HIST 2020 The Incorporation of America

Exam 1 Part 2

What is the "Incorporation of America"?

The transformation of the U.S. into an increasingly industrial, urban, and corporate society dominated by large businesses, new technologies, and wealthy business leaders.

What is the basic chain of American industrialization?

Vast resources → industrialization → inventions → new markets → new businesses → jobs → immigration/urbanization → large corporations → wealthy business elite → political influence.

What are the four major connections your professor emphasized?

1) Vast resources exploited helped create new markets. 2) New markets created jobs that spurred immigration to cities. 3) New types of businesses used factors of production to create a new business elite. 4) The new business elite heavily influenced politics.

What were major causes of rapid industrialization?

Large supplies of workers, capital, entrepreneurs/businesspeople, technological innovation, government support, natural resources, and new business culture.

What is capital?

Money and resources invested into workers, machines, factories, businesses, and other productive activities.

Why was a large labor force important to industrialization?

Factories and businesses needed large numbers of workers, including unskilled, semi-skilled, skilled, and immigrant workers.

How can one invention lead to another?

New inventions create new industries, jobs, skills, markets, and problems that can encourage additional inventions.

What is urbanization?

The growth of cities as people move from rural areas into urban areas.

Why did farmers move to cities?

Mechanization, including tractors, reduced the need for agricultural labor, pushing some farmers toward cities in search of industrial jobs.

How did immigration contribute to industrialization?

Immigrants provided a large supply of workers for growing factories and businesses, especially in cities.

What is laissez-faire?

The belief that government should interfere as little as possible in the economy and allow businesses and individuals to compete freely.

What did Americans believe about government and the economy during this period?

Many Americans believed government should not be heavily involved in running or regulating the economy.

What is Social Darwinism?

The application of "survival of the fittest" ideas to human society and economics to justify competition, inequality, and the success of wealthy industrialists.

Who is associated with Social Darwinism?

Herbert Spencer.

How did Social Darwinism justify wealthy industrialists?

It argued that successful people were the "fittest" because they were supposedly smarter, harder-working, or better suited to competition.

Who wrote Folkways (1906)?

William Graham Sumner.

What did William Graham Sumner believe about government?

He opposed extensive government intervention and safety nets, believing individuals should largely be responsible for themselves.

What is the basic message of Horatio Alger stories?

Hard work and perseverance can allow an ordinary or disadvantaged person to become successful.

What larger American idea did Horatio Alger reinforce?

The American Dream—the belief that individuals can achieve upward mobility through hard work.

What slogan did your professor connect to recurring stories?

"There's nothing new under the sun; what is being done has already been done."

Who was Thomas Edison?

A major American inventor and entrepreneur associated with inventions such as the lightbulb, phonograph, and motion-picture technology.

What did Edison do with teams of inventors?

He gathered talented people, gave them resources, and pushed them to develop new inventions rapidly.

What was the "insomnia squad"?

Edison's team of researchers/inventors who were expected to continually produce new inventions.

What did Edison do as a 12-year-old that demonstrated entrepreneurship?

He printed and sold his own newspaper.

What were some unintended consequences of the lightbulb?

Americans slept less, buildings could be designed differently, cities had more nighttime activity, labor patterns changed, and professional sports could be played at night.

Approximately how much sleep did Americans lose after the introduction of the lightbulb?

About two hours.

How did the lightbulb affect professional sports?

Games could be played at night, creating new opportunities and potentially increasing player salaries.

What does the lightbulb demonstrate about inventions?

Inventions can have major unintended social, economic, and cultural consequences beyond their original purpose.

What did the phonograph do?

It recorded and reproduced sound.

How did the phonograph change the music business?

A singer could record a performance once and reproduce/sell that recording multiple times.

What was the Ediphone/Dictaphone?

A device for recording spoken words.

What does the Pope using an Edison-related recording device demonstrate?

How widely Edison's inventions could reach and how they had applications beyond entertainment.

What did the motion-picture camera eventually contribute to?

The development of movies and the film industry, including Hollywood.

Who developed the telephone in 1876?

Alexander Graham Bell.

How did the telephone create job opportunities for women?

Telephone companies created jobs such as telephone operators, which became an important source of employment for women.

How did the telephone change family life?

Families could move farther apart for better jobs while still communicating regularly.

How did the telephone affect businesses?

It allowed people and businesses to communicate over long distances and made it easier to arrange orders and deliveries.

Who promoted alternating current (AC)?

George Westinghouse.

Who promoted direct current (DC)?

Thomas Edison.

Who won the competition between AC and DC?

George Westinghouse's AC system ultimately became dominant.

Why was AC important?

It was better suited to transmitting electricity over long distances.

What companies became major sellers of electrical appliances?

General Electric (GE) and Westinghouse.

What is an assembly line?

A production system in which a product moves through a series of workers/stations, with each worker performing a specific task.

Why was the assembly line revolutionary?

It dramatically increased production speed and efficiency by dividing production into specialized tasks.

What were some negative aspects of factory work?

Extremely long hours, repetitive work, limited breaks, and difficult working conditions.

What were the factory hours mentioned in your notes?

About 16-hour shifts, 6 days a week, with three short breaks.

Why might factory wages not have made factory work "worth it"?

Even when wages were relatively good, workers faced extremely long hours and harsh working conditions.

