FOCUS:
1. The reasons for the rapid industrial development of the United States in the late nineteenth century
2. The array of new technology and its impact on industrial growth
3. The role of the individual entrepreneur in various American industries
PRESENTATION:
TASK ONE: WHAT WAS THE GILDED AGE?
The term "Gilded Age" was factitiously coined by Mark Twain and Charles Dudley in their 1873 novel The Gilded Age: A Tale of Today. The "Gilded Age" generally refers to the decades between the end of reconstruction and the turn of the century (about 1870 to 1900). It was a time of unprecedented industrial and economic growth, tumultuous politics, and a wave of immigration. The dazzling flurry of technological innovation that occurred is sometimes referred to as the "Second Industrial Revolution." The industrial, transportation, and communications industries quickly boomed, but were subject to the tumult of an unstable economy. The word "monopoly" could easily characterize this era, in which a few trusts and individuals thrived and amassed fortunes while many Americans lived in poverty and lost their personal autonomy to the corporate machine. The Gilded Age was a formative period in American history, in which the standards for modern business and economics were just beginning to take shape.
The timeline below includes major events in economic and political history during this time period.
The political cartoon, "Hopelessly Bound to the Stake," addresses the discontent of some laborers with the changing nature of work during the era of industrialization.
The political cartoon, "What a Funny Little Government," satirizes the relative power and prowess of large business concerns and the U.S. government.
Question to consider:
1. Why would Twain describe this era as the "gilded" age rather than the "golden" age?
2. How do you interpret the message of the "Hopelessly Bound" cartoon?
3. How do you interpret the message of the "What a Funny Little Government" cartoon?
The timeline below includes major events in economic and political history during this time period.
The political cartoon, "Hopelessly Bound to the Stake," addresses the discontent of some laborers with the changing nature of work during the era of industrialization.
The political cartoon, "What a Funny Little Government," satirizes the relative power and prowess of large business concerns and the U.S. government.
Question to consider:
1. Why would Twain describe this era as the "gilded" age rather than the "golden" age?
2. How do you interpret the message of the "Hopelessly Bound" cartoon?
3. How do you interpret the message of the "What a Funny Little Government" cartoon?
Citations:
An edited Gilded Age Timeline from: http://www.digitalhistory.uh.edu/historyonline/gildedage_chron.cfm
The political cartoon, "Hopelessly Bound to the Stake" appears at: http://www.library.gsu.edu/spcoll/spcollimages/labor/19clabor/Labor%20Prints/80-39_1.jpg
The 1900 "What a Funny Little Government" cartoon appears at http://haleyghiringhelli.files.wordpress.com/2011/02/rock.jpg
The 1900 "What a Funny Little Government" cartoon appears at http://haleyghiringhelli.files.wordpress.com/2011/02/rock.jpg
TASK TWO: Captains of Industry or Robber Barons?
Names like Rockefeller and Carnegie are synonymous with wealth and power. Individual tycoons like these played a pivotal role in making the US the leading industrialized nation in the world during the late 19th and early 20th centuries. The debate over whether these men were greedy, corrupt, and immoral "robber barons" or innovative and enterprising "captains of industry" is still going on today. Nevertheless, each were instrumental in the "corporate revolution" of the time period, in which new business practices led to the industrial advantages of economies of scale.
A short audio lecture (3:38 minutes) on Rockefeller and Carnegie, found below, gives a brief outline of their lives.
John D. Rockefeller built a massive fortune in the oil industry using practices including swallowing up competitors and negotiating exclusive deals with railroad companies. In 1911, Standard Oil's monopoly was dissolved in a Supreme Court decision based on the 1890 Sherman Anti-Trust Act. Rockefeller was often maligned in the press and some perceive him as one of the most hated figures of his day. By the time of his death, Rockefeller, a devout Baptist, had given away over $500 million in philanthropic pursuits.
JP Morgan was one the most influential and powerful figures in the financial world. His philosophy that only ruthless competition would lead economic stability led him to begin a series of consolidations in the railroad and a number of other industries, leading the formation of colossal corporations including US Steel and General Electric. The cool and rational Morgan was a avid art collector and once served as President of the Metropolitan Museum of Art.
Andrew Carnegie, a Scottish immigrant, is known for being a truly self-made man. Though brilliant in matters of business, workers and labor unions at the Carnegie Steel Company found him dismissive of their concerns. At the turn of the century, he sold his steel company to JP Morgan (who integrated it into the mammoth US Steel) and dedicated his time and fortune to philanthropy. He famously wrote, "the man who dies rich, dies disgraced."
Railroad entrepreneur Jay Gould considered himself to be one the most hated men of the 19th century. Gould was the archetypal "robber baron," constantly mired in scandal and corruption. One of his major achievements was helping Western Union ascend to dominance in the telegraph industry.
