Between 1865 and 1900, the last of the western frontier was being occupied. Gold and silver strikes sent people into areas such as Colorado, Nevada, or Montana. The wild herds of cattle roaming over Texas following the Civil War led to cattle drives, and the promise of free land from the Homestead Act sent hopefuls out west. At the same time, the United States experienced a large industrial growth, and a boosted economy due to the vast amounts of natural resources such as oil and coal; a steady arrival of immigrants who, due to being unskilled and poor, served as a cheap labor supply; development of new technologies that increased productivity; and entrepreneurs who could manage the massive commercial and industrial enterprises that resulted from the industrial increase. While these companies allowed for the United States to become an international competitor, they did so at the cost of the workers and average consumer. These industrial leaders are justifiably characterized as “robber barons.”
Perhaps the industry that had the largest impact on the development of the United States; the railroads were the first big business in the nation. They divided the nation into four time zones and encouraged mass production and mass consumption. Most importantly they created stockholder corporations, complex finance structures, and regulation of competition. The problem of competition was a result of overbuilding, mismanagement, and fraud. An example of this would be a speculator such as Jay Gould, who made millions by inflating the value of a corporation’s assets and then selling the stock to the public. This made it difficult for the railroad business, who then had to offer discounts to shippers while charging extremely high rates to far...
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...drive him to a single market, reduce the price of every class of labor connected with the trade, throw out of employment large numbers of persons who had before been engaged in a meritorious calling and finally…they increase the price to the consumer…(Document D)” This fear led to the antitrust movement and the Sherman Antitrust Act in 1890, which was not really enforced as the government favored the businesses.
The industrial leaders of the 1895-1900 era are justified as “robber barons.” The owners of railroads used them to get rich and then monopolies were created that raised prices dramatically for poorer farmers. In the steel industry, workers were underpaid and then their union was broken so the company and the owners could have more money. The oil industry was made of trusts which are beneficial more to the men in charge than the workers who keep it running.
During this era, businesses supplied large amounts of employment for citizens which created power for these businesses. They had the power to provide bad working conditions, lower wages, and fire their employees without any justification (Doc 1). George E. McNeill, a labor leader, states how “whim is law” and one can not object to it. The government took a laissez-faire approach and refused to regulate economic factors. This allowed robber barons and business tycoons to gain more authority of each industry through the means of horizontal and vertical integration. It wasn’t until later in the time period that the government passed a few acts to regulate these companies, such as the ICC and the Sherman Antitrust Act. One of the main successful industries was
Robber Barons and the Gilded Age Did the Robber Barons and the Gilded Age of the 1890’s and early 20th Century have a negative impact on 21st Century Corporate America today? Carnegie, Rockefeller, Morgan, and Vanderbilt all had something in common, they were all “Robber Barons,” whose actions would eventually lead to the corruption, greed, and economic problems of Corporate America today. During the late 19th century, these men did all they could to monopolize the railroad, petroleum, banking, and steel industries, profiting massively and gaining a lot personally, but not doing a whole lot for the common wealth. Many of the schemes and techniques that are used today to rob people of what is rightfully theirs, such as pensions, stocks, and even their jobs, were invented and used often by these four men.
Unfortunately, these monopolies allowed companies to raise prices without consequence, as there was no other source of product for consumers to buy for cheaper. The more competition, the more a company is forced to appeal to the consumer, but monopolies allowed corporations to treat consumers awfully and still receive their business. Trusts were bad for both the consumers and the workers, but without proper representation, they could do nothing. However, with petitions, citizens got the first anti-trust law passed by the not entirely corrupt Congress, called the Sherman Act of 1890. It prevented companies from trade cooperation of any kind, whether good or bad. Most corporate lawyers were able to find loopholes in the law, and it was largely ineffective. Over time, the Sherman Anti-Trust Act of 1890, and the previously passed Interstate Commerce Act of 1887, which regulated railroad rates, grew more slightly effective, but it would take more to cripple powerful
Robber Barons in America What is a robber baron? Webster’s New Dictionary defines him as an American capitalist of the late 19th century who became wealthy through exploitation (as of natural resources, governmental influence, or low wage scales) or a person who satisfies himself by depriving another. In America, we have a lot of these kinds of people. For this report, I am going to tell you about the ones that I found most interesting to me.
