the transcontinental railroad companies by
1. breaking up railroad monopolies
2. providing free land for railroad construction
3. setting safety standards for railroad operations
4. establishing uniform shipping rates
2. In the second half of the 1800s, the federal government encouraged the building of transcontinental railroads by
1. giving land to the railroad companies
2. purchasing large amounts of railroad stock
3. forcing convicts to work as laborers
4. taking control of the railroad trust
3. In the late 19th century, the federal government aided the growth of transcontinental railroads by 1. legalizing rate rebates for large shippers
2. providing free land for laying railroad tracks
3. requiring standard-gauge tracks on all interstate lines
4. forcing small lines to consolidate into large systems
Effects of Railroads
Railroads provided the most efficient means of transportation at that time, which made transportation of goods and people faster.
1. Between 1865 and 1920, railroad companies contributed to the economic development of the United States by
1. eliminating the need for water transportation
2. concentrating on military rather than civilian tasks
3. encouraging the formation of farmworkers’ unions
4. providing the most efficient means of transportation over long distances
2. During the 19th century, the completion of the Erie Canal and the transcontinental railroads contributed to the industrial growth of the United States by
1. making the movement of goods easier and cheaper
2. protecting the United States from low-priced foreign imports
3. encouraging subsistence farming
4. connecting the United States to markets in Mexico and Canada
Impact on Farmers
In the late 1800s, farmers wanted government regulation of railroads because the railroads were charging high rates to transport farm products. To influence the government to stop the abuses of industrialization, the farmers started a third political party called the Populist Party. Another movement that protested big business and wanted to protect farmers was the Granger Movement.
1. In the late 1800s, farmers pressed for government regulation of railroads because the farmers believed that the railroads were
1. overcharging them for services
2. ignoring the service needs of major cities
3. refusing to transport the farmers' crops to market
4. ignoring safety standards
2. During the late 19th century, which government action was most strongly supported by farmers in the United States?
1. regulation of railroads
2. reduction of the Federal income tax
3. limits on the amount of money in circulation
4. establishment of a minimum wage for farm laborers
3. In response to the demands of farmers and small business owners, Congress enacted laws in the late 19th century that
1. supported the organization of farm cooperatives
2. regulated the activities of railroads and trusts
3. provided direct payments to farmers to help them buy modern machinery
4. dropped tariff rates to the lowest point in the century
4. Which person would have been most likely to support the Granger movement and the Populist Party in the 1890s?
1. a banker in Philadelphia
2. a farmer in Kansas
3. a factory worker in Pittsburgh
4. a small-business owner in New York City
5. The Interstate Commerce Act of 1887 and the Populist movement of the 1890s were both reactions to
1. unrestricted immigration
2. United States imperialism
3. the abuses of industrialization
4. economic depressions
Populist Party Platform
The Populist Party wanted: coinage of silver, a national income tax, government ownership of railroads, and direct election of senators. Even though the Populist Party did not get its candidates elected president, it is considered a successful third party because some of its proposed reforms became law. These reforms included the direct election of senators and the creation of a graduated income tax. Also, Congress passed laws to regulate railroads and trusts.
1. The national income tax, free and unlimited coinage of silver, and the direct election of senators were proposals that were included in the
1. Declaration of Sentiments
2. Republican plan for Reconstruction
3. Populist Party platform
4. Federal Reserve System
- Free and unlimited coinage of silver
- Government ownership of railroads
- Graduated income tax
2. Which of these political parties first proposed these reforms in its platform?
1. Republican Party in 1876
2. Populist Party in 1892
3. “Bull Moose” Party in 1912
4. Democratic Party in 1932
3. Although the Populist Party failed to elect its candidates to the Presidency, some of the Party's aims were later achieved by the
1. adoption of the gold standard
2. elimination of racial segregation laws in the South
3. creation of a graduated income tax and the direct election of Senators
4. establishment of higher protective tariffs on manufactured goods
4. The success if the Populist Party of the 1890s can best be measured by which development?
1. The party replaced one of the two major parties.
2. The part gained support among business leaders.
3. Two of the party’s candidates were elected to the presidency.
4. Several of the party’s proposed reforms were made into laws.
5. The Populist Party can be considered a successful third party because
1. its Presidential candidate won the election of 1892
2. it maintained control of Congress for several years during the 1890's
3. workers and business owners united to support reductions in the tariff
4. laws were eventually passed that attained some of its goals
Agricultural Revolution
The Industrial Revolution was fueled by the Agricultural Revolution, when new technology was developed to make agriculture (farming) more productive. As a result, more food was made and fewer people had to farm. Increased supplies of food could feed more people in the cities (urban dwellers).
