Monopolies In The Gilded Age

The Gilded Age By the late 1800s, he United States economy had finally become industrialized and was soon to become monopolized. Railroads were becoming the most important factor of American economy, and local businesses were being put out of work. This time period was commonly known as “The Gilded Age”. Meaning on the outside our economy looked marvelous, but beneath that golden skin, corruption and injustice plagued our society and made the rich even richer. America’s “Second Industrial Revolution” was a growth spurt of the economy that would prove to weed out the weak and create the original business moguls whose wealth still resides today. The first monopolies were created in this period as businesses began to combine both horizontally

Andrew Carnegie, once a poor immigrant, he was able to become a powerful businessman and run the steel market of America with his vertical integration tactic. Vertical integration is the practice of controlling all aspects of a goods development from raw materials to finish product. Once Carnegie had established his empire of wealth, he became well known for generous habits and his philosophy of “The Gospel of Wealth” showed what kind of man he was. He believed he had divine instruction to use his wealth fairly and for the greater good of society. Carnegie also drew ideas from social Darwinism, much like natural selection served to weed out the weak in nature, it did the same in business. It was understood that the wealthy made it to their place on the podium because they were better fit and equipped for the competition. Another business mogul, John Rockefeller took control of 90% of the nation’s oil. He used a vicious business tactic known as horizontal integration. Basically, he expanded outwards and consumed smaller oil companies, creating the Standard Oil Company. He successfully became the totalitarian of American