A New Industrial Order

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A New Industrial Order

• 1877-1918

"What is the chief end of man?--to get rich. In
what way?--dishonestly if we can honestly if we
must."-- Mark Twain-1871
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Industrial Systems
Investment And Innovation
Land (Natural Resources)
Corporate Organization And Management
Labor
Communications
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Natural Resources and Sectional Division

• Agricultural Division
• South cotton, tobacco, lumber, timber products,
  beef, pork
• Midwest lumber, grain, beef, pork, dairy
• West beef, grain, timber
• Resource Extraction
• South coal
• Midwest coal, copper, iron ore, petroleum
• West copper, silver, iron ore, coal, etc.

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The Problem of Labor
Why did demand for labor increase from
1865-1918? What are the different demands on an
industrial labor force? Where did the new labor
force come from? Rural America Immigration Bef
ore/After 1890
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Entrepreneurs, Systematic Invention, and
Public Investment

• Entrepreneurial Invention (1750-1850)
• Systematic invention and Public Investment
• Thomas A. Edison (1879) Menlo Park
• J.P. Morgan and General Electri

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Corporate Organization and New Management

• Corporate Organization
• Andrew Carnegie and vertical integration
• John D. Rockefeller and horizontal integration
• The predominance of corporations (1877-1918)
• Managerial Revolution
• Rationalization of labor and white collar work
• Scientific management
• Frederick Taylor Taylorism
• Henry Fords management style

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Communications

• The American Railroad system
• Telephone and Telegraph systems

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The Role of the State

• Civil War Government involvement
• 1861 Morrill Tariff
• 1862 Morrill Land Grant College Act
• 1862 Pacific Railroad Act
• 1862 Homestead Act
• 1866 14th Amendment to the Constitution
• Santa Clara County v. Southern Pacific Railroad

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Price Stagnation after 1877
Source David Hackett Fischer
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