Chapter 16: The Nation Industrializes

Jun 25, 2024

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