• 25 years after Lincoln United States became the first manufacturing nation of the world
  • England did this in 100 years US did it in 50
  • 1870–1900 industrial growth increased the wealth and improved the lives of many Americans
  • the benefits were not equally shared
  • industrial titans, a growing middle class or rich
  • but workers and farmers were poor
  • sources of industrial growth include abundant raw materials, large labor supply, technological innovations, entrepreneurs that were very smart, a federal government that wanted to assist the growth of business and in expanding domestic market for the products manufacturing
  • new technology helped. Cyrus W field in 1866 trans Atlantic telegraph cable to Europe Alexander Graham Bell first telephone, by the 1890s the American telephone and telegraph Company installed half 1 million telephones in American cities
  • inventions that sped up business typewriter, cash register, adding machine
  • most revolutionary invention 1870s electricity as a source of light and power, street lamps, Thomas Edison invented incandescent lamp or light bulb
  • by 1900 electricity was more common
  • 1850s iron could be turned into steel the open purse process sped up the production of steel and lead to locomotives steel rails and girders for the construction of tall buildings
  • seal industry big in Pennsylvania and eastern Ohio where iron and or or,
  • oil industry 1900 was in response to the steel industry’s need for lubrication for its machines it wasn’t used as fuel into later
  • Pennsylvania had oil 1850s people used oil and lamps
  • by the 1870s oil was fourth among United States exports
  • radio invented 1890s
  • airplane Wright brothers Kitty Hawk North Carolina in 1903
  • internal combustion engine led to the automobile first gasoline car 1903 three years later Henry Ford produced first of the famous cars that would bear his name by 1910 major force in the economy automobile industry
  • 1895 four cars on the highway, by 1917 there were 5 million cars
  • industries started using the science of production or scientific management known as Taylor is him Frederick Winslow Taylor sped up production making people perform simple small tasks added greater speed increasing production efficiency mass production
  • Henry Ford cars used mass production model T cost $950 in 1914 and $290 in 1929

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  • the biggest industrial development in the 1890s and 1900 expansion of the railroads the railroads primary method of transportation and gave industrialists access to distant markets and raw materials
  • railroads were the nation’s largest business
  • railroad track to increased from 30,000 miles in 1860 293,000 miles in 1900
  • railroads got the money from state and local governments along with foreign investments and loans
  • Vanderbilt Hill Huntington big railroad tycoons first big corporations
  • laws of incorporation 1830s and 1840s businesses could raise money by selling stock and now they had limited liability so people only risked the amount of their investment they were not liable for any other depths of Corporation
  • the ability to sell stock to a big public market made it possible for individual business owners to gather big sums of money and take over big projects that they wouldn’t otherwise deal to afford
  • railroads first to adopt new forms of organization and selling of stock
  • the United States steel Corporation was worth $14 billion in cleated most of the nation steel production
  • Singer patented a sewing machine in 1851
  • business administration started a division of responsibility cost accounting and middle managers that were between workers and owners it helped make possible the modern Corporation consolidation
  • horizontal integration is the combining of a number of firms engaged in the same business into a single Corporation for example all the railroads into one company
  • vertical integration is taking over different businesses on which the company relied for example Carnegie steel controlled steel mills minds railroads and other businesses
  • John D Rockefeller most celebrated corporate empire he owned standard oil he used both horizontal and vertical integration
  • cartels are when a bunch of people in the same industry decide on the prices and all agree
  • but trust is when you make any great economic combination under the trust agreement stockholders transferred their stocks to a small group of trustees in exchange for shares in the trust
  • 1889 New Jersey produced a third form of consolidation changed its laws of incorporation to allow companies to buy other companies that allowed corporate mergers
  • by 1900 because of corporate consolidation 1% of the corporations in America controlled 33% of all manufacturing
  • anonymous power was in the hands of very few men like JP Morgan and Rockefeller
  • capitalism the rise of big business was not without its problems farmers and workers saw it as a threat to the Republican society where wealth would be widely distributed the middle class said there was corruption
  • before the Civil War there were very few millionaires by 1892 there were 4000 millionaires
  • there was rampant corruption
  • survival of the fittest if you succeed you deserve your success if you feel you are lazy and stupid
  • Charles Darwin social Darwinism only the fittest survive in the marketplace Herbert Spencer was in English philosopher and he argued society benefited from the elimination of the unfit and the survival of the strong and talented
  • social Darwinism corporate leaders liked it because it made their success look legitimate
  • Andrew Carnegie wrote the book the Gospel of wealth he wrote people who are rich need to use the money for the good of the community by charity
  • Lester Frank Ward was a Darwinist he wrote dynamic sociology in 1883 he argued civilization was governed by intelligence he thought government engaged in planning was society’s best hope
  • Socialist Labor Party radical approach to reform 1870s led by Daniel DeLeon organized labor for the American Socialist party
  • Henry George progress and poverty 1879 he blamed social problems on the few people who owned things that had monopolies to grow wealth he proposed a single tax on land to replace all other taxes and return the money to the people he wanted to distribute wealth more equally
  • Edward Bellamy Wrote Looking Backward talked about fraternal cooperation which replace competition and there were no class divisions he called nationalism and hundred and 60 national us clubs talked about his ideas
  • monopoly is when one person owns everything people blamed monopolies for high prices and the unstable economy in 1873
  • monopolies had a new class of really wealthy people and people were offended by how rich the lifestyle was 1% of the families in the US controlled 88% of the nation’s businesses and money
  • 4/5 of the American people lived modestly and 10 million below poverty line