Heimler's History: The Rise of Industrial Capitalism

Introduction

• Focus: Rise of industrial capitalism in America
• Referred to as the "Gilded Age"
  • "Gilded" implies something covered in gold but not necessarily valuable underneath

The Gilded Age

• Key Industries Dominated by Corporations:
  • Railroads, steel, and oil
  • Small, local businesses became obsolete
• Focus on Oil and Steel:
  • Oil Industry:
    • John D. Rockefeller
    • Owner of Standard Oil
    • Used horizontal integration to eliminate competition
    • Controlled ~90% of the oil industry by the 1880s
  • Steel Industry:
    • Andrew Carnegie
    • Used vertical integration
    • Acquired companies at every production stage

Expansion Beyond U.S. Borders

• Industries sought foreign markets and resources
• Opportunity for America to become an empire by acquiring overseas territories
• Debate over imperialism due to America's history of breaking away from an empire

Wealth and Power of Industrialists

• Reasons for Wealth Accumulation:
  • Laissez-Faire Government Policies:
    • Minimal intervention or regulation
    • Possible political corruption via bribes
  • Cheap Labor Pool:
    • Immigrants, women, and children
    • Underpaid due to lack of regulation
    • Women and children employed at even lower wages
  • Social Darwinism:
    • Applied to economics
    • Survival of the fittest in business
    • Wealth concentrated among the "fittest"

Philanthropy and Legacy

• Carnegie's Gospel of Wealth:
  • Wealthy should invest back in society
  • Personal philanthropy: ~$350 million given to libraries, concert halls, universities

Labels and Perspectives

• Captains of Industry vs. Robber Barons:
  • Positive or negative connotations based on perspective
• Historical Impact:
  • Determining their legacy is subjective

Conclusion

• For further study, explore more resources on Unit 6 of AP U.S. History
• Encouragement to keep learning and subscribe for more educational content