Gilded Age - Industrial and Technological Advances

Industrial and Technological Advances

The Gilded Age was a period of widespread economic growth as the United States jumped to the lead in industrialization ahead of Britain. The nation was rapidly expanding its economy into new areas, especially heavy industry like factories, railroads, and coal mining. In 1869, the First Transcontinental Railroad opened up the far-west mining and ranching regions. Travel from New York to San Francisco now took six days instead of six months . Railroad track mileage tripled between 1860 and 1880, and then doubled again by 1920. The new track linked formerly isolated areas with larger markets and allowed for the rise of commercial farming, ranching and mining, creating a truly national marketplace. American steel production rose to surpass the combined total of Britain, Germany, and France. London and Paris poured investment money into the railroads through the American financial market centered in Wall Street. By 1900, the process of economic concentration had extended into most branches of industry—a few large corporations, called "trusts", dominated in steel, oil, sugar, meat and farm machinery. Through "vertical consolidation" these trusts were able to control each aspect of the production of a specific good, ensuring that the profits made on the finished product were maximized, and by controlling access to the raw materials, prevented opponents from entering the marketplace. This practice would lead to a sole producer of a certain manufactured good and meant no competition in the marketplace to lower prices.

Increased mechanization of industry is a major mark of the Gilded Age's search for cheaper ways to create more product. Frederick Winslow Taylor observed that worker efficiency in steel could be improved through the use of machines to make fewer motions in less time. His redesign increased the speed of factory machines and the productivity of factories while undercutting the need for skilled labor. This mechanization made some factories an assemblage of unskilled laborers performing simple and repetitive tasks under the direction of skilled foremen and engineers. Machine shops grew rapidly, and they comprised highly skilled workers and engineers. Both the number of unskilled and skilled workers increased, as their wage rates grew. Engineering colleges were established to feed the enormous demand for expertise. Railroads invented modern management, with clear chains of command, statistical reporting, and complex bureaucratic systems. They systematized the roles of middle managers and set up explicit career tracks. They hired young men ages 18–21 and promoted them internally until a man reached the status of locomotive engineer, conductor or station agent at age 40 or so. Career tracks were invented for skilled blue-collar jobs and for white-collar managers, starting in railroads and expanding into finance, manufacturing and trade. Together with rapid growth of small business, a new middle class was rapidly growing, especially in northern cities.

The United States became a world leader in applied technology. From 1860 to 1890, 500,000 patents were issued for new inventions—over ten times the number issued in the previous seventy years. George Westinghouse invented air brakes for trains (making them both safer and faster). Theodore Vail established the American Telephone & Telegraph Company and built a great communications network. Nikola Tesla invented a remarkable number of electrical devices, as well as the integrated power plant capable of lighting multiple buildings simultaneously; Thomas Edison, in addition to inventing hundreds of electrical devices, co-founded General Electric corporation. Oil became an important resource, beginning with the Pennsylvania oil fields. The U.S. dominated the industry into the 1950s. Kerosene replaced whale oil and candles for lighting. John D. Rockefeller founded Standard Oil Company to consolidate the oil industry—which mostly produced kerosene before the automobile created a demand for gasoline in the 20th century.