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Reconstruction - Essay Example

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The American Civil War occurred between 1861 and 1865, which was fueled by slavery in the southern territories that were also known as the Confederate States of America. Other causes of secession included sectionalism, state rights, and protectionism among others (Roland 1861)…
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Download file to see previous pages The rise was initiated by various factors that included social, economic, legal, and political. The big business era was a source of wealth and capitalization for many Americans most of who were involved in various national corporations that controlled markets (Wilson 214).
Sufficient resources such as oil, coal, and iron were foundations for the building of the states after the war. Adequate iron led to the production of iron and steel that were part of inputs in the big businesses. Steel was used to make railroads and cars that were used in the transportation of various products ranging from coal, ores, and agricultural produce from a state to another (Symonds). Oil was a precious good after its discovery, which was used in homes and to power machinery in some of the industries. Coal powered factories were efficient compared to water-powered; hence, the discovery of coal-fueled the increase of steel mills in the U.S.
There was a rise in the number of immigrants to Southern States that provided a foundation for investors, investors, and labor. The immigrants worked in the big businesses and agricultural sector; hence, providing cheap labor. The high population required enhanced transportation methods leading to the increase in railroad networks. The increased demand led to a change in the social life of some of the citizens due to enhanced wealth sources.
The banks offered loans that were sources of investment capital. Investors in the big businesses would seek assistance from banks to set up steel mills and railroads as part of the reconstruction. Stock markets were used by trusts such as Rockefeller’s to trade shares and purchase other corporations.
The Federal Government did not regulate the operations and establishment of businesses. They were free to pool and set cartels that would increase competition opportunities. However, this factor led to the growth of monopolies in the ...Download file to see next pagesRead More
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