Questions to consider:
1. In a time when the "rules of the game" for big business were just being hashed out, is it fair to call successful industrialists "robber barons"?
2. Do you think that extraordinarily successful individuals are always subject to public scrutiny? Do you think the industrialists of the Gilded Age deserved their reputations?
3. Given the status of the United States as the world leading industrial nation at the turn of the century, do you think that the industrialists' sometimes questionable business ethics can be excused?
A short audio lecture (3:38 minutes) on Rockefeller and Carnegie, found below, gives a brief outline of their lives.
John D. Rockefeller built a massive fortune in the oil industry using practices including swallowing up competitors and negotiating exclusive deals with railroad companies. In 1911, Standard Oil's monopoly was dissolved in a Supreme Court decision based on the 1890 Sherman Anti-Trust Act. Rockefeller was often maligned in the press and some perceive him as one of the most hated figures of his day. By the time of his death, Rockefeller, a devout Baptist, had given away over $500 million in philanthropic pursuits.
JP Morgan was one the most influential and powerful figures in the financial world. His philosophy that only ruthless competition would lead economic stability led him to begin a series of consolidations in the railroad and a number of other industries, leading the formation of colossal corporations including US Steel and General Electric. The cool and rational Morgan was a avid art collector and once served as President of the Metropolitan Museum of Art.
Andrew Carnegie, a Scottish immigrant, is known for being a truly self-made man. Though brilliant in matters of business, workers and labor unions at the Carnegie Steel Company found him dismissive of their concerns. At the turn of the century, he sold his steel company to JP Morgan (who integrated it into the mammoth US Steel) and dedicated his time and fortune to philanthropy. He famously wrote, "the man who dies rich, dies disgraced."
Railroad entrepreneur Jay Gould considered himself to be one the most hated men of the 19th century. Gould was the archetypal "robber baron," constantly mired in scandal and corruption. One of his major achievements was helping Western Union ascend to dominance in the telegraph industry.
Questions to consider:
1. In a time when the "rules of the game" for big business were just being hashed out, is it fair to call successful industrialists "robber barons"?
2. Do you think that extraordinarily successful individuals are always subject to public scrutiny? Do you think the industrialists of the Gilded Age deserved their reputations?
3. Given the status of the United States as the world leading industrial nation at the turn of the century, do you think that the industrialists' sometimes questionable business ethics can be excused?
Citations: Carnegie and Rockefeller.mp3
TASK THREE: The Steel Industry
Andrew Carnegie's steel mills set new standards for the steel industry at the turn of the century. His dedication to underselling his competitors led him to effectuate new strategies to increase efficiency, cut costs, vertically integrate, and invest in new technology. Carnegie was able to produce steel at profoundly reduced prices, which made engineering feats like bridges and tall buildings much more affordable. His obsession with cutting costs, however, translated to low wages and dangerous working conditions for laborers in his mills.
Prominent financier J.P. Morgan bought out Carnegie's business and integrated it into U.S. Steel. U.S. Steel became the world's first billion-dollar corporation in 1901. The mammoth corporation counts legendary business giants like Andrew Carnagie, J.P. Morgan, and Charles Schwab amongst its founding fathers.
The chart of iron, steel, and coal production shows the dramatic rise of the United States to industrial dominance beginning in the 1880's.
The graph comparing the prices of steel and iron rails shows the dramatic plunge in price that occurred when the Bessemer process of steel production was introduced after the Civil War. This was one of the many innovations in steelmaking that Carnegie adopted to cut costs.
The map below includes some of the many companies incorporated by U.S. Steel (vertical integration), as well as examples of different related industries absorbed by the company(horizontal integration).
Question to consider:
1. List a few reasons why an efficient steel production operation could be very lucrative (consider other industries that use steel).
Prominent financier J.P. Morgan bought out Carnegie's business and integrated it into U.S. Steel. U.S. Steel became the world's first billion-dollar corporation in 1901. The mammoth corporation counts legendary business giants like Andrew Carnagie, J.P. Morgan, and Charles Schwab amongst its founding fathers.
The chart of iron, steel, and coal production shows the dramatic rise of the United States to industrial dominance beginning in the 1880's.
The graph comparing the prices of steel and iron rails shows the dramatic plunge in price that occurred when the Bessemer process of steel production was introduced after the Civil War. This was one of the many innovations in steelmaking that Carnegie adopted to cut costs.
The map below includes some of the many companies incorporated by U.S. Steel (vertical integration), as well as examples of different related industries absorbed by the company(horizontal integration).
Question to consider:
1. List a few reasons why an efficient steel production operation could be very lucrative (consider other industries that use steel).
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