Chapter 16: The Nation Industrializes (1865-1900)

Context

• 1865: Last year of the Civil War

John D. Rockefeller

• Born: 1839 in New York
• Education: Cleveland, Ohio
• Early Work: Bookkeeper, partner in grain and livestock, Civil War profits
• Shift to Oil: Entered Cleveland's oil refining business
• Stabilization Strategy: Formed cartel (South Improvement Company)
  • Negotiated deals with railroads for rebates
  • Controlled 90% of U.S. refining capacity; became a monopoly
• Wealth: First American billionaire
• Philanthropy: Post-retirement, focus on donations, especially research

Economic Transformation (1865-1900)

• Growth Predictions: Steel production increased a thousand times, railroads expanded, and agricultural output tripled
• Individual Choices: Investments, production, reactions to competition

Competition and Cooperation

• Andrew Carnegie: Advocated for competition