Capital and Labor in Late 19th Century America

Industrial Expansion

• America became the leading manufacturing nation after the Civil War.
• Factors for industrial growth:
  • Abundant raw materials.
  • Large labor supply.
  • Ruthless entrepreneurs.
  • Pro-business federal government.
  • Expanding market for goods.
• Governance split between Republicans and Democrats, preventing dramatic changes.
• High voter turnout (78%) with strong party loyalty.

Communication Advancements

• Transatlantic telegraph cable post-Civil War.
• Alexander Graham Bell's telephone developed.
• Radio, typewriter, cash register, and calculator invented.
• Electricity became a key power source for lighting, transport, and homes.

Steel and Transportation

• Post-war railroads fueled iron and steel production.
• Pittsburgh became a steel industry hub due to coal reserves.
• New transport systems and technologies emerged.
• Oil industry grew from the need for machine lubrication.

Automotive and Aviation

• Automobile industry boom with Henry Ford; 5 million cars by 1917.
• Wright Brothers' airplane invention following automotive advancements.

Scientific Management

• Shift from government to private industry and universities driving research.
• Taylorism introduced for efficient labor management.
• Moving assembly line increased efficiency.

Railroad Expansion

• Railroads expanded to 200,000 miles.
• Tycoons symbolized economic power concentration.
• Railroads sold stocks to raise capital; led to new corporate organizations.

Corporate Expansion

• Horizontal and vertical integration by industrialists like J.P. Morgan.
• Standard Oil's monopoly under John D. Rockefeller.

Economic Ideologies

• Individualism supported concentrated capitalism.
• "Social Darwinism" justified wealth concentration.
• "Gospel of Wealth" led some capitalists to philanthropy.

Labor and Social Challenges

• Rise in standard of living, but labor de-skilled and often dangerous.
• Rural-to-urban migration and 25 million immigrants affected labor markets.
• Decline in wages and poor working conditions led to labor unrest.
• National unions like the Knights of Labor and AFL fought for better conditions.
• Violent conflicts like the Haymarket Square bombing bred distrust in organized labor.

Farmers and Populism

• Farmers faced economic imbalances and organized politically.
• Populists pushed for reforms like graduated income tax and direct election of senators.

Economic Crises

• Panic of 1893 caused severe depression.
• Failures of railroads led to widespread economic collapse.
• Debate over currency backed by gold vs. silver.

Political Impact

• William Jennings Bryan's "Cross of Gold" speech and Free-Silver advocacy.
• Influence on American politics despite his electoral defeat.
• Populism began to dissolve, yet its impact lingered.