Chapter 24: Industry Comes of Age, 1865-1900 Flashcards
- What were the costs and benefits of the industrial transformation of the post- Civil War era?
The industrial transformation of the post-Civil War era brought both costs and benefits. Industry experienced major growth. America’s economy expanded greatly. Natural resources such as coal, oil, and iron were used more, inventions such as the telephone and the electric light-bulb appeared, and transportation improved. The normal standard of living drastically increased. On the more negative side of things, millionaires and wealthy business owners grew even more powerful and developed an arrogant attitude towards the poor. The gap between the rich and the poor increased. Workers moved from jobs in agriculture to jobs in manufacturing, where the conditions were harsh and difficult.
- Should industrialists like Vanderbilt, Carnegie, and Rockefeller be viewed as robber barons or captains of industry?
These powerful men should be viewed as captains of industry, despite their use of hard tactics. They were actually somewhat philanthropic and gave money and benefits to the public. Andrew Carnegie even gave away $350 million before he died. They did exploit people to get what the wanted, but in the end, these three men did America good by establishing industries that created jobs and benefitted the US economy. Carnegie invented “vertical integration,” a tactic that greatly increased efficiency. He believed in the “Gospel of Wealth,” that the rich should use what they have to help the rest of society. Rockefeller used “horizontal integration,” which was also a new concept in industry.
- Does the government regulation of the economy disprove the belief that capitalism is a morally superior economic theory? Why or why not?
Capitalism supports a free market, and government regulation does violate this in some senses, but without some regulation, the “free market” would not truly be free. Government regulation of the economy certainly has the potential to exert too much control, but without some regulation, single business owners and powerful companies would have too much power over the economy. Government regulation helps even the playing field somewhat, giving small businesses more opportunity.
