Heimler's History: The Rise of Industrial Capitalism in America

Introduction

Focus on Unit 6 of the AP U.S. History curriculum.
Discussion on the rise of industrial capitalism during the Gilded Age (late 1800s).
Industrialism: Change towards mass production and consumption.
Gilded Age: A period covered in gold, hiding underlying issues.

Small, locally owned businesses became obsolete due to large corporations and trusts.
Dominance of industries: Railroads, steel, and oil.

Key figure: John D. Rockefeller.
- Owner of Standard Oil.
- Practiced Horizontal Integration: Buying out competitors to eliminate competition.
- Controlled ~90% of the oil industry by late 1880s.

Key figure: Andrew Carnegie.
- Dominated the steel industry through Vertical Integration.
- Acquired all supporting industries (mining, processing, distribution).

Large industries sought control over foreign markets and resources.
American leaders of industry sought new markets in the Pacific Rim, Asia, and Latin America.
Mixed American sentiment towards becoming an empire.

Laissez-faire Government Policies
- Minimal government intervention in business.
- Possible influence of bribery (e.g., by Rockefeller).
Exploitation of Labor
- Large influx of underpaid laborers: immigrants, women, and children.
- Lack of governmental wage regulation.
- Employment of women and children at lower wages.
Social Darwinism
- Application of survival of the fittest to economics.
- Justification for strong companies dominating weaker ones.

Carnegie's Gospel of Wealth
- Argued the wealthy had a duty to give back to society.
- Carnegie donated ~$350 million to public works (libraries, concert halls, universities).

Known as either Captains of Industry or Robber Barons.
- Captains of Industry: Positive view of contributions.
- Robber Barons: Negative view of exploitation.

Note: This lecture highlights both the achievements and the controversial practices of industrial leaders during the Gilded Age.