Sunday, November 14, 2010

Honors World History II: 15 November 2010

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The First Amendment

The analysis for the last Quiz has been posted and of course the grades have been posted as well.

In-class assignment:

The Transportation Revolution

Web Code: nae-1901

Goal: analyze how improvements in technology and transportation fueled the Industrial Revolution

Activity: write journal entries from the point of view of someone living during the Industrial Revolution

Background Information (Cf.

Booming railroads transformed England, economically and socially. Goods and people were able to travel across land more swiftly. Because of reduced shipping costs, both consumption and production grew. Middle class families could now afford to travel, and so day trips became popular. Small resorts developed and professional sports also grew, as the rails allowed teams to travel and play each other.

Conduct the Activity

Visit The Victorian Web to view information on The Industrial Revolution and Victorian railways. Analyze primary sources and artifacts and note the effects of the railroads on daily life. Write journal entries based on this information. You may work with a partner or remain with your group for this in-class assignment.

Victorian Railways and their Predecessors

The Social Effects of Victorian Railways

Danger inside the Train: Crime on Victorian Railways

The Death of William Huskisson

The Personalities of Victorian Railways

Follow-Up Assessment

To prepare for a class discussion, consider the following questions:

* Why was the development of railways important to industrialization?
* How did it change people's daily lives?
* What were the economic and social benefits of the railroads?

For those students who finish early: write an essay on "The Big Rock Candy Mountain." This is a traditional folk song that has been recorded and revised over time. While writing your journal entry, the music has been playing which indicates the revisions of the song and its re-interpretation.

What has changed in versions of the song over time? What is the difference between the original Harry McClintock version, Burl Ives, Lawrence Welk, and in "O Brother, Where Art Thou?" How have the lyrics changed? Do you understand better how folk songs are adapted over time?

HW is available below (per our usual procedure HW is also posted at the bottom of the daily blog post as well as being posted on GradeConnect):

Chapter 12

Primary Sources Library

Refer to pp. 776-777 for primary source readings to accompany Unit 3.
Looking Back . . . To See Ahead


Great Britain

Workshop of the World

The United States

The Revolution Spreads


The Search for Markets

Why It Matters

Chapter 12 Industrialization and Nationalism 1800-1870

Key Events

The Impact Today

History Online

Chapter Overview

Chapter Overviews

The Industrial Revolution and a wave of liberal nationalist revolutions transformed Europe during the nineteenth century. A weakened old order gave way, and a number of unified European states emerged.

While the American Revolution and the French Revolution were being fought in the late 1700s, another kind of revolution took hold in Britain. Though not political, this revolution—known as the Industrial Revolution—brought about just as many changes to society. Paul Johnson, historian, describes this time period as “the age, above all in history, of matchless opportunities for penniless men with powerful brains and imaginations.”

Section 1 The Industrial Revolution

The Industrial Revolution began in the late eighteenth century and turned Great Britain into the first and the richest industrialized nation. A series of technological advances caused Great Britain to become a leader in the production of cotton, coal, and iron. After the introduction of the first steam-powered locomotives, railroad tracks were laid across Great Britain, reducing the cost of shipping goods. The Industrial Revolution spread to the rest of Europe and North America. In the United States, the railroad made it possible to sell manufactured goods from the Northeast across the country. The Industrial Revolution had a tremendous social impact in Europe. Cities grew quickly, and an industrial middle class emerged. The industrial working class, meanwhile, dealt with wretched working conditions. These conditions gave rise to socialism, a movement aimed at improving working conditions through government control of the means of production.

Section 2 Reaction and Revolution
After the defeat of Napoleon, European leaders met at the Congress of Vienna to restore the old order and establish stable borders. Great Britain, Russia, Prussia, and Austria met regularly to maintain the new balance of power. Meanwhile, liberalism and nationalism—two philosophies that opposed the old order—were on the rise. Many liberals were middle-class men who wanted a constitution and a share in the voting rights enjoyed by landowners. Liberals tended to be nationalists as well. In 1830, France's upper middle class overthrew the king and installed a constitutional monarchy. Belgium broke free of Dutch control. Revolts in Poland and Italy failed. Economic crises in 1846 led to a revolt of the French working classes. This time, a Second Republic was formed, under the leadership of Napoleon's nephew, Louis-Napoleon. Revolts followed in German states, Italy, and the Austrian Empire. In each case the old order was restored.

Section 3 National Unification and Nationalism
The Crimean War destroyed the Concert of Europe. A defeated Russia retreated from European affairs, and Austria was isolated. Italian and German nationalists exploited Austria's isolation. Both gained important territory in the Austro-Prussian War and the Franco-Prussian War, and a unified Germany and Italy emerged. Growing prosperity and expanded voting rights helped Great Britain avoid revolution in 1848. In 1852, the French voted to restore their empire. Louis-Napoleon became the authoritarian Napoleon III and ruled until France's defeat in the Franco-Prussian War. Austria granted Hungarians the right to govern their own domestic affairs. In Russia, Czar Alexander II freed the serfs and instituted other reforms. When a radical assassinated him, his son, Alexander III, reverted to repressive rule. The United States endured a costly civil war between the Northern and Southern states. After two short rebellions, Canada won its independence from Great Britain.

Section 4 Romanticism and Realism
At the end of the eighteenth century, a new intellectual movement, known as romanticism, emerged as a reaction to the ideas of the Enlightenment. Romantics emphasized feelings, emotion, and imagination as sources of knowing. Many were passionately interested in the past. Gothic literature, was critical of industrialization. Meanwhile, the Industrial Revolution revived interest in science. The new age of science produced important ideas, such as Louis Pasteur's germ theory of disease and Charles Darwin's theory of natural selection. The scientific outlook influenced the work of the realist novelists and artists, who depicted everyday life in realistic, and unromantic detail.

Chapter Preview

A Story That Matters

The Congress of Vienna

The chief goal of the Vienna decision makers was to create a lasting peace by establishing a balance of power and protecting the system of monarchy. Each of the leaders also pursued his own goals. Metternich, the dominant figure at the Congress, wanted to restore things the way they were in 1792. Alexander I urged a “holy alliance” of Christian monarchs to suppress future revolutions. Lord Castlereagh was determined to prevent a revival of French military power. The aged diplomat Talleyrand shrewdly played the other leaders against one another so France would be accepted as an equal partner.

Chapter 12 Section 1 The Industrial Revolution
A Wordle view is useful here (or alternatively

Wordle: Ch. 11 Sec. 1 Industrialization

vozMe can read the Section 1 The Industrial Revolution overview for you.


Section 1 The Industrial Revolution

The Industrial Revolution began in the late eighteenth century and turned Great Britain into the first and the richest industrialized nation. A series of technological advances caused Great Britain to become a leader in the production of cotton, coal, and iron. After the introduction of the first steam-powered locomotives, railroad tracks were laid across Great Britain, reducing the cost of shipping goods. The Industrial Revolution spread to the rest of Europe and North America. In the United States, the railroad made it possible to sell manufactured goods from the Northeast across the country. The Industrial Revolution had a tremendous social impact in Europe. Cities grew quickly, and an industrial middle class emerged. The industrial working class, meanwhile, dealt with wretched working conditions. These conditions gave rise to socialism, a movement aimed at improving working conditions through government control of the means of production.


