America was a country of rapid economic growth and change at the end 19th century. American’s faced the dilemma of living in a resource-rich country without the ability to produce (machines or labourers), 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 demographics of the country. A laissez-faire governance system encouraged rapid urbanization, big business and immigration. This was facilitated by the ideology known as Manifest Destiny. These pioneers of capitalism believed 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 often had three main themes: The virtue of American citizens and their institutions; spreading these institutions to redeem and remake the world in America’s image; and the destiny of God to do this work. Because the East coast is close to Europe, it was the preferred location for settlement. However, increasing numbers of immigrants required more land. Americans argued for the settlement of new immigrants in the western and central regions (the Great Plains) on the continent. John O’Sullivan wrote an 1845 editorial in which he advocated Texas’ annexation. In it, he stated that “Manifest Destiny” was a term that referred to the fact that it was “our manifest fate to overspread Texas’ continent given by Providence for our yearly multiplying billions”. 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. It authorized the construction and funding 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, 430,000,000 acres were settled. More than in any American history. 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 presented some challenges for immigrants. Many were not familiar with modern farming techniques and many weren’t given arable land. These homesteads helped to create communities on land previously uninhabited by Native Americans. The homesteads were eventually replaced by smaller, more efficient farms. However many small towns grew around them. It is important to note that the expansionist ideology, which was beneficial for many new immigrant families, also caused thousands of Native Americans to be displaced. Over this time the Native American population dropped rapidly, tribal land was lost, and the Native Americans became the poorest section of American society. The Native Americans were in great distress, and the Americans didn’t have much time for reflection as they pursued economic growth. America saw key opportunities for economic growth in both mobility of goods as well as land. This was due to the expansion of territorial territories fueled by belief in manifest destiny. American citizens had huge amounts of land at their disposal and were quick to exploit this resource. The availability of large quantities of arable land gave rise to the first set, agricultural produce. Americans planted more acres of land between 1870-1899 (225M acres) than in 1607 (1607: 189M acres). 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. In the period 1860-1900, America’s agricultural workforce declined from more than half to 40%. But agricultural productivity increased, making it possible to export surplus. The nation’s industry was fueled by the exports of farmers abroad. 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 a relatively small industry. Early settlers preferred to use wood as a fuel. By the 1800s, Pennsylvanian miners had started to extract anthracite, a higher-carbon form of coal. 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 was expanding throughout the century. Twenty states had become coal mines 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. New technology led to industrial change. Coal was extracted underground, and purification methods were standard. This cleaning method produced coke, which is a fuel that has low impurities but high carbon, essential for making steel and iron. By 1880, national production had reached 80 millions tons due to increased coal mining. 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. Drilling expanded into other states and reached California in 1892. Standard Oil, however, owned the majority of the major pipelines. Rockefeller brought down oil prices from 58c to 8c per gallon by 1885. This gave people the ability to light their homes and offices, and allowed them to work late into the night. 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 had more oil production than the rest of the globe combined by 1909. They were the largest oil supplier to other countries and still met their own 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, land, and natural resources, 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. In the period 1877-1900, there were 7,248,000 immigrants. Although immigrants were primarily from China and Western Europe before 1800, the majority of them came 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. For the first times in America’s historical history, wage workers outnumbered self-employed. In fact, by 1873, these wage labourers were more common than ever. Furthermore, large corporations began to employ them. 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. Immigrants dominated this unskilled job, which provided America with much-needed labor to supplement its 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 savvy business 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 was a near monopoly in the oil industry, controlling 90% of all pipelines and refineries. There were no business taxes or minimum wage under the government’s laissez faire economic rule. Additionally, the government’s laissez-faire economic rule, which was enacted by the 1890 Sherman Anti-Trust Act did not have strong support. Many of these powerful figures benefited from it. Trusts also became more common, decreasing fair business competition. As a result, a number of millionaires or billionaires rose to become the leaders of huge conglomerates. 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. The American economy’s success in the 20th-century was due to the growth of immigration and the wise exploitation of natural resources. The US held half the world’s manufacturing capacities by 1900. It was also expanding its economic interests and becoming a worldwide power. The US was able to make such significant gains partly because of its speed in a slow competition. In fact, the entire period between 1873 and 1900 was known as West Europe’s long depression. America’s economic power was largely due to how they used the land and resources that they discovered. While the discovery of such a resource rich continent was a blessing for the settlers, it was America’s pioneering spirit when it came to territorial expansion and the harnessing resources that made America a major economic player by the end of the twentieth century.
Manifest Destiny And Other Key Components Of American Economic Growth
