Nation Develops by the End

Nation Develops

By the end of the 19th century, the United States had not only established itself as a political power but an economic one as well. Key factors affecting the rise of the American economy can almost all be traced to the impact of the Industrial Revolution and the unique ways that revolution played out in the United States. Viewing the West as a vast, uncharted territory, Americans who had previously kept their quarters close to the Atlantic Ocean ventured into new lands to seek economic opportunities. The rise of the railroads completely transformed the American economic machine, for not only did the railroad companies themselves embody the budding success of capitalist enterprise but the railroads offered a means to transport goods and services across previously insurmountable distances. Railroads made it possible for families to cease subsistence farming and instead be able to rely on imported foods. The nature of the agricultural industry in the United States therefore changed dramatically in response to industrialization and the creation of a cash crop economy. In conjunction with the decline in small family farms, artisan businesses gave way to pressure from large companies run by so-called "robber barons," wealthy and powerful industrialists. The rise of industry precipitated the rise of urbanization, which in turn prompted America to open its doors to new immigrants, who were chiefly employed as unskilled laborers. Cheap labor, a laissez faire business-friendly political environment, and technological innovation all spurned American industrial and economic growth.

The rise of American industry stemmed from a series of technological innovations including Eli Whitney's cotton gin and modular musket; the sewing machine; and the steel plow. Innovations that made possible the rapid production of goods helped stimulate economic growth: the more goods were produced, the more were sold. Technology also lowered the cost of production and ensured the rapid and reliable creation of large quantities of product. "So impressed were foreigners with these methods of manufacture that they called them the "American system of production," ("The Roots of American Economic Growth"). Technological innovations also led to the transformation of the nature of labor and work in the United States.

The factory model replaced the artisan model of employment, resulting in several major social revolutions. For instance, large numbers of Americans moved to urban centers in search of work. Urbanization centralized the means of production, through the co-location of manufacturing technologies within one factory and through the co-location of workers within the factory. As more Americans moved to urban centers, fewer ran family farms; agriculture had become a big business too. The railroads facilitated urbanization in many ways: by making it easier for laborers to move from rural to urban areas; and by making it easier to transport raw materials from rural areas or abroad to the city centers. The rise of urbanization in America also favored immigration, for immigrants were able to take advantage of the plethora of work opportunities in one central area. Family businesses and small artisan shops provided the main means of employment before the Industrial Revolution, after which urban-area factories became a dominant economic and social force. Because factories attracted large numbers of domestic and immigrant laborers, they were able to grow rapidly in size and scope. Immigration became a major social revolution precipitated by the Industrial Revolution, dramatically altering the ethnic, social, economic, and political landscape of the United States.

The owners of America's new industries, from textiles to steel, became known as robber-barons due to their ruthless business practices. A laissez-faire government permitted big business to flourish, and the big business barons retained significant political clout because of their economic power. Men like Carnegie, Gould, Rockefeller, and Vanderbilt built massive fortunes, creating a new type of American aristocracy and an unprecedented level of wealth. The laissez-faire politics in vogue around the turn of the century increased the production capabilities of robber-baron companies and thereby stimulated industrial growth. Moreover, laissez-faire policies remain central to the American capitalist system still in place in the 21st century.

However, laissez-faire government policy and the ruthless pursuit of profit meant little regard for the rights of workers. Child labor was common in the late nineteenth-century, as were deplorably dangerous working conditions and low wages. The labor movement raged in the United States by the turn of the century, requiring a major shift in public policy and labor legislation. The fruits of the labor movement would not be fully realized until well after 1900.