Analyze why life changed as industry spread.

Summarize how an agricultural revolution led to the growth of industry.

Outline the new technologies that helped trigger the Industrial Revolution.

Key Terms Cf.



cottage industry


industrial capitalism


People to Identify

James Watt

Robert Fulton

Additional Terms, People, and Places




Voices From the Past

The Industrial Revolution in Great Britain, p. 363

In-class Activity

We will brainstorm ways that you use machines and machine-made items every moment of your life, from the time your alarm clock wakes you up in the morning until you turn the lights off at night.

We can create group word clouds on Wordle:


In-Motion Animations (Map): Industry in Great Britain by 1850

Summarize what aspects of life were changed by the Industrial Revolution.

We can create group word clouds on Wordle:


Who Wants to Be a Cotton Millionaire?


Britain emerged in Victorian times as the world's first industrial power, but the transition wasn't smooth.

Some entrepreneurs made fortunes from the new cotton industry, but many of the factory start-ups went bust. Success depended on a variety of factors, which you will encounter as you play the game.

As you play, your stacks of money will rise and fall, depending on the choices you make, and you'll find out if you can make it as a Victorian entrepreneur.

Choose well, make money and the business will survive. Choose badly, and the businessman could end up in debtors' prison.

To help understand the key term enterprise, plan what you would need to start your own enterprise such as a T-shirt company. Your ideas will create a concept cloud to show the enterprise. Include capital, labor, technology, raw materials, and transportation to market. For each item, suggest a specific example.

We can create a concept cloud on Wordle:


Contributing Factors, p. 364

When agricultural practices changed in the eighteenth century, more food was able to be produced, which in turn fueled population growth in Britain. The agricultural changes also left many farmers homeless and jobless. These two factors led to a population boom in the cities as people migrated from rural England into towns and cities. This population increase, in turn, created a ready supply of labor to mine the coal, build the factories, and run the machines. The start of the Industrial Revolution in Britain can be attributed to many factors. Population growth was just one of them.

Why Britain?

What characteristics of eighteenth-century Britain made it ripe for industrialization? Historians cite several reasons for Britain’s lead.

Natural Resources Abound

Britain had the advantage of plentiful natural resources such as natural ports and navigable rivers. Rivers supplied water power and allowed for the construction of canals. These canals increased accessibility for trade and were instrumental in bringing goods to market. In addition, Britain was able to establish communications and transport relatively cheaply due to its easy accessibility to the sea from all points. Britain’s plentiful supply of coal was fundamental to its industrialization and was used to power steam engines. Vast supplies of iron were available to be used to build the new machines.

The Effects of Demand and Capital

In the 1700s, Britain had plenty of skilled mechanics who were eager to meet the growing demand for new, practical inventions. This ready workforce, along with the population explosion, boosted demand for goods. In order to increase the production of goods to meet the demand, however, another key ingredient was needed. Money was necessary to start businesses.

From the mid-1600s to 1700s, trade from a growing overseas empire helped the British economy prosper. Beginning with the slave trade, the business class accumulated capital, or money used to invest in enterprises. An enterprise is a business organization in an area such as shipping, mining, railroads, or factories. Many businessmen were ready to risk their capital in new ventures due to the healthy economy.

In addition to the advantages already cited, Britain had a stable government that supported economic growth. While other countries in Europe faced river tolls and other barriers, Britain did not. The government built a strong navy that protected its empire, shipping, and overseas trade. Although the upper class tended to look down on business people, it did not reject the wealth produced by the new entrepreneurs. These entrepreneurs were those who managed and assumed the financial risks of starting new businesses.

Changes in Cotton Production, p. 364

The Textile Industry Advances

The Industrial Revolution first took hold in Britain’s largest industry—textiles. In the 1600s, cotton cloth imported from India had become popular. British merchants tried to organize a cotton cloth industry at home. They developed the putting-out system, also known as cottage industry, in which raw cotton was distributed to peasant families who spun it into thread and then wove the thread into cloth in their own homes. Skilled artisans in the towns then finished and dyed the cloth.

Inventions Speed Production

Under the putting-out system, production was slow. As the demand for cloth grew, inventors came up with a string of remarkable devices that revolutionized the British textile industry. For example, John Kay’s flying shuttle enabled weavers to work so fast that they soon outpaced spinners. James Hargreaves solved that problem by producing the spinning jenny in 1764, which spun many threads at the same time. A few years later, in 1769, Richard Arkwright patented the water frame, which was a spinning machine that could be powered by water.

Meanwhile, in America, these faster spinning and weaving machines presented a challenge—how to produce enough cotton to keep up with England. Raw cotton grown in the South had to be cleaned of dirt and seeds by hand, a time-consuming task. To solve this, Eli Whitney invented a machine called the cotton gin that separated the seeds from the raw cotton at a fast rate. He finished the cotton gin in 1793, and cotton production increased exponentially.

Factories Are Born in Britain

The new machines doomed the putting-out system. They were too large and expensive to be operated at home. Instead, manufacturers built long sheds to house the machines. At first, they located the sheds near rapidly moving streams, harnessing the water power to run the machines.

Later, machines were powered by steam engines.

The Spinning Mill Animation

Spinning mills used 'line shafting', which is the means by which the power of the steam engine is transmitted along rotating shafts (rods) to spinning or weaving mills.

This animation depicts a spinning mill like that found at Quarry Bank museum in Cheshire. It shows a furnace powering a flywheel, which is there to smooth out the otherwise jerky rotation of the crank.

In spinning mills, which could be multi-storey, there are large numbers of ropes coming off the flywheel. These 'rope races' convey power to the mill's different floors.
Spinners and weavers now came each day to work in these first factories, which brought together workers and machines to produce large quantities of goods. Early observers were awed at the size and output of these establishments. One onlooker noted: “The same [amount] of labor is now performed in one of these structures which formerly occupied the industry of an entire district.”


What led to the advancement of the British textile industry?

The Coal and Iron Industries, p. 365

Another factor that helped trigger the Industrial Revolution was the development of new technology. Aided by new sources of energy and new materials, these new technologies enabled business owners to change the ways work was done.

An Energy Revolution
During the 1700s, people began to harness new sources of energy. One vital power source was coal, used to develop the steam engine. In 1712, British inventor Thomas Newcomen had developed a steam engine powered by coal to pump water out of mines. Scottish engineer James Watt looked at Newcomen’s invention in 1764 and set out to make improvements on the engine in order to make it more efficient. Watt’s engine, after several years of work, would become a key power source of the Industrial Revolution. The steam engine opened the door not only to operating machinery but eventually to powering locomotives and steamships.

