The Second Industrial Revolution Technology and Business The theory of technological Systems technologies do not act on their own but are enmeshed on systems that are not only technical but also social political economic and cultural The rise of Corporations Defining qualities o Amassed substantial capital o Issued stock which spread ownership ability to make money to start company o Limited liability o Separated ownership from management which allowed business to outlive their founders and created a new class of middle managers Two new corporate Strategies o Vertical integration control of as many facets of production as possible from raw materials to marketing finished goods own everything Andrew Carnegie head of US steal o Horizontal Combination Expansion of ownership through single sector Trusts John D Rockefeller Owned the Oil Companies of the US o Controlled 90 of the US oil o Became the first billionaire in the world Holding Companies Organizing the Workplace Maagerialism White collar managers take over shop floor and rationalize work Frederick Winslow Taylor and Scientific Management o Time and motion studies o Production specifications and the one best way Henry Ford and Fordism Standardization Assembly line highland Park plant opened in 1913 Workers deskilled Consumption and the 5 day double the average pay wanted the workers to be able to afford what they made Changes in the Labor Force From Artisan to Worker Artisanal production as craft based Reliant upon skills and independence The first factories The essential features of industrial production o Mechanization o Interchangeability o Standardization o Wage labor o Time Discipline o The Factory o Mass Production The Experience of work Low and fluctuating wages and long hours Repetitious menial labor Crisis in work ethic No safety net workman s comp health coverage unemployment Unions and Organized Labor Knights of Labor 1869 o Terence Powderly as leader American Federation of Labor AFL 1886 o Led by Samuel Gompers o Federation of craft unions o Apolitical and conservative Industrial workers of the world IWW or Wobblies 1905 Social Darwinism and the Gospel of Wealth Social Darwinism Herbert Spence and William Graham Sumner Adapted Darwin s notion of survival of the fittest to social groups Rich are fit and the poor are unfit and should not be helped The Gospel of Wealth Andrew Carnegie essay published on 1889 Called for rich to live modestly and had a responsibility to the poor Gained a lot of praise but few converts