Glossary

3.1 Technological Innovations and Industrial Growth

5 min read•july 31, 2024

The late 19th century saw America transform through rapid technological advancements. From Edison's lightbulb to Ford's assembly line, innovations revolutionized industry, boosting productivity and living standards. These changes laid the foundation for modern American society.

This era of progress also brought challenges. Big businesses and monopolies emerged, concentrating wealth and power. The government grappled with promoting growth while regulating excesses. Meanwhile, workers faced harsh conditions, sparking the rise of labor unions and calls for reform.

Technology's Impact on American Society

Advancements in Electricity and Manufacturing

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  • The second , from the late 19th to early 20th century, saw a rapid increase in technological innovations that transformed American industry and society
  • 's light bulb and power systems revolutionized factories, businesses, and homes leading to increased productivity and improved living standards
  • The development of the and open-hearth furnaces greatly increased steel production making it cheaper and more widely available for construction and manufacturing
  • The rise of techniques, exemplified by 's assembly line, increased efficiency, lowered costs, and made consumer goods more affordable and accessible to a growing middle class

Innovations in Communication, Transportation, and Agriculture

  • The and telephone facilitated long-distance business transactions and connected people across the country
  • The expansion of the railroad network, including the completion of the First Transcontinental Railroad in 1869, dramatically reduced transportation costs and time enabling the growth of national markets and the rise of large corporations
  • Advancements in agriculture, such as the steel plow, , and , increased farm productivity and output leading to the commercialization of agriculture and the decline of small family farms

Rise of Big Business

Emergence of Monopolies and Trusts

  • The late 19th century saw the emergence of large, vertically and horizontally integrated corporations that dominated their respective industries, often through the formation of monopolies and trusts
  • Robber barons, such as , , and , amassed enormous wealth and power by ruthlessly eliminating competition and controlling entire industries
  • The rise of trusts, such as the Sugar Trust and the Beef Trust, allowed companies to fix prices, limit production, and eliminate competition leading to higher consumer prices and reduced market efficiency

Dominance of Key Industries

  • Andrew Carnegie's Carnegie Steel Company became the largest steel manufacturer in the world through vertical integration controlling every stage of the production process from raw materials to finished products
  • John D. Rockefeller's Standard Oil Company monopolized the oil industry through horizontal integration acquiring rival companies and engaging in predatory pricing to drive out competition
  • The concentration of economic power in the hands of a few large corporations and wealthy individuals led to growing concerns about income inequality, working conditions, and the erosion of democratic values

Government's Role in Industrialization

Promoting Industrial Growth

  • The federal government played a significant role in promoting industrial growth through policies such as subsidies, land grants, and protective tariffs, while also attempting to regulate business practices to address public concerns
  • The of 1862 and 1890 provided federal land to states for the establishment of colleges focused on agriculture and mechanical arts supporting the development of a skilled industrial workforce
  • High protective tariffs, such as the of 1890 and the of 1897, shielded American industries from foreign competition encouraging domestic production and investment

Regulating Business Practices

  • The government's laissez-faire approach to regulation, influenced by the concept of Social Darwinism, initially allowed businesses to operate with minimal interference leading to the growth of monopolies and trusts
  • The of 1887 established the Interstate Commerce Commission (ICC) to regulate railroads prohibiting price discrimination and requiring published shipping rates, but its effectiveness was limited by judicial interpretations
  • The of 1890 outlawed trusts and monopolies that restrained trade, but its vague language and narrow judicial interpretations made it largely ineffective in breaking up large corporations
  • Progressive Era reforms, such as the Pure Food and Drug Act and the Meat Inspection Act of 1906, aimed to protect consumers and regulate business practices marking a shift towards greater government intervention in the economy

Consequences of Industrialization

Impact on the Working Class

  • The rise of factory work and led to the growth of a new industrial working class, composed largely of immigrants and rural migrants, who faced long hours, low wages, and hazardous working conditions
  • Child labor was widespread, with children as young as five working in factories, mines, and mills, often in dangerous and exploitative conditions
  • Labor unions, such as the and the , emerged to advocate for better wages, shorter hours, and improved working conditions, but often faced violent opposition from employers and government authorities