The Quality of Iron Improves

Coal was also a vital source of fuel in the production of iron, a material needed for the construction of machines and steam engines. The Darby family of Coalbrookdale pioneered new methods of producing iron. In 1709, Abraham Darby used coal instead of charcoal to smelt iron, or separate iron from its ore.

Darby’s experiments led him to produce less expensive and better-quality iron, which was used to produce parts for the steam engines. Both his son and grandson continued to improve on his methods. In fact, Abraham Darby III built the world’s first iron bridge. In the decades that followed, high-quality iron was used more and more widely, especially after the world turned to building railroads.

Abraham Darby III completed the world’s first iron bridge in 1779. The bridge still stands today.


What new technologies helped trigger the Industrial Revolution?

Railroads, p. 365

It was the invention of the steam locomotive that made the growth of railroads possible. In the early 1800s, pioneers like George Stephenson developed steam-powered locomotives to pull carriages along iron rails. The railroad did not have to follow the course of a river. This meant that tracks could go places where rivers did not, allowing factory owners and merchants to ship goods swiftly and cheaply over land. The world’s first major rail line, from Liverpool to Manchester, opened in England in 1830. In the following decades, railroad travel became faster and railroad building boomed. By 1870, rail lines crisscrossed Britain, Europe, and North America.

Stephenson's Rocket Animation


The Rocket was designed and built by George Stephenson with the help of his son, Robert, and Henry Booth, for the 1829 Rainhill Trials.

The Trials were held by the Liverpool and Manchester Railway Company, to find the best locomotive engine for a railway line that was being built to serve these two English cities. On the day of the Trials, some 15,000 people came along to see the race of the locomotives.

During the race, the Rocket reached speeds of 24mph during the 20 laps of the course. This was due to several new design features. It was the first locomotive to have a multi-tube boiler - with 25 copper tubes rather than a single flue or twin flue.

The blast pipe also increased the draught to the fire by concentrating exhaust steam at the base of the chimney. This meant that the boiler generated more power (steam), so the Rocket was able to go faster than its rival, and thus secure its place in history.

The Rocket can be seen at the Science Museum, in London.
One of the most important developments of the Industrial Revolution was the creation of a countrywide railway network. The world’s first major rail line went from Liverpool to Manchester in England. Fanny Kemble, the most famous actress of the day, was one of the first passengers:

“We were introduced to the little engine which was to drag us along the rails. . . This snorting little animal, . . . started at about ten miles an hour. . . . You can’t imagine how strange it seemed to be journeying on thus, without any visible cause of progress other than the magical machine . . .”


Focus Question

What key factors allowed Britain to lead the way in the Industrial Revolution?

The New Factories, p. 365

The new machines doomed the putting-out system. They were too large and expensive to be operated at home. Instead, manufacturers built long sheds to house the machines. At first, they located the sheds near rapidly moving streams, harnessing the water power to run the machines. Later, machines were powered by steam engines.

Spinners and weavers now came each day to work in these first factories, which brought together workers and machines to produce large quantities of goods. Early observers were awed at the size and output of these establishments. One onlooker noted: “The same [amount] of labor is now performed in one of these structures which formerly occupied the industry of an entire district.”


What led to the advancement of the British textile industry?

Reading Check


How were adult and child factory workers disciplined?

The Spread of Industrialization, p. 366

Europe, p. 366

Industrial Europe, c. 1850

North America (note how in the Glencoe textbook the entire section is about the United States; it states nothing about Mexico and Canada yet the section is entitled "North America."), p. 366

Reading Check


Social Impact in Europe, p. 367

Growth of Population and Cities, p. 367

The agricultural revolution contributed to a rapid growth of population. Precise population statistics for the 1700s are rare, but those that do exist are striking. Britain’s population, for example, soared from about 5 million in 1700 to almost 9 million in 1800. The population of Europe as a whole shot up from roughly 120 million to about 180 million during the same period. Such growth had never before been seen.

Vocabulary Builder
statistics—(stuh tis tiks) pl.n. data that are gathered and tabulated to present information

Why did this population increase occur? First, the agricultural revolution reduced the risk of death from famine because it created a surplus of food. Since people ate better, they were healthier. Also, better hygiene and sanitation, along with improved medical care, further slowed deaths from disease.


How did an agricultural revolution contribute to population growth?

The Industrial Middle Class, p. 368

The Industrial Revolution created a new middle class along with the working class. Those in the middle class owned and operated the new factories, mines, and railroads, among other industries. Their lifestyle was much more comfortable than that of the industrial working class.

When farm families moved to the new industrial cities, they became workers in mines or factories. Many felt lost and bewildered. They faced tough working conditions in uncomfortable environments. In time, though, factory and mine workers developed their own sense of community despite the terrible working conditions.

The Industrial Middle Class, p. 369

Those who benefited most from the Industrial Revolution were the entrepreneurs who set it in motion. The Industrial Revolution created this new middle class, or bourgeoisie (boor zhwah zee), whose members came from a variety of backgrounds. Some were merchants who invested their growing profits in factories. Others were inventors or skilled artisans who developed new technologies. Some rose from “rags to riches,” a pattern that the age greatly admired.

Middle-class families lived in well-furnished, spacious homes on paved streets and had a ready supply of water. They wore fancy clothing and ate well. The new middle class took pride in their hard work and their determination to “get ahead.” Only a few had sympathy for the poor. Women of the middle class did not leave the home to work but instead focused their energy on raising their children. This contrasted with the wealthy, who had maidservants to look after their children, and the working class, whose children were a part of the workforce.

The Industrial Working Class, p. 369

As more and more people moved to the cities to work, they had little choice about where to live. There was no public water supply, waste lined the unpaved streets, and disease spread rapidly in these unsanitary conditions. Dr. Southwood-Smith worked in two districts of London and wrote:

“Uncovered sewers, stagnant ditches and ponds, gutters always full of putrefying matter . . . It is not possible for any language to convey an adequate conception of the poisonous condition in which large portions of both these districts always remain, . . . from the masses of putrefying matter which are allowed to accumulate.”

Focus Question

What were the social effects of the Industrial Revolution?

The Industrial Revolution brought great riches to most of the entrepreneurs who helped set it in motion. For the millions of workers who crowded into the new factories, however, the industrial age brought poverty and harsh living conditions.

In time, reforms would curb many of the worst abuses of the early industrial age in Europe and the Americas. As standards of living increased, people at all levels of society would benefit from industrialization. Until then, working people would suffer with dangerous working conditions; unsafe, unsanitary, and overcrowded housing; and unrelenting poverty.

People Move to New Industrial Cities

The Industrial Revolution brought rapid urbanization, or the movement of people to cities. Changes in farming, soaring population growth, and an ever-increasing demand for workers led masses of people to migrate from farms to cities. Almost overnight, small towns around coal or iron mines mushroomed into cities. Other cities grew up around the factories that entrepreneurs built in once-quiet market towns.

The British market town of Manchester numbered 17,000 people in the 1750s. Within a few years, it exploded into a center of the textile industry. Its population soared to 40,000 by 1780 and 70,000 by 1801. Visitors described the “cloud of coal vapor” that polluted the air, the pounding noise of steam engines, and the filthy stench of its river. This growth of industry and rapid population growth dramatically changed the location and distribution of two resources—labor and people.


