American History of Business - Research Paper Example

American history of business 1865-present The history of business in America is characterized by interplay of a vast number of activities that were mainly geared towards the achievement of the best worldly continent. It encompasses great political, economical, social, and cultural revolutionary actions that were undertaken concurrently. Business entails the sum-total of activities that are done at a particular period with the intention of generating profitable outcomes. Each American year in the historical era is documented besides its prevailing economic, social or political phenomenon, thus these classifications are done in terms of units. The units are mainly clusters of years, each of which major transitions were taking place in all realms. However, each cluster of years since 1865 was marked by a contentious issue that required immediate response from the concerned groups (Olson, 2007). These units are investigated in regards to the following divisions: unit 1 (1865-1876) Industrial Revolution, railroads, development of corporations, finance, communication, labor, and introduction of trusts. Unit two (1877-1920) explains about the Impact of Roosevelt's "New Nationalism" vs. Wilson's "New Freedom" and welfare capitalism. Unit 3 (1921-1945) views Technology, consumer spending, introduction of the automobile, and the Great Depression. Unit 4 (1946-1976) looks into Postwar prosperity, organized labor, and the Taft-Hartley Act, while unit 5 (1976-present) is regarded in terms of NAFTA, computer age, and the economic downturn in American business. The major players in regards to the transformations that were taking place in America included the political leaders, immigrated people from other continents, laborers and activists dominating various economic, political, and social realms (Olson, 2007). The discussion in this paper is aimed at the establishment of the history of American business since 1865 and up to the present date. The various units will be carefully examined to enhance the comprehension of the business issue in the aforementioned years. Unit 1 (1865-1876) In unit one, business in America consisted of Industrial Revolution, railroads, development of corporations, finance, communication, labor, and introduction of trusts. There was rapid development in America in this period, rendering America become a leading industrial continent in the global context. The industrial revolution was facilitated by the abundance of natural resources that were exploited to yield useful industrial products. Adequate land was also available that could be utilized in the production of agricultural raw materials, serving as industrial raw materials in the set up industries. The prior and prevailing construction of railroads provided an ample ground for the required industrialization, since the industrialists could penetrate to the deepest parts in search for industrial materials. Availability of adequate labor acted as a long-term rationale to the fast-paced industrial revolution that took place in America. The period was also significant in seeing the Asians and Mexicans rapidly immigrate to America in search for labor, thus the industrializing America gained a favorable ground for the required activities. The ideal presence of rivers that were navigable provided a ground for the cheap extraction of industrial energy as other related items of requirement. The Americans had also enough capital, which served as the major contributing factor to the aspect of industrialization (Ripper, 2008). The development of railroads was rapidly taking place in this period in a bid to meet the immediate needs for transport and industrial increment. The more the railroads continued to expand, the more the industrial expansions took place in America. The opening of these railroads in all places in America saw the creation of more farms, markets, towns in areas that were deemed to play significant roles in regards to the growth of social, political, as well as economical realms. The initial railroad was transcontinental constructed by entrepreneurs that were internationally oriented, with industrial development mind, and in possession of British money. The construction was in the assistance of Chinese and Irish laborers who had migrated from the Asian continent since the middle ages. Later, more railroads were opened in the western regions and the construction was in the aid of the immigrants from other regions including the neighboring Mexico via both illegal and legal migrations. The rationales for the railway construction are inclusive of provision of access to remote regions that had suitable land, the motivation of farmers and access to credit in addition to creating opportunities for capital gain by the industrialists (Ripper, 2008). The initial industrial expansion facilitated the shifting to factories from original artisans in America. The second wave of industrialization acted as a pioneer for organizational expansions and coordination between organizations. The industrial scales also become extremely large, demanding the advancements in technology, transport, as well as operational scopes. Thus, this period saw the development of corporation’s form of businesses, which became dominant in the continent. As industrial growth continued, more corporations came into existence that now would even compete with one another in terms of finances, material acquirement, as well as investment scopes. This was a representation of a modern America. The corporations needed massive financing at this period, a factor that led to the combination of these corporations into trusts. There emerged also the creation of single factories from those forms that were competing into the form of monopolies. These trusts operated on a wide scale, and their operations were facilitated by the sheltering of the factories and laborers via high tariffs establishment (Ripper, 2008). The finance system also needed to be revisited once more in a bid to develop ample strategies for financing the industrial projects that were taking place rapidly at the time. The easiest way that was deemed crucial for facilitating finances to the growing bodies was through the formation of the aforementioned corporations and later the trusts. There was the introduction of high rated tariffs that had the main intention of sheltering the Americans corporations from stiff competitions that would end up ruining every business. There was also the utilization of the established Federal railroad land