A New Industrial Order
"What is the chief
end of man?--to get
rich. In what way?-dishonestly if we
can; honestly if we
must."
-- Mark Twain-1871
1877-1918
Industrial Systems
Investment
And
Innovation
Land
(Natural Resources)
Corporate Organization
And
Management
Labor
Communications
Natural Resources and Sectional Division

Agricultural Division
–
–
–

South: cotton, tobacco, lumber, timber products, beef, pork
Midwest: lumber, grain, beef, pork, dairy
West: beef, grain, timber
Resource Extraction
–
–
–
South: coal
Midwest: coal, copper, iron ore, petroleum
West: copper, silver, iron ore, coal, etc.
The Problem of Labor
Why did demand for labor increase from 1865-1918?
What are the different demands on an industrial labor
force?
Where did the new labor force come from?
Rural America
Immigration
Before/After 1890
Entrepreneurs, Systematic Invention,
and Public Investment


Entrepreneurial Invention (1750-1850)
Systematic invention and Public Investment
–
–
Thomas A. Edison (1879) “Menlo Park”
J.P. Morgan and General Electri
Corporate Organization and New Management

Corporate Organization
–
–
Andrew Carnegie and “vertical integration”
John D. Rockefeller and “horizontal integration”

The predominance of corporations (1877-1918)

“Managerial Revolution”
–
–
Rationalization of labor and “white collar work”
Scientific management


Frederick Taylor “Taylorism”
Henry Ford’s management style
Communications
•The American Railroad system
•Telephone and Telegraph systems
The Role of the State

Civil War Government involvement

1861 Morrill Tariff
– 1862 Morrill Land Grant College Act
– 1862 Pacific Railroad Act
– 1862 Homestead Act
– 1866 14th Amendment to the Constitution
Santa Clara County v. Southern Pacific Railroad
–
80
70
60
50
40
30
% of Americans
living on a farm
20
10
0
1850
1900
1950
2000
Price Stagnation after 1877
250
200
150
100
50
0
1820
1830
1840
1850
1860
1865
1870
Source: David Hackett Fischer
1880
1890