What led to the massive migration of people from farms to cities?

While the wealthy and the middle class lived in pleasant neighborhoods, vast numbers of poor struggled to survive in foul-smelling slums. They packed into tiny rooms in tenements, or multistory buildings divided into apartments. These tenements had no running water, only community pumps. There was no sewage or sanitation system, so wastes and garbage rotted in the streets. Sewage was also dumped into rivers, which created an overwhelming stench and contaminated drinking water. This led to the spread of diseases such as cholera.

Vocabulary Builder
contaminated—(kun tam uh nayt id) adj. unclean and impure; polluted

Workers Stage Futile Protests

Although labor unions, or workers’ organizations, were illegal at this time, secret unions did exist among frustrated British workers. They wished to initiate worker reforms, such as increases in pay, but had no political power to effect change. Sometimes their frustration led to violence. The first instances of industrial riots occurred in England from 1811 to 1813. Groups of textile workers known as the Luddites (lud yts) resisted the labor-saving machines that were costing them their jobs. Some of them smashed textile machines with sledgehammers and burned factories. They usually wore masks and operated at night. There was widespread support among the working class for these Luddite groups.

Workers Find Comfort in Religion

Many working-class people found comfort in a religious movement called Methodism. This movement was influenced by the Industrial Revolution as people moved to cities and lost connections with their old churches. John Wesley had founded the Methodist movement in the mid-1700s. Wesley stressed the need for a personal sense of faith. He encouraged his followers to improve themselves by adopting sober, moral ways.

Vocabulary Builder
stressed—(stresd) vt. emphasized

Methodist meetings featured hymns and sermons promising forgiveness of sin and a better life to come. Methodist preachers took this message of salvation into the slums. There, they tried to rekindle hope among the working poor. They set up Sunday schools where followers not only studied the Bible but also learned to read and write. Methodists helped channel workers’ anger away from revolution and toward reform.


How did members of the working class react to their new experiences in industrial cities?

Life in the Factories and Mines

The heart of the new industrial city was the factory. There, the technology of the machine age and the rapid pace of industrialization imposed a harsh new way of life on workers.

Discovery School Channel

Watch In Old New York on the Witness History Discovery School™ video program to learn about life during the Industrial Age.

Factory Workers Face Harsh Conditions

Working in a factory system differed greatly from working on a farm. In rural villages, people worked hard, but their work varied according to the season. Life was also hard for poor rural workers who were part of the putting-out system, but at least they worked at their own pace. In the grim factories of industrial towns, workers faced a rigid schedule set by the factory whistle.

Working hours were long, with shifts lasting from 12 to 16 hours, six or seven days a week. Workers could only take breaks when the factory owners gave permission. Exhausted workers suffered accidents from machines that had no safety devices. They might lose a finger, a limb, or even their lives. In textile mills, workers constantly breathed air filled with lint, which damaged their lungs. Those workers who became sick or injured lost their jobs.

The majority of early factory workers were women rather than men. Employers often preferred to hire women workers because they thought women could adapt more easily to machines and were easier to manage. In addition, employers generally paid women half what they paid men.

Factory work created a double burden for women. Their new jobs took them out of their homes for 12 hours or more a day. They then returned to their tenements, which might consist of one damp room with a single bed. They had to feed and clothe their families, clean, and cope with such problems as sickness and injury.

Miners Face Worse Conditions

The Industrial Revolution increased the demand for iron and coal, which in turn increased the need for miners. Although miners were paid more, working conditions in the mines were even worse than in the factories. They worked in darkness, and the coal dust destroyed their lungs. There were always the dangers of explosions, flooding, and collapsing tunnels. Women and children carted heavy loads of coal, sometimes on all fours in low passages. They also climbed ladders carrying heavy baskets of coal several times a day.

Even children as young as five years old worked in the mines. James Kay-Shuttleworth worked as a physician among the different classes of the Industrial Revolution in Manchester. His profession allowed him to see the working conditions of poor in the cities. How was work in factories and mines different from work on the farm?

Children were accustomed to work on a farm: the money earned by children was vital to most working class families during the early 20th century and before.

Primary Source

“Whilst the engine runs, people must work—men, women, and children are yoked together with iron and steam. The animal machine is chained fast to the iron machine, which knows no suffering and weariness.”

—James Kay-Shuttleworth, 1832

Children Have Dangerous Jobs

Factories and mines also hired many boys and girls. These children often started working at age seven or eight, a few as young as five. Nimble-fingered and quick-moving, they changed spools in the hot and humid textile mills where sometimes they could not see because of all the dust. They also crawled under machinery to repair broken threads in the mills. Conditions were even worse for children who worked in the mines. Some sat all day in the dark, opening and closing air vents. Others hauled coal carts in the extreme heat. Because children had helped with work on the farm, parents accepted the idea of child labor. The wages the children earned were needed to keep their families from starving.

Child labor reform laws called “factory acts” were passed in the early 1800s. These laws were passed to reduce a child’s workday to twelve hours and also to remove children under the age of eight or nine from the cotton mills. Because the laws were generally not enforced, British lawmakers formed teams of inspectors to ensure that factories and mines obeyed the laws in the 1830s and 1840s. More laws were then passed to shorten the workday for women and require that child workers be educated.

Families could afford to take trips to such places as the zoo as wages increased.


How did the Industrial Revolution affect the lives of men, women, and children?

Early Socialism, p. 370

While the champions of laissez-faire economics praised individual rights, other thinkers focused on the good of society in general. They condemned the evils of industrial capitalism, which they believed had created a gulf between rich and poor. To end poverty and injustice, they offered a radical solution—socialism. Under socialism, the people as a whole rather than private individuals would own and operate the means of production—the farms, factories, railways, and other large businesses that produced and distributed goods. Socialism grew out of the Enlightenment faith in progress, its belief in the basic goodness of human nature, and its concern for social justice.

Are Utopians Dreamers?

A number of early socialists established communities in which all work was shared and all property was owned in common. When there was no difference between rich and poor, they said, fighting between people would disappear. These early socialists were called Utopians. The name implied that they were impractical dreamers. The Utopian Robert Owen set up a model community in New Lanark, Scotland, to put his own ideas into practice.

Owen’s Utopia

For: Interactive Village
Web Code: nap-1941

Owen Establishes a Utopia

A poor Welsh boy, Owen became a successful mill owner. Unlike most industrialists at the time, he refused to use child labor. He campaigned vigorously for laws that limited child labor and encouraged the organization of labor unions.


What did early socialists believe?

Reading Check


What type of working conditions did the industrial workers face?

References and Resources

Rise of the Working Class by Jurgen Kuczynski

Making of the English Working Class by E.P. Thompson

Cultural Foundations of Industrial Civilization by John U. Nef
Sign entering the village. Graphic source: The Next Generation

A living museum can be viewed at Old Sturbridge Village. At the village visitors can ride the stagecoach, interact with the farm animals, talk with costumed historians, and watch the blacksmith, cooper, potter, and farmers at work. In the village visitors can experience life in the 1830s--with 40 antique homes, buildings, and water-powered mills. The village is well worth exploring in some detail.

