the rise of big business

already booming industrial power in 1890
1. at about this time- Germany becoming Europe's 'superpower'
  1. overtaking Britain as leading producer of steel
  2. led way in key new industries such as electrical engineering, chemicals and armaments
  3. However, the USA's productive capacity already far greater than Germany
    1. possessed almost unlimited natural resources in both energy and raw materials for industry
    2. also had potential in agriculture
2. after this time, industrialisation increased even faster
expansion of US economy fuelled by key factors
1. huge increases in man power and markets that came with mass immigration
  1. labour forces always growing and construction of industry was always booming
2. impact of technology enabled rapid development in transatlantic steamship companies and mechanisation of industry
  1. invention of steel plough, refrigerated ship and expansion of railways led to a massive expansion of meat production for both domestic and abroad economy
3. the opening of the Great Plains enabled cultivation of fertile virgin lands and te production of hug surpluses of cereals
expansion of US economy mainly due to the rise of big business and emergence of huge industrial companies
1. such as Bethlehem Steel, the Carnegie Steel Company and John. D Rockefeller's Standard Oil Company
2. many of these companies merged to make huge combined enterprises for manufacturing, railroads and shipping
3. men like Cornelius Vanderbilt and Samuel Cunard built up huge transportation empires
4. rapid expansion of banking and finance
  1. J. Pierpont Morgan most famous of the new breed of big financers who provided the capital for industrialisation
American wealth
1. the size and scale of US wealth and relatively new and unregulated financial system meant great entrepreneurs ('robber barons') could use ruthless methods to defeat competitors
  1. 1890- Congress passed the Sherman Anti-trust Act
    1. attempt to limit the power of the big new monopolies such as Rockefellers Standard Oil Company
      1. impact of the act was patchy and monopolies still grew
      2. great entrepreneurs could also wield massive political influence
        especially in Republican Party
2. 1890s foundations were in place for the future American domination of the word economy
political impact
1. industrialisation made the USA a more urban society
  1. created powerful new elite of wealthy industrial 'barons'
    1. these men were able to gain direct political influence
      1. especially within the Republican Party and over emerging mass newspapers
  2. at the same time, growth of big business created a big backlash against it
    1. emergence of a new mass labour force led to the spread of socialist ideas
      1. organisations of labour into trade unions
also caused issues due to the volatile nature of the 'boom and bust' industrial and financial growth
1. sudden downturns in the economy led to hard conditions for farmers, small businesses, and workers
  1. financial panic of 1893 led to a sharp drop in gold reserve and put pressure on the government to bring in a high protective tariff
blaming big business
1. Populists and Progressives were quick to blame big b for financial panics and campaigned for 'trust busting' by federal government
  1. wanted to restrict power of railroad companies and big industrial conglomerates
    1. but protests rarely achieved long-term success
2. from 1896 the political of big b remained a key factor in politics
  1. contributed to Republican dominance until 1912
3. many mass newspapers promoted ideas of their rich proprietors and helped ensure efforts of bringing reform against interests of rich business men were frustrated

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the rise of big business

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	Created by Bethan Stevenson almost 11 years ago