Business Gets
Bigger
National Banks + Tariffs
 Established during the Civil War
 Boom and bust on frontier encouraged
Republicans
 National


Banking system
Provided capital for railroads
Stabilized economy against speculation
 Protective

Tariffs
Textiles, steel, wool and sugar
Resources for Industrialization
 Favorable
Gov’t policies
 Raw materials (water, minerals, iron,
metal)
 Labor
 Ideas
 Capitalism….2nd Industrial Revolution
The Rise of the Corporation
 Dominant
form of Business
 Supported by Gov’t Policies
 Increased Standard of Living
”The Era of Combination”
 Vertical
Integration & Horizontal Consolidation
 Monopolies, Trusts, Holding Companies, Corporations
Vertical Integration
 Carnegie-Steel
 Swift-
Meatpacking
 Predatory Pricing
 Lowers costs
 Profit at multiple
levels
Steel
Manuf.
Railroads
Several Iron
Mines
Horizontal Integration

Trusts

Monopolies

Standard Oil
DuPont
Eastman Kodak
Singer



Big Business Leaders
 Captains
of Industry or Robber Barons?
 John D. Rockefeller-Oil
 Andrew Carnegie-Steel
 JP Morgan-Finance
 Jay Gould-Railroads
 Gustavus Swift-Meat Packing
Think about it…
 How
do customers benefit from vertical
combination?
 Why
does horizontal integration
undermine benefits of capitalism?
William Graham Sumner & “Social Darwinism”
A drunkard in the gutter is just where he ought to be, according to
the fitness and tendency of things. Nature has set upon him the
process of decline and dissolution by which she removes things
which have survived their usefulness.
A good father believes that he does wisely to encourage enterprise,
productive skill, prudent self-denial, and judicious expenditure on
the part of his son.
One thing must be granted to the rich: they are good natured.
A National Consumer Culture
 Advertising



A new field
Magazines
billboards
 Catalogs
and mail order
 Consumption
and deflation
Economy Unites
rEqual access…rural & urban
Corporate Workplace
 Women



at work
Ranks
Professions
piecework
 Retail
 Managers
 Salesmen
On the Shop Floor
 Blue-collar
v. White-collar
 Mass production
 Scientific management
 Skilled v. unskilled
 Race and work
FRQ
.
Andrew Carnegie has been viewed by
some historians as the “prime
representative of the industrial age” and
by others as “an industrial leader atypical
of the period.

Assess the validity of these views.
(1986)