The flag is central to village life. Graphic source: The Next Generation

Our relationship to God is of paramount importance. Graphic source: The Next Generation

Defense is always a concern for a nation. Graphic source: The Next Generation

If you have questions about 19th Century life you can always "Ask Jack."

Jack Larkin is the Chief Historian and Museum Scholar at the Village, where he has worked since 1971. He is also Affiliate Professor of History at Clark University in Worcester, MA, and consults for many museums and historical organizations. His latest book, Where We Lived: Exploring the Places We Once Called Home. The American Home from 1790 to 1840, was published in 2006.
To feel more at home in the village you will need to know the tools of the trade. A number of fun and educational links are available for the OSV.

Old Sturbridge Village Feature Shown on Al Jazeera Television winter 2008

Laura Linney and Ken Burns on the importance of Old Sturbridge Village

4th of July at OSV.

Redcoats to Rebels at OSV.

Mystic sign. Photo Source: The Next Generation

Mystic Seaport -- The Museum of America and the Sea is the nation's leading maritime museum. In it, you can explore American maritime history first-hand as you climb aboard historic tall ships, stroll through a re-created 19th-century coastal village, or watch a working preservation shipyard in action.

Traditional American Music performed live at Mystic Seaport, CT: Part 1

Traditional American Music performed live at Mystic Seaport, CT: Part 2

Traditional American Music performed live at Mystic Seaport, CT: Part 3

The Charles W. Morgan embarks on a voyage of restoration at the Henry B. DuPont Preservation Shipyard at Mystic Seaport. Shipyard Director, Quentin Snediker explains what is done to prepare the ship for the historic journey.

The Charles W. Morgan is the last surviving wooden whaling ship from the great days of sail. Built in 1841 in New Bedford, MA, the Morgan had a successful 80-year whaling career. She made 37 voyages before retiring in 1921, and was preserved as an exhibit through the efforts of a number of dedicated citizens. After being on display in South Dartmouth, MA, until 1941, she came to Mystic Seaport, where each year thousands of visitors walk her decks and hear the fascinating story of her career as a whaling vessel, historic exhibit, film and media star, and a porthole into America's rich history.

Over the last three decades, the Charles W. Morgan has undergone two regimes of partial restoration along with annual maintenance. Despite these efforts, the inevitable effects of time on the wooden fabric of the vessel's structure demand additional extensive restoration. If left unchecked, these deficiencies will threaten the structural integrity of the Morgan and her use as a primary artifact in Mystic Seaport's interpretive programs.

Mystic Seaport, 1960 (No, this is not Dr. Smith as a boy), from family home movies.

Whaling in popular culture: Mountain, "Nantucket Sleighride"

The cold hard steel of the harpoon's point
Struck deep into its side.
We played out line and backed the oars
And took the cruel sleighride.

The term "Nantucket Sleighride" was coined by the whalers to explain what happened after they harpooned a whale. (Nantucket Island was considered the whaling capital of the world during the 19th century.) The first strike of the harpoon was not intended to kill the whale but only to attach it to the whale boat. The whale would take off pulling the whale boat along at speeds of up to 23 mph (37 kmh). The whale would eventually tire itself out, the leading officer in the boat would then use a penetrating lance to kill the whale.

Nantucket Sleighride is Dedicated to Owen Coffin who was cabin boy aboard the whaler Essex, which was destroyed by a sperm whale in 1819. Owen ended up in the lifeboat with Captain Pollard, his uncle. Two other lifeboats also put out. During the next 3 - 4 months, the lifeboats separated. One was never seen again, but some of those on the remaining two boats were eventually rescued.
During those long months at sea (and on desert islands), many of the men died. The remainder eventually had to resort to cannibalism to survive. After the dead of natural causes were consumed, the men determined to draw lots to see who would sacrifice his life for the others. Owen Coffin ``won'' the lottery. The Captain tried to take Owen's place, but the youth insisted on his ``right''. The executioner was also drawn by lot. That ``winner'', another young man named Charles Ramsdell, also tried vainly to swap places with Owen. Again he refused. Owen's body kept the others alive for ten days (Captain Pollard refused to eat his nephew). Another man died, and his body kept Pollard and Ramsdell alive a few more days until they were rescued.

Goodbye, little Robin-Marie
Don't try following me
Don't cry, little Robin-Marie
'Cause you know I'm coming home soon
My ships' leaving on a three-year tour
The next tide will take us from shore
Windlaced, gather in sail and spray
On a search for the mighty sperm whale
Fly your willow branches
Wrap your body round my soul
Lay down your reeds and drums on my soft sheets
There are years behind us reaching
To the place where hearts are beating
And I know you're the last true love I'll ever meet
Starbuck's sharpening his harpoon
The black man's playing his tune
An old salt's sleeping his watch away
He'll be drunk again before noon
Three years sailing on bended knee
We found no whales in the sea
Don't cry, little Robin-Marie
'Cause we'll be in sight of land soon


Farming and everyday life during the past 250 years

Children who lived in the English countryside

The Agricultural Revolution

Transportation, Industrial Revolution

Stephenson's Rocket Animation

The Spinning Mill Animation

Britain at the time of the Great Exhibition

Who Wants to Be a Cotton Millionaire?

Iron Bridge Virtual Tour

New machines that brought changes in America

Review changes of the 18th and 19th centuries

The Industrial Revolution

The everyday life of children in Victorian Britain (including the cities)

Online game about life in an industrial Victorian city

Take a tour of a workhouse
Links, resources, and bibliographical references

Video clips about Napoleon

Map of Napoleon's Empire

Refight Trafalgar!

Napoleon's Empire in 1812

Napoleon's army retreating from Moscow

Waterloo Interactive Battle Simulator

The Battle of Waterloo Game

The Napoleonic Alliance

The Napoleonic Collection

Institute on Napoleon and the French Revolution at Florida State University

The Napoleon Foundation

The War Times Journal: Napoleonic Wars

The Napoleonic Guide
Napoleon as Military Commander by James Marshall-Cornwall

The Napoleonic Wars: an Illustrated History, 1792-1815, by Michael Glover

Napoleon's Glands and Other Ventures in Biohistory by Arno Karlen

The Murder of Napoleon by Ben Weider

Battles and Campaigns (Mapping History) by Malcomb Swanston
Chapter Review

Chapter: Know It? Show It

Radical Revolution and Reaction review

Radical Days of the Revolution



"Bienvenue, je suis Napoléon, de France, le militaire le plus intelligent de l'Histoire mondiale."

"Welcome, I am Napoleon of France, the most intelligent military man in world history."

Nelson (part 1/3), 8:21

London Licks, Waterloo Sunset, Kinks, 2:38

The Kinks, Waterloo Sunset, 3:14

Napoleon on the Danny Kaye Show, 2:49

The Danny Kaye Show is an American variety show that aired on CBS from 1963 to 1967.

