The Industrial Economy: Crash Course US History #23

Summary

In this episode of Crash Course U.S. History, John Green explores the rapid industrialization of the United States following the Civil War. The U.S. transformed into the world's most industrialized nation, driven by factors like geography, demography, and law. The episode discusses the pivotal role of railroads, the rise of 'captains of industry' and 'robber barons,' and the challenges faced by workers, including long hours, job insecurity, and high rates of industrial injuries. It also touches on the emergence of unions and the ideology of Social Darwinism, which justified the era's stark economic inequalities.

Takeaways

• 🏭 The U.S. industrialized rapidly after the Civil War, becoming the world's most industrialized nation.
• 💵 The Civil War was a catalyst for industrial growth by standardizing currency and increasing demand for manufacturing.
• 📈 Key factors for U.S. economic growth included Geography, Demography, and Law (GDL).
• 🚂 Railroads were pivotal to industrial success by expanding commerce and creating the first modern corporations.
• ⏰ The establishment of time zones was a direct result of the railroad industry's need for standardized scheduling.
• 🌐 The U.S. Constitution's commerce clause and patent protections fostered a business-friendly environment.
• 🌉 The government supported industrial growth through tariffs, land grants to railroads, and Native American reservations.
• 💼 The era produced 'captains of industry' like Rockefeller and Vanderbilt, who became wealthy but were often ruthless.
• 🔨 Workers faced harsh conditions with long hours, job insecurity, and high rates of industrial injuries.
• 🤝 The labor movement grew in response to these conditions, with unions like the Knights of Labor and the American Federation of Labor advocating for better work conditions.
• 📚 Social Darwinism was used to justify laissez-faire capitalism and to argue against government intervention in business or social welfare.

Q & A

What was the impact of the Civil War on American industrialization?

The Civil War had a significant impact on American industrialization by improving the finance system through the introduction of a national currency, spurring industrialization with massive contracts for arms and clothing manufacturers, boosting the telegraph which improved communication, and giving birth to the transcontinental railway via the Pacific Railway Act of 1862.

What factors contributed to the U.S. becoming the richest and most industrialized nation on earth after the Civil War?

The U.S. became the richest and most industrialized nation due to factors such as its vast geography with abundant resources, a growing population aided by immigration, and supportive laws including the Constitution's commerce clause, patent protections, and government policies like high tariffs and land grants to railroads.

How did the transcontinental railway change the American economy?

The transcontinental railway increased commerce, integrated the American market, allowed national brands to emerge, and created time zones for standardized shipping and transport. It also necessitated new organizational methods and was a key factor in the rise of the first modern corporations.

What were the roles of 'captains of industry' and 'robber barons' during the period of American industrialization?

Captains of industry and robber barons were the same industrial capitalists who were seen as both heroes and villains of the era. They were known for their humble origins, taking risks, and becoming very wealthy, but their methods were often unscrupulous, including driving competitors out of business and caring little for their workers.

How did John D. Rockefeller become the richest man in the world?

John D. Rockefeller became the richest man in the world by ruthlessly buying up rivals in the oil industry, which led to Standard Oil controlling 90% of the U.S. oil industry by the late 1880s.

What were the innovations in industry organization during the period of American industrialization?

Innovations in industry organization included the formation of pools and trusts to control prices and limit competition, vertical integration where firms bought up all aspects of the production process, and horizontal integration where big firms bought up small ones.

What was the role of unions in the era of American industrialization?

Unions played a significant role in fighting for better working conditions, pay, hours, and safety for workers. They emerged due to job insecurity, long working hours, and high rates of industrial injuries. The Knights of Labor and the American Federation of Labor were prominent unions of the time.

What was Social Darwinism and how was it used during the era of American industrialization?

Social Darwinism was a perversion of Darwin's theory of survival of the fittest applied to people and corporations, arguing that the rich were rich because of inherent evolutionary fitness. It was used to justify a lack of government regulation and social support for the poor, allowing tycoons to justify their wealth and power.

How did the conditions of workers during the industrialization period lead to the formation of unions?

The harsh working conditions, including long hours, lack of safety measures, and low wages, led to the formation of unions as workers sought to collectively bargain for better conditions and protection against the exploitative practices of industrialists.

What was the significance of the Haymarket Riot in the history of American labor unions?

The Haymarket Riot in 1886 was significant as it led to the association of labor unions, particularly the Knights of Labor, with violence. This association damaged the public's view of unions and contributed to the decline in membership for some labor organizations.