Railroads and the Industrialization of America in the Gilded Age

Causes of Rapid Industrialization Steam Revolution of the 1830s-1850s. The Railroad fueled the growing US economy:  First big business in the US.  A magnet for financial investment.  The key to opening the West.  Aided the development of other industries. Steam Revolution of the 1830s-1850s. The Railroad fueled the growing US economy:  First big business in the US.  A magnet for financial investment.  The key to opening the West.  Aided the development of other industries.

Unskilled & semi-skilled labor in abundance. Abundant financial capital ($$$). New, talented group of businessmen [entrepreneurs] and advisors. Market growing as US population increased. Government willing to help at all levels to stimulate economic growth. Abundant natural resources. Unskilled & semi-skilled labor in abundance. Abundant financial capital ($$$). New, talented group of businessmen [entrepreneurs] and advisors. Market growing as US population increased. Government willing to help at all levels to stimulate economic growth. Abundant natural resources. Causes of Rapid Industrialization

Technological innovations.  Bessemer and open hearth process  Refrigerated cars  Edison o “Wizard of Menlo Park” o light bulb, phonograph, motion pictures. Technological innovations.  Bessemer and open hearth process  Refrigerated cars  Edison o “Wizard of Menlo Park” o light bulb, phonograph, motion pictures.

Thomas Alva Edison “Wizard of Menlo Park”

The light bulb The Phonograph (1877) Moving Pictures Stuff Edison Invented

Alexander Graham Bell Telephone (1876) First words on the phone: “Yes, I have Dr. Pepper in a can. Why?!”

Model T Automobile Henry Ford I want to pay my workers so that they can afford my product! Henry Ford I want to pay my workers so that they can afford my product!

“Model T” Prices & Sales

New Business Culture Laissez Faire  the ideology of the Industrial Age.  Individual as a moral and economic ideal.  Individuals should compete freely in the marketplace.  The market was not man-made or invented.  No room for government in the market!  Individual as a moral and economic ideal.  Individuals should compete freely in the marketplace.  The market was not man-made or invented.  No room for government in the market!

The Building of the Railroads Paid by the government with land grants; several square miles per mile of track laid

The Building of the Railroads Use of immigrant labor Irish in the Midwest Chinese in California

The Building of the Railroads Impact upon American economy: Steel production

The Building of the Railroads Impact upon American economy: Communications

The Building of the Railroads Impact upon American economy: transportation of people/goods

The Building of the Railroads Impact upon American economy: Related industries mining lumber manufacturing

The Building of the Railroads The emergence of the Railroad Barons: “The Commodore” Cornelius Vanderbilt William Vanderbilt Leland Stanford James J. Hill Jay Gould

Cornelius [“Commodore”] Vanderbilt Can’t I do what I want with my money? The Power of the Railroads

William Vanderbilt $ The public be d****d! $ What do I care about the law? H’aint I got the power? $ The public be d****d! $ What do I care about the law? H’aint I got the power? The Power of the Railroads More powerful than the government

The Power of the Railroads Economic Exploitation of America: the “pool”: the division of railroad traffic among various “competitors” Led to higher rates for farmers and lower wages for workers

The Transcontinental Railroad Obstacles: Dangerous conditions, Indian attacks, mountain ranges, labor troubles, weather

The Trans-Continental Railroad May, 10, 1869: meeting of the Union and Central Pacific RRs.

THE ROBBER BARONS!

The ‘Robber Barons’ of the Past