The late 19th century saw a boom in inventions that changed America. Electricity, telephones, and steel production reshaped cities and communication. Railroads connected the country, spurring economic growth and westward expansion. These innovations set the stage for rapid urbanization and industrial development.

Industrial titans like Carnegie, Rockefeller, and Morgan dominated their industries through new business strategies. Vertical and horizontal integration, monopolies, and trusts helped them control markets. While criticized as "robber barons," they also promoted ideas like Social Darwinism and laissez-faire capitalism.

Late 19th-Century Inventions and Industrial Expansion

Impact of late 19th-century inventions

• Electricity and the light bulb improved by Thomas Edison in 1879 increased productivity by extending the workday and facilitated the growth of cities and urban development
• Telephone patented by Alexander Graham Bell in 1876 improved communication and business efficiency and contributed to the growth of a national market
• Bessemer process for steel production invented by Henry Bessemer in 1856 made steel production faster, cheaper, and more efficient and provided a strong, durable material for construction and manufacturing
• Railroads and the Transcontinental Railroad completed in 1869 connecting the East and West coasts facilitated the transportation of goods, people, and ideas across the country and stimulated economic growth and westward expansion
  • This expansion of transportation networks contributed to rapid urbanization as people moved to cities for industrial jobs

Key Industrial Leaders and Their Impact

Roles of industrial titans

• Andrew Carnegie in the steel industry pioneered vertical integration controlling all aspects of production, invested in new technologies and efficient management practices, and became the dominant force in the steel industry
• John D. Rockefeller in the oil industry created the Standard Oil Company which dominated the oil industry, utilized horizontal integration buying out competitors and controlling the market, and pioneered the use of pipelines for oil transportation
• J.P. Morgan in banking and finance financed the consolidation of major industries including railroads and steel, helped stabilize the U.S. economy during financial crises, and played a key role in the creation of large, powerful corporations
• These powerful industrialists were often referred to as "robber barons" due to their ruthless business practices and immense wealth

Business strategies in late 1800s

• Vertical integration used by Carnegie involved controlling all stages of production from raw materials to finished products and aimed to reduce costs, improve efficiency, and maintain quality control
• Horizontal integration employed by Rockefeller involved acquiring or merging with competitors to increase market share and control prices and focused on eliminating competition and dominating the market
• Monopolies and trusts were large corporations that dominated entire industries often through anti-competitive practices and were used by Rockefeller (Standard Oil) and others to control markets and prices
• Social Darwinism and the "Gospel of Wealth" espoused by Carnegie was the belief that successful individuals and businesses were the "fittest" and deserved their wealth and encouraged philanthropy and the idea that the wealthy had a responsibility to give back to society
• Laissez-faire capitalism was the belief in minimal government intervention in the economy and was supported by many industrial leaders who opposed regulations and labor unions

Industrial Revolution and Labor

Technological advancements

• Mechanization of production processes increased efficiency and output in factories
• The development of the assembly line (pioneered by Henry Ford) revolutionized mass production techniques
• These advancements often led to the deskilling of labor and changes in traditional craft-based manufacturing

Labor movement

• The growth of industry led to the formation of labor unions to advocate for workers' rights and better working conditions
• Unions faced significant opposition from industrialists and often struggled to gain recognition and bargaining power