1. Why are fewer farms needed in the United States economy today than were needed in 1900?
1. Most foods are now imported.
2. Most farmland has been turned into suburbs.
3. The use of technology has raised agricultural productivity.
4. The total population is declining.
2. What was a major effect of the Agricultural Revolution in the United States during the late 1800s?
1. Unemployed factory workers could find jobs in agriculture.
2. Food supplies were increased to feed urban dwellers.
3. The size of farms decreased.
4. United States farm exports decreased.
“New South”
After the Civil War, economic changes took place in the South, including industrial development and agricultural diversification (growing more types of crops).
Many former slaves began working as sharecroppers, which meant that they farmed on a plantation for very little pay. The sharecropping system kept African Americans economically dependent on whites.
1. Following Reconstruction, the term New South was most often used to describe
1. changes in the Southern economy
2. new attitudes in race relations
3. the growth of the Republican Party in the South
4. the decline of the sharecropping system
2. After 1877, which economic changes were encouraged in the "New South"?
1. free land and public education for the freedmen
2. return to small family-owned farms and introduction of cottage industries
3. industrial development and agricultural diversification
4. elimination of sharecropping and increased subsistence farming
3. In the ten years following the Civil War, a large number of former slaves earned a living by becoming
1. conductors on the Underground Railroad
2. workers in Northern factories
3. sharecroppers on Southern farms
4. gold miners in California
4. What effect did the system of sharecropping have on the South after the Civil War?
1. It kept formerly enslaved persons economically dependent.
2. It brought investment capital to the South.
3. It encouraged Northerners to migrate south.
4. It provided for a fairer distribution of farm profits.
Causes of Industrialization
Industrial growth was furthered by the expansion of railroads and the availability of natural resources. Most industrial centers started in cities near water, where waterpower could help operate machines.
At this time, New York became a powerful state because New York City became the center of financial and industrial activities.
1. One factor that furthered industrialization in the United States between 1865 and 1900 was the
1. development of the airplane
2. expansion of the railroads
3. mass production of automobiles
4. widespread use of steamboats
2. Which geographic factor had the greatest influence on early patterns of industrialization in the United States?
1. scarcity of flat land on which to build factories
2. shortages of timber and coal
3. desire of workers to live in mild climates
4. availability of waterpower to operate machines
3. During the 19th century, New York was one of the most powerful states in the nation because it 1. became the financial and industrial center of the nation
2. led the nation in achieving political reforms
3. produced more presidents than any other state
4. offered more civil liberties than any other state
Effects of Industrialization
Industrialization had many effects on the United States. First, improvements in technology and worker productivity led to an increase in industrial output. Second, people left rural areas (farms) and moved to urban areas (cities), which was called urbanization. Immigration increased because people came here to work in factories. An increase in city dwellers led to the growth of tenements and slums, where poor people lived in terrible conditions. The middle class expanded. There was also widespread use of child labor. Finally, industrial growth led to imperialism (when a strong country takes over a weak country), because businesses wanted resources and markets for their goods.
1. Between 1870 and 1910, the changes in output shown in the table were most directly the result of
1. shifts in consumer tastes
2. competition from European industries
3. efforts by industry to meet government production quotas
4. improvements in technology and worker productivity
2. In the last half of the 1800s, which development led to the other three?
1. expansion of the middle class 3. formation of trusts
2. growth of industrialization 4. creation of labor unions
3. What major trend related to population occurred during the industrialization boom of the late 1800s?
1. Immigration decreased. 3. Urbanization increased.
2. Suburbanization decreased. 4. Migration to rural areas increased.
4. What was a major cause of the trend shown in the chart?
1. availability of cheap farmland
2. increased industrialization
3. end of restrictions on immigration
4. completion of the interstate highway system
5. Which statement describes a result of the Industrial Revolution in the United States?
1. Farm production decreased.
2. Slavery in the South increased.
3. The population of the cities decreased.
4. Immigration to the United States increased.
6. During the late 19th century, the industrial growth encouraged United States imperialism because of the desire of business to
1. obtain new markets for American products
2. compete with foreign industries
3. provide humanitarian aid to poor nations
4. industrialize underdeveloped nations
Economic Philosophies
At this time, the government practiced a policy of laissez faire, which greatly influenced the growth of the U.S. economy. Laissez faire means the government does not interfere with the economy; investments, prices, and profits are controlled by individuals and businesses. Prices are determined by supply and demand. This type of economy is also called a free-enterprise or free market system.
