Work, Exchange, and Technology 1849–1900 - AP U.S. History

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The years following the Civil War were times of change in American society and economy. Factories that were built to help supply the Union Army, were converted to peacetime use. Industrialization soon surpassed agriculture as America’s economic core. New technology developed during this time and contributed to the doubling of America’s economy. Industry was controlled by a few individuals holding top level positions and earning vast fortunes. This time in America’s history is called the Gilded Age. The name comes from the title of a novel written by Mark Twain. It refers to the massive fortunes amassed by businessmen and the wealthy lifestyle it supported. The leaders of this new economy were labelled “Captains of Industry,” “Moguls,” and “Robber Barons” because there were few laws at the time to regulate industry and the manner in which these industrialists earned and used their capital. These nicknames accurately represented the harsh, unethical, and exploitative practices of these industrialists. The sky was the limit for these individuals who were ruthless in their business dealings.

What was the reason for the ruthless business tactics of the “Robber Barons”?

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Answer

Competition among industries was fierce. Industry and the county were growing rapidly. New inventions were developing that made it easier and faster to produce new goods for the public. The demand for these new goods and the growth of the railroad and oil industries meant that many of these individuals were competing within the same fields. In their minds, it was necessary to take risks and act ruthlessly to maintain their position in industry and society as well as to maintain their wealthy lifestyles. Aside from pure unadulterated greed, this competition inspired the unethical tactics of American Robber Barons, a tradition that continues to this day in the American business community.

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