Industrialization and the Rise of Big Business, 1870-1900

Industrialization and the Rise of Big Business (1870-1900)

Overview

  • Chicago World's Fair (1893) showcased technological innovations, igniting excitement about the Industrial Age.

  • Economic growth coincided with challenges for the labor class, initiating labor movements amid economic depression.

Inventors of the Age

  • Late 19th century marked a surge in patents:

    • 1860 to 1890: Patents surged to nearly 450,000.

    • Key inventions included: refrigerated train cars, sewing machines, telegraph, telephone, and electric lighting.

  • Technological advancements transformed everyday life and fueled industrialization.

Key Figures in Industrial Growth

  • Andrew Carnegie: Steel magnate promoting efficient production, philanthropy through "The Gospel of Wealth."

  • John D. Rockefeller: Oil tycoon known for ruthless business methods, creating monopolies through horizontal and vertical integration.

  • J. P. Morgan: Wealthy financier instrumental in organizing capital; formed U.S. Steel, the first billion-dollar company.

Labor Dynamics

  • Shift from agrarian to industrial workforce led to harsh factory conditions:

    • Long hours, low pay, and unsafe practices.

    • Inequality: Women and children received lower wages.

  • Labor unions emerged but struggled due to public opposition and high-profile violent labor strikes (e.g., Molly Maguires, Haymarket Affair).

Consumer Culture Emergence

  • Rise of consumerism with increased access to goods:

    • Growth of department stores and mail-order catalogs (e.g., Sears).

    • Advertising became crucial as competition increased.

  • Credit purchasing became common, allowing greater access to goods but leading to consumer debt.

Summary Points

  • Advancements in steel production, communications, and electrical technologies underpinned vast industrial growth.

  • The period saw expansion of wealth concentrated in a few industrialists while labor faced exploitation and poor conditions.

  • Initial gains by labor unions were met with significant public and government backlash, impeding long-term progress.