America at the turn of the 19th-century was a country that saw rapid economic development and changed rapidly. American’s had to deal with the fact that although they were surrounded by a wealth of resources, they lacked the production tools (machines and laborers) to make use of these resources. The second industrial revolution enabled production to become easier than ever. Production went from hand-made products to mass-produced, mechanised goods. These products could now travel across the country via the transcontinental railroad system. This resulted in a shift in the demographic makeup of the country. A laissez-faire system of governance encouraged rapid urbanisation, big business and immigration. This was a result of the ideology of Manifest Destiny, which is the belief of these pioneers in capitalism that they had all rights and responsibilities to exploit North America’s resources and expand their pursuit of the ideals. The idea of Manifest Destiny, the land of resource and those who exploited them, were the most important factors in America’s economic success at the beginning of the 21st century. Manifest Destiny, which was a form of territorial expansionism, was a key component to American economic growth. It was widely believed that the US’ settlers were destined for expansion across North America in the middle of the 19th century. It had three major themes: the virtue of American people, their institutions, and the mission to spread them to make the world a better place. Due to its proximity and European connections, the eastern coast was the most popular hub of settlement. However, increasing immigration levels necessitated more land. Americans argued for the settlement of new immigrants in the central and western areas (the Great Plains). John O’Sullivan, a newspaper journalist, used the term Manifest Destiny in 1845 to advocate for Texas’ annexation. O’Sullivan stated that Texas was “our manifest fate to expand the continent allotted through Providence for the free and unrestricted development of our yearly multiplying thousands”. Railways were the best means of expanding Texas. Americans inherited technology from Europe and were quick to create new methods of iron making using steam power. Congress passed in 1862 the Pacific Railway Act. This Act authorized the construction and expansion of transcontinental railroads. Private railway investors were also granted large land grants. The first transcontinental link was built between the Union Pacific Railroad and Central Pacific Railroad at Promontory Point in Utah, May 1869. Four transcontinental railways were operational by 1884. Around the stations, new settlements were established. By 1890, four transcontinental lines had been in operation. Between 1870-1899, 430 million acres were settled. This is more than any American has ever occupied. The 1862 Homestead Act was also responsible for this increase. This act was used by Congress to establish a program for public land grants to small farmers. 160 acres of the public land was offered to settlers, most of them located in the Great Plains. They were required to live on the land continuously for five year and make improvements while on it. 15,000 homestead applications were approved in the first four years. This program had its difficulties. Many immigrants weren’t familiar with modern farming techniques. These homesteads helped to create communities on land previously uninhabited by Native Americans. The homesteads were eventually replaced by smaller, more efficient farms. Many small towns that were built around them survived. Not to be overlooked, this expansionist approach which was favorable for many new immigrants also caused the displacements of thousands Native Americans. This period saw a rapid decline in Native American populations, loss of land by tribes, and American society’s poorest segment, with the Native American people becoming the lowest income group. The Native Americans’ misery gave Americans no reason to stop pursuing economic advancement despite their obvious frustration. America saw key opportunities for economic growth in both mobility and land. American citizens had huge amounts of land at their disposal and were quick to exploit this resource. Agriculture was the first resource, thanks to its large arable area. Americans managed to cultivate more acres of land between 1870-1899 than they had in 1607 (1607: 189 million). Farmers gave up their east-facing, small farms and built new, more fertile farms west and mid-west. They also used new innovations from second industrial revolution – one family could increase their acreage and production without having to hire large numbers of workers. Between 1860-1899, the US employed less than 40% of its agricultural workers. However, their agricultural productivity increased and was able to export more. The country’s industry thrived on the profits of what farmers exported. The country’s natural resources were key to the development of American industry. These included coal and oil. While commercial coal mining has been going on since 1740, it was still an insignificant industry up until the 1800s. This is because early settlers preferred the plentiful supply of wood. In the 1800s, anthracite was being extracted on an industrial scale by Pennsylvanian miners. It became a popular heating source in many North-eastern towns. By the 1840s, it was the most common form of