The Age of Capital Industrialization and the Rise of Big Business I II III IV V Introduction What Time Is It Right Now and Why 1 Time zones adopted in 1884 because of RR systems taking passengers to different cities Industrialism Perhaps the most important development in US history after 1865 We will explore its ramifications in detail American Business Before 1870 1 2 1830s water powered textile mills in MA Few employees undercapitalized no political influence or any influence in the community Small business 10 20 people Specialize in 1 2 things Generally local Half jobs in agriculture 3 4 5 6 Post 1870 1 2 3 A Case Study Andrew Carnegie 1 Born in Scotland migrated to Pittsburgh 1848 2 Worked in a cotton factory as a child Was manager 1 3 jobs in agriculture Industry jobs quadrupled Carnegie Steel biggest company in the world 3 by age 24 Ambitious clever driven talented and sees a future in steel a Master of manipulating everything in a business to make it more efficient Saw the pros of steel b 1 Bessemer process 4 A Fortuitous Combination of Developments technological developments a c d e a b i c b the rise of railroads 1 lowers transport costs ships fast 2 companies don t have to be local anymore 3 NEEDS STEEL new resources from the West 1 coal from west and south shipped via RR immigration and cheap labor 1 middle of 3rd wave of immigration about 5 million people entered the US the invention of corporate business techniques 5 Some Important Corporate Business techniques a integration of production 1 control all aspects of steel making a own mines RRs and marketing networks that sell coal b monopolization trusts price fixing not so much Carnegie as others 6 Other Helpful Developments A pro industrial US government and Republican Party Pro Industrial law Santa Clara County vs Southern Pacific Railroad 1886 a Corporation is a natural person under the 14th amendment and thus has civil rights Social Darwinism the misguided application of survival of the fittest to economics 1 Charles Darwin on the origin of species 2 Carnegie NOT a social Darwinist a Not born wealthy earned his wealth b Supported workers unions to an extent VI The Gilded Age late 1880s 90s 1 American s ambivalence about Robber Barons a b c threats to democracy threats to free enterprise threats to jobs Carnegie s Social Conscience a Is he good or bad 2 3 A Lingering Question Was the development of American industrialism worth the costs The answers will vary stay tuned
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