Since the government was not regulating businesses, laissez faire led to the growth of trusts and monopolies (when one company controls an entire industry). These businesses trusts became very powerful, influencing government and controlling most of the wealth.
Many people, such as the Populists and the Progressives, opposed laissez faire policies, because they believed that the government should protect society by regulating big businesses.
1. Which factor most influenced the growth of the United States economy between 1865 and 1900?
1. development of the sharecropping system
2. success of organized labor
3. governmental policy of laissez faire
4. restrictions on immigration
2. Which economic policy argues that government should limit, as much as possible, any interference in the economy?
1. socialism 3. mercantilism
2. laissez-faire 4. protectionism
3. Which statement identifies a characteristic of a free-enterprise economic system?
1. Investments and profits are controlled by individuals.
2. The individual and the government work together to make a profit.
3. The government makes most of the economic decisions.
4. Profits from businesses are used to benefit needy members of society.
4. According to the theory of laissez-faire capitalism, prices of products are determined by the
1. interaction of supply and demand
2. cost of producing the products
3. government
4. bankers
5. During the second half of the 19th century, government commitment to the principles of laissez-faire capitalism contributed to the
1. healthy and positive competition between businesses
2. the growth of small business firms
3. friendly working relationships between labor and management
4. economic domination by business trusts
6. Many reformers who opposed the laissez-faire attitude of the late 19th century argued that
1. the National Government should not interfere in the activities of big business
2. national wealth could best be assured by the accumulation of gold
3. the idea of rugged individualism is vital to the nation's economic growth
4. government should protect society through the regulation of business
7. The Populist and the Progressive movements were similar in their approaches to reform in that both
1. supported the return of powers to the state governments
2. promoted the use of violent strikes and protests against big business organizations
3. opposed the strict laissez-faire attitudes of the federal government
4. lobbied for immediate social and economic equality for African Americans
Corporations
During industrialization, businesses formed corporations. Corporations enabled businesses to make more investment capital. They also allowed businesses to increase efficiency.
1. The corporate form of business became dominant in the late 19th century mainly because of the need of business for
1. protective tariffs
2. assembly-line production
3. a supply of cheap labor
4. large amounts of investment capital
2. After the Civil War, the corporation became an important form of business organization in the United States because corporations
1. enabled management to have close contact with workers
2. received the support of organized labor
3. were owned by local governments
4. created large amounts of investment capital
3. During the latter half of the 19th century, many business organizations in the United States combined into large corporations because
1. income levels for workers would be improved
2. government intervention in economic affairs would decline
3. efficiency in production methods could be increased
4. economic possibilities outside the United States could be explored
Monopolies and Robber Barrons
As a result of laissez faire economic policies, a few men bought and controlled entire industries, forming monopolies (trusts). These monopolies eliminated competition, because small businesses could not compete with big businesses. These big business leaders were sometimes called robber barons, because they exploited their workers and used ruthless business tactics to accumulate their wealth. Big business leaders also supported high tariff rates (taxes on foreign products), to encourage Americans to support American businesses.
Examples of famous monopolists are: Andrew Carnegie, John D. Rockefeller, and J.P. Morgan. Although these men got rich at the expense of workers, they also used their wealth to support projects that helped society. For example, Rockefeller and Carnegie built buildings in NYC, like performance halls and libraries, to benefit the community. This is called philanthropy.
