Rise of Industrialism
2.5 Discuss corporate mergers that produced trusts and
cartels and the economic and political policies of
industrial leaders.
2.6 Trace the economic development of the United States
and its emergence as a major industrial power,
including its gains from trade and the advantages of its
physical geography.
2.7 Analyze the similarities and differences between the
ideologies of Social Darwinism and Social Gospel
(e.g., using biographies of William Graham Sumner, Billy
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Sunday, Dwight L. Moody).
WHY the US emerged as an industrial giant
19th and 20th century
•railroads
•steam power
•oil refining
•steel
•electrical power
•machine tools
•factory equipment
•rubber
•communications
2
Laissez faire
■“Hands off”
■Belief that government
should not intervene in
business or the economy
Adam Smith wrote about Laissez faire
in his book Wealth of Nations, 1776
3
“Social Darwinism”
(Herbert Spencer )
•Competition was “the law of
life” and resulted in “survival
of the fittest”.
•The unfit would eventually
disappear because they
could not compete.
•Government aid to the poor
interrupted the social
evolution
“Each individual should be allowed
to do as he or she wills as long as
it doesn’t infringe on the rights of
another person.”
4
Spencer’s Social Darwinism
Opposed government aid to the poor
Against a public school system
Opposed laws regulating housing,
sanitation, and health
Disease was punishment for the ignorant
Against most taxes
Against regulating working conditions:
NO maximum hours
NO minimum wages
NO labor unions
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The Gilded Age: A Tale of Today (1873)
A novel by Mark Twain and Charles
Dudley Warner
Explored political and economic corruption
Twain
“Gilded” means to be covered on the
outside with gold.
The novel to refers to a city, which from a
distance, looked as if it was made of gold,
but instead, was covered in cheap gold
paint.
Warner
Why do you think this era in US
history is called “the gilded age?”
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Problems with growth
• Business dominated.
• Working conditions unsafe
• Cities could not house or police growing
populations.
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Industrial Leaders: Heroes or Villains?
1."Captains of Industry”
some people viewed Industrial leaders as
heroes who progressed the American
economy with their business skills.
2. "Robber Barons”
Some viewed Industrial leaders as
immoral, greedy, and corrupt, using
bribery, illegal business practices, and
cruelty to workers to get ahead.
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Robber Barons
Late 1800’s - a handful of these businessmen controlled over 90
percent of total U.S. wealth.
commonly known Robber Barons include:
 John D. Rockefeller
 Cornelius Vanderbilt
Andrew Carnegie
J. Pierpont Morgan
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John D. Rockefeller 1839-1937
1860 - Saved money as a
clerk to start a business
selling farm tools
1862 - developed cheap
oil refining.
Started the company:
Standard Oil.
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Standard Oil
• Rockefeller dominated the oil
industry
• Put local companies out of
business with aggressive tactics
and lower prices.
• 1890 - Standard Oil was a
monopoly (no competitors)
• Rockefeller was worth about $9
billion dollars ($200 billion in
2009 dollars).
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Cornelius Vanderbilt 1794-1877
As a teen, borrowed money
from parents to buy a boat for
passengers between Staten
Island and New York City
1829 - formed a steamship
company on the Hudson River;
charged lower fares than his
competitors
1860s - invested in railroads
and New York’s Grand Central
station
he died worth $100 million
($1.7 billion in today’s dollars)
12
Vanderbilt like many other robber barons, built
massive mansions and spent huge amounts of
money
Vanderbilt mansion today
in Hyde Park, NY
This bedroom is a
reproduction of a
French Queen's
chamber from the
Louis XV period.
William
Vanderbilt
took over the
family
business
13
Andrew Carnegie 1835-1919
Carnegie was born in Scotland to poor parents and
emigrated to the U.S. at 13.
Made some money by being recognized by his
bosses as a honest and hard worker
1865 - invested in iron bridges and iron industry
Invested in Bessemer process for making cheap steel
Dominated industry with
Carnegie Steel Corporation
Different from other robber barons
–Supported worker’s right to unionize
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Making steel using the Bessemer process
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J. P. Morgan
1837-1913
Born into a wealthy family
Formed J.P. Morgan and Company
Made $ by loans to railroad companies in financial
trouble
Believed monopolies were best for our economy
1901 – bought Carnegie Steel Corp. and created
U.S. Steel, the first $billion corporation
Early 1900s - Morgan dominated almost all major
industries
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J.P. Morgan lived his life on a large scale, spending massive
amounts of money, gambling, on “toys” like yachts, huge
parties, palatial homes and art.
“If you have to ask how much it costs you can’t afford it”,
typifies his beliefs about money.
19
What does this cartoon portray?
The millions made by the robber barons is at the expense of the
workers
20
Carnegie attacked the rich of his time.
Believed the
rich have a
duty to help
the poor.
21
The Gospel of Wealth,
by Andrew Carnegie
• Argued that the wealthy had
an obligation to give away
their money.
• Donated to over 3,000 public
libraries and education
including the creation of
several universities
• “he who dies rich, dies in
disgrace.”
22
Carnegie Hall
The nonprofit
Carnegie Hall
Corporation was
created to run the
venue. It was
designated a
National Historic
Landmark in 1962.
23
Carnegie Library of Pittsburgh
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How do robber barons compare to
Microsoft founder Bill Gates?
200
180
160
140
120
100
80
60
40
20
0
Rockefeller
Carnegie
Vanderbilt
Bill Gates
Jay Gould
JP Morgan
James H. Hill
$ billions $
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Summary
• It will make you intellectually rich
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