Economic growth 1870-1890 Flashcards
Economic situation by 1880s
The American economy was growing at an annual rate of 3.8% and the GDP almost doubled.
What were ‘Robber barons’
Unscrupulous industrialists’ business practices
Vanderbilt and the railroads
Vanderbilt mad his fortune through steamboat operations which were worth $11 million by 1862.
His fortune swelled to more than $100 million during the 1970s.
Andrew Carnegie and steel
He monopolised steel production through vertical integration. In other words, controlling all processes in production from extraction of iron ore to the making of finished products, which in turn, brought lower costs and greater profits.
Rockefeller and oil
He undercut his rivals through cost-cutting measure such as securing cheap transport.
By the 1880s he controlled 85% of all American oil production.
J.P. Morgan and finance
He created the US Steel Corporation and in 1871 he began his own private banking company.
He was criticised for creating monopolies by making it difficult for any business to compete against his.
Laisses-faire
It favour individual self-interest and competition, and oppose the taxation and regulation of commerce.
Social Darwinism 1850
Opposed state aid to the poor and disapproved of tariffs to aid agriculture or industry.
Businessmen were rich because they were superior human beings compared to the poorer classes.