When the names Carnagie, Rockefeller, and Pullman come to mind, most of us automatically think of what we saw or read in our history books: "These men were kind and generous and through hard work and perseverance, any one of you could become a success story like them," right? Wrong. I am sick of these people being remembered for the two or three "good deeds" they have done. Publicity and media have exaggerated the generosity of these men, the government has spoiled these names with false lies, and people have been blind to see that these men were ruthless, sly businessmen who were motivated by your money and their struggle for power.
The Transportation Revolution in the 1800s, sparked up industrialization and the building of railroads that stimulated every other industry causing an economic boom known as the Gilded Age. From the outside, America seemed like the place to go to make all your dreams come true. But in reality, in was an era of serious social problems mainly caused by an economy with a free market policy, low tariffs, low taxes, less spending, and a hands-off government. This type of economy would eventually lead to the development of monopolies. These monopolies would then, in turn, lead to worker uprisings ‒caused by the suppression of unions created mostly by unskilled workers‒ that would contribute to the rapid rise and downfall of America. An example of this suppression is the Homestead Strike of 1892; due to hostility created by the unions, the employer fired all the workers, and rehired them on the basis that there would not be any more unions. After the workers started working again, the conditions were still unbearable, so the workers shut down the facility. The police got involved, the workers were pushed back, and the facility was reopened union free.
In the late nineteenth century known as the Gilded Age (or the Reconstruction period) and the early twentieth century known as the Progressive era, the nation went through great economic growth and social change. Beginning from the 1870s, there was rapid growth in innovations and big businesses. This could be because there was population growth and when there is population growth, there is a high demand of products and other necessities in order to strive in society. Many immigrants from Europe, mostly from the eastern and southern Europe, and Asia moved to American cities. Additionally, farmers from rural America desired to increase economically in society and since corporations ruled and political problems occurred, they decided to move into the cities. Afterwards, the 1900s started with the dominance of progressivism which many Americans tried to improve and solve the problems that were caused or had arisen because of the industrialization of the Gilded Age. It was basically the time when progressives fought for legislations like regulation of big businesses, end of the political corruption, and protection of the rights of the people: the poor, immigrants, workers, and consumers. Thus, between the periods 1870 to 1920, big businesses had arisen and taken control of the political and economic systems through corruption and innovations. In response, American citizens reacted negatively and formed labor unions and political systems to diminish the power that large corporations had in America.
After the Civil War, Americans abandoned the sectional emphasis caused by slavery and developed a national focus. During the period from 1865-1890, Americans completed the settlement of the West. For the farmers and ranchers, the American West was a land of opportunity because land was cheap and the Homestead Act provided land to farmers, including immigrants and blacks, in order to grow crops, raise cattle and make a profit. The American West was also seen as a land of opportunity for miners due to the gold and silver rush in the far west which they believed would make them rich. However, both groups faced many challenges and few achieved great wealth.
The social and economic developments of the last quarter of the nineteenth century drastically changed the United States. The business world changed once industrialization was introduced to the world. Opportunities grew as people heard about the boundless American opportunities. Immigrants from all races flooded the cities which doubled in population from 1860-1900 (Barnes and Bowles, 2014, p. 34). However, as industries grew, owners prospered off the hard work of others. People started to feel they were not being treated fairly. People had to work harder and longer for their money. Barnes and Bowles (2014) noted “In the era of industrialization, millions of workers fought to simply have the right to work in safe conditions, and earn a fair wage” (p. 45). Many Americans feared that giant corporations would one day seek to restrict the ability of common people to get ahead and curtail individual freedoms. These fears were particularly strong among farmers, laborers, an...
