Expansion of Industry and Rise of Big Business Liam Brennan Laura Logan

Growth of Industrial America United States had become the largest manufacturing nation in the world immigrants and rural inhabitants began moving to the cities to work –1860: 1 out of every 4 Americans worked in manufacturing –1900: 1 out of every 2 Americans worked in manufacturing technological developments and new business organization contributed to industrial growth

New South

Technological Changes use of natural resources –expansion of heavy industry (steel, machinery, oil) Taylorism: focus on efficiency and increased productivity –assembly line production –piecework employment –workers were timed

Steam Engine

Inventions

Changes in the Workplace unskilled immigrants could do simple tasks in factories children were employed and paid a fraction of what adults were paid women became factory workers rather than domestic workers harsh working conditions

Rise of Big Business laissez-faire capitalism –lack of government control over business allowed industrial growth Social Darwinism –success and failure in business were governed by natural law and no one had the right to intervene several business tycoons emerged during this era

Andrew Carnegie American Dream –Scottish immigrant turned steel tycoon expanded steel industry –contributed to the creation of the U.S. Steel Corporation -vertical integration “Social Gospel” –high profile philanthropist –donated 90% of his fortune (Carnegie Hall, Carnegie Mellon University, etc.)

John D. Rockefeller self-made oil tycoon clever business technique –creation of trusts –horizontal integration –Standard Oil becoming a holding company high profile philanthropist often regarded as the richest man in history –net worth = $340 billion

J. P. Morgan financier and banker dominated corporate finance and industrial consolidation –formation of U.S. Steel Corporation directed banking coalition that ended the Panic of 1907

Cornelius Vanderbilt American tycoon who built his wealth in steamboat shipping and railroads expanded and improved transportation industry rivalry with Jay Gould and James Fisk Jr. high profile philanthropist

Robber Barons… term derived from the medieval German lords who charged illegal tolls on roads crossing their lands, used to refer to leaders of big business –exploitation of workers –manipulation and intimidation of competitors –conspicuous consumption –corrupted public officials and made policies in their favor

Robber Barons

or Captains of Industry? term used to describe big business tycoons as industrious leaders who transformed the American economy –increased productivity –creation of jobs –expansion of markets –philanthropy