Social and Economic Inequalities

  • The concentration of wealth and power in the hands of a few industrial magnates led to growing income inequality and social tensions, as exemplified by the and the rise of Populist and Progressive movements
  • Rapid industrialization and urbanization led to the growth of urban slums characterized by overcrowding, poor sanitation, and high rates of disease and crime
  • The mechanization of agriculture and the rise of commercial farming led to the decline of small family farms and the displacement of rural populations contributing to the growth of cities and the rise of a landless agricultural proletariat
  • African Americans, particularly in the South, faced systemic discrimination, segregation, and violence, as exemplified by the rise of and the widespread practice of lynching
  • Native American communities faced forced assimilation, land dispossession, and cultural destruction as a result of government policies such as the of 1887 and the establishment of Indian boarding schools
  • The rise of mass and the growth of a middle class, fueled by rising wages and the availability of affordable consumer goods, transformed American culture and values emphasizing individualism, materialism, and social mobility

Key Terms to Review (31)

American Federation of Labor: The American Federation of Labor (AFL) was a national federation of labor unions in the United States founded in 1886, representing skilled workers in various trades. It aimed to improve working conditions, wages, and hours for its members through collective bargaining and strikes, distinguishing itself from other labor organizations by focusing on practical economic gains rather than broader social reforms.
Andrew Carnegie: Andrew Carnegie was a Scottish-American industrialist and philanthropist who led the expansion of the American steel industry in the late 19th century. He is best known for revolutionizing steel production techniques and for establishing Carnegie Steel, which became one of the largest and most profitable companies of its time. His contributions to technological innovations and industrial growth played a pivotal role in shaping the modern American economy.
Bessemer Process: The Bessemer Process is a method developed in the 1850s for the mass production of steel by blowing air through molten iron to remove impurities. This innovation significantly lowered the cost of steel production, leading to its widespread use in construction, transportation, and manufacturing, which fueled industrial growth and the rise of big businesses in the United States.
Capitalism: Capitalism is an economic system where private individuals or businesses own and control the means of production and trade, aiming to generate profit. This system emphasizes free markets, competition, and minimal government intervention, allowing supply and demand to dictate prices and production levels. Capitalism has shaped various aspects of society, influencing economic policies, social structures, and labor relations throughout history.
Combine harvester: A combine harvester is a large agricultural machine that efficiently harvests crops by combining three processes: reaping, threshing, and winnowing. This technological innovation revolutionized farming by drastically increasing the speed and efficiency of harvesting, allowing farmers to cultivate larger areas of land with fewer workers. The introduction of the combine harvester contributed to significant changes in agricultural practices and the overall industrial growth during the late 19th and early 20th centuries.
Consumerism: Consumerism is the cultural and economic ideology that encourages the acquisition of goods and services in ever-increasing amounts. It emphasizes the importance of consumption as a means of economic growth and social status, often linked to the desire for material wealth and lifestyle improvement. This concept has shaped various aspects of society, including technological advancements, cultural shifts, and economic trends that have defined different eras.
Dawes Act: The Dawes Act, enacted in 1887, aimed to assimilate Native Americans into American society by allotting individual plots of land to them while reducing communal tribal lands. This law was a part of a broader policy of westward expansion, reflecting the government's desire to promote individual land ownership and agricultural development. The act also directly led to significant conflicts with Native American tribes, as it undermined their traditional communal lifestyles and sovereignty over their lands.
Dingley Tariff: The Dingley Tariff was a U.S. law enacted in 1897 that raised tariffs on imported goods to protect American industries and promote domestic economic growth. This legislation followed the Wilson-Gorman Tariff and was designed to counteract the perceived negative effects of lower tariffs, making it one of the highest tariff rates in American history. The Dingley Tariff reflected the growing trend of protectionism during a time of rapid industrialization, helping to shape the economic landscape of the late 19th century.
