Industrialism

I. Why was there such vast growth so rapidly in the U.S.?

1. War: Why would war encourage industrial growth?

Example #1: Morrill Act (1862)

Example #2: Railroads:
1860: 30,000 miles of r.r.
1864: Congress grants 131 million acres
1910: 240,000 miles of railway

2. Resources: land, raw materials, people,
ideas=booooooom!

1864: 872,000 tons of iron and steel
1919: more than 24 million tons

1860: 20 million tons of coal
1910: 500 million tons of coal

1860: 500,000 barrels of petroleum
1910: 209 million barrels of petroleum


3. Integration:

a. Horizontal Integration:
--monopolize one part of the productive process

Example: meatpacking plants


b. Vertical Integration:
--monopolize all elements of productive process

Example: Andrew Carnegie: mining iron ore, own blast furnaces (factories), own shops, own ships, own railroad and rail lines



4. Mindset:

a. Small Government is Best:
Laissez faire: “let it do”

Adam Smith, Wealth of Nations (1776)

b. Aggressive Business Mentality:
The Robber Barons

Andrew Carnegie—FRIDAY

J.P. Morgan

Jay Gould: “Mephistopheles of Wall Street”

Cornelius Van Derbilt:


Gentlemen:
You have undertaken to cheat me. I will not sue you, for law takes too long. I will ruin you.
Sincerely,
CVD


c. Justifying the New World:
How do you justify the world when fabulous wealth and wretched poverty exist so closely together?