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

Summary

The video script provides an insightful look into the rise of industrial capitalism in America during the Gilded Age, a period characterized by the shift towards mass production and consumption. It highlights the dominance of large corporations, particularly in the railroad, steel, and oil industries, with key figures like John D. Rockefeller and Andrew Carnegie leading the way through horizontal and vertical integration, respectively. The video also discusses the expansionist tendencies of these industries, seeking new markets and resources abroad. The wealth accumulation of these industrial leaders is attributed to laissez-faire government policies, exploitation of cheap labor, and the application of Social Darwinism to economics. Carnegie's philanthropic efforts, known as the Gospel of Wealth, are presented as a counterbalance to the harsh business practices of the time. The video concludes by leaving it to the viewer to decide whether these figures should be seen as 'captains of industry' or 'robber barons'.

Takeaways

• 🏭 The rise of industrialism and capitalism in America during the Gilded Age led to mass production and consumption of goods.
• 📈 Large corporations and trusts, particularly in the railroad, steel, and oil industries, dominated markets, making small businesses obsolete.
• 🛢️ John D. Rockefeller's Standard Oil exemplified horizontal integration, controlling nearly 90% of the oil industry by the late 1880s.
• 🔩 Andrew Carnegie's steel empire grew through vertical integration, acquiring all aspects of steel production from mining to distribution.
• 🌍 American industries expanded globally, seeking new markets and resources, influencing the push for American imperialism.
• 💰 The wealth of industrial leaders like Rockefeller and Carnegie was facilitated by laissez-faire government policies and a lack of regulation.
• 👥 These industries relied heavily on underpaid labor, including immigrants, women, and children, due to an abundant labor pool and no wage regulations.
• 🧬 Social Darwinism was applied to economics, justifying the survival of the fittest companies and the concentration of wealth in fewer hands.
• 🤑 Andrew Carnegie's Gospel of Wealth argued that the extremely wealthy had a duty to give back to society through philanthropy, which he practiced.
• 🏛️ Carnegie's philanthropic efforts included donating $350 million for the establishment of libraries, concert halls, and universities.
• 🧐 The historical perception of figures like Carnegie and Rockefeller is divided, with some viewing them as 'captains of industry' and others as 'robber barons'.

Q & A

What does the term 'industrialism' refer to in the context of the AP U.S. History curriculum?

Industrialism describes the shift in the way goods are produced and sold, specifically the transition towards mass production and mass consumption.

What is the historical period in American history known as The Gilded Age?

The Gilded Age refers to the period of American history characterized by rapid industrialization and economic growth, despite underlying social and economic problems.

How did John D. Rockefeller manage to dominate the oil industry through his company, Standard Oil?

John D. Rockefeller used shrewd business tactics to force his competitors to sell their companies to him, a practice known as horizontal integration, which led to Standard Oil controlling almost 90% of the oil industry by the late 1880s.

What is the difference between horizontal integration and vertical integration in the context of business practices?

Horizontal integration involves a company buying out its competitors to eliminate competition, while vertical integration is when a company acquires all the complementary industries that support its business, from raw materials to distribution.

How did Andrew Carnegie's approach to business differ from John D. Rockefeller's?

Andrew Carnegie focused on vertical integration, acquiring companies throughout the entire supply chain of steel production, rather than eliminating competitors through horizontal integration.

Why did large corporations and trusts look to foreign markets and resources during the Gilded Age?

As these corporations grew in size and power, they sought to expand their control over foreign markets and resources to increase their profits and secure access to natural resources.

What was the laissez-faire government policy, and how did it contribute to the rise of wealthy industrialists?

Laissez-faire government policies involved minimal government intervention or regulation in business practices, allowing industrialists like Rockefeller and Carnegie to consolidate their power without significant oversight.

How did the availability of underpaid laborers contribute to the wealth of industrialists during the Gilded Age?

The influx of immigrants, along with the employment of women and children, provided a large pool of underpaid laborers, which allowed industrialists to maximize profits without significant wage increases.

What is Social Darwinism, and how was it applied to economics during the Gilded Age?

Social Darwinism is the application of the concept of survival of the fittest from biological evolution to society and economics. It was used to justify the idea that strong companies should dominate or 'eat' weak ones, leading to the concentration of wealth in the hands of a few.

How did Andrew Carnegie's 'Gospel of Wealth' philosophy differ from the standard practices of his time?

Carnegie's 'Gospel of Wealth' argued that the extremely wealthy had a moral duty to invest their wealth back into society through philanthropy, which he demonstrated by donating a significant portion of his wealth to various causes.

What are the two contrasting titles often used to refer to industrial leaders like Andrew Carnegie and John D. Rockefeller?

The two contrasting titles are 'captains of industry,' which carries a positive connotation, and 'robber barons,' which implies a more negative view of their contributions to American society.