How did the emergence of industrial capitalism between 1865 and 1960 alter the American identity?

In the 19th century, the Industrial Revolution began in the United States. This revolution significantly altered both the history of the world and American society. The birth of America and its development into a mature nation were fueled by this industrial transformation. Politics, the economy, and culture all underwent significant change in the United States. The majority of Americans in the 18th century resided in remote areas. (Uselding, 410). As a result, the Revolution created advanced metropolitan centers like Boston and New York City, which encouraged massive internal labor migration. This Industrial Revolution was followed by the dominance of capitalism. The factories that were built during this time period served as examples of capitalism in connection to wage labor. Capitalism is an economic system that is characterized by corporate or private ownership of capital goods and investments and distribution of goods. Investments are determined by prices, production, and private decisions while the distribution of products is determined by competition in a free market. Capitalism promotes free will and is economically and socially progressive but only benefits the selfish interests of few and damages the interests of everyone else.

Edward Earle views capitalism as a system that changed America by leading to institutional changes in the American economy and society (Purinton, 413). The country boasts technological advancements in its industries that propel its continued economic growth. The period between 1870 and 1900 marked the era of Reconstruction where the US underwent a tremendous economic transformation that was characterized by a maturing industrial economy. America grew into a leading industrial capitalist in the world during this period. This era had an outburst of technological innovations that fuelled the economic growth. Americans born in the 1840s and 1850s could experience changes in their lifetime (Livingstone, 33). For instance, their primary source of light would change from kerosene lamps and candles to electricity. Additionally, they would witness the evolution of transportation from horsepower to gasoline-powered automobiles, steam-powered locomotives and electric trolley cars. Furthermore, the Americans born in an economy dominated by agricultural practices experienced an industrial revolution that radically changed in the ways people worked and where they lived.

Moreover, industrial capitalization resulted in the creation of job opportunities for the local people as well as the immigrants. People shifted from working in the rural regions to the highly industrialized urban areas for a better wage (Livingstone, 33). The late 1800s were characterized by population growth, expansion, and rapid industrialization. America had tremendous opportunities that led to a surge in immigration from Asia and Europe to find political freedom as well as work opportunities. The new transport infrastructure made relocation and travel cheaper. Most of this growth was facilitated by capitalism rather than government policy. The American capitalists were unrestrained by high labor costs and the government restrictions hence they were able to establish heavy industries, transportation and communication networks, huge corporations and banking and financial firms (Atack, 37). Some of the industries that boomed included factories such as steel manufacturing, farms, and mines such as coal mining. They benefitted from the mass-produced machinery that was readily available and cheap. There was, therefore, an increased demand for labor to work in these factories. These workers disavowed the ownership of production means for an hourly wage.

Notably, capitalism shaped the financial and investment industry of the US. The Reconstructive era made America a creative hub of the world with numerous inventions and patents. The need for investment capital resulted in the establishment of stock markets and American banks. The growth was led by great business tycoons such as Andrew Carnegie, John Jacob Astor, John Rockefeller and JP Morgan. The finance industry was first impacted by the early heavy industries and the railroads between 1880 to 1900 (Uselding, 410). This sector further grew as a result of Electricity revolution and the automobile and pharmaceutical firms between 1918 and 1933. The critical discoveries of the 1920s and 1930s of insulin and penicillin became mass-manufactured contributing to an increase in the GDP.

