The Rise of INDUSTRIAL CAPITALISM [APUSH Review Unit 6 Topic 6] Period 6: 1865-1898

The Rise of Industrial Capitalism in America

Overview of the Gilded Age

• The video introduces the concept of industrial capitalism, emphasizing mass production and consumption as defining features.

• This period is referred to as the Gilded Age, suggesting a superficial layer of wealth that conceals deeper societal issues.

Dominance of Large Corporations

• Small businesses became obsolete due to the rise of large corporations and trusts, particularly in industries like railroads, steel, and oil.

• John D. Rockefeller's Standard Oil exemplifies horizontal integration, where one company buys out competitors to eliminate competition.

Key Figures: Carnegie and Rockefeller

• Andrew Carnegie represents vertical integration in the steel industry by acquiring all aspects of production from mining to distribution.

• Both men amassed significant wealth while their companies expanded into foreign markets for resources and sales opportunities.

American Expansionism

• The late 19th century saw American industrialists looking abroad for new markets despite public resistance against imperialism.

• Industry leaders sought opportunities in regions like Asia and Latin America for resource acquisition and market expansion.

Factors Enabling Wealth Accumulation

• Laissez-faire policies allowed business practices to flourish without government intervention or regulation.

• A large pool of underpaid laborers (immigrants, women, children) supported these industries; wages were kept low due to high competition for jobs.

Social Darwinism's Influence

• Social Darwinism applied survival-of-the-fittest principles to economics, justifying the dominance of strong companies over weaker ones.

Philanthropy and Perception: The Duality of Industrialists

The Philanthropic Contributions of Andrew Carnegie

• Andrew Carnegie is noted for his significant acts of philanthropy, having donated approximately $350 million to various causes such as libraries, concert halls, and universities.

• This philanthropic approach suggests a more favorable view of Carnegie's legacy, indicating that he contributed positively to society despite the controversies surrounding his business practices.

Labels for Industrialists: Captains of Industry vs. Robber Barons

• Industrialists like Carnegie, Rockefeller, Collins Huntington, and Mark Hanna are often referred to by two contrasting titles: "captains of industry" or "robber barons."

• The term "captains of industry" implies a positive assessment of their contributions and leadership in economic development.

• Conversely, the label "robber barons" carries a negative connotation, suggesting exploitation and unethical practices in their pursuit of wealth.

• The choice between these labels reflects broader societal debates about the impact of industrialists on American society and economy.