The Second Industrial Revolution and the Rise of Big Business

Vocabulary flashcards reviewing key terms, historical figures, legislation, and corporate practices from the Second Industrial Revolution lecture.

Second Industrial Revolution

A period of rapid industrial growth in the United States after the Civil War, driven by natural resources, factory system innovations, large-scale immigration, and intense competition.

Factory System

A manufacturing method expanded after the Civil War that brought workers together into large central buildings to increase efficiency compared to home-based production.

Gold Standard

A monetary system in which all money had to be backed by gold, resulting in a limited money supply, high interest rates, and restricted credit in the late 19th century.

Wall Street

The financial hub initially founded to sell stock in independent railroad companies so they could raise necessary capital.

Bond

A financial investment bought from a company or government that pays a fixed rate of interest regardless of whether the business profits or fails.

Stock

A share of ownership in a business that yields financial payments to the holder only if the company makes a profit.

Telegraph

An electrical communication device invented in 1837 that railroad companies strung alongside tracks to coordinate train traffic, monitor schedules, and report breakdowns.

Couplers

Mechanical devices used to attach railroad cars together, which initially varied by company and caused standardization issues until consolidation occurred in the late 1880s.

Time Zones

Four geographic standard time divisions (Eastern, Central, Mountain, Pacific) created by railroad companies in 1883 to organize train schedules and travel times across the nation.

Interstate Commerce Act of 1887

A federal law that established the Interstate Commerce Commission (ICC) to monitor railroads and prevent monopolies and price discrimination, though it was ruled unconstitutional by the Supreme Court in 1905.

Andrew Carnegie

A Scottish immigrant who started as a bobbin boy in 1848 and built Carnegie Steel, using the Bessemer process and vertical integration to become the leading steel manufacturer in America.

Bobbin Boy

An entry-level textile mill job held by 12-year-old Andrew Carnegie in Pittsburgh, paying $1.20 per week for 64 hours of work.

Bessemer Process

A technology developed in Scotland that permitted the mass production of large batches of steel at high temperatures, which Andrew Carnegie brought to the United States.

Vertical Integration

A business strategy where a single company owns and controls all stages of production and distribution, such as raw material mines, transport systems, and manufacturing facilities.

Horizontal Integration

A business strategy that involves purchasing and consolidating competing companies within the same industry to eliminate competition and control market pricing.

United States Steel Corporation

The first company in the world valued at over $1,000,000,000, created in 1901 when J.P. Morgan bought Carnegie Steel for $500,000,000 and merged it with Federal Steel.

Gospel of Wealth

A book and philosophy written by Andrew Carnegie asserting that wealthy individuals have a responsibility to donate their fortunes back to society through educational and philanthropic causes.

John D. Rockefeller

A merchant from Cleveland who founded the Standard Oil Company in 1870 and built a monopoly controlling 90% of United States oil production by 1879.

Sherman Antitrust Act of 1890

A congressional act designed to outlaw trusts and monopolies, which was largely ineffective initially because Congress failed to define what constituted a trust or monopoly.

E.C. Knight Sugar Company

A major corporation that controlled 90% of sugar production in the United States in 1895.