Capitalism shaped America’s advocacy for fair pay, end of corruption and the present respect for women and children rights. The Gilded Age pointed out the challenges underneath the booming industrialization. Corruption prevailed among the elected officials and the private citizens to have more self-interests than being altruistic. Most of the businessmen had an interest in accumulating wealth hence the marked contrasts between crushing opulent excess and poverty. There were connections between business and the government that led to political corruption. The country, therefore, endured mediocre politicians and presidents, many of whom took part in the big businesses (Uselding, 410). The laws at that time protected corporate interests and overlooked the workers’ interests and social problems. The people opposed the wage structures and treatment of labor. Children and women also went through worse working conditions compared to their male counterparts. Moreover, child labor was rampant in the early 1900s and saw children work in mills and factories. Such challenges have shaped the current America that continually fights for gender equity and equality. Women have now been incorporated in the advisory boards to bring forth balance in the development of national corporations. Following these challenges, unions emerged in the 1870s, and they organized industrial action. For example, in 1877 there was a strike that paralyzed the American railways for six weeks. In the 1880s, a significant union movement, The Knights of Labor, was also developed. The tactics employed by these unions were often disruptive and violent. The American unionists instigated riots, murders and even assaults (Atack, 37). For instance, in 1892, a left-wing agitator shot Henry Clay Frick, a notorious steel tycoon. However, Frick survived and became a hero according to the capitalist press hence the call for strong action against socialists and unions.

These challenges paved the way for America’s transformation through the reforms in the Progressive Era of the 1890s to 1920s. The media and journalists became active in exposing injustice and corruption. As a result, America had political reforms that saw an improvement in the elections and democratic representation. Moreover, there were social reforms that improved the law, education, and healthcare. Economic reforms could not be felt yet. However, there was legislation in the early 1900s that reduced the power and size of corporate oligarchies and monopolies. The increase in wages saw the growth of the middle class in America. However, the improvements in the working conditions were gradual and inadequate, a factor that saw unions still flourish in the early 20th century (Livingstone, 33). Most of these reforms have evolved over the years and have led to the robust societal, economic and political structures within America.

The rise of industrial capitalism significantly contributed to America becoming a superpower. America grew into a great superpower in the 20th century. Most of its companies supplied munitions and equipment to Britain and France, a venture that made the country economically and financially enriched. During War II, the nation also emerged as an economic and pre-eminent military power in the world after the collapse of Soviet Union. This moment is often described as the American Century among Americans. The country overcame the problems brought about by the Great Depression during this war (Uselding 410). The gross national product grew tremendously as well as the population. The Americans’ affluence was reflected in the growth commonly referred to as consumerism. This consumer culture reflects the real salvation that Edward Earle describes (Purinton, 395). He posits that business needs to be properly conceived and managed in order to redeem the human race. The business effect can only be realized through having, giving, thinking and being and not just theorizing. Henry Luce emphasizes that America has the primary obligation to help other countries and lead the World. Americans have to set an example to other people in the World (Luce, 51). The most significant change on the idea on what it means to be an American is the fact that humankind looks upon America.

Conclusively, industrial capitalization led to huge transformations in the American society. There were significant developments in technology, investment, transport, and communication. As a result, employment opportunities were created for the people to serve in these industries and earn an income. The period led to the US developing into a leading business-oriented country. Americans have developed a culture of attributing success to the price one has to pay (Purinton, 396). They acknowledge that success can be measured through the sacrifice, energy, economy, time, purpose and devotion. Moreover, most of these Americans are silent about their lives and success. Edward Earle finds this path significant and one that most founders of the greatest businesses have followed. They have also grown to become charitable. The most prominent American businessmen take pride in doing charity and giving away their money instead of spending the money (Purinton, 412). On the other hand, the capitalists underpaid labor, utilized children labor, and underpaid women. These challenges underlay the enormous industrial boom and have consequently transformed America to be conscious about women and children rights and gender equality and equity and equal pay.

Work Cited

Atack, Jeremy. Industrial Structure and the Emergence of the Modern Industrial Corporation. Explorations in Economic History, vol. 22, 1985, p.37.

Livingston, James. Origins of the Federal Reserve System. Money, Class, and Corporate Capitalism, 1890-1913, 1986, p. 33. Cornell University Press.

Luce, Henry R. The American Century. 1941. Pp. 61-65.

Purinton, Edward E. “Big Ideas from Big Business: Try Them Out for Yourself!”, The Independent, April 16, 1921, pp. 395–96; 412–13.

Uselding, Paul. Manufacturing, p. 410 in Encyclopaedia of American Economic History, vol. 1.