Between 1880 and 1900, the cotton mills in the southern United States doubled in number, reflecting the growing demand for cotton and tobacco products. By the end of the century, businesses in this sector controlled 90% of cigarette production, showcasing the tobacco industry’s dominance in American markets. This growth led to the establishment of new factories, which created jobs and spurred economic activity, especially in the South. However, this expansion came at a significant cost. The demand for cotton placed intense pressure on poorly paid black workers, many of whom were trapped in exploitative sharecropping systems that perpetuated poverty and inequality. Physically, the work was grueling and often hazardous, with no protections or rights for laborers. While the cotton and tobacco industries contributed to industrial growth, they also entrenched systemic racial and economic disparities in the southern states.
The rise of massive bonanza farms during this period also had a profound economic impact. These large-scale farms, often spanning thousands of acres, were highly efficient and dominated agricultural production. However, they created intense competition for smaller farmers, who struggled to keep up. Bonanza farms had the resources to monopolize water supplies and negotiate favorable rates with railroads, ensuring the swift transportation of their goods to market. In contrast, minority farmers, such as African Americans and Mexican Americans, were often left at a disadvantage, unable to compete with the economies of scale and connections of the larger farms. This economic disparity widened the gap between wealthy landowners and small-scale farmers, pushing many small farmers into debt and poverty.
The coal, iron, and steel industries also had a significant impact during this period, driving the growth of America’s infrastructure and manufacturing. These industries employed thousands of workers, but labor conditions were often harsh, especially for black and Mexican workers. These laborers were forced to endure dangerous environments with little to no legal protection, and they were often blacklisted if they attempted to organize or resist exploitation. Blacklisting—where workers were marked as troublemakers and prevented from gaining employment—was a tactic used by businesses to suppress labor rights movements. The expansion of these industries was instrumental in America’s transformation into an industrial power, but it relied heavily on the exploitation of marginalized groups, perpetuating social and racial inequalities.