The Four Preps - 26 Miles (Santa Catalina), 2:27

The Quiz on Ch. 11 Sec. 2 is the last Quiz/Test for the Quarter. November HW will count for the 2nd Quarter.
Dawn of the Industrial Age


Britain Leads the Way

Social Impact of the Industrial Revolution

New Ways of Thinking

Wabash Cannonball, 4:51

Artist: Matthew Sabatella & the Rambling String Band

Description: The Lake Erie, Wabash, and St. Louis Railroad Company was formed in 1852. There was, however, no train named the "Cannonball" when this song was first sung late in the 19th century. The anonymous hobos who made the song up may have been paying homage to a specific train, or to a "mythical train that runs everywhere," as suggested by George Milburn in The Hobo's Hornbook.

Big Rock Candy Mountain, Harry McClintock, 1928, 2:29

Harry McClintock who was a brakeman working on the Denver and Rio Grande railroad when he wrote this song in the late 19th or early 20th century. In Utah the hills in Fishlake National Forest are striped and rose colored, which became the inspiration for this song. The song was also featured in the movie "O Brother Where Art Thou.'

Burl Ives 'Big Rock Candy Mountain,' 2:37

Big Rock Candy Mountain, Dick Dale, Lawrence Welk Show, 1:47

From 1966, here's the Lawrence Welk Show's Dick Dale joined by the Lennon Sisters as they sing a popular folk song made famous by both Harry McClintock and Burl Ives titled "Big Rock Candy Mountain."

O Brother Where Art Thou, 2:18

Big Rock Candy Mountain, Oh Brother Where Art Thou, 2:16

Hollywood Dance Orchestra, She'll Be Comin' 'Round the Mountain, 2:58

Although the first printed version of the song appeared in Carl Sandburg's The American Songbag in 1927, the song is believed to have been written during the late 1800s. The song was based on an old Negro spiritual titled When the Chariot Comes. During the 19th century it spread through Appalachia where the lyrics were changed into their current form. The song was later sung by railroad work gangs in the Midwestern United States in the 1890s. The song's style is reminiscent of the "call and response" structure of many folk songs of the time.

19th century folk song gets the dance orchestra treatment on this 1930 recording with a vocal duet or trio.

"She'll Be Coming 'Round the Mountain", also sometimes called simply "Coming 'Round the Mountain", is an American folk song often categorized as children's music.
While it is not entirely clear who the "she" in the song refers to, there are various plausible interpretations. One interpretation suggests that "she" is the train that will be coming through the tracks that are being laid out by workers.
Carl Sandburg, in The American Songbag, suggests that "she" refers to union organizer Mary Harris "Mother" Jones going to promote formation of labor unions in the Appalachian coal mining camps. Mother Jones today is of course the name of the liberal magazine of the same name.

The Chilly Winds: Buddy Better Get On Down The Line, 2:25

The Chilly Winds (L-r in the video: John Birchler, Jim Moran, Bruce Blazej with Dave Batti on bass) sing an old 19th century railroad song at the 2009 Mountain Music Festival in Manitou Springs, Colorado. Videography by Mick Coates, Australia's answer to Johnny Cash.

Run, Let the Bulgine Run, 3:15

This halyard chantey is far less well known than "Clear the Track/Eliza Lee," which also contains the phrase "Let the bulgine run." I only find a performance of it by Kasin & Adrianowicz, the tune of which, for reasons I can only speculate, has some significant differences.

I've noticed so far two other chanteys that use the word "bulgine," "Hilo, Boys, Hilo" and "the Arabella," in the funny phrase "bulgine pie":

Hugill calls "bulgine" "American slang" for a "railway engine." Some more recent conventional wisdom has called it "sailor slang" and pinned it more specifically at an engine used to convey materials up and down a dock. It does seem to have become sailor slang, making it to England to be included by author Leland in his 1889 "Dictionary of Slang, Jargon, and Cant." He calls "bulljine" a nautical term for a locomotive.

However, at the time when this chantey was likely created—or borrowed from a railway song, as Hugill suspects—I find bulgine in use mostly in minstrel songs. This context makes the word appear to be either an African-American slang that was very particular to the time, or else a phony kind of minstrel dialect word that nonetheless gained popularity.

The word is in fact used in Stephen Foster's original "Oh! Susanna" from 1847, although that verse is rarely heard:

"De bulgine bust and de hoss ran off,
I really thought I'd die;
I shut my eyes to hold my bref
Susanna don't you cry."
Other minstrel songs I could find were:
1843, Dan Emmett's "The Fine Old Color'd Gentleman":
"He swallow'd two small railroads
Wid a spoonful of ice cream
And a locomotive bulgine
While dey blowin' off de steam."
1850, Stephen Foster, "Dolly Day:
"Ive sung about de bulgine
Dat blew de folks away,
And now Ill sing a little song
About my Dolly Day."
1854, Edwin Christy, "Who's Dat Knocking at the Door?":
"De bulgine scared me so I tought I was no more,
An I run so hard aginst de house, my head went through the door."
1877 (retrospective) "Don't You Hear the Bulgine?": (a banjo tune from a book)
Also, popular author at mid 19th century, George Lippard, apparently wrote a novel called "The Bulgine."

We can safely date this chantey then to sometime around 1850.
Also found in: LA Smith 1888 ("Run Let the Bull Chimes Run"!), Sharp 1914

Locomotive Breath, Jethro Tull (a more contemporary song about trains), 4:22

Lyrics: PG-13

In the shuffling madness
Of the locomotive breath
Runs the all time loser
Headlong to his death

Oh, he feels the piston scraping
Steam breaking on his brow

Old Charlie stole the handle
And the train, it won't stop going
No way to slow down
Oh, oh

He sees his children jumping off
At stations one by one
His woman and his best friend
In bed an' having fun

Oh, he's crawling down the corridor
On his hands and knees

Old Charlie stole the handle
And the train, it won't stop going
No way to slow down
Yeah, yeah

He hears the silence howling
And catches angels as they fall
And the all time winner
Has got him by the balls

Oh, he picks up Gideon's Bible
Open at page one

I thank God, he stole the handle
And the train, it won't stop going
No way to slow down

No way to slow down
No way to slow down
No way to slow down
No way to slow down
No way to slow down

"Locomotive Breath" is a song by the English progressive rock band Jethro Tull from their 1971 album, Aqualung, notable for a long bluesy piano introduction (particularly during live performances) and its flute solo by rock flute virtuoso Ian Anderson. The lyrics use the imagery of an impending and unavoidable train wreck as an allegorical portrayal of a man's life falling apart.

The term "locomotive breath" ostensibly refers to the steam ejected from a steam locomotive's pistons, which provided a characteristic foggy atmosphere and metallic odor to 19th-century train station platforms.


