Industrialization of America
“Rags to Riches”
The RISE OF BIG BUSINESS
Transformationof America
INDUSTRIALIZATION AND BUSINESS
POWERHOUSEThe Titans
S O C I A L D A R W I N I S M
Applied from Charles Darwin’s theory of evolution of the species.
Adapted by Herbert Spencer to society and economics.
Used to explain that some individuals and businesses (corporations) are more fit – have more ability, work harder, more efficient and will be more successful.
Cornelius VanderbiltTransportation in New York and Northeastern United States.
The COMMODORECornelius Vanderbilt
Andrew Carnegie
From poor immigrant to the richest man in the world.
Andrew Carnegie
CARNEGIE – vertical consolidation
Control of ownership of all industries that produce the same product
The Richest Man in the World
Sold CARNIGIE STEEL company to J.P. Morgan for $480 million. Morgan consolidated Carnegie Steel with other steel companies to create UNITED STATES STEEL – the world’s largest steel company.
Gospel of WealthBelief advocated by Andrew CarnegieConcept that the wealthy should give their fortune back to society for improvement. Gave millions to help establish public libraries. Carnegie-Mellon University.Carnegie Hall in New York. Millions to help cure hookworm disease
John D. Rockefeller
Rockefeller used shrewd business strategies to create Standard Oil Company and make it a monopoly
Rockefeller – horizontal consolidation
Control of various companies that make the same product. Rockefeller controlled oil industries.
The Standard Oil Octopus
The Captains of Industry
Positive term used to describe the industrialists as the leaders of the economic growth and prosperity, established businesses that provided jobs and
opportunities for poor and immigrants, provided new products and services.
The ROBBER BARRONS
Negative term to describe the industrialists as being corrupt and using unethical business practices to
establish monopolies; they eliminated competition; they took advantage of cheap immigrant labor and
kept wages low, working hours long and unsafe.
PUCK magazine
The Bosses of the Senate
Fueling American Industry
Abundance of natural resources
CoalIron oreOilWater- electricity
coal
Iron ore
oil
Impact of the RAILROADS
Railroad industry Steel IndustryOil IndustryConsumer products
