THE EFFECTS OF INDUSTRIAL CAPITALISM

880 Words Jun 19th, 2018 4 Pages
“Adam Smith argued that Individuals who were allowed to pursue rationally their own economic self-interest would benefit society as well as themselves” (Sherman & Salisbury, 2008, p.187). This argument helped industrial capitalism grow in the 19th and 20th centuries. Industrial capitalism affected the bourgeoisie and the working class. Although the bourgeoisie gained money and power, the working class suffered through poor working conditions.
The bourgeoisie, also known as the middle class, gained money and power as the industrial capitalism got stronger. They consisted of merchants, tradesmen, and professionals. In the middle class, the men worked outside the home to support their families, while the women stayed at home to take
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In addition, the children obtained a mere fraction of that pay. Therefore, factories employed women and children more often than men. The owners even created contracts with orphanages to hire cheap child laborers to save money (Sherman & Salisbury, 2008, p. 277).
In the 19th century, industrial capitalism began to gain more power in the form of monopolies. Rockefeller’s Standard Oil Trust was one of these monopolies. His company destroyed smaller and weaker oil companies to become a larger corporation.
On May 15, 1911, the Supreme Court of the United States ruled that the Standard Oil Cartel was a menace to the Republic and ordered it to be broken up:
"For the safety of the Republic we (U.S. Supreme Court) now decree that the dangerous conspiracy must be ended by Nov. 15, 1911 "(John D. A Portrait in Oils, p. 154).
Rockefeller vowed revenge against the U.S. and used his vast fortune to BUY the U.S. government.
The breakup of the Standard Oil monolith resulted in about 37 new companies. Rockefeller still secretly controlled them all by owning a voting majority of stock in the new corporation. Thus Standard Oil would be known as Standard Oil New Jersey (Exxon), Standard Oil New York (Mobil), Standard Oil Indiana (Amoco), Standard Oil California (Chevron), Atlantic Refining (Arco) etc., etc.
Labor unions started to form in the late 18th century; though it was during the 20th century that they began to grow. Unions fought for improved
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