"Locomotive Breath" was recorded in a rather unusual manner: The entire track was pieced together from overdubs; most of the parts of the song were recorded separately. Ian Anderson did his normal flute and vocal parts in addition to bass drum, hi-hat, acoustic guitar and some electric guitar parts. Then John Evan's piano parts were recorded; Clive Bunker added the rest of the drums and Martin Barre finished the electric guitar parts. All of these recordings were then overdubbed onto each other because Anderson was finding it difficult to communicate his musical ideas about the song to the other band members.

HW: email (or hard copy) me at

Monday HW

You can email any sample inquiries as possible questions to appear on upcoming attractions (Quizzes/Tests); the only requirement is that they must be sent by email and they must list five options (a-e) along with the correct answer or reference (a page number for example) from the textbook or the class blog (date). None of the questions are guaranteed to appear but of course these samples may help (and you already know the answers).

Email only if you answer (i.e., you voluntarily choose to participate):
Last week what I liked least about the class was . . .
Last week what I enjoyed most about the class was . . .

1. p. 352, Reviewing Key Facts


Honors World History II: HW for Next Week, Mon. - Fri.

Honors World History II: HW for Next Week, Mon. - Fri.

Monday HW

You can email any sample inquiries as possible questions to appear on upcoming attractions (Quizzes/Tests); the only requirement is that they must be sent by email and they must list five options (a-e) along with the correct answer or reference (a page number for example) from the textbook or the class blog (date). None of the questions are guaranteed to appear but of course these samples may help (and you already know the answers).

Email only if you answer (i.e., you voluntarily choose to participate):
Last week what I liked least about the class was . . .
Last week what I enjoyed most about the class was . . .

1. p. 352, Reviewing Key Facts


Tuesday HW

1. p. 352, Reviewing Key Facts


Wednesday HW

1. p. 352, Reviewing Key Facts


Thursday HW

Universal Visitation Day

Friday HW

1. p. 352, Critical Thinking


Honors Business Economics Homework for Next Week

Monday HW
1. p. 74, What is the benefit of reinvesting cash flow in a business?
2. p. 75, How does a company benefit from a vertical merger?
3. p. 75, What connects the companies involved in the vertical merger?

Tuesday HW

1. What may be the consequences of a store that sells snowboards merging with a story that sells surfboards?
2. Would this likely be a responsible use of both businesses?
3. Explain.

Wednesday HW

1. p. 76, How many different industries can you identify in the list of GE products?

2. p. 77, How do conglomerates and multinationals differ?

Thursday, Universal Visitation Day

Friday, TBA

Honors Business Economics Chapter 3: 15 November 2010

Current Events:



Chapter 3

Business Organizations, p. 60

Section 1 Forms of Business Organization, p. 61

Most businesses operate in search of profits. Others are organized and operate like a business, although profits are not their primary concern. There are three main forms of business organization. The first is the sole proprietorship, which is a business owned and operated by one person. The second is the partnership, which is a business jointly owned by two or more persons. The third is the corporation, which is recognized as a separate entity having all the rights of an individual. The proprietorship is the most common and most profitable form of business organization. The corporation is the largest and most visible.

One is a sole proprietorship which one individual, the sole proprietor, exercises complete control over the business. Another is a partnership in which two or more individuals combine their efforts and share the profits of the business. Under both business forms, the business is an asset owned by the owner or owner, it has no existence separate from them, and any financial or legal problems encountered by the business are their responsibility. All of the owners’ assets, even those not involved in the business, are at risk. Liability is unlimited.

Chapter Three Spotlight Video

Main types of business

Types reviewed and advantages and disadvantages
In-class assignment: what are the types reviewed, what are their respective advantages and disadvantages?

Sole Proprietorship, p. 62


Forming a Partnership, p. 65

Disadvantages, p. 66

Reading Check


What are the differences between a general partnership and a limited partnership?

Corporations, p. 67

Main Idea

What is a Corporation?

Forming a Corporation

Why It Matters Today

Are corporations people?

This Court decision figured prominently in the Justice Alito: State of the Union "Close-Up" (1/27/10)

Justice Alito saying, "(That's) not true" when Obama criticized the recent Supreme Court decision permitting corporations to buy unlimited ads to influence elections.

Corporate Structure

In Motion Corporate Structure

Advantages, p. 68

Disadvantages, p. 69

Reading Check, p. 70


Why do many business owners prefer corporations over other forms of business organizations?

Entrepreneur, p. 71

Profiles in Economics

Andrea Jung

On Charlie Rose - Andrea Jung (Avon)

My Own Business: A course on how to start a business

Chapter 3: Business Organizations
Self-Check Quizzes

Crossword Puzzle

Vocabulary eFlashcards
Show Business is the Federal Reserve Bank of Boston's learning activity on economics and the entertainment industry. The goal is to provide an additional tool for teaching and learning about basic economic concepts, with some economic history snuck in.

JA Titan
Test your skills running a business in this ultimate business simulation! As CEO, you will match wits in the competitive, technologically advanced industry of the Holo-Generator™.Cf.

Corporations and Stocks game


A music video from School House Rock on investing and Wall Street.



Ch. 3 Sec. 2 Business Growth and Expansion

Honors Business Economics Chapter 3 Section 2 Business Growth and Expansion
Guide to Reading

Section Preview

Businesses can expand in many different ways. One way is through reinvesting internally generated funds, which can also be paid out to the owners in the form of dividends. Another way is through combinations called mergers. Two kinds of mergers, horizontal mergers and vertical mergers, take place for a number of reasons. Some firms merge to become bigger or more efficient. Others merge to eliminate their rivals or to change corporate identity. Some mergers may result in a conglomerate, or even a multinational if the business has manufacturing or service operations in a number of different countries.

Content Vocabulary


income statement

net income


A more or less permanent decrease in value or price. "More or less permanent" doesn't include temporary, short-term drops in price that are common in many markets. It's only those price declines that reflect a reduction in consumer satisfaction. While all sorts of stuff can depreciate in value, some of the more common ones are capital, real estate, corporate stock, and money. The depreciation of capital results from the rigors of production and affects our economy's ability to produce stuff. A sizable portion of our annual investment is thus needed to replace depreciated capital. The depreciation of a nation's money is seen as an increase in the exchange rate.

cash flow

In class assignment:

What are the two main lessons?
What are the four different levels?
What is financial literary?

horizontal merger

The consolidation under a single ownership of two separately-owned businesses in the same industry. An example of a horizontal merger would be two soft drink companies merging to form a single firm. A horizontal merger should be contrasted with vertical merger--two firms in different stages of the production of one good, such that the output of one business is the input of the other; and conglomerate merger--two firms in totally, completely separate industries.

vertical merger

The consolidation under a single ownership of two separately-owned businesses that have an input-output relationship, in which the output of one firm is the input of another. An example of a vertical merger would be a soft drink company merging with a sugar company to form a single firm. A vertical merger should be contrasted with horizontal merger--two competing firms in the same industry that sell the same products; and conglomerate merger--two firms in totally, completely separate industries.



