Major Change from 1865-1914
One major economic change between 1865 and 1914 was the rapid economic growth and prosperity in the U.S. which became to have the most dominant economic, industrial, and agricultural power during this time. The United States had accumulation of capital through a continuing series of investment that just soared dramatically. This economic soar was a turning point for American History and a relief for those who did not have jobs, it was an opportunity for those who did not have job to finally be able seek a better living and a decent job.
Robert Higgs, a graduate student wrote a book of the American Economy during 1865-1914. In Robert Higgs book “The Transformation of the American Economy,” he states, “The Gilded Age, lasting from 1865 to World War I, was an era of economic growth never before seen in the history of the world. The standard of living of the modern age was born during this time of phenomenal transition. Lives lengthen. Wealth ...view middle of the document...
It created new economic links in the country by carrying raw material like coal, iron, ore, and timber to factories. That was not the only thing that these railroads systems were good for, they managed to also carry manufactured goods from factories to markets and produce from rural farm areas to the cities. This railroad system sought to be a great part of the expansion of the economy in many different ways. Around 1880, the railroad system began using tracks of steel which then stimulated America's steel industry. Andrew Carnegie was one of the leading figures in the steel movement. He built a steel plantation near Pittsburgh named “J. Edgar Thompson Steel Works” and used the new process. By the 1890s, Andrew Carnegie dominated the steel industry. His company became more powerful than ever when he started using vertical integration where he received material he needed from other companies. Other industries were also impacted in a great way by these railroads systems. The lumber and coal industries also saw extraordinary growth in their productivity (The American Journey). Robert Higgs also mentions “we can identify at least three concomitants of economic growth: changing patterns of demand differing rates of productivity gained among industries; and changing resource endowments among regions (Transformation of the American Economy). These three things that Robert Higgs identifies he also mentions that they are the forces produced in the Market Economy.
After the civil war, the United States became a powerful nation with a very strong national government. The Progressive Era which then started after the 1900s, had much to do with this soar in economy in the 1900. It brought political, business, and social reforms such as new roles for government expansion in education, higher status for women, and it even brought modernization to government and society. New methods in technology and business allowed the U.S. to tap their rich supply in natural resources and increase in its production.
Higgs, Robert. The Transformation of the American Economy 1865-1914. 2011th ed. N.p.: John Wiley and Sons, 2011. 18-126. Web. 29 Mar. 2014.
Appleby, , Binkley, and McPherson. The American Journey. N.p.: n.p., 2004. Web. 6 Apr. 2014.