How did rapid industrial development affect the people of America specifically the tycoons of major industries during the Industrial Revolution?
The rapid industrial development had been both a blessing and a curse for the people of America. During the second industrial revolution the people of America witnessed a rise of capitalism especially industrial capitalism. As the growth of industrial development increased so did the accumulation of massive industries and corporations transforming the United States of America from being a rural society to being an urban and more technologically advanced society. Small family owned farms were becoming extinct and people were now moving to big urban cities and looking for fresh and new job opportunities, because small farm produce was just not going to be beneficial economically. However as the cities became overpopulated and job opportunities became scarce leading to workers working long and odd hours and getting very little pay. For the employers the rapid industrial development was a curse because how machines and mechanical devices were taking over manual work leaving many jobless. However the rapid industrial development was a blessing to emerging Titans of big industries such as Andrew Carnegie, John D. Rockefeller, Cornelius Vanderbilt. These were the most notable figures of the rise of industrial capitalism and they were also known as Robber Barons. The Robber Barons during the second industrial revolution were not only extremely wealthy but they also were the most powerful men in the business world, making the rapid industrial development a blessing in their favor[i].
In addition Andrew Carnegie one of the famous Robber Barons during this time was the owner of the Steel industry known as the Carnegie Steel. Carnegie was a true example of the “rags to riches” story because he started of very poor and worked his way up the ladder[ii]. Carnegie was born in Scotland and immigrated to the United States when he was around the age of twelve. Although Carnegie immigrated as a poor boy he quickly turned his economic status and became on of the wealthiest men alive during the second industrial revolution. Carnegie by the age of thirty three was worth around four hundred thousand dollars which is approximately five million dollars today (The Gospel of Wealth). Carnegie like most industrial Titans hired a surplus of employees, made them work long and hard hours and underpaid them so he could keep hi operating costs low and be able to distribute and sell the steel and lower price then the rest of the competitor steel companies. Steel was a high commodity during this time because it was a useful resource used in many construction sites, and one major example of the use of steel would be the making and maintaining of the railroads. Another reason why the rapid industrial development was such a blessing to Carnegie was because he used strategy and established the vertical monopoly. The vertical monopoly[iii] basically established that Carnegie had full control over each an every aspect in the Steel business. Carnegie controlled every phase of the steel business, like the raw materials, the distribution, how it is transported and manufactured and who his clientele are. Thus making him the primary and dominating figure in the whole steel industry, making him one of the wealthiest in America[iv].
Moreover, another famous business tycoon during the second industrial revolution was John D. Rockefeller. John D Rockefeller or was the founder and owner of the the Standard Oil Company. Rockefeller also had to work his way up the ladder. He started of as a clerk and then became a dominant wealthy figure in the oil company[v]. Rockefellers oil company, like Carnegies Steel Company was also in high demand because of the new innovation of railroads that used oil. He was cunning, cut throat business man that made secret deals with railroad companies (Foner 599)[vi]. Rockefeller started of by using a method known as the Horizontal expansion strategy[vii], which consisted of taking over and buying out all the other oil companies in America. Soon after that he established another version of the vertical monopoly, which made Rockefeller in complete control of the whole oil industry from drilling to storage to distribution of the oil. Rockefeller was not only able to dictate every move that the industry did, but also monitor and control every aspect and division of the industry.
Furthermore, another major business tycoon during the second industrial revolution was a man named Cornelius Vanderbilt. He was the legendary figure in the railroad industry and shipping industry. Vanderbilt was a well known and successful steamship and railroad builder, financer and owner[viii]. In his early teenage years Vanderbilt started working with his father ferry service in Staten Island from around 1805 to 1810. In 1810 he started he started his own ferry business and passenger service in Staten Island to New York. Vanderbilt was a keen business owner and a smart competitor, he would compare the prices of other ferry and freight companies and he lowered his ticket price making more people use his services. By the 1840’s Vanderbilt had accumulated around one hundred steamships and had become one of the wealthiest business owners in America. As his steamship transportation and service industry boomed he also took an interest in Railroad industry in the 1860’s. Vanderbilt began to buy different segments and stations of Railroads to increase his transportation business and by 1867 he had bought over the Central Railroad and combined it with other smaller railroads[ix].
All in all, the rapid industrial development was a blessing for those that took the advantage of becoming big industrial tycoons. For Andrew Carnegie, John D Rockefeller, and Cornelius Vanderbilt, the new technological innovations, advancements and industrial development became a blessing. The big industrial captains during the second Industrial Revolution took advantage of these advancements and increased mass production and profit and strategized smarter and efficient ways to keep their industries running.
[i] "Andrew Carnegie." In The Gilded Age and Progressive Era: a documentary reader. Malden, MA: Wiley-Blackwell, 2012. 51-58.
[ii] Ibid #1
[iii] ibid #5
[iv] ibid #1
[v] A&E Television Networks. "John D. Rockefeller." History.com. http://www.history.com/topics/john-d-rockefeller (accessed February 25, 2014).