What is a corporation?

A business organization that can raise capital by selling stock and operates as a separate legal entity.

What happens when someone buys stock?

They purchase an ownership interest in a corporation.

What happens when investors lose confidence in a company?

Its stock price can fall as investors sell their shares.

What is horizontal integration?

Controlling or combining businesses at the same stage of production.

What is vertical integration?

Controlling multiple stages of the production/distribution process.

Who is associated with horizontal integration?

John D. Rockefeller.

Who is associated with vertical integration?

Andrew Carnegie.

What is the memory trick for horizontal integration?

Horizontal = same level. Think: oil company + oil company + oil company.

What is the memory trick for vertical integration?

Vertical = different levels. Think: raw materials → production → transportation → distribution.

Who was John D. Rockefeller?

A major industrialist who built Standard Oil into an enormously powerful oil corporation.

What company did Rockefeller control?

Standard Oil.

What type of integration did Rockefeller use?

Horizontal integration.

What did Rockefeller's business practices demonstrate?

The increasing concentration of economic power in large corporations.

Who was Andrew Carnegie?

A major steel industrialist who rose from humble beginnings and became enormously wealthy.

What industry was Carnegie associated with?

Steel.

What type of integration is Carnegie associated with?

Vertical integration.

What happened during the Homestead Strike?

A labor dispute involving Carnegie's steel industry became violent and influenced Carnegie's views about his wealth and philanthropy.

What did Carnegie do with much of his wealth?

He gave large amounts of money to philanthropic causes, including Carnegie Hall, libraries, and educational/endowment institutions.

What did Carnegie argue in "On Wealth"?

Wealthy people have a responsibility to use their wealth to benefit humanity and create opportunities for others.

What is the basic idea behind "teach them to fish"?

Help people become self-sufficient rather than simply giving them temporary assistance.

Who is associated with the Gospel of Wealth idea discussed in your notes?

Russell H. Conwell.

What did Conwell argue about wealth?

Wealth could be viewed as evidence of God's favor/success, so wealthy people should not necessarily be ashamed of being rich.

What is the major difference between Carnegie and Conwell?

Conwell justified wealth as potentially reflecting God's favor, while Carnegie emphasized that wealthy people have a responsibility to use their wealth for humanity.

Who was Cornelius "Commodore" Vanderbilt?

A major railroad/business magnate who strongly supported laissez-faire capitalism.

What did Vanderbilt contribute to?

The consolidation of American industry, particularly railroads.

Who was William Vanderbilt?

A member of the Vanderbilt family who continued expanding the family's railroad empire.

Why did people become increasingly resentful of wealthy industrial families?

Their enormous wealth, power, and sometimes arrogant behavior contributed to resentment toward the business elite.

Who was J.P. Morgan?

A powerful banker and financier who invested in, reorganized, and consolidated major American businesses.

What makes Morgan different from Rockefeller and Carnegie?

Rockefeller and Carnegie built industrial empires, while Morgan's power primarily came from banking, finance, and investment.

What major company did J.P. Morgan create/buy?

U.S. Steel.

Why was U.S. Steel historically significant?

It became the first billion-dollar corporation in the United States.

Why were bankers like Morgan so powerful?

Banks could concentrate large amounts of capital and direct money toward industries and businesses that needed financing.

What is a trust?

A business arrangement that brings companies under common control and can reduce competition.

What is a merger?

When two or more companies combine into one larger business.

When did your notes say there was a huge spike in mergers?

1896–1899.

What happened to mergers after the 1896–1899 spike?

The number dropped dramatically.

What is an interlocking directorate?

When the same people sit on the boards of multiple companies, allowing them to influence several corporations.

What did the Interstate Commerce Act create?

The Interstate Commerce Commission (ICC).

What was the purpose of the Interstate Commerce Act?

To regulate interstate commerce and prohibit certain unfair business practices.

Why wasn't the Interstate Commerce Act initially very effective?

The government did not initially enforce it strongly or consistently.

What is a "Robber Baron"?

A negative portrayal of wealthy industrialists as greedy, exploitative, corrupt, or willing to eliminate competition.

What is a "Captain of Industry"?

A positive portrayal of wealthy industrialists as innovators, entrepreneurs, job creators, and builders of the economy.

Could the same industrialist be viewed as both?

Yes. The terms represent different interpretations of the same business leaders.

Who criticized Rockefeller through political cartoons?

Thomas Nast.

What was Puck magazine?

A satirical publication that used cartoons, humor, poetry, and commentary to criticize political and economic figures.

How did the business elite influence politics?

Their enormous wealth gave them the ability to influence politicians, elections, government policy, and political institutions.

What did "The Millionaires' Club" claim?

It portrayed the Senate as being dominated or controlled by wealthy interests.

What is the larger historical point about the Millionaires' Club?

It reflects concerns that extreme wealth allowed the business elite to exercise disproportionate political power.

What is history?

Anything that has ever happened.

What is historical significance?

Determining what is important in history and explaining why it matters.

What question should you ask when thinking about historical significance?

"Why does this event/person/development matter historically?"

Why isn't everything that happened equally historically significant?

Because some events had much greater effects or consequences on society and later historical developments than others.

How did inventions contribute to industrialization?

Inventions increased productivity, created new industries and markets, generated jobs, and changed how Americans lived and worked.