...ay to the rise of big business. Americas population was increasing, many citizens were employed and making money, and more eager to spend. Some of the businesses got too big and antitrust acts, such as the Sherman anti-trust act, were passed to control the powers of monopolies and their owners. Not only were there monopolistic companies in the corporate world, there were monopolies in the railroad business as well. The control of railroads became an issue in politics over the abuses and operations of the rail systems. Soon, the federal agencies Interstate Commerce Commission was formed as the first regulatory agency to control private businesses in the public?s interest. More and more control was placed upon Americas businesses and corporations and from this grew unions, as well as conflicts between management and labor, all of which exist today.
Near the end of the nineteenth century, business began to centralize, leading to the rise of monopolies and trusts. Falling prices, along with the need for better efficiency in industry, led to the rise of companies, the Carnegie Steel and Standard Oil company being a significant one. The rise of these monopolies and trusts concerned many farmers, for they felt that the disappearance of competition would lead to abnormaly unreasonable price raises that would hurt consumers and ultimately themselves. James B. Weaver, the Populist party's presidential candidate in the 1892 election, summed up the feelings of the many American Farmers of the period in his work, A Call to Action: An Interpretation of the Great Uprising [Document F]. His interpretations of the feelings of farmers during that time were head on, but the truth is that the facts refute many of Weaver's charges against the monopolies. While it is true that many used questionable methods to achieve their monopoly, there were also other businessmen out there that were not aiming to crush out the competition. In fact, John D. Rockefeller, head of Standard Oil and a very influential and powerful man of that time, competed ardently to not crush out his competitors but to persuade then to join Standard Oil and share the business so all could profit.
Throughout the late nineteenth and the early twentieth century, the United States economy changed dramatically as the country transformed from a rural agricultural nation to an urban industrial gian, becoming the leading manufacturing country in the world. The vast expansion of the railroads in the late 1800s’ changed the early American economy by tying the country together into one national market. The railroads provided tremendous economic growth because it provided a massive market for transporting goods such as steel, lumber, and oil. Although the first railroads were extremely successful, the attempt to finance new railroads originally failed. Perhaps the greatest physical feat late 19th century America was the creation of the transcontinental railroad. The Central Pacific Company, starting in San Francisco, and the new competitor, Union Pacific, starting in Omaha. The two companies slaved away crossing mountains, digging tunnels, and laying track the entire way. Both railroads met at Promontory, Utah on May 10, 1869, and drove one last golden spike into the completed railway. Of course the expansion of railroads wasn’t the only change being made. Another change in the economy was immigration.
Post Civil War, America was looking for new opportunities to become a stronger and more efficient nation. Though reconstruction collapsed, they took the opportunity of the Manifest Destiny to gain the territories of the Louisiana Purchase and the Mexican-American War and settle the west. With this expansion, it provided numerous opportunities for the people to gain success alongside the nation. The gold rush caused an increase in immigration that brought more people to the newly flourishing nation, and allowed the west coast to become settled as well as help the economy from the new wealth. The land that was gained in the Louisiana Purchase provided the Great Plains, where pioneers settled and ranching operations were run. Though it sadly pushed away the native tribes who originally lived there, throughout the gilded age the government has tried to return to them their land and rights – and gives them reparations today. All of which provided a basis to the American dream that gave the opportunity for a better life to many people. Towns and economy was...
There is no refuting that the railroad companies transformed business operations and encouraged industrial expansion. The raw materials required for construction of the transcontinental railroad directly resulted in the expansion of the steel, lumber and stone industries. (Gillon p.652) The railroad stimulated growth in manufacturing and agriculture providing an efficient manner to ship raw materials and products throughout the country. Which in turn, increased consumerism and introduced t...
During the nineteenth and twentieth century monopolizing corporations reigned over territories, natural resources, and material goods. They dominated banks, railroads, factories, mills, steel, and politics. With companies and industrial giants like Andrew Carnegies’ Steel Company, John D. Rockefeller’s Standard Oil Company and J.P. Morgan in which he reigned over banks and financing. Carnegie and Rockefeller both used vertical integration meaning they owned everything from the natural resources (mines/oil rigs), transportation of those goods (railroads), making of those goods (factories/mills), and the selling of those goods (stores). This ultimately led to monopolizing of corporations. Although provided vast amount of jobs and goods, also provided ba...