0005 The “Gilded Age” (SMR 2.5) Flashcards
(112 cards)
In summary, how did the New Industrialization that occurred after the civil war change the nation forever?
- New tycoons (Carnegie, Roosevelt) and profits from vigorous new developments (like the railroad) became rich
- New industrial north became more and more urbanized
- Country is now vastly made up of people who are dependent on greater business interest rather than being independent in economic endeavors and therefore also dependent in political thought
What happened to factories that built and made weapons after the civil war?
They survived in peace time and this resulted in most Americans not working for themselves but for employers
What issues arose with factories after the Civil War?
A lack of regulation from the federal govt.
How did the expansion of railroads dramatically change the nation after the civil war? (5)
- Transformed depot towns into cities
- Technological advancements transformed other industries (like the steam engine)
- South becomes integrated into industry as factories move south
- More contact between East and West coasts (int’l ports)
- Standardized time zones are created
Why were standardized time zones created after the civil war?
Because of the expansion of railroads, we needed to know when it’s noon in the areas of each country, and to know when products would arrive at depot spots so ships could schedule departures accordingly
What happened on May 10, 1869 that connected the east and west coasts?
Completion of the Transcontinental Railroad line (Central Pacific Co.)
Name one of the main railroad barons who came into power and became very wealthy from the railroad business?
Leland Stanford
What was Horizontal Integration?
Created monopolies within a particular industry
What is an example of Horizontal Integration?
Standard Oil controlled by Rockefeller, he took over the refining stage of oil and owned all the refineries so that he could set the price
Rockefeller controlled the refining stage of oil. Is this an example of vertical or horizontal integration?
Horizontal
What were the new business strategies implemented after the civil war?
Horizontal and Vertical Integrations and Holding Companies
What is vertical integration?
When one company buys out ALL factors of production from raw materials to finished product
What is an example of vertical integration?
US Steel owned by Carnegie who bought out all mining, refining, etc. companies so he could control every single step
Carnegie bought out all aspects that made US steel. Is this an example of horizontal or vertical integration?
Vertical
Who was Andrew Carnegie?
a rags to riches man, born in Scotland, immigrated to America, started as a factory worker at 13 in a bobbin factory, worked his way up and ended up buying Carnegie Steel Company, created vertical monopoly and sold it later to JP Morgan for $481 million, spent the rest of his life to massive philanthropy, created Carnegie Hall for arts, created Carnegie Mellon University, created Carnegie libraries
What is a Holding Company?
When you own stock in enough companies to have controlling interest in various aspects of an entire industry.
What is an example of a Holding Company?
If you had enough stock in railroads, you could monopolize everything coming in and out of the railroads
What new business cultures were present after the civil war?
Laissez Faire economics and Social Darwinism
What is Laissez Faire Economics?
the concept that all business is created for self-interest of owner and that owners could do essentially whatever they wanted to make that profit
What are three examples of Laissez Faire Economics?
- A company could steal inventions from another company and innovate it to make it better
- A company could hire people for less money (mostly women and children)
- A company could make people work as long as they wanted them to
What is Social Darwinism and how does it impact business?
Survival of the fittest mentality applied to business and social classes, only those who manage money and invest it wisely will survive
What issues did Laissez Faire Economics and Social Darwinism create after the civil war?
Unfair working standards which led to government regulations
Why was the govt tentative to regulate businesses after the civil war?
because businesses were bringing in the $ and the majority of voters were made up of wealthier business owners
What were the two main government regulations that were created after the civil war?
The Interstate Commerce Commission (1887) and the Sherman Anti-Trust Act (1890)