The Age of Capital – Industrialization and the Rise of BigBusinessI. Introduction – What Time Is It Right Now, and Why?1. Time zones adopted in 1884 because of RR systems taking passengers to different citiesII. “Industrialism” – Perhaps the most important development in US history after 1865. We will explore its ramifications in detail.III. American Business Before 18701. 1830s- water-powered textile mills in MA2. Few employees, undercapitalized, no political influence or any influence in the community3. Small business- 10-20 people4. Specialize in 1-2 things5. Generally local6. Half jobs in agricultureIV. Post-18701. 1/3 jobs in agriculture2. Industry jobs quadrupled3. Carnegie Steel- biggest company in the worldV. A Case Study – Andrew Carnegie 1. Born in Scotland, migrated to Pittsburgh, 18482. Worked in a cotton factory as a child. Was manager by age 243. Ambitious, clever, driven, talented – and sees a future in steela. Master of manipulating everything in a business to make it more efficientb. Saw the pros of steel1. Bessemer process4. A Fortuitous Combination of Developmentsa. technological developmentsb. the rise of railroads1. lowers transport costs, ships fast2. companies don’t have to be local anymore3. NEEDS STEELc. new resources from the West1. coal from west and south shipped via RRd. immigration and cheap labor1. middle of 3rd wave of immigration- about 5 million people entered the USe. the invention of corporate business techniques5. Some Important Corporate Business techniquesa. integration of production1. control all aspects of steel makinga. own mines, RRs, and marketing networks that sell coalb. monopolization, trusts, “price fixing” (not so much Carnegie as others)6. Other Helpful Developmentsa. A pro-industrial US government and Republican Partyb. Pro-Industrial lawi. Santa Clara County vs. Southern Pacific Railroad, 1886a. Corporation is a natural person under the14th amendment and thus has civil rightsc. “Social Darwinism” – the misguided application of “survival of the fittest’ to economics1. Charles Darwin- on the origin of species2. Carnegie NOT a social Darwinista. Not born wealthy- earned his wealthb. Supported workers unions to an extentVI. The Gilded Age – late 1880s-90s1. American’s ambivalence about “Robber Barons”a. threats to democracyb. threats to free enterprisec. threats to jobs2. Carnegie’s Social Consciencea. Is he good or bad?3. A Lingering Question – Was the development of American industrialism worth the costs? The answers will vary….stay
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