6.6 and 9/13!

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Period 6: 1865-1898, Topic 6- "The Rise of Industrial Capitalism"

Student Learning Objective- Explain the socioeconomic continuities and changes associated with the growth of industrial capitalism from 1865 to 1898.

“Economically speaking, aggregated [accumulated] capital will be more and more essential to the performance of our social tasks. Furthermore, it seems to me certain that all aggregated capital will fall more and more under personal control. Each great company will be known as controlled by one master mind. The reason for this lies in the great superiority of personal management over management by boards and committees. This tendency is in the public interest, for it is in the direction of more satisfactory responsibility. The great hindrance to the development of this continent has lain in the lack of capital. The capital which we have had has been wasted by division and dissipation, and by injudicious applications. The waste of capital, in proportion to the total capital, in this country between 1800 and 1850, in the attempts which were made to establish means of communication and transportation, was enormous. The waste was chiefly due to ignorance and bad management, especially to State control of public works. We are to see the development of the country pushed forward at an unprecedented rate by an aggregation of capital, and a systematic application of it under the direction of competent men. This development will be for the benefit of all, and it will enable each one of us, in his measure and way, to increase his wealth. We may each of us go ahead to do so, and we have every reason to rejoice in each other’s prosperity. . . . Capital inherited by a spendthrift [person who spends money freely] will be squandered and re-accumulated in the hands of men who are fit and competent to hold it. So it should be, and under such a state of things there is no reason to desire to limit the property which any man may acquire.”

William Graham Sumner, university professor, What Social Classes Owe to Each Other, 1883

Discussion Question #1- Does wealth inequality increase or decrease in the late 1800's?

Discussion Question #2- How does Sumner feel about that?

Discussion Question #3- How does this connect to today?

Discussion Question #4- How could big business leaders facilitate rapid growth within their business and industry?

Discussion Question #5- Why did the proponents of this feel that it was good for the country?

Discussion Question #6- Why did the opposition feel that this was bad for the country?

Standard Oil

Horizontal and Vertical Integration

Rockefeller political cartoon

Revisit- Student Learning Objective- Explain the socioeconomic continuities and changes associated with the growth of industrial capitalism from 1865 to 1898.

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