grants, which acted as a rationale for enriching investors and railroad workers in addition to farmers. These finance systems facilitated the creation of major towns and cities. This juncture had seen powerful businesses emerge, which had the influence of the governmental systems. The same period saw labor develop to higher heights owing to the need of workers on the industrial sectors as well as the railroads construction. There was also the emergence of communication systems that were essential in the conduction of business operations and the industrial connections. Instruments of communication, which included the ancient modes of telegraph and telephone, allowed room for organizational corporate managers to communicate with one another over distanced places (Susman and Chambers, 2007). One political issue they faced was the rampancy of political corruption in existence in the midst of all the industrial revolutions. The industrial developments offered an ample ground for the involvement of political leaders in the finance activities for the existing corporations and trusts. The development of the finance systems also created the ground for Political corruption, ultimately becoming a central concern. In response to those issues, they chose to involve political reformers in the provision of solutions via implementation of reforms in the civil service, local levels, as well as state levels. The impact of this entailed the replacements of the opinionated hacks with professionals in every realm. This saw the enactment of the 1883 Pendleton Act (Civil Service Reform Act). This ideally marked the end of the system of spoils and placed on the merit system the federal employees, ultimately permitting the federal system’s rationalization and professionalization in the understated period (Susman and Chambers, 2007). Unit 2 (1877-1920) In unit two, business in America consisted of Impact of Roosevelt's "New Nationalism" vs. Wilson's "New Freedom" and welfare capitalism. The take of the presidency position by Roosevelt in 1901 was a new way towards change acquisition for American business. The president embarked on the restoration of the economic realms in a bid to introduce nationalism trends. The inception of this was the antitrust laws enforcement in the nations as well as the implementation of supervisory procedures that were to govern most of the ongoing activities. For instance, the supervision of railroads constructions was done via the enactment of a vast number of bills for the control. The nationalism aspect was aimed at centralizing the economy and all other intestate aspects to in control of the ruling government, including the control of natural resources. This period is also famous for paving way for the signing of rampant control acts, including the Hepburn act that was aimed at giving authority to the Interstate Commerce Commission for control a and regulation of the corporations and trusts, including the smallest details like their interests. Roosevelt’s aim was to nationalize every aspect and item in the economy, policy and the entire society (Susman and Chambers, 2007). On the other hand, President Wilson took over governance from Taft, and his rule was embarked on capitalism and new freedom. He converted the management of the trusts via nationalism acts by Roosevelt via the introduction of the Federal Trade Commission that was intended to rule out iniquitous competitions amongst the trusts and corporations. The laws and acts that enacted at this period were aimed at providing a ground for freedom, though controlled via capitalist strategies. The enactment of Clayton Antitrust Act was deemed an excellent path for the control of the activities of the trusts as well as corporations. The conversion of the tariffs and baking systems proved it easy for the capitalism aspect to take preeminence in the period. This period was generally marked by a variety of contrasting ideas, mainly because of the presidencies that were short-lived, paving way for a rule by distinctive ideologies. One economic issue that faced this era was the labor conflicts, which are identified as the greatest in history. These included the strikes by the railway, coalmines and farm laborers etc. The major changes in the ruling systems are deemed to have created uncertainty in the reliability of the laws and acts, thus major strikes took place. In response to this issue, Roosevelt tried to use force and laws to stop the rampant strikes but to no avail. The Wilson era saw him use capitalism approach and the condemnation of the use of jurisdiction to counter the labor conflicts. The outcome of this was the permit issue for people to form labor unions for workers, which were useful as streams for the passage of grievances to the government. The interplay of Roosevelt’s nationalism as well as Wilson’s freedom and capitalism thrived in this season in America (Susman and Chambers, 2007). Unit 3 (1921-1945) In unit three, business in America consisted of Technology, consumer spending, introduction of the automobile, and the Great Depression. Technological improvements were considered vital in this period. The innovation of new technological frameworks was deemed crucial at this period for the enhancement of the industrial revolutions. The 19th century saw America desire to become a leading power in the construction of new technologies for instance telegraphic modes of communication and the introduction of steel works. The technological know-how was also an instrument for utilization in the development of the railroad networks and natural resources that were abundant. These were inclusive of timber, coal, oil, and farmland that played a pivotal role in the ushering of a second revolution of industry in the 20th century. The advancement in the technological realms was also a rationale for increased consumer spending in the time due to increment in their employment benefits. The levels of employment increased as the industrial revolution was boosted by the new communication strategies and the advancing railroads and forestry extractions being conducted at the time. The natural resources extraction resulted in the development of powerful machinery in the form of automobiles that needed to be utilized for greater works. The development of open-hearth furnace and Bessemer process in the manufacture of steel and iron were the initial stages, which finally saw the inception of large automobiles industries. The completion of railroads was also crucial in leading to the construction of powerful rail automobiles for