The Rise of Industrial Capitalism in America

Industrialism in America

Industrialism signifies a transformation in manufacturing, shifting towards mass production and consumption.
This era in American history is termed the Gilded Age, implying a golden exterior that concealed underlying issues.

During the Gilded Age (late 1800s), the dominance of large corporations and trusts led to the decline of small, local businesses.
Key industries affected: Railroad, steel, and oil.

John D. Rockefeller (Standard Oil) was a prominent figure.
Rockefeller strategically acquired competitors, leading to Standard Oil controlling almost 90% of the oil industry by the late 1880s.
This was achieved through horizontal integration.
- Horizontal Integration: One company eliminates competition by acquiring competitors.

Andrew Carnegie dominated the steel industry.
Carnegie utilized vertical integration to consolidate his interests.
- Vertical Integration: A company acquires supporting industries (e.g., from mining to processing to distribution).

Powerful industries sought to expand beyond the U.S. to control foreign markets and resources.
They aimed to acquire new markets for selling goods and securing natural resources in regions like the Pacific Rim, Asia, and Latin America.

Several factors enabled individuals like Rockefeller and Carnegie to accumulate vast wealth during this period:
- Laissez-faire government policies: Minimal government intervention or regulation in business practices.
- Underpaid Laborers: Reliance on a large pool of underpaid workers, including immigrants, women, and children.
- Social Darwinism: Application of Social Darwinism to economics, suggesting that strong companies should overtake weaker ones.
  - Social Darwinism: An idea that strong companies should eat weaker companies.

Carnegie attempted to counter these harsh practices through the Gospel of Wealth.
- Gospel of Wealth: Wealthy individuals have a divine duty to invest their wealth back into society through philanthropy.
- Carnegie donated 350 million to establish libraries, concert halls, and universities.

Figures like Carnegie, Rockefeller, Collins Huntington, and Mark Hanna are viewed differently, either as captains of industry or robber barons, depending on perspectives regarding their impact on American society.