Academic Vocabulary

Reading Strategy


Companies in the News

Reinvesting for Monster Growth

Growth Through Reinvestment

Main Idea

Economics and You

Estimating Cash Flows

Reinvesting Cash Flows

Reading Check


What is the benefit of reinvesting cash flow in a business?

The Global Economy and You

Know Your Manners

Growth Through Mergers

Main Idea

Economics and You

Types of Mergers

Reasons for Merging



Reading Check


How do conglomerates and multinationals differ?

Case Study

Chapter 3 Section 3 Nonprofit Organizations


Economic organizations, such as schools, medical care facilities, and churches, operate like a business, but on a not-for-profit basis to further the benefit of a cause or the welfare of the members. One example is the cooperative, or co-op, a voluntary association formed to carry on some kind of economic activity or benefit its owners. The labor union is another example. Even government can play a direct role in the economy when it produces goods and services. Also, the government plays an indirect role when it grants money in the form of unemployment payments, Social Security, or welfare in order to give some groups purchasing power that they would not otherwise have. In each case, the benefits of a government action or policy should outweigh its costs.

Guide to Reading

Section Preview

Content Vocabulary
nonprofit organization

credit union
A non-profit depository institution chartered by the National Credit Union Administration that was established to provide members of specific group, such as employees of a company, with low-cost banking services. However, credit unions have expanded their activities and now provide most of the services of traditional banks, including checkable deposits.

Promo piece for Cooperative Credit Union but typical of many organized along these lines, 2:26

labor union

An organization of workers or employees who act jointly to negotiate with their employers over wages, fringe benefits, working conditions, and other facets of employment. The main function of unions is to provide a balance for the market control exerted over labor by big business.

3 Reasons Public Sector Employees are Killing the Economy, 2:56

In-class assignment: what are the three reasons the public sector is killing the economy according to the video?

collective bargaining

The negotiation process between a union and the company that employs the union's members -- usually going by the moniker of management. The purpose of collective bargaining is to find mutual agreement on wages, fringe benefits, workhours, promotion criteria, grievance procedures, and everything else that has to do with employment. The end result of this process is a collective bargaining agreement, which is a formal contract between management and the union. A negotiation process that breaks down without reaching an agreement might lead to a strike, lockout, or mediation.

professional association
chamber of commerce
Better Business Bureau

A group of businesses and organizations in a local community that seek to eliminate unethical business practices and protect consumers. The first Better Business Bureau was established in 1912 in Minnesota. Today, most local communities (read this as cities) throughout North America have Better Business Bureaus. This private response to questionable business practices should be compare with the government response, the Federal Trade Commission.

public utility

The common term for a firm that provides and important (what some deem as essential) good or service primarily in and urban area and often through the use of an extensive distribution network. Common examples of public utilities are those that produce, provide, and/or distribute electricity, natural gas, local telephone services, cable television services, water, garbage collection, and sewage processing. A key feature is that capital requirements mean that public utilities tend to be natural monopolies. One firm can generally provide the services at a lower average cost that two or more firms. For this reason, public utilities tend to be either government owned and operated or heavily regulated by government.

Academic Vocabulary

Reading Strategy

People in the News
Katrina Volunteer Vacation

Community Organizations and Cooperatives
Main Idea
Community Organizations
Reading Check
How Does a Cooperative Work?
Labor, Professional, and Business Organizations
Labor Unions
Professional Associations
Business Associations
Reading Check
How do professional associations help their members?
Direct Role of Government
Indirect Role of Government
Reading Check
Do you think one government role is more important than another? Why?
Business Week News clip
Ocean Spray's Creative Juices


Forming & Operating a Non-Profit Organization : Overview of a Non-Profit Organization, :51

Watch an introduction to non-profit organizations in this free business start up video from a management expert on non-profit organizations.

Bio: Jim Goettler has extensive experience with organizations requiring a wide variety of management and interpersonal skills including special event coordination, volunteer management, and fiscal oversight.
Filmmaker: Daron Stetner

3 Reasons Public Sector Employees are Killing the Economy

As unemployment stubbornly sticks near 10 percent and any sort of economic recovery seems a long way off, think about this: The one part of the economy that's going gangbusters is government work. Indeed, since the Great Recession started in December 2007, over 8 million jobs have been lost in the private sector while the public sector has added at least 100,000 positions.

It's time to recognize that public-sector employment is killing the economy for at least three reasons:

1. They cost too much. As USA Today recently noted, federal employees make on average almost $8,000 more than their private-sector counterparts. When you add in benefits, the gap spreads to about $30,000. State and local government workers make around the same as private-sector counterparts, but their health and retirement packages mean they make significantly more in the end.

2. We can't fire them. The private sector has shed positions in response to slackening demand and the economic downturn. That sort of adjustment is painful but necessary, as it allows the economy to adjust to changing circumstances and workers and employers to move into new activities. Because it is guaranteed certain amounts of tax revenue and has a non-market mind-set, the public sector is largely insulated from such forces and keeps or even adds workers despite changed conditions. The result? We keep paying for things that we don't use, need, or want.

3. They create a permanent lobby for expanded government and higher taxes. Look at California, where teacher unions have spent over $211 million dollars on elections in the past decade. One result is that 40 percent of California's budget must be spent on education, regardless of the number and needs of students. Over the last 10 years, taxpayer contributions to public-sector pension funds has increased by 2000 percent!

Such sort of tax-based gladhanding is just getting started.

For the first time in history, the number of public-sector union employees is greater than those in the private sector, so expect to see even more lobbying for the sorts of mandatory raises and permanent job security that most of us can only dream of.

Because the public sector gets its pay and benefits from tax dollars and public debt, every thing it gets means there's less for the rest of us to save, invest, or pay workers with.

With the federal government and most states already neck-deep in red ink, it's time to cut public-sector pay and payrolls and return more money to the private sector. That will help spur the sort of investment and innovation that will get the economy moving and end the recession far faster than paying more and more money to government workers.

"3 Reasons Public-Sector Employees Are Killing The Economy" is produced by Meredith Bragg and Nick Gillespie, who also hosts.
Ian Hunter, How's Your House, New Orleans Musicians Relief Fund, 4:30

Ian Hunter's "How's Your House" is Downloadable at to help displaced musicians. Song Courtesy of Yep Roc Records, Video by Grewvia.


Figure 3.4 Growth Through Reinvestment, p. 73

Corporations: warning, there is one PG-13 word in this video if you use it for reference or if you prefer not to view; it is not required viewing.

According to this video, what is a corporation? What is it composed of? What sort of characteristics are typical of a corporation?

HW email to or hand in hard copy.

Monday HW
1. p. 74, What is the benefit of reinvesting cash flow in a business?
2. p. 75, How does a company benefit from a vertical merger?
3. p. 75, What connects the companies involved in the vertical merger?

Tuesday HW

1. What may be the consequences of a store that sells snowboards merging with a story that sells surfboards?
2. Would this likely be a responsible use of both businesses?
3. Explain.

Wednesday HW

1. p. 76, How many different industries can you identify in the list of GE products?

2. p. 77, How do conglomerates and multinationals differ?