Unit 6: Post Reconstruction and the Gilded Age

Industrialization

Process by which an economy is transformed from agriculture to manufactering

Result of northern industrialization

New wave of immigration, boom of big businesses, rise of urbanization and harsh working conditions

Importance of Corportations

Money raised by corporations through the selling of stocks helped to speed up industry (transportation, building materials, energy, and communications)

Capitalism

Economic system based on private ownership in producing goods/services based on private initiative, competition, and profit

Gilded Age

Time between the Civil War and World War One during which the US population and economy grew quickly, political corruption, corporate financial misleadings, and wealthy people lived lavish lifestyles

Andrew Carnegie (Steel industry)

Created a booming business from railroads and controlled all aspects of steel making

John D. Rockefeller (Monopolized oil industry)

Took control over the entire oil industry, drove out competitors, standard oil trust controlled prices and practices

JP Morgan

Profitedby making loans to growing businesses and took control of many bankrupt railroads, reorganizing them for profit

Henry Ford

Revolutionized the auto making industry through the assembly line which allowed for the mass production of cars and lowered costs

Robber Barons

Sought to maximize their profits by eliminating competition and exploiting workers

Philantropists

Person who seeks to promote other’s welfare

Horatio Alger Myth

Many Americans expressed hope for the “self- made man” through honesty, hard work, and little luck. However, opportunities for upward mobility were in the hands of white male Anglo-Saxon Protestants who had money.

Result of the growth of big businesses

Grew the gap between the rich and poor

Horizontal Integration

Process by which one company takes control of all its former competition in an industry

Vertical Integration

Process by which a company takes control over all stages of making a product/service

Business Monopoly

Company/small group of companies that has complete control over a particular field or business that controls and dominates the industry, leaving consumers with no freedom of choice

Laissez-Faire Economics

Theory that government should minimize its regulation of industry and economy, used to justify unregulated business growth