[vi] Foner, Eric. Give me liberty!: an American history. Seagull third ed. New York: W.W. Norton, 2012.
[vii] Ibid #3
[viii] University of St. Francis. "CORNELIUS VANDERBILT." Business Biography. http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/bbios/biograph/vanderbi.htm (accessed February 25, 2014).
[ix] "Cornelius Vanderbilt." Cornelius Vanderbilt. http://www.newnetherlandinstitute.org/history-and-heritage/dutch_americans/cornelius-vanderbilt/ (accessed February 23, 2014).
By: Megan Kumar
In addition Andrew Carnegie one of the famous Robber Barons during this time was the owner of the Steel industry known as the Carnegie Steel. Carnegie was a true example of the “rags to riches” story because he started of very poor and worked his way up the ladder[ii]. Carnegie was born in Scotland and immigrated to the United States when he was around the age of twelve. Although Carnegie immigrated as a poor boy he quickly turned his economic status and became on of the wealthiest men alive during the second industrial revolution. Carnegie by the age of thirty three was worth around four hundred thousand dollars which is approximately five million dollars today (The Gospel of Wealth). Carnegie like most industrial Titans hired a surplus of employees, made them work long and hard hours and underpaid them so he could keep hi operating costs low and be able to distribute and sell the steel and lower price then the rest of the competitor steel companies. Steel was a high commodity during this time because it was a useful resource used in many construction sites, and one major example of the use of steel would be the making and maintaining of the railroads. Another reason why the rapid industrial development was such a blessing to Carnegie was because he used strategy and established the vertical monopoly. The vertical monopoly[iii] basically established that Carnegie had full control over each an every aspect in the Steel business. Carnegie controlled every phase of the steel business, like the raw materials, the distribution, how it is transported and manufactured and who his clientele are. Thus making him the primary and dominating figure in the whole steel industry, making him one of the wealthiest in America[iv].
Moreover, another famous business tycoon during the second industrial revolution was John D. Rockefeller. John D Rockefeller or was the founder and owner of the the Standard Oil Company. Rockefeller also had to work his way up the ladder. He started of as a clerk and then became a dominant wealthy figure in the oil company[v]. Rockefellers oil company, like Carnegies Steel Company was also in high demand because of the new innovation of railroads that used oil. He was cunning, cut throat business man that made secret deals with railroad companies (Foner 599)[vi]. Rockefeller started of by using a method known as the Horizontal expansion strategy[vii], which consisted of taking over and buying out all the other oil companies in America. Soon after that he established another version of the vertical monopoly, which made Rockefeller in complete control of the whole oil industry from drilling to storage to distribution of the oil. Rockefeller was not only able to dictate every move that the industry did, but also monitor and control every aspect and division of the industry.
Furthermore, another major business tycoon during the second industrial revolution was a man named Cornelius Vanderbilt. He was the legendary figure in the railroad industry and shipping industry. Vanderbilt was a well known and successful steamship and railroad builder, financer and owner[viii]. In his early teenage years Vanderbilt started working with his father ferry service in Staten Island from around 1805 to 1810. In 1810 he started he started his own ferry business and passenger service in Staten Island to New York. Vanderbilt was a keen business owner and a smart competitor, he would compare the prices of other ferry and freight companies and he lowered his ticket price making more people use his services. By the 1840’s Vanderbilt had accumulated around one hundred steamships and had become one of the wealthiest business owners in America. As his steamship transportation and service industry boomed he also took an interest in Railroad industry in the 1860’s. Vanderbilt began to buy different segments and stations of Railroads to increase his transportation business and by 1867 he had bought over the Central Railroad and combined it with other smaller railroads[ix].
All in all, the rapid industrial development was a blessing for those that took the advantage of becoming big industrial tycoons. For Andrew Carnegie, John D Rockefeller, and Cornelius Vanderbilt, the new technological innovations, advancements and industrial development became a blessing. The big industrial captains during the second Industrial Revolution took advantage of these advancements and increased mass production and profit and strategized smarter and efficient ways to keep their industries running.
[i] "Andrew Carnegie." In The Gilded Age and Progressive Era: a documentary reader. Malden, MA: Wiley-Blackwell, 2012. 51-58.
[ii] Ibid #1
[iii] ibid #5
[iv] ibid #1
[v] A&E Television Networks. "John D. Rockefeller." History.com. http://www.history.com/topics/john-d-rockefeller (accessed February 25, 2014).
[vi] Foner, Eric. Give me liberty!: an American history. Seagull third ed. New York: W.W. Norton, 2012.
[vii] Ibid #3
[viii] University of St. Francis. "CORNELIUS VANDERBILT." Business Biography. http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/bbios/biograph/vanderbi.htm (accessed February 25, 2014).
[ix] "Cornelius Vanderbilt." Cornelius Vanderbilt. http://www.newnetherlandinstitute.org/history-and-heritage/dutch_americans/cornelius-vanderbilt/ (accessed February 23, 2014).
By: Megan Kumar