The Late-19th-Century Economy

Abstract

The United States underwent massive economic change in the four decades following the end of the American Civil War in 1865. A vibrant industrial economy catapulted the nation to a world leader in mining and manufacturing; the agricultural sector overcame organizational and technological challenges to increase productivity; and the innovations in financial, accounting, and marketing methods laid the foundation for a powerful economy that would dominate the globe in the 20th century. The emergence of this economy, however, did not come without challenges. Workers in both the industrial and agricultural sectors offered an alternative path for the American economy in the form of labor strikes and populist reforms; their attempts to disrupt the growing concentration of wealth and power played out in both the polls and the factory floor. Movements that sought to regulate the growth of large industrial firms and railroads failed to produce much meaningful policy, even as they raised major critiques of the emerging economic order. In the end, a form of industrial capitalism emerged that used large corporate structures, relatively weak unions, and limited government interventions to build a dynamic, but unbalanced, economic order in the United States.