Electricity: Electricity is a form of energy resulting from the presence and flow of electric charge, primarily electrons. Its development and implementation in the late 19th century revolutionized industries and everyday life, leading to advancements in manufacturing processes, transportation, communication, and urbanization. As a catalyst for technological innovations, electricity became a driving force behind industrial growth and played a crucial role in the rise of large-scale businesses during this period.
Henry Ford: Henry Ford was an American industrialist and founder of the Ford Motor Company, best known for revolutionizing the automobile industry by introducing assembly line production techniques. His innovations not only made cars more affordable for the average American but also transformed manufacturing practices across various industries, leading to significant technological innovations and industrial growth.
Industrial Revolution: The Industrial Revolution was a transformative period that began in the late 18th century and continued into the 19th century, marked by a shift from agrarian economies to industrialized ones, primarily driven by technological advancements. This era saw the rise of factories, mass production, and innovations such as the steam engine and mechanized textile manufacturing, which collectively revolutionized production processes. The profound changes brought about during this time reshaped labor dynamics and initiated movements advocating for workers' rights.
Interstate Commerce Act: The Interstate Commerce Act of 1887 was a landmark piece of legislation that established the federal government's authority to regulate railroads and their rates across state lines. This act aimed to address the growing discontent over unfair practices by railroad companies, particularly in relation to pricing and monopolistic behavior. By creating the Interstate Commerce Commission (ICC), the act marked a significant shift toward federal regulation of private industry, reflecting broader social and economic tensions during a time of rapid industrial growth.
J.P. Morgan: J.P. Morgan was a prominent American financier and banker who played a crucial role in the development of the U.S. economy during the late 19th and early 20th centuries. He was instrumental in the consolidation of industries, the formation of major corporations, and the establishment of a more regulated financial system. His influence helped shape modern banking practices and corporate finance, making him a key figure in the era of technological innovations and industrial growth.
Jim Crow Laws: Jim Crow laws were state and local statutes enacted in the late 19th and early 20th centuries that enforced racial segregation in the Southern United States. These laws institutionalized a system of discrimination against African Americans, restricting their rights and maintaining white supremacy across various social, economic, and political aspects of life.
John D. Rockefeller: John D. Rockefeller was an American industrialist and philanthropist who co-founded the Standard Oil Company in 1870, which became the first great U.S. business trust. His practices in refining and distributing oil were central to technological advancements in industrial growth and led to significant political debates surrounding monopolies and corporate power in America.
Knights of Labor: The Knights of Labor was one of the first significant labor organizations in the United States, founded in 1869. It aimed to unite all workers, regardless of skill level, race, or gender, advocating for better working conditions, an eight-hour workday, and the end of child labor. This organization emerged during a time of rapid industrialization, marked by technological innovations that transformed the workplace and led to the exploitation of workers.
Labor union: A labor union is an organized group of workers who come together to make decisions about the work environment, including wages, hours, and working conditions. These groups advocate for the collective interests of their members, often negotiating with employers for better terms through collective bargaining. Labor unions emerged as a response to the challenges faced by workers during periods of rapid industrialization and technological change, highlighting the need for organized representation in a growing economy.
Mass production: Mass production is the manufacturing process that involves producing large quantities of goods quickly and efficiently, often using assembly line techniques and specialized machinery. This approach significantly reduces production costs and time, allowing for products to be sold at lower prices and making them more accessible to the general public. Mass production revolutionized industries, fueled economic growth, and transformed consumer habits in the early 20th century.
McKinley Tariff: The McKinley Tariff, enacted in 1890, was a significant piece of legislation that raised tariffs on imported goods to protect American industries from foreign competition. It aimed to boost domestic production and economic growth during a time of rapid industrialization in the United States. This tariff not only reflected the growing power of industrial interests in American politics but also marked a shift towards more protectionist trade policies.
