By 1900, the U.S. had emerged as the world's leading industrial power due to its abundant natural resources, growing labor supply through immigration, capital investments, technological innovations, and business-friendly government policies. Wealthy industrialists and entrepreneurs like Carnegie, Rockefeller, Morgan, and Ford built vast industrial empires in steel, oil, banking, and automobiles through practices like vertical integration and trusts that eliminated competition. New technologies revolutionized areas like transportation, communication, manufacturing, and daily life. However, concerns grew about the power of large trusts and monopolies as well as wealth inequality between the rich industrialists and the working class.
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Lecture on Industrial america
1. The Rise of Industrial
America
1865-1900
By 1900, the U.S. had emerged as the
leading industrial power in the world. Its
manufacturing output exceeded that of its
three largest rivals, Great Britain, France,
and Germany
2. Factors of Growth
Natural Resources: coal, iron ore, copper, lead,
timber and oil
Labor supply: immigrants and population growth
Capital: money to invest in new business ventures
Technology: 440,000 patents between 1860 and
1890
Government: business friendly policies protected
entrepreneurs
Transportation: railroads, steamboats
4. Andrew Carnegie
Scottish Immigrant who
started working in a factory
at age 12.
Invested wisely and entered
the steel industry at age 38.
By 1901 sold his steel
company for $250,000,000!
Gave hundreds of millions to
charities (libraries)
Wrote Gospel of Wealth
Entrepreneurs!
1835 -1919
5. John D. Rockefeller
Started oil-refining
business during the Civil
War.
Elimination of competition!
1882 his company,
controlled 90% of all
American oil refining.
Gave hundreds of millions
to charities.
Entrepreneurs!
1839 -1937
6. J.P Morgan
Banker: made loans to
businesses.
Purchased and
reorganized many
bankrupt businesses
(profit).
Bought Carnegie Steel
and reorganized it into
the United States Steel
Corporation (the world’s
largest).
Entrepreneurs!
1837 -1913
7. Henry Ford
Created the
assembly line
Paid laborers a good
wage
Ford Motor Corp
(cars)
Entrepreneurs!
1873 -1934
8. Entrepreneurs!
George Eastman
In 1888 he manufactures the
first camera designed
specifically for roll film
Mass produces photography
equipment and film
Donates over $75 million to
establish schools.
1854 -1932
9. Industrial Empires - Steel
1870s: Carnegie dominates steel thanks to
1. Vertical Integration: company controls every
stage of the industrial process (from mining to
transportation): reduced costs and under-
price the competition monopoly
2. the Bessemer steel process high-quality
steel
3. cost-analysis cut back costs, higher profits
By 1900, Carnegie Steel was producing more
steel than all of Britain
Overall result: More steel produced and at lower
cost ($65/ton in 1875 vs. $11.50/ton in 1900)
10. Industrial Empires - Oil
Standard Oil Trust controlled
90% of oil refinery business by
1881
Horizontal Integration:
competitors bought by single
company
Trusts: various companies run by
a board of trustees (former
competitors brought under a
single corporate umbrella)
Monopoly
11. Steel: 77,000 tons in 1870 to more than 1
million tons in 1879
Railroad: from 10,000 miles of track in 1850 to
nearly 200,000 miles by 1900 –
Opened up a huge internal market, promoting
farming, commerce, and closure of the frontier
Railroad companies were the first “modern”
corporations – sought capital through stock
issuances.
Advances in Uses of Steel :
The Railroad Industry
12. Transcontinental Railroad
During the Civil War,
Congress authorized
land grants and loans to
build transcontinental RR
Union Pacific and Central
Pacific employed
thousands of new
immigrants: Irish Chinese
15. How did Railroads Change
America?
Railroads changed American
life in many ways:
Travel shorter.
Mail faster.
New jobs.
Local stores profited from train
traffic.
Sales not limited to local markets.
Unfamiliar items appeared locally.
Settlers moved to new locations.
The nation together.
Transportation cost decreased.
16. Problems of the Railroad Era
Too many railroads were
built.
Over-expansion
frequently ended in
bankruptcies.
Failures spread
economic disaster to
workers, businesses, and
farmers.
Railroads resorted to
discriminatory practices
17. Inventions change Americans’
lives.
Inventions enhanced productivity and improved
the standard of living for most Americans:
New telegraph technology connected the
United States with Britain by cable in 1866.
Alexander Graham Bell patented the
telephone in 1876 creation of the Bell
Telephone Co. (later, AT&T)
Telephones were rapidly adopted,
rising from 55,000 in 1880 to
1.5 million in 1900.
18. Invention & Innovation
•Thomas Edison invented
• the phonograph (1877),
• light bulb (1879),
•the first power plant
(1882) created General
Electric by 1892 with J.P.
Morgan
•Singer Sewing Machine
Company first mass
produced sewing
machines in the 1860s
19. Automobiles and Planes
The automobile industry grew in steps.
1876 – invention of the gasoline-powered engine.
1893 – The US built its first motorcar.
- 1908 – Henry Ford first to implement the
moving assembly line in manufacturing,
making cars more affordable.
20. Wilbur and Wright invented an airplane powered by a gas engine in 1903.
Automobiles and Planes
21. Questioning Methods of Big
Business.
Businesses criticized for earning fortunes through unfair
business practices.
Used size and strength to drive smaller competitors
out of business
Powerful trusts sold goods below market value until
smaller competitors went out of business, then raised
prices.
Concerns when a trust gained a monopoly, or total
ownership of a product or service
22. Antitrust Movement
Trusts came under attack/scrutiny in 1880s
Congress passed the Sherman Antitrust Act in
1890, which prohibited any “contract, combination,
in the form of trust or otherwise, or conspiracy in
restraint of trade or commerce.”
Supreme Court rules in United States v. E. C. Knight
Co. (1895) that the act applies to commerce, not
manufacturing
23. Laissez-Faire Capitalism
Businesses were
booming!
Social Darwinism: survival
of the fittest
Gospel of Wealth:
Protestant work ethic, hard
work and material success
are signs of God’s favor
Philanthropy charitable aid
or donations for humankind
well-being
24. The Impact of Industrialization
By 1890s, the richest
10% of U.S. population
controlled nine-tenths of
the nation’s wealth
Widening gap between
rich and poor
“Self-made men” or
rags to riches
Horatio Alger, Jr. novel
portrays young man
who becomes rich
through hard work