APUSH NOTES

Bessemer Process: first inexpensive mass production of steel from pig iron; Henry Bessemer; blows air through molten iron to remove impurities; reduced cost and increased production speed.
Vertical Integration: company controls entire supply chain—from raw materials to final product and distribution.
Horizontal Integration: company acquires/merges with peers at the same level of the value chain to increase market share and economies of scale.
Trust: legal arrangement where stock of multiple companies is pooled under a single board of trustees to act as a monopoly.
Social Darwinists: believed industrial giants’ rise was natural; government interference would impede progress; elites should run society.
Laissez-faire: economic philosophy of minimal government intervention; free markets regulate resources via supply and demand.
Robber Baron: negative label for powerful industrialists who monopolized industries through ruthless or exploitative practices.
Industrialization and the Gilded Age: context for rapid growth, wealth concentration, and corresponding social/economic issues.

Andrew Carnegie
- Industry: steel (Carnegie Steel Company); became the largest steel producer.
- Strategy: vertical integration; controlled production, transportation, and manufacturing; adopted cost-cutting tech like the Bessemer process.
John D. Rockefeller
- Industry: Standard Oil; near monopoly in refining and distribution.
- Strategy: horizontal integration and trusts; focused on efficiency, waste reduction, and by‑products optimization; used predatory pricing and buyouts to oust rivals.
J. P. Morgan
- Industry: finance and banking; dominant in industrial consolidation.
- Strategy: reorganized and consolidated financially troubled companies (e.g., railroads); pursued horizontal integration; coined “Morganize” to cut costs and improve profitability; led bailouts during the Panic of 1907.
Cornelius Vanderbilt
- Industry: shipping and railroads; maritime and rail networks.
- Strategy: aggressive tactics; employed horizontal and vertical integration; fare wars to drive competitors out; consolidated lines (e.g., NY Central Railroad); invested in infrastructure (e.g., Grand Central Depot).

Impact on the late 19^{\mathrm{th}} and early 20^{\mathrm{th}} centuries:
- Enabled industrialization, westward expansion, and national integration; connected producers to distant markets; expanded production and trade.
- Lowered transport costs and times (months to days in some cases); spurred demand for steel, coal, and iron; supported diversified economic activity.
- Created large employment opportunities across roles (track workers, engineers, agents, administrators).

Growth in output and efficiency across industries due to reduced logistics barriers.
Facilitated regional specialization and national markets.

Core idea: the rich should acknowledge their power and wealth but should not waste it on frivolities; instead, use wealth to improve society and raise living standards.
Key principles:
- Wealth should be managed rather than inherited; passing extreme wealth to heirs can be harmful.
- Do not rely on handouts; instead provide opportunities and tools (libraries, educational institutions, museums, science funding).
- Invest during lifetimes to create public benefits (education, culture, research).
- Wealth should be spent to empower self-improvement and societal advancement, not merely to provide comfort.
Personal stance (student): generally agree that wealth should be used to help others and to create opportunities; oppose unbounded inheritance; support targeted philanthropy that fosters self-reliance; tolerate limited charitable giving to improve access to resources.