USHC- 4.3 Evaluate the role of capitalism and its impact on democracy, including the ascent of new industries, the increasing availability of consumer goods and the rising standard of living, the role of entrepreneurs, the rise of business through monopoly and the influence of business ideologies.

The Rise of Big Business ***After the Civil War and starting in 1865 the United States started to urbanize and industrialize. The government of the United States played an active role in promoting this growth via subsidies to railroads and tariffs to protect new industries. A number of inventions helped contribute to this trend. ***Samuel B. Morse- telegraph ***Alexander Graham Bell- invented the telephone ***Thomas Edison- light bulb allowed for factories to run all night. George Westinghouse- developed alternating current and alternating current motor to power machinery long distances from coal deposits or waterfalls. Other inventions included typewriter, vacuum cleaner, refrigeration cars for trains, elevators for big buildings, and innovative machinery for farming.

Inventions Continued ***Henry Ford- developed the moving assembly line and was able to mass produce automobiles. ***He was able to reduce the price of a car so that most families could afford one. This radically changed the U.S. ***Natural Resources- coal, iron, oil, lumber provided the necessary resources to build and supply the nations growing cities.

Ford in 1941 hitting a car made with soybean plastic

Robber Barons or Captains of Industry ***Robber Baron- a group of men who were often known to be crooked in their dealing, but became extremely wealthy. Sometimes called Captains of Industry because their businesses benefited society. They built railroads, made gas very cheap, made steel available, and some gave back to the community.

John D. Rockefeller-petroleum Used vertical integration to monopolize the oil business through a device known as a trust. ***He created the Standard Oil Trust. When a number of businesses unite under one system. Rockefeller was able to form a monopoly in the oil and gas business. When the trust was eliminated by the Sherman Antitrust Act he turned to the holding company to continue his monopoly.

What a funny little government!

Andrew Carnegie- Steel In the 1850’s Henry Bessemer developed a new method for making steel. He used air to blow out the impurities and make it lighter and stronger than iron. Carnegie capitalized. He used vertical integration to monopolize the steel industry. He owned the steel mills, the iron ore mines, coal deposits, coke plants, ships and railroads for transportation. ***He wrote the Gospel of Wealth, saying that is the responsibility of the wealthy to make sure their money was put to good use serving others. He funded the creation the nations free library system. He was a philanthropist.

Social Darwinism and the Gilded Age In the mid 1800’s Herbert Spencer a political theorist introduced a concept which came to be known as ****Social Darwinism. He based his ideas on the evolutionary ideas of Charles Darwin. ***Survival of the fittest- was applied to the business world and it meant that government should not interfere or regulate business, but let it run its natural course. The strong would survive. ***Laissez-faire capitalism- Social Darwinism was the basis of this belief, government should leave the businesses alone. (hands-off) Many Americans took this to heart and began believing that anyone, no matter how poor, could pull themselves up by their boot straps.

Early attempts at regulation Initially the government did little to help the working men and women and when disputes did arise they tended to side with business. However some attempts were made to regulate business. ***Interstate Commerce Act- regulated the railroad rates for trains traveling between states. ***Sherman Anti-Trust Act- designed to ensure competition in the market place by making it illegal to form a monopoly. (The Supreme Court ruled against the act and it had little teeth.)

Cultural and Economic Effects of Industrialization ****Industrialization made consumer goods widely available and cheaper for middle class citizens. More jobs were available and people’s standard of living started to rise. Technological advances like the electric trolley and automobiles let people move out of the cities creating the new suburbs. Steamships carried goods around the world and new international markets developed.

J.P. Morgan- finance capitalists, a banker Exercised control over banks, insurance companies, and the stock market

A. Coal B. Iron ore C. Steel D. Oil EOC Sample Questions: 1. Which of the following was NOT a natural resource that proved important for US industrialization? A. Coal B. Iron ore C. Steel D. Oil

A. Andrew Carnegie B. Buck Duke C. J.D. Rockefeller D. J.P. Morgan 2. Which of the following men became rich and powerful as a finance capitalist who exerted influence over a number of different types of businesses? A. Andrew Carnegie B. Buck Duke C. J.D. Rockefeller D. J.P. Morgan

3. George Westinghouse and Thomas Edison are connected in which of the following ways? A. Their inventions made it much easier for businesses to communicate on a broader scale. B. They both made important strides in inventing ways to harness the power of electricity. C. Edison invented the first telephone and Westinghouse later improved on his invention. D. Edison discovered electricity and Westinghouse figured out a way for factories to use it.