American History: How Business Has Affected the Economy over the Years - Term Paper Example

Industrial Revolution started from Britain in mid-eighteenth century and it became an industrialized country with control of Europe’s energyin addition to iron and coal production capacity. In 150 years the revolution diffused in the other parts of the world and turn the rural and agricultural societies into modern an advanced economies. America was the land of dramatic changes during industrial revolution. The paper studies Industrial Revolution and its Impact on American society and business. Early American agricultural Society American society transformed from a rural and agricultural one to industrial and urbanized one during late 18th to beginning of 20th century. There was only no considerable progress before the use of iron in agriculture. In early days Americans were not as self-sustaining and skilled. Homestead Act in 1862 for agriculture was promoted for agricultural growth especially in western states, but it didn’t proved to be beneficial. The land was fertile and slavery proved to be beneficial for agriculture till 1870. In late 18th century agriculture flourished because of land and labor abundance. New machines were invented to replace farmer as cheap labor or slaves were limited to southern parts only. Initial forms of plows were improved in Jethrowood during early years of 18th century. By 1880 United States was mechanized enough to feed the victims of WW1.With advanced technology and machinery farmers were not only able to grow more fruits and vegetables but also delivered them on time due to faster transportation and refrigeration means. Industrialization Britain to US American Industrial revolution is divided in two parts.1st time world notice the new born United States of America in Crystal Palace exhibition, who won awards for farm machines, rubber products and dried meat biscuits (Katie & Melodie, 2003). During early days of industrialization British reaped most of the benefits of this revolution; they controlled the resources, knowledge and technology which restricted the way of industry to other parts of the world. The major challenge for America was to counter the Britain steps taken to keep the technological and information developments. Great Britain prevented the information flow to US by imposing penalties on smuggling and transferring machine plans. They also made and established laws to stop the immigration of skilled workers outside Britain and also to hire British workers. In The Great Exhibition Britain exposed her magnificent industrial progress. It was the beginning of dramatic change in world’s economies as industrial advancement took place in United States of America, Japan and other parts of Europe. This period (1820-1870) has a prominent status in economic development of United States of America. It replaced humans with machines, provided fasters and improved transportation, factories for manufacturing products and transformed America into an urbanized society. It emerged as a market leader in coal, iron, silver and gold mining. 2nd Industrial Revolution According to Katie and Melodie (2003), in early America (1791) Secretary of Treasury Alexander Hamilton necessitated an industrial revolution in his “Report of Manufactures”. It was considered crucial to become industrialize for the survival of US as independent state. In the cities of Atlantic coast there were organized efforts to encourage manufacturing and mechanization. After the world exhibition in Crystal Palace London, in America emerged as prominent leader of manufacturing market globally. Americans transformed their economy in less than a century and it is popularly known as Second Industrial Revolution. It overturned the way of working and living, new needs and new industries emerged. New procedures to mold and transform iron and steel were discovered. Size and quality of manufacturing plants became bigger and advanced. From textile mechanization to business organization advancement, it continuously shortened the distance of United States of America towards success. Textile Industry and Samuel Slater Samuel Slater (1768-1835) is popular as founder of American cotton industry or father of industrialization. He worked for British company and brought the knowledge of making textile mill to US by disguising as a farmer. Sam Slater textile mill exploded the textile business in United States. The Cotton Gin Invention of cotton gin in 1793 by Eli Whitney changed the American economy. Before the invention cotton was removed manually and it took a lot time and effort. Factors effecting Industrialization in America Industrialization took a dramatic form when we consider America. It was a survival issue for US in the presence of competitors like Britain and Japan. For Britain; it was easy to build transportation infrastructures like railroads in US and other European parts which were helped in becoming industrialized. In addition to resourcefulness, common or similar cultural values and shrinking distances between Britain and US accelerated the knowledge sharing and resource building. According to (Flow of history), “railroads construction played crucial role in developing interior East of Mississippi with the help of funds provided by British banks. In 1869, construction of the first transcontinental railroad in 1869 opened up interior west of Mississippi with rich mineral and agricultural resources. During American Civil War (1860), North American factories increased production, this dynamic growth of American industry cause a fall in European goods production worldwide by 20% by 1914.” Legal and Political systems Stability of legal and political systems encouraged and accelerated the industrialization process. Industrialization is preceded by inheriting not only stable infrastructure from Britain but also similar culture and language. It