1. During the late 1800s, leaders of big business gave the greatest support to the passage of
1. antitrust laws 3. immigration restrictions
2. higher tariff rates 4. railroad regulation
2. Business formed trusts, pools, and holding companies mainly to
1. increase profits by eliminating competition
2. offer a wide range of goods and services to consumers
3. provide employment opportunities for minorities
4. protect the interests of workers
3. During the late 1800s, pools and trusts were used by big business in an effort to
1. increase imports
2. limit competition
3. improve working conditions
4. reduce corporate income taxes
4. The term business monopoly can best be described as
1. the most common form of business in the United States
2. government control of the means of production
3. an agreement between partners to manage a corporation
4. a company that controls or dominates an industry
5. What economic concept is best illustrated by this cartoon?
1. supply and demand 3. monopoly
2. mercantilism 4. trade
6. The term "robber barons" is used to describe many industrialists of the late 19th century mainly because they
1. made large charitable donations to worthy causes
2. sought to maximize their profits by eliminating competition and exploiting workers
3. attempted to stimulate the economy by keeping the prices of their products as low as possible
4. opposed the entry of poor and uneducated immigrants into the United States
7. One reason John D. Rockefeller, Andrew Carnegie, and J. Pierpont Morgan were sometimes called robber barons was because they
1. robbed from the rich to give to the poor
2. made unnecessarily risky investments
3. used ruthless business tactics against their competitors
4. stole money from the federal government
8. The Rockefeller Foundation, Carnegie Hall, and the Morgan library illustrates various ways that entrepreneurs and their descendants have
1. suppressed the growth of labor unions
2. supported philanthropic activities to benefit society
3. applied scientific discoveries to industry
4. attempted to undermine the United States economic system
Social Darwinism
Social Darwinism was an economic theory that applied Charles Darwin’s theory of evolution to the business world. Darwin said that in nature, the strongest species survive, called the “survival of the fittest.” Monopolists used this argument to justify their getting rich at the expense of the poor. They said that economic success comes to those who work the hardest and are the most competent (capable). People who supported Social Darwinism also supported laissez faire economics, because they did not want the government to regulate big businesses.
1. The 19th-century philosophy of Social Darwinism maintained that
1. the government should have control over the means of production and the marketplace
2. all social class distinctions in American society should be eliminated
3. economic success comes to those who are the hardest working and most competent
4. wealth and income should be more equally distributed
"The growth of a large business is merely survival of the fittest. The American beauty rose can be produced in the splendor and fragrance which bring cheer to its beholder only by sacrificing the early buds which grow up around it. This is not an evil tendency in business. It is merely the working out of a law of nature and a law of God. . . ."
-- John D. Rockefeller, Jr.
2. Which concept is described by this passage?
1. communism
2. Populism
3. utopian socialism
4. Social Darwinism
3. During the late 1800s, the defenders of Social Darwinism would most likely have supported
1. labor unions
2. progressive income taxes
3. laissez-faire capitalism
4. environmental conservation
4. During the late 1800s, the principles of Social Darwinism were used to justify
1. support for unlimited immigration
2. desegregation of public facilities
3. the use of strikes by organized labor
4. the accumulation of great wealth by industrialists
Opposition to Trusts / Support for Regulation
In the late 19th century, monopolies had a large amount of influence on Congress. For years, monopolists had used their money to influence government decisions. But farmers and small business owners could not compete, and the economy needed to have fair competition. As a result, Congress began to pass anti-trust legislation (laws) to break up monopolies and regulate big businesses. Three examples of anti-trust legislation were: the Interstate Commerce Act, the Sherman Anti-Trust Act, and the Clayton Anti-Trust Act. The purpose of these laws was to encourage competition.
1. What is the main idea of this cartoon?
1. Big business greatly influenced the actions of the Senate.
2. The Senate had to continue to pass legislation to support conservation efforts.
3. The Senate needed more financial support from monopolies.
4. Relations between industry and the Senate benefited the general public.
Base your answer to questions 2 and 3 on the accompanying cartoon.
