Aggressive Change in a Progressive Era Throughout the Progressive Era, fundamental changes were made that altered the game of American capitalism. These reforms were made throughout the period and had a lasting impact that persists to the 21st century. Corporations became a dominating force that spread all over various economic sectors in America. Livingston and Martin J. Sklar, who wrote “The Corporate Reconstruction of Capitalism, 1890-1916”, both agree that the businessmen of the late 19th century and early 20th century actively sought out reform in order to protect their own interests and the interests of the public. During the Gilded Age, capitalists and businessmen were unable to transfer their power in social, cultural, and political …show more content…
During the Panic of 1907, the stock prices fell nearly 50%, and it was JP Morgan (and other New York bankers), who reinvested money to save the institutions from bankruptcy (Livingston, “Social Analysis of Economic History”). This was because the United States did not have a federal bank, at the time, to out bring money back into the system. While, JP Morgan could have taken a backseat during this crisis, he instead acted at the forefront in the interest of the American public, and, along with other powerful bankers and businessman, helped to create the Federal Reserve Act of 1913. This act was a solution to current political and economic problem that has plagued other European countries, like Germany. New York journalist, Charles A. Conant writes a report that agreed with the bankers in that fact that without a central bank, the market be fall to pieces, in 1906, the year before the market crisis (Livingston, The Rise of Corporate Capitalism, 1890-1920). Livingston states that the crash acted as evidence that reinforces the idea a central bank is necessary to stimulate the market (Livingston, The Rise of Corporate Capitalism, 1890-1920). In addition to this, Sklar agrees with the principle that business man act in the interest of all parties and actively attempted to reform the system for the benefit of all individuals. Sklar not only agrees, but says it is …show more content…
The entrepreneurs knew that without the favor of workers, society, and legislature, a business would not be able to survive. These individuals who run businesses understood how the business decisions would affect society and politics. With the knowledge of how business is interconnected with ideologies, such as society and politics, businessmen chose to be the forerunners of reform for the betterment of the country. The American businessmen took an active role in the reformation of the economy by heading various amendments to the financial system, the conditions of work, and legislature for the benefit for the future stability of the
In the words of Thomas Jefferson, “A wise and frugal Government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circlue of our felicities.” (Jefferson, 1801) This idea echoed far beyond it’s time and into the minds and hearts of the Populist’s, and became the center and the driving force of the Progressive era. During the gilded age railroads were being built, Industrialization was rising, the population of United States was increasing dramatically; and corporate businesses were becoming extremely powerful. The gilded age was known for its corruption and business domination, it wasn’t until the Populist movement when people started to fight back and also not until the Progressive movement when people started changing the government system.
In the years following the Civil War, the American economy was suffering from extreme disorder. However, during the late 1800s and early 1900s, important leaders of American industry arose, essentially transforming the American financial system from chaos to efficiency. These powerful men shaped America into a world superpower and the country’s economy sparked jealous across the globe. Their contributions to business positively affected not only the United States’ economy, but society as well. Andrew Carnegie, John Davison Rockefeller, and John Pierpont Morgan reflect the mammoth industrial age of America. Although some may argue these industrialists were “robber barons,” these men were, in reality, “captains of industry” utilizing modern business practices and technology which provided both cheap products and job opportunities for the public, as well as becoming large-scale philanthropists and contributing much to American society.
In the late nineteenth century known as the Gilded Age (or the Reconstruction period) and the early twentieth century known as the Progressive era, the nation went through great economic growth and social change. Beginning from the 1870s, there was rapid growth in innovations and big businesses. This could be because there was population growth and when there is population growth, there is a high demand of products and other necessities in order to strive in society. Many immigrants from Europe, mostly from the eastern and southern Europe, and Asia moved to American cities. Additionally, farmers from rural America desired to increase economically in society and since corporations ruled and political problems occurred, they decided to move into the cities. Afterwards, the 1900s started with the dominance of progressivism which many Americans tried to improve and solve the problems that were caused or had arisen because of the industrialization of the Gilded Age. It was basically the time when progressives fought for legislations like regulation of big businesses, end of the political corruption, and protection of the rights of the people: the poor, immigrants, workers, and consumers. Thus, between the periods 1870 to 1920, big businesses had arisen and taken control of the political and economic systems through corruption and innovations. In response, American citizens reacted negatively and formed labor unions and political systems to diminish the power that large corporations had in America.
During the late 19th and early 20th centuries, the strength of the U.S. economy began transitioning from agricultural to industry. A variety of factors sparked this industrial revolution, but the genius industrial leaders, particularly Andrew Carnegie, allowed big business to take over and dominate the economy. As evidenced in Andrew Carnegie and the Rise of Big Business by Harold C. Livesay, Carnegie mastered and understood the organizational structures and technological factors necessary to run a profitable business. However, he did not have the best relationship with his workers or labor unions. Andrew Carnegie’s success and influence paved the way for the sustained dominance of big business in the American economy.
The captain of industries were businessmen who also benefitted society through their accumulation of wealth, using methods such as increased productivity, the expansion of markets, offering up new jobs to the working class, and other acts of generosity. All of the notable industrialists dubbed “robber barons” were also named “captain of industries” as well. Therefore, there have been many debates as to whether the term “robber barons” really did justice to the industrialists, when taking into account of their effects on America’s economy, and not just the negative aspects. While the robber barons did harm specific groups of people in order to meet their selfish goals, as well as execute ruthless tactics to surpass their competitors, they have also created an economic boom in which they created larger manufacturing companies, created many employment opportunities for the working class. Even though robber barons went to extreme measures and harmed others in their pursuit of wealth, they have also, and built a stable and prosperous
When the topic of American economics arises, the infamous Robber Barons of the 19th Century often springs to mind. They are often glorified as "Captains of Industry" for their money making strategies and enterprising methods. Those who hold this view probably do not know the evils of the laissez-faire capitalism in which the Robber Barons believed and participated. They wanted an unrestricted system of economics so that they could amass as much money as they could to out do each other and control the power in society. They were not as glorious and generous as some people make them out to have been.