helped in smooth transfer of innovation from Britain to America. The whole scenario provided the right environment for human mobility with a sense of security. Americans are the most susceptible to change and innovation, their attitude towards adapting new technologies and innovation is remarkable. Technological and scientific development For industrialization, technological developments and people with knowledge were crucial. American people were motivated and enthusiastic about climbing the ladder of success. Despite of British efforts to prevent knowledge sharing outside Britain, Americans like Samuel Slater knew no boundaries. Steel Industry and Railroad network In 1850 steel manufacturing industry grew rapidly. Railroad network is directly linked with the production of steel. Andrew Carnegie is known as king of steel who provided cheap steel to America’s industry. Growth of railroads initiated industrialization in a robust form. Cornelius Vanderbilt was a man behind railroad growth which turned out to be large companies by combining different smaller ones. It not only accelerated the growth and transportation means but also created new jobs for people, such as, railroad workers, miners, lumberjacks and steel workers. Steel came forward in 1870s and all the steel went into making railroads. Unites States got another breakthrough, in a decade basic railroad network was completed and steel was used for structures rather than rails (Alfred, 2003). Improved management/Expanding market place With the advanced mechanization and technology, working conditions and structure of business organizations is also modified. Americans learned to operate beyond geographical limitations. Despite considerable growth in 1st revolution there was a need to coordinate the business operations across multiple business units. Carnegie and Rockefeller are considered pioneers for the growth of large factories and firms into corporations (Alfred, 2003). Fredrick Taylor was a man behind the work organization and devising efficient and controlled ways to work in organization. His Principles of Scientific Management has authoritative position. In addition to Taylor’s principles, Ford’s techniques of mass production transformed America’s industry. Natural Resources American industrial growth is fueled by her exuberant natural resources, such as gold, coal and silver. Diversity of climatic conditions in addition to the plentiful waterways, such as rivers and canals contributed to rapid industrialization of America. Transportation and Communication Systems A complete network of railroads and waterway; canals, rivers and streams made the transportation easier and faster than ever. It increased production and manufacturing of goods for masses. Communication systems also developed during industrialization giving rise to business activity across geographical borders. Technological Advancements Technological inventions changed the production means and process. New machines were invented which accelerated manufacturing process by drilling, milling and cutting machines. Telephone and gramophone, bulb, diesel engine and airplane accelerated the transportation and communication process. New industries emerged with the invention of typewriter, linotype, electric light, photograph, automobiles, refrigerator and photograph. With time and advancement in technology, markets expanded from national to international borders, resulting in strong economic activity. There are more than one root to the interest and new approaches to the growth of United States industrial growth. American technology depended but little upon the “sober reasoning of science” America was regionally divided east for industrial activity, south for cotton and slavery and west was the breadbasket. Energy and Human Resource Cheap and readily available energy and labors provided the reason to invest in industry. Forest, livestock and investment opportunities provided raw material for the installations. Faster and comfortable means of transportation, such as railroad construction and expansion made the immigrant arrival and raw material transportation much easier and frequent. Water Power Industry would have never rocked American economy without water resources and power. For the northern region success as industrial power ran the factories and mills by rivers, canals and streams of moving waters. With the booming economic activities, numerous manufacturing cities originated in North of America offering ample opportunities for businesses. Textile industry depended on water resources for manufacturing. Spinning Jenny was a textile machine which was transformed into water powered cotton spinning machine. The machine was originally made to be worked by horses but water was an efficient and cost effective way to run the industry. To get more and more benefit form water energy, larger dams were constructed. Water power played a crucial role in building an industrialized America. With water powered industry, pre-planned industrial cities were also constructed, such as, town of Holyoke. After Civil War in 1860s, water transformed into steam and used to run industry. Water power later used to generate electricity. Steam is used for power generation and use of to run turbines of fossil fuel, geothermal plants and nuclear plants in addition to electricity generation. Significance of Industrialization Social and economic Impact American society faced drastic changes during industrial revolution. The population shifted from rural to urban in a dramatic way. From 1860 to 1900, United States urban population expanded five times in just 40 years. America is called as the land of hopes; people migrated to cities not only from American rural areas but from Europe as well. According to msn Encarta in 1860 America has only nice cities but in 1900 there are 38.Now almost 75% of American population is