Sources of Industrial Growth i Consolidating Corporate America 1 Entrepreneurs

Sources of industrial growth i consolidating

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Sources of Industrial Growth: i. Consolidating Corporate America: 1. Entrepreneurs who mastered use of mergers used on of two methods to combine companies: a. Horizontal integration: merged competing companies in one business (ex: Standard Oil forces other oil companies out of business – ROCKERFELLER is horizontal, then becomes a little vertical) b. Vertical integration: forms of business expansion which sought to control all aspects of production from raw materials to final delivery of finished products (ex: Carnegie began with steel mills, then railroads, coal mines, iron mines, and the distributor) IX. Capitalism and its Critics a. Survival of the Fittest i. Social Darwinism: 1. Based on scientific studies of Charles Darwin – NATURAL SELECTION 2. Ideas are applied to society and business 3. Later will be applied to race – CLASSICAL RACISM
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4. More privileges advance to the top, and the ppl at the bottom are not doing as good 5. Herbert Spencer – Br Social philosopher applied these ideas to business ; and found them a positive aspect 6. William Graham Sumner – Yale professor, who supported 2 things: a. Said “millionaires are the product of natural selection” b. Pro-Business view of society 7. Used to defend power of new corporate elites 8. Only fittest survived 9. Pro Capitalism/Laissez Faire (free market economy) 10. Anti-Socialism a. Didn’t believe in sharing equally among all groups 11. Anti-Government interference in Economy a. Anti-Reform 12. Aide to poor hinders natural process of progress b. The Gospel of Wealth i. Andrew Carnegie ii. Horatio Alger 1. “Bootstraps” Philosophy 2. Idea that great wealth was possible if the individual will work hard enough for it 3. Alger’s book, Sink or Swim, helped c. Alternative Visions i. Anti-Social Darwinist 1880’s ii. Said evolution does not apply to human society iii. Humans naturally use treason and can change or adapt to the environment iv. Progress occurs through invention and planning v. Laissez-faire, not natural vi. Government regulation will help society vii. Education will improve society viii. Evolution through human intelligence will help economic and social problems ix. Lester Frank Ward & Henry George 1. HG: Progress and Poverty 2. Saw excess of Industrialization 3. Offered a solution – tax on land to create a social state – to solve property x. Edward Bellamy: 1. Wrote Looking Backward : 2000-1887 2. Socialist view 3. Suggested a socialist society would emerge and class divisions would disappear, and all would be equal X. Industrial Workers in the New Economy (AMERICAN IS A DOOR AJAR SOCIETY) a. The Immigrant Work Force
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i. New Sources of Immigration b. Assimilation i. 1 st step: naturalization process ii. Strong pressures on immigrants to assimilate into the culture iii. Assimilate by acquiring skills iv. Naturalization – more job opportunities v. Proponents: immigrants have no problem assimilating vi. Age is greatest distributing factor c. Immigration: i. US is a nation of immigrants (most came from Ellis Island) ii. By 1860, ¼ of pop born in another country iii.
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  • Spring '16
  • Shoup
  • Andrew Carnegie, Immigration to the United States, Henry Bessemer, bessemer process

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