From 1890 to 1920 was labeled the Progressive Era and responded to the social problems that arose from the Industrial Revolution that was sweeping across America. This social movement changed into to a political one and corruption ran high throughout the governments and political parties. Corporate greed was astounding and was keeping the general society at poverty levels. The wealthy Americans used their wealth to live lifestyles of lavishness that was being created from the modernization of America, while the poor had to sleep in the alleys and beg for food. Men and women were being worked 12 to 16 hours a day and children labor was rampant with no laws in place to protect the children workers. The Progressive Era sought to eliminate these negative impacts to society create solid education systems and safe work environments. Social reform was seriously desired and the progressives were destined to change the way society in America was being established by the Tycoons such as Andrew Carnegie, John Rockefeller, and Cornelius Vanderbilt. Constitutional Amendments were added during the Progressive Era to create social change and correct the political interests of America. Woodrow Wilson views on the ‘literary theory’ of checks and balances is simply a consistent account of what our Constitution makers tried to do;” he stated, “and those checks
Businessmen of the Gilded Age like Carnegie, Rockefeller, Morgan, and Vanderbilt were captains of industry. Industrialists economically improved the United States by contributing the most money, which was made from the successes of their companies. In addition, they were financially beneficial to communities and set an example of philanthropy and lifestyle for others to follow. Moreover, they resorted to unscrupulous tactics not only for their financial gain, but for America’s financial gain as well.
Among the many changes during the Gilded Age, large corporations became powerful forces in American society. New technologies in communication and transportation allowed for a national marketplace and fueled industries including the railroad and telegraph grids. The wealth of this expanding industry became increasingly concentrated in the hands of a relative few. Often by gaining a monopoly in their respective markets, these “Robber Barons” amassed wealth and notoriety, making names for themselves that remain recognizable even today like Carnegie, Vanderbilt and Rockefeller. In 1890, the Sherman Anti-Trust Act was passed to combat these large trust-based monopolies as the power of the large corporations invited abuses of government and individuals (America’s Library).
The Progressive era was a time where change was needed in order to eliminate social Darwinism and highlight the significance of social unity and camaraderie. Progressive movements became the response to the rising problems left by the 19th century: the evident unequal distribution of wealth and the expanding power of massive businesses. In the book Triangle: The Fire that changed America, David Von Drehle unveiled the greedy nature of corporate owners which repressed the democratic principles of the United States and its relation to the rise of social movements which shed light to many changes that occurred socially starting with the improved working conditions and in the beginning of the twentieth century.
The ideas and beliefs throughout the reform movements greatly expanded the democratic ideals. Reform movements in the United States sought to express ideas through religion and education, start movements through abolition and temperance acts, expand beliefs by caring for the insane, and take a stand by speaking up for personal rights. The Age of Reforms was a period in which many changes were made to improve the way in which people lived at the time. In “Robert Owen, The First Disclosure on a New System of Society (1825)”, by Foner, Eric Voice of Freedom, “The increasing economic inequality and intense economic competition promoted by the market revolution led some Americans to create their own miniature societies based on equality and harmony.” (pg 227) Companies arise to the world of society, many of those companies own factories that manufactured and made useful natural resources. Also technology starts to play an important role in American life and on the future meaning that technological companies surged. All this manufacturing made by the factories that were owned by the companies promoted a general advancement. Owen now found himself in what would soon become the capital city of the English Industrial Revolution on the eve of that event as factories were built and textile manufacture expanded. The companies used business strategies to outsmart opposing companies. Successful businesses gave money back to charity most of the times, to show that success can be shared. Trade was also key and important for businesses.
After the Civil War, business and corporations have expanded significantly throughout the United States. During this time period, known as the Gilded Age, many aspects of the United States were influenced by these large corporations. The Gilded Age was given that name after Mark Twain referenced it in one of his works. In the post Civil War period, big businesses governed by corrupt acts and held power of both the political system and the economy.
welfare of American citizens concerned the many leaders of this era. The business influence on politics was quite
Large corporations used this to their advantage. Profit oriented leaders did little to make suitable working conditions. With the aid of Muckrakers, journalists who exposed the underside of American life, the nation began to understand the "evils" of industrialization (599). More and more did Americans escalate their concern for reforms. The reformists promoting the ideals of Progressivism were moralists and championed the ideals of human rights. Progressivism embraced a widespread, many-sided effort after 1900 to build a better soc...
The era that marked the end of civil war and the beginning of the twentieth century in the united states of America was coupled with enormous economic and industrial developments that attracted diverse views and different arguments on what exactly acquisition of wealth implied on the social classes in the society. It was during this time that the Marxist and those who embraced his ideologies came out strongly to argue their position on what industrial revolution should imply in an economic world like America. In fact, there was a rapid rise in the gross national product of the United States between 1874 and 1883. This actually sparked remarkable consequences on the political, social and economic impacts. In fact, the social rejoinder to industrialization had extensive consequences on the American society. This led to the emergence of social reform movements to discourse on the needs of the industrialized society. Various theories were developed to rationalize the widening gap between the rich and the poor. Various reformers like Andrew Carnegie, Henry George and William Graham Sumner perceived the view on the obligation of the wealthy differently. This paper seeks to address on the different views held by these prominent people during this time of historical transformations.