Unlike the pre-Civil War economy, this new one was dependent on raw materials from around the world and it sold goods in global markets. Business organization expanded in size and scale. There was an unparalleled increase in factory production, mechanization, and business consolidation. By the beginning of the 20th century, the major sectors of the nation's economy--banking, manufacturing, meat packing, oil refining, railroads, and steel--were dominated by a small number of giant corporations.
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One of the most powerful bankers of his era, J.P. (John Pierpont) Morgan (1837-1913) financed railroads and helped organize U.S. Steel, General Electric and other major corporations. The Connecticut native followed his wealthy father into the banking business in the late 1850s, and in 1871 formed a partnership with Philadelphia banker Anthony Drexel. In 1895, their firm was reorganized as J.P. Morgan & Company, a predecessor of the modern-day financial giant JPMorgan Chase. Morgan used his influence to help stabilize American financial markets during several economic crises, including the panic of 1907. However, he faced criticism that he had too much power and was accused of manipulating the nation’s financial system for his own gain. The Gilded Age titan spent a significant portion of his wealth amassing a vast art collection.
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Standard Oil employed vertical and horizontal integration tactics on a grand scale to grow the business into a monopoly that controlled virtually all the oil production in the nation.
In 1882, the company combined its interests across dozens of states into a trust.
John D. Rockefeller, the company's president, became the richest man in the world for a time, earning him both the admiration and disdain of ordinary Americans.
In 1882, the company combined its interests across dozens of states into a trust.
John D. Rockefeller, the company's president, became the richest man in the world for a time, earning him both the admiration and disdain of ordinary Americans.
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Andrew Carnegie's steel mills set new standards for the steel industry. Including strategies to increase efficiency, cut costs, vertically integrate, and invest in new technology.
Steel was produced at profoundly reduced prices, which made engineering feats like bridges and tall buildings more affordable.
His obsession with cutting costs translated to low wages and dangerous working conditions for laborers.
J.P. Morgan bought out Carnegie's business and integrated it into U.S. Steel, which became the world's first billion-dollar corporation in 1901.
Steel was produced at profoundly reduced prices, which made engineering feats like bridges and tall buildings more affordable.
His obsession with cutting costs translated to low wages and dangerous working conditions for laborers.
J.P. Morgan bought out Carnegie's business and integrated it into U.S. Steel, which became the world's first billion-dollar corporation in 1901.