Gilded Age Capitalists

Pitch

Gilded Age Capitalists

With Gilded Age capitalism, the economy of the nation will continue to grow stronger. Vast new wealth, technology and giant industrial corporations undermined old ideas about America being an egalitarian nation of small independent farmers and artisans. New products and technologies improved and will continue to improve middle-class quality of life. Industrialists' ideology inspired people to rise and achieve any goal they set themselves to. Rich or poor, any man can make if they work hard enough and put their heart into it.

Economic Growth

Relationship to Other Movements

Gilded Age capitalism opposes socialism and communism. Socialism is for equal distribution of wealth and major industries are owned by the government. Capitalism gives more freedom to private businesses. Communism is a more radical version of socialism.

Gilded Age capitalism anticipated the Progressive Era as problems in industrial America developed.

What it did

With the large businesses in control, the economy of the United States rapidly grew. It became the largest industrial nation in the world. The development and expanding of different industries resulted from the demand for transportation and resources such as steel and oil. Captains of industry such as Carnegie, Rockefeller, and Vanderbilt, donated to libraries, education and research.

When

Capitalism was most influential toward the end of the 19th century, during the Gilded Age. Many industries began to develop.

Standard Oil Company

John D. Rockefeller (1839-1937) was the successful owner of the Standard Oil Company.

• Standard Oil's production increased so rapidly it soon exceeded US demand and the company began viewing export markets and eventually increased American trade overseas.+
• Standard Oil's market position was initially established through an emphasis on efficiency and responsibility.
• While most companies dumped gasoline in rivers (this was before the automobile was popular), Standard used it to fuel its machines. While other companies' refineries piled mountains of heavy waste, Rockefeller found ways to sell it.

Cornelius Vanderbilt's Railroad Industry

Carnegie Steel Company

Cornelius Vanderbilt (1793-1877) joined his father in managing the railroad industry. His parents were poor but he recognized the importance of the transportation industry so he purchased existing railroads and expanded the railroad system. Vanderbilt earned millions from his railroad business and donated money to Central University and other places.

Andrew Carnegie (1835-1919) was a powerful industrialist, who embodied the Gilded age ideal of a self made-man, who rose from poverty to build one of the largest steel companies in America.

• Carnegie utilized the newest technologies, such as Open hearth furnaces and vastly improved systems of material-handling, to expand and improve steel production.
• Pushed other industries to improve their own production and speed.
• Became a major contributor to the railroad transport of Union troops and supplies during the Civil War.
• Business helped to fuel the economy and shape the nation into what it is today.

Gilded Age Capitalism

In a capitalist system, the nation's industry is controlled by private owners. The economy is mainly controlled by large corporations. Important ideas during the Gilded Age include Andrew Carnegie's Gospel of Wealth, Russell H. Conwell's Acres of Diamonds, Horatio Alger's rags to riches, and Charles Darwin's Social Darwinism.

Russell Conwell's Acres of Diamonds said that opportunities to become wealthy are everywhere.

Andrew Carnegie's Gospel of Wealth advocated that the wealthy had the responsibility to give back to society with philanthropy.

Charles Darwin's Social Darwinism emphasized survival of the fittest, even in the marketplace.

Horatio Alger's rags to riches stories argued that hard work can bring wealth and success so everyone can make it if they try.

Capitalism