Mechanical Reaper: The mechanical reaper is a machine invented in the 19th century that significantly revolutionized agricultural practices by automating the process of harvesting crops, particularly grains. This innovation allowed farmers to harvest large fields much faster and with less labor compared to traditional manual methods, which had a profound impact on agricultural productivity and the economy, facilitating both technological advancements and industrial growth.
Monopoly: A monopoly is a market structure in which a single seller or producer dominates the entire market, controlling prices and supply of a product or service. This control can result from various factors such as technological innovations, high barriers to entry for other competitors, and aggressive business strategies. Monopolies can significantly influence the economy, often leading to less competition, higher prices for consumers, and potential stifling of innovation.
Morrill Land-Grant Acts: The Morrill Land-Grant Acts were a series of federal laws enacted in the 1860s that provided states with land to establish colleges focused on agriculture and the mechanical arts. These acts were aimed at promoting higher education and improving agricultural practices, contributing significantly to the growth of educational institutions across the United States during a period of rapid industrialization and technological innovation.
Panic of 1893: The Panic of 1893 was a significant economic depression that struck the United States, beginning in May 1893 and lasting for several years. It was triggered by the collapse of the Philadelphia and Reading Railroad, leading to widespread bank failures, business bankruptcies, and high unemployment rates. This event exposed vulnerabilities in the U.S. economy, particularly concerning over-speculation and rapid industrial expansion.
Sherman Antitrust Act: The Sherman Antitrust Act, enacted in 1890, was a landmark piece of legislation aimed at curbing monopolistic practices and promoting fair competition in the United States. This law made it illegal to restrain trade or commerce through anti-competitive behaviors such as monopolies, cartels, and trusts. Its introduction marked a significant shift toward federal regulation of the economy, reflecting concerns over corporate power and its impact on society and the market.
Steam engine: A steam engine is a machine that converts the energy stored in steam into mechanical work through the use of pressure. This innovation played a crucial role in the Industrial Revolution, enabling advancements in transportation, manufacturing, and overall economic growth by powering trains, ships, and factories.
Strike: A strike is a work stoppage initiated by employees to protest against their employer, typically aimed at achieving better working conditions, wages, or other employment terms. Strikes can serve as powerful tools for labor unions and workers to negotiate with employers and can significantly impact the economy and social structure, especially in the context of significant economic transitions and industrial growth.
Telegraph: The telegraph is a communication system that transmits messages over long distances using electrical signals, revolutionizing the way information was shared. Its invention marked a pivotal moment in technological innovations, allowing for rapid communication that facilitated industrial growth and the expansion of big business across the United States. This breakthrough technology enabled companies to coordinate operations, manage logistics, and respond quickly to market changes, ultimately contributing to the emergence of a more interconnected economy.
Telephone - Alexander Graham Bell: The telephone, invented by Alexander Graham Bell in 1876, is a communication device that allows for the transmission of voice over electrical wires. This groundbreaking innovation revolutionized personal and business communication, enabling people to connect across long distances instantly, which played a significant role in the rapid technological advancements and industrial growth of the late 19th century.
Thomas Edison: Thomas Edison was an American inventor and businessman, best known for developing the electric light bulb and phonograph, among numerous other inventions. His work significantly advanced technological innovations in the late 19th century, driving industrial growth and transforming daily life by introducing new ways to generate and use electricity.
Transcontinental railroad completion: The completion of the transcontinental railroad in 1869 marked a significant milestone in American infrastructure, connecting the eastern United States to the western territories. This monumental achievement facilitated the movement of people, goods, and resources across vast distances, thereby transforming the economic landscape and promoting industrial growth throughout the country.
Urbanization: Urbanization is the process by which an increasing percentage of a population comes to live in urban areas, typically associated with industrial growth and economic development. This shift leads to the expansion of cities and changes in social structures, resulting in diverse populations, new opportunities, and challenges such as overcrowding and infrastructure strain.
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