U.S. History Ordeal by Fire

U.S. History

Ordeal by Fire - Industrialization

The Civil War affected the economy and industrialization of the U.S. In many ways. In the South, agriculture remained the primary revenue source, and after a brief increase in income, most farmers in the South saw their incomes drop slightly after the war, due to sharecropping and other Reconstruction innovations that ultimately left most black farmers still living in poverty. However, the Civil War affected the Northern economy much more positively.

After the Civil War, industrialization and the economy took off in the North. Railroad development burgeoned in the North, while in the South new track did not take precedence; rebuilding old track destroyed during the war was the first concern. The swift development of the railroads also spawned many other industries and innovations, which helped contribute to industrialization and the growing economy. The railroads also evolved to allow shipment of meat and other food stuffs, which helped lead to the development of the giant meat packing industry in Chicago, among many other developments.

There was a spate of innovation after the war that led to modern conveniences such as the typewriter, the telephone, the light bulb, and many others. Some came from Thomas Edison; others were innovations of necessity, such as barbed wire. All of this led to growth in technology that led to greater industrialization. As more innovations came to market, and could be moved swiftly throughout the country on the railroads, factories set down roots in one location and became larger. This added to the industrialization of the country, and helped create a warehousing industry that still thrives today.

Large factories and reliable transportation affected the economy in another way. Marketing changed, and many industries no longer sold their products to individuals, but instead sold them in large quantities to other industries. For example, the steel industry sold much of its output to the railroads for rails and other items. This led to less reliance on intermediaries, and more profits going directly to manufacturers, instead of salesmen, middlemen, and other rungs in the marketing ladder. The government also became a large consumer of manufactured goods, which added even more profits to industries' coffers.

There were some problems during this time of growth and development, however. The powerful railroads often wielded their power indiscriminately, and many Americans can to criticize the power and exploitation of the railroads and their wealthy owners. Owners often created schemes to make money both from railroads and their construction, which led to "conflict of interest" scandals that had not been known before. The public came to distrust the railroads, and workers began to protest their low wages, dangerous jobs, and long hours. Industrialization also created less of a need for many craftsmen and tradesmen, and remaining jobs were often menial for low pay and long hours of work. This helped create labor unrest and discontent in many people, and combined with railroad problems, led to unemployment and an eventual slowing down of the economy. Due to greed and overbuilding, many railroads ended up bankrupt, and that threw the country into a depression full of unemployment and inflation. Thus, the outlook was not all rosy after the Civil War, but industrialization did increase, innovation would continue to help the economy and industries, and the country would eventually climb out of the depression again.