2. Which 19th-century practice does this cartoon illustrate?
1. forming cooperatives
2. establishing trade zones
3. creating monopolies
4. expanding global markets
3. The cartoonist would most likely support federal government attempts to
1. pass antitrust legislation
2. limit regulation of business
3. establish high tariffs
4. stop industrial pollution
4. In response to the demands of farmers and small business owners, Congress enacted laws in the late 19th century that
1. supported the organization of farm cooperatives
2. regulated the activities of railroads and trusts
3. provided direct payments to farmers to help them buy modern machinery
4. dropped tariff rates to the lowest point in the century
5. Both the Interstate Commerce Act and the Sherman Antitrust Act were
1. inspired by the effectiveness of earlier state laws
2. designed to protect business from foreign competition
3. declared unconstitutional by the Supreme Court in the late 1800s
4. passed by the federal government to regulate big business
6. The Sherman Antitrust Act and the Clayton Antitrust Act were both designed to
1. establish safe working conditions in factories
2. promote fair competition in business
3. force industry to use natural resources wisely
4. decrease Federal income taxes on corporations
Supreme Court Decisions
At this time, several Supreme Court cases were passed that affected the economy. The cases McCulloch v. Maryland, Gibbons v. Ogden, and Wabash, St. Louis & Pacific Railroad v. Illinois dealt with government regulation of interstate commerce and big business. They also strengthened the supremacy (power) of the national government.
1. The decision in Gibbons v. Ogden (1824) and the decision in Wabash, St. Louis & Pacific Railroad v. Illinois (1886) addressed the issue of
1. congressional privileges
2. regulation of interstate commerce
3. state taxation of federal property
4. contract rights
2. The Supreme Court decisions in McCulloch v. Maryland, Gibbons v. Ogden, and Wabash v. Illinois dealt with
1. freedom of speech
2. equal protection under the law
3. the supremacy of the national government
4. the rights of labor unions
3. The Supreme Court cases of Wabash, St. Louis & Pacific R.R. v. Illinois (1886) and United States v. E.C. Knight Co (1895) were based on laws that were intended
1. limit the power of big business
2. support farmers’ efforts to increase the money supply
3. maintain a laissez-faire approach to the economy
4. improve working conditions for immigrants
Labor Unions
In the 19th century, labor unions formed to try and improve working conditions and hours. But employers and the government were hostile toward workers. Employers used blacklists and yellow-dog contracts, which intimidated workers from joining unions, to prevent unions from organizing effectively. The government usually took sides with the businesses.
Unions wanted the legal right to organize and bargain collectively. Collective bargaining is when the employer and the workers draw up a contract. Unions such as the American Federation of Labor eventually won better wages and working hours. Famous labor activists were Samuel Gompers, Terence Powderly, and Eugene Debs. Labor unions opposed immigration because immigrants would work for cheaper wages.
1. In the 19th century, the major national labor unions wanted to improve the position of workers mainly by
1. obtaining the legal right to organize and bargain collectively
2. using government troops to settle labor disputes with management
3. supporting government ownership of major industries
4. endorsing a third political party for workers only
“. . .You are our employers, but you are not our masters. Under the system of government we have in the United States we are your equals, and we contribute as much, if not more, to the success of industry than do the employers. . .”
— testimony, United States Congress, April 29, 1911
2. The point of view expressed in the quotation was most likely that of a
1. recent immigrant responding to discrimination
2. government official campaigning for reelection
3. woman demanding the right of suffrage
4. labor leader speaking about the rights of workers
3. The process of collective bargaining is best described as
1. meetings of joint congressional committees to achieve compromise on different versions of a proposed law
2. diplomatic strategies used to make treaties between two nations
3. discussions between labor union leaders and management to agree on a contract for workers
4. negotiations between a multinational company and a nation with which the company wishes to do business
4. During the late 19th century, which practices were used by employers against workers?
1. boycotts and lockouts
2. picketing and walkouts
3. blacklists and yellow-dog contracts
4. mass rallies and sit-down strikes
5. In the late 1800s, most strikes by unions were unsuccessful mainly because
1. unions were generally considered to be unconstitutional
2. government usually support business instead of workers
3. strikes had never been used before in labor disputes
4. strikes failed to use militant tactics
6. What was the main benefit that labor unions of the late 19th century gained for their members?
1. job security
2. improved wages and hours
3. paid vacations
4. health insurance
7. The success of the American Federation of Labor (AFL) in the late 19th century can be attributed to its policy of
1. supporting candidates of its own political party
2. focusing on gains in wages and working conditions
3. using violence to combat big corporations
4. allowing only steel workers into the union
8. During the late 19th century, Samuel Gompers, Terence Powderly, and Eugene Debs were leaders in the movement to
1. stop racial segregation of Native American Indians
2. limit illegal immigration
3. gain fair treatment of Native American Indians
4. improve working conditions