urbanized. Industrialization changed the gender and role children role. According to article myriad, in pre-industrialization period families were intact and look for support from each other, but the whole scenario changed after immense job opportunities for everyone. Economic and political changes Industrialization brought happiness and progress in United States, but there is always the other side of the mirror. It also contributed to stress and con conflicts in the society. As traditional ways transformed into machines, skilled workers remain deprived of their true status. Labor was underprivileged and always hit by unforgiving division of labor. Insecure labor formed trade unions to raise voice against the unjust industrialists. They documented the protest by strikes and sometimes violent attacks. AFL fought the battle for, eight hours of working, work compensation, controls on immigrant labor and protection form technological unemployment, which exist today as AFL-CIO (Alan, 2003). The attempt to counter business power could not see much success until 1930.After the days of Great Depression, American Federation of Labor worked successfully for the rights of labor, their wages and better working conditions. American political circles also understand the need to the work in coordination with labor for the progress of country. Roosevelt, in 1906 felt a deep concern for labors and wrote about labor rights and political activism. He showed the concern about treatment of AFL had been unwise: “it is a bad business to solidify labor against us” (Julie, 1998). Impacts of Industrial Revolution It brought the economic and technological revolution in true sense. The world of business and production of goods changed completely. American people transformed from artisans and farmers to business man and manufacturers. Continuous industrial developments overturn the economy with big businesses, corporations and big cities, for example, Atlanta, Chicago and Dallas. Foreign and internal trade increased; with double export growth 1877 to 1900.With more and more goods production, competition increased and marketing ways and techniques developed. It intensified the desire to get more and better resulting in creating a consumer culture in American society. Living standards and culture changed from offices to home. With economic change there raised some cultural and social problems. People started to move from villages and towns to cities for work and better opportunities. They worked hard and for longer hours on small wages just to maintain their lifestyles and overall outlook of people turned to be materialistic. Increased competition for jobs, minimal wages gave rise to insecurity and depression among working class. Women and children worked in bad working condition, such as coal mines, cotton mills and tenement sweatshops. Revolution brought the jobs for skilled and unskilled workers, but child labor exploited immigrants and women working in bad conditions as maids or in textile industry made living much more difficult (Ebey,2008).Business cycles were not reliable and economy was also uncertain. During 1870s and 1890s, bankruptcy was depressing and common and the staggering economy from boom to panic made it difficult to live in peace. Environmental pollution and industrial accidents also increased with more and more industries. Now, we have not only entered chemicals and toxic materials in our products but air, waters and homes as well. Nuclear waste, chemicals and pesticides are also the products of industrial revolution. Our earth is loosing her natural resources with every passing day as either we have exploited that or damaging. With industrialization, the drive for efficiency and making more profit increased persistently. The businesses were more pressurized to grow beyond American borders and to exploit potential markets around the world. As a result, corporations and business got inordinate powers and control over political and national decision making. Conclusion Industrial revolution started from Great Britain and found the way to the world was never happened as dramatically as in America, from handmade tools to products and products produced by machines on a mass level transformed the destiny of people. The original beneficiary of the revolution was middle class, however the consequences has affected the lives of all people (Allsands). Industrial revolution not only transformed America’s economic status but also contributed to the infrastructure, institutions, culture and education systems. Political institutions strengthened and were influenced by corporations. Social setup, values and cultural identity of American society transformed. The revolution brought the precious values of meritocracy, self sufficiency and entrepreneurialism. References Foh, n.d, FC116: The Spread of Industrialization beyond Britain (c.1850-1900), http://www.flowofhistory.com/units/eme/17/FC116. Katie, B. & Melodie, A. (2003). the Early American Industrial Revolution, 1793-1850.Minnesota: Capstone Press. Alfred, D. (2003). Strategy and Structure: Chapters in the History of the American Industrial Enterprise, Massachusetts: Beard Books. Julie, G. (1998). Pure and Simple Politics: The American Federation of Labor and Political Activism, 1881-1917.UK: Cambridge University Press. Alan, A. (2003).The Complete Idiot’s Guide to American History. USA: Alpha Books. Ebey, S. (2008). Cultural, Economic and Political Impacts of Industrial Revolution, http://www.socyberty.com/History/Cultural-Economic-and-Political-Impacts-of-Industrial-Revolution.327727. Allsands, (n.d.). The History of Industrial Revolution in America, 02, 2009, http://www.allsands.com/history/events/americanhistory_zlu_gn.htm. Articlemyraid, (n.d.).The Impacts of the industrial Revolution on Families in New England and America, http://www.articlemyriad.com/industrial_revolution_new_england.htm. Read More