Industrialization of America

“Rags to Riches”The RISE OF BIG

BUSINESS

Transformationof America

INDUSTRIALIZATION AND BUSINESS

POWERHOUSEThe Titans

S O C I A L D A R W I N I S M Applied from Charles Darwin’s theory of evolution of the species.

Adapted by Herbert Spencer to society and economics.

Used to explain that some individuals and businesses (corporations) are more fit – have more ability, work harder, more efficient and will be more successful.

Cornelius VanderbiltTransportation in New York and Northeastern United States.

The COMMODORECornelius Vanderbilt

Andrew Carnegie

From poor immigrant to the richest man in the world.

Andrew Carnegie

CARNEGIE – vertical consolidation

Control of ownership of all industries that produce the same product

The Richest Man in the WorldSold CARNIGIE STEEL company to J.P. Morgan for $480 million. Morgan consolidated Carnegie Steel with other steel companies to create UNITED STATES STEEL – the world’s largest steel company.

Gospel of WealthBelief advocated by Andrew CarnegieConcept that the wealthy should give their fortune back to society for improvement. Gave millions to help establish public libraries. Carnegie-Mellon University.Carnegie Hall in New York. Millions to help cure hookworm disease

John D. RockefellerRockefeller used shrewd business strategies to create Standard Oil Company and make it a monopoly

Rockefeller – horizontal consolidation

Control of various companies that make the same product. Rockefeller controlled oil industries.

The Standard Oil Octopus

The Captains of Industry

Positive term used to describe the industrialists as the leaders of the economic growth and prosperity, established businesses that provided jobs and

opportunities for poor and immigrants, provided new products and services.

The ROBBER BARRONS

Negative term to describe the industrialists as being corrupt and using unethical business practices to

establish monopolies; they eliminated competition; they took advantage of cheap immigrant labor and

kept wages low, working hours long and unsafe.

PUCK magazine

The Bosses of the Senate

Fueling American Industry

Abundance of natural resources

CoalIron oreOilWater- electricity

coal

Iron ore

oil

Impact of the RAILROADSRailroad industry Steel IndustryOil IndustryConsumer products