Business Gets
Bigger
National Banks + Tariffs
Established during the Civil War
Boom and bust on frontier encouraged
Republicans
National
Banking system
Provided capital for railroads
Stabilized economy against speculation
Protective
Tariffs
Textiles, steel, wool and sugar
Resources for Industrialization
Favorable
Gov’t policies
Raw materials (water, minerals, iron,
metal)
Labor
Ideas
Capitalism….2nd Industrial Revolution
The Rise of the Corporation
Dominant
form of Business
Supported by Gov’t Policies
Increased Standard of Living
”The Era of Combination”
Vertical
Integration & Horizontal Consolidation
Monopolies, Trusts, Holding Companies, Corporations
Vertical Integration
Carnegie-Steel
Swift-
Meatpacking
Predatory Pricing
Lowers costs
Profit at multiple
levels
Steel
Manuf.
Railroads
Several Iron
Mines
Horizontal Integration
Trusts
Monopolies
Standard Oil
DuPont
Eastman Kodak
Singer
Big Business Leaders
Captains
of Industry or Robber Barons?
John D. Rockefeller-Oil
Andrew Carnegie-Steel
JP Morgan-Finance
Jay Gould-Railroads
Gustavus Swift-Meat Packing
Think about it…
How
do customers benefit from vertical
combination?
Why
does horizontal integration
undermine benefits of capitalism?
William Graham Sumner & “Social Darwinism”
A drunkard in the gutter is just where he ought to be, according to
the fitness and tendency of things. Nature has set upon him the
process of decline and dissolution by which she removes things
which have survived their usefulness.
A good father believes that he does wisely to encourage enterprise,
productive skill, prudent self-denial, and judicious expenditure on
the part of his son.
One thing must be granted to the rich: they are good natured.
A National Consumer Culture
Advertising
A new field
Magazines
billboards
Catalogs
and mail order
Consumption
and deflation
Economy Unites
rEqual access…rural & urban
Corporate Workplace
Women
at work
Ranks
Professions
piecework
Retail
Managers
Salesmen
On the Shop Floor
Blue-collar
v. White-collar
Mass production
Scientific management
Skilled v. unskilled
Race and work
FRQ
.
Andrew Carnegie has been viewed by
some historians as the “prime
representative of the industrial age” and
by others as “an industrial leader atypical
of the period.
Assess the validity of these views.
(1986)
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