APUSH: Period 6, 1865-1898 - The Rise of Industrial Capitalism, Rockefeller, Carnegie, Morgan

Why This Matters

The rise of industrial capitalism in the late 19th and early 20th centuries is a pivotal moment in American history, marking a significant shift from an agrarian to an industrial economy. This transformation had far-reaching consequences, including the growth of urban centers, the rise of new social classes, and the concentration of wealth and power in the hands of a few industrialists. Understanding this period is essential for grasping the complex relationships between economic, social, and political developments in the United States during this time. It also highlights the tension between the ideals of American democracy and the harsh realities of industrial capitalism, a theme that continues to resonate in contemporary American society.

Key Events & People

• Andrew Carnegie (1835-1919): Scottish-American industrialist who made his fortune in the steel industry and became one of the wealthiest men in the world. He advocated for philanthropy and donated over $350 million to various causes during his lifetime.
• John D. Rockefeller (1839-1937): American oil industry magnate who founded Standard Oil and dominated the industry for decades. He was a pioneer in vertical integration and was known for his ruthless business tactics.
• J.P. Morgan (1837-1913): American financier and banker who played a key role in the consolidation of the steel industry and the formation of General Electric. He was a dominant figure in the world of finance and was known for his ability to manipulate markets.
• The Homestead Strike (1892): A labor dispute between the Amalgamated Association of Iron and Steel Workers and the Homestead Steel Company, owned by Andrew Carnegie. The strike ended in violence, with the company hiring Pinkerton guards to break the strike.
• The Sherman Antitrust Act (1890): A federal law that prohibited trusts and monopolies, but was often ineffective in enforcing its provisions. It was a key piece of legislation in the government's efforts to regulate industrial capitalism.
• The Pullman Strike (1894): A nationwide strike by railroad workers protesting wage cuts and poor working conditions. The strike was violently suppressed by federal troops, marking a turning point in the government's response to labor unrest.
• The formation of U.S. Steel (1901): The creation of the first billion-dollar corporation, which was formed through the merger of several smaller steel companies. J.P. Morgan played a key role in the formation of the company.
• The Ludlow Massacre (1914): A violent confrontation between striking miners and the Colorado National Guard, which resulted in the deaths of 26 people, including women and children.
• The Federal Trade Commission (1914): A regulatory agency created to enforce antitrust laws and protect consumers. It was a key piece of legislation in the government's efforts to regulate industrial capitalism.

Cause & Effect Chain

• Cause: The growth of industrial capitalism led to the concentration of wealth and power in the hands of a few industrialists.
• Effect: The concentration of wealth and power led to the growth of urban poverty and inequality.

• Long-term consequence: The long-term consequence of this trend was the rise of social and economic tensions that would eventually contribute to the Great Depression.

• Cause: The Sherman Antitrust Act was passed to regulate industrial capitalism.

• Effect: The law was often ineffective in enforcing its provisions, leading to the growth of even larger corporations.

• Long-term consequence: The long-term consequence of this trend was the continued concentration of wealth and power in the hands of a few industrialists.

• Cause: The formation of U.S. Steel marked a new era of corporate consolidation.

• Effect: The company's dominance of the steel industry led to the displacement of smaller companies and workers.
• Long-term consequence: The long-term consequence of this trend was the growth of unemployment and economic instability.

Essential Vocabulary

• *Vertical integration*: The process of a company controlling all aspects of its supply chain, from raw materials to finished goods.
• *Trust*: A business entity that combines the resources of multiple companies to achieve a common goal.
• *Monopoly*: A market structure in which a single company dominates the production and sale of a particular good or service.
• *Cartel*: A group of companies that agree to fix prices or divide markets.
• *Labor union*: An organization of workers that seeks to improve wages, working conditions, and benefits.
• *Strike*: A work stoppage by employees in protest of working conditions or wages.
• *Regulatory agency*: A government agency responsible for enforcing laws and regulations.
• *Antitrust law*: A law that prohibits trusts and monopolies.
• *Consolidation*: The process of combining multiple companies into a single entity.

Common Student Mistakes

• What students often get wrong: Andrew Carnegie was a philanthropist who gave away his wealth to charity.
• Correction: While Carnegie did donate to charity, he was also a ruthless businessman who made his fortune through the exploitation of workers.

• Memory trick: Think of Carnegie as a "steel magnate" who made his fortune in the steel industry, but also as a philanthropist who gave away his wealth.

• What students often get wrong: The Sherman Antitrust Act was effective in enforcing its provisions.

• Correction: The law was often ineffective in enforcing its provisions, leading to the growth of even larger corporations.

• Memory trick: Think of the Sherman Antitrust Act as a law that was meant to regulate industrial capitalism, but was often ignored by corporations.

• What students often get wrong: The Ludlow Massacre was a peaceful confrontation between striking miners and the Colorado National Guard.

• Correction: The confrontation was violent, resulting in the deaths of 26 people, including women and children.
• Memory trick: Think of the Ludlow Massacre as a tragic event that highlighted the violence and exploitation of workers during the labor unrest of the early 20th century.

DBQ / LEQ Connections

• Possible essay prompt: Analyze the role of industrial capitalism in shaping American society during the late 19th and early 20th centuries. Be sure to include specific examples from the period, such as the Homestead Strike and the formation of U.S. Steel.
• Specific evidence: Students could cite the Sherman Antitrust Act, the Pullman Strike, and the Ludlow Massacre as examples of the tensions between industrial capitalism and labor.
• Possible essay prompt: Evaluate the effectiveness of the Sherman Antitrust Act in regulating industrial capitalism. Be sure to include specific examples from the period, such as the growth of U.S. Steel and the formation of the Federal Trade Commission.
• Specific evidence: Students could cite the Sherman Antitrust Act, the formation of U.S. Steel, and the creation of the Federal Trade Commission as examples of the government's efforts to regulate industrial capitalism.

Quick Self?Check

1. Who was the founder of Standard Oil? a) John D. Rockefeller b) Andrew Carnegie c) J.P. Morgan Answer: a) John D. Rockefeller Explanation: Rockefeller was the founder of Standard Oil, which dominated the oil industry for decades.

2. What was the result of the Ludlow Massacre? a) The deaths of 26 people, including women and children b) The defeat of the Colorado National Guard c) The formation of a new labor union Answer: a) The deaths of 26 people, including women and children Explanation: The Ludlow Massacre was a violent confrontation between striking miners and the Colorado National Guard, resulting in the deaths of 26 people.

3. What was the purpose of the Sherman Antitrust Act? a) To regulate industrial capitalism b) To protect consumers c) To promote corporate consolidation Answer: a) To regulate industrial capitalism Explanation: The Sherman Antitrust Act was passed to regulate industrial capitalism and prevent the growth of monopolies.

Last?Minute Cram Sheet

• The "Gilded Age" was named by Mark Twain – it means glittering on the outside, corrupt inside.
• The Sherman Antitrust Act was passed in 1890.
• The Homestead Strike occurred in 1892.
• Andrew Carnegie made his fortune in the steel industry.
• J.P. Morgan was a dominant figure in the world of finance.
• The Ludlow Massacre occurred in 1914.
• The Federal Trade Commission was created in 1914.
• The formation of U.S. Steel marked a new era of corporate consolidation.
• The Pullman Strike was a nationwide strike by railroad workers.
• The Sherman Antitrust Act was often ineffective in enforcing its provisions.