coal on the Eastern seaboard. The coal industry developed throughout the century. It had grown to 20 states by 1861. Civil war increased the demand for coal, causing prices to rise by nearly 50%. Railroads now had access to the new coalfields. In fact, they eventually purchased coalfields from mining companies to lease. After the second industrial revolution, technology led to industrial change. Underground coal extraction became more common and better-known purification techniques were developed. This cleaning method produced coke, which is a fuel that has low impurities but high carbon, essential for making steel and iron. In 1880, the national coal production reached 80 millions tons due to an increase in coal mines. The story of oil was similar. In 1859, the country’s first petroleum industry began with a well extending 69ft into Western Pennsylvania. These wells were used to extract oil that was made into kerosene. This was cheaper than oil from whales and safer than camphene, which is a highly explosive fuel. Standard Oil was founded by John D. Rockefeller 1859 in Cleveland. The drilling expanded to other states and eventually reached California in 1892. Standard Oil, however, owned the majority of the major pipelines. Rockefeller brought the oil price down to 8c per gallon from 58c in 1885. This allowed ordinary people to light their homes or companies, and allowed them to be productive into the early hours of the morning. While Edison’s 1879 invention of an incandescent light seemed to be the end of oil, with the advent automobiles, excess was no problem. The United States produced more oil than all of the other countries in 1909. It was the largest country that supplied oil to other countries, while also supporting its own oil needs. American productivity in the utilization of its resources enabled it to become the largest agricultural economy in the world and the biggest industrial producer. Despite all the technology and land available, America’s economy is still a formidable force. The unique problem faced by American’s was that they had both land, machinery and resources, but not enough labour. However, many were attracted to the young nation’s promise of great opportunities. This resulted in an influx of immigrants. Between 1877-1899, there were 7,248,000 people net-immigrating to the country. Although immigrants came mostly from China and Western Europe before 1800, the majority of them arrived in America from the east and south. Many immigrants arrived in America to seek economic opportunities. The country offered cheap land and high wages, which was a major advantage over their home countries. This was especially true with the Homestead Act. Early immigrants made it known that they would be bringing their families and friends with them to America, thus forming networks and chains. Wage labour was also increasing in America’s rapid industrial growth. Wage labourers surpassed the self-employed in America for the first times in its history. In the 1880s, they were also becoming more common employees at large corporations. According to the Massachusetts Bureau of Statistics and Labour, wage labour is universal. This means that it can be used in any religion, government, or language. In the 1880s, skilled workers had to struggle to keep their job due to the high wages of skilled workers. Employees sought ways to replace them with unskilled and semi-skilled workers. Henry Ford’s assembly-line example is the most cited example of how mechanisation can be used to reduce the work force and lower wages. These unskilled jobs were largely taken up by immigrants who provided America with the needed labour to supplement her capital and land. In the latter part of the 19th century, entrepreneurs were a fourth factor in production. A few early investors, both in steel and oil, were able create huge business empires by using shrewd financial practices. John D Rockefeller, who had made investments in oil through Standard Oil, went on to purchase his competitors and in 1881 placed all of Standard Oil’s affiliates in the first US trust. Standard Oil possessed 90% of America’s pipelines and refineries by 1882. There were no business taxes or minimum wage under the government’s laissez faire economic rule. Due to the lack of support from powerful figures to regulate big businesses (many of whom received it), trusts grew in popularity, reducing competition and fairness. As a result, millionaires and billionaires dominated the national scene as leaders of conglomerates that were often large and international. These companies provided jobs for unskilled labourers as well as a platform to feed the nation’s ever-growing population. They also traded surplus foreign currency. As the 20th-century approached, the American economy’s success was due to the growth of immigration and the wise exploitation of natural resources. The US had 50% global manufacturing capacity. By 1900, it was a world leader and expanding its economic interests. True, the US enjoyed great success partly due to its ability to run fast in a slow-paced race. The entire 1873-1900 period was called the “long depression” in Western Europe. America’s economic power was largely due to how they used the land and resources that they discovered. It is true that the settlers found a continent rich in resources and arable lands. However, America was made an economic power by its pioneering spirit.