transportation of raw materials, laborers as well as manufactured goods to trade areas (Tucker, 1977). One political issue that they faced was the occurrence of the world war, in 1914, during the reign of Woodrow Wilson. The world war resulted as a result of the superpowers like Germany hunger for control of large territories in regard to agriculture, industrial as well as economic realms. The major causes of these wars were nationalism, capitalism etc, and the ultimate effects affected the general economy of America up to 1917. The shift of the ideologies from industrial revolution to the armament of allies in the earlier years and the direct participation in war in the period by the Americans led to the great economic recessions that are known in history. In response to the issue, the Americans tried to fight against their allies by arming them and later fighting directly and continued with their industrial activities. The outcome was the inception of the Second World War and later the cold war that completely destroyed the American economy. The period saw the beginning of the reconstruction of the economy in America via signing of peace treaties with other warring nations, and the formation of peace movements (Tucker, 1977). Unit 4 (1946-1976) In unit four, business in America consisted of postwar prosperity, organized labor, and the Taft-Hartley Act. The postwar prosperity was achieved in a bid to reconstruct the economy that had been sundry destroyed by the long period of sequential wars. The country’s natural resources became an instrument for development as they all looked forward to exploit them for the sake of economic growth and integration into the world economy in addition to experiencing the second wave of industrialization. The postwar prosperity was also aided by the greatest achievement of 1946 when American states gained their independence. The settling down of America was driven by the attainment of the best strategies via elite groups that emerged after the war to facilitate the industrialization continuity as well as the prosperity in agriculture and urbanization trends. Labor had failed in the original years of industrialization on 1914, when all the workers had given up operating in their organizations (Tucker, 1977). The labor organization in this era took a new path with the federal government enacting laws meant to protect the laborers in every sector and this was followed by massive success. The laborers were allowed to form labor unions; though this was followed by the enactment of the Taft-Hartley Act in 1947 happened at this time in a bid to control the activities of these labor unions. The organization of labor was very crucial in driving the postwar prosperity. One of the political issues they faced at the time was the rejection of the 1947 labor act. These caused competitions arise between the government and the labor unions opposing the act. However, the opposition was not possible due to the combined efforts of the Congress of Industrial Organizations and the then democrats, thus the act prevailed. The outcome of that was the continued success of labor provision that have driven America successful up to date (Phillips, 1998). Unit 5 (1976-present) In unit five, business in America consisted of NAFTA, computer age, and the economic downturn. The period saw the signing of an agreement by Mexican, Canadian as well as the United States governments in regards to trade. North American Free Trade Agreement (NAFTA) was signed with the intention of the requirement for the creation of a trade bloc that operates trilaterally in the northern American region. The trade bloc that was legalized in 2007 has become the largest identified in the world context in regards to utilization of combined GDP purchase. This was facilitated as a vital instrument to facilitate postwar construction and success (Zinati, 2010). The recent developments have seen the innovations into the latest technologies that allow Americans utilize integrated communication models in the utilization of computers. Recent inventions in this period have come up with computers of all kinds that are used for general management and operation services in all realms. However, one of the economic issues that they are facing in this unit regards the experience of drastic recessions, which have notably superseded the ascensions and economic successes. Despite the heavy economic depressions, a wave of economic success is said to be in the control of the great economy. In response to this issue, the American Government and the U.S. Federal Reserve have taken the charge of economic control. This is done via the utilization of macro economic policies that are deemed appropriate in the economic stabilization. The outcome of this is anticipated economic stabilization and globalization achievements in addition to employment enhancement (The Economist, 2008) Conclusion The American history of business is marked by the occurrence of tremendous and overwhelming activities that are duly classified in the form of five units (Davidson, DeLay, Heyrman, C.L., Lytle, M.H., Stoff, M.B., 2008). The events in each unit were quite remarkable and had to be accompanied by an overwhelming challenge. The challenges faced by the Americans in each unit received a particular reaction and always had an outcome. However, the future of America will be great owing to their past challenges as well as their commitment to change adoption. References Davidson, J.W., DeLay, B., Heyrman, C.L., Lytle, M.H., Stoff, M.B. (2008). Nation of Nations. 6th edition. Boston: McGraw-Hill. Olson, R. (2007). U.S. History 1865-Present: From Reconstruction through the Dawn of the 21st Century. NJ: Career Press. Phillips, L. (1998). The third wave of modernization in Latin America: cultural perspectives on Neoliberalism. NY: Rowman & Littlefield. Ripper, J. (2008). American Stories, Volume 2: From 1865: Living American History. NY: Jason M.E. Sharpe. Susman, W. and Chambers, J. (2007). American history. Markus Wiener Publishers. The Economist. (2008). The world economy: The great American slowdown. The Economist Newspaper Limited. Retrieved from http://www.economist.com/node/11016333. Tucker, K. (1977). Business history: selected readings. NY: Routledge. Wilson, M. (2006). The business of civil war: military mobilization and the state, 1861-1865. NY: JHU Press. Zinati, R. (2010). International Relations in the 21st Century. Bethesda: World security network. Retrieved from http://www.worldsecuritynetwork.com/showArticle3.cfm?article_id=18431. Read More