HISTORY OF AMERICAN CAPITALISM - Assignment Example

History of American Capitalism Identify Albert Gallatin. What were the main points in his “Report on Roads, Canals, Harbors, and and Rivers”? He intended to built a series of canals parallel to the Atlantic coast from New York City to South Carolina, a major turnpike from Maine to Georgia, a series of inland canals heading to Ohio, a canal crossing New York state and also he intended improve to make rivers, including the Potomac, Susquehanna, James, and Santee, passable to major river navigation2.

There were two significant exceptions to the general pattern of federal retreat from support for internal improvements before the Civil War. What were they and explain the government subsidy for each? Because of the American culture; our teaching methods and the fact, the winner holds the reins few if any one realizes that the South is still under reconstruction; is still at war and still at the mercy of the North. A very famous Southerner before he died said, “Surrender means the history of this heroic struggle will be written by the enemy that our youths will be taught by Northern School teachers learn from Northern school books THEIR version of the war”.3. What was the background to the creation of the 2nd Bank of the United States?

What was the main responsibility of the bank? What role did Nicolas Biddle play? What were his main policies? What was Andrew Jackson’s policy concerning the bank? In the early 1800s, the United States government did not print paper money but instead minted gold and silver coins called specie. The value of these coins was determined by the value of the metal in the coins themselves. People wanted a safe place to keep their savings of gold and silver coins, so they stored them in banks, which had strong vaults and other measures of security.

One area of particular concern among bankers, businessmen, and government leaders was banking on the frontier. Frontier land was cheap, and speculators would buy large tracts expecting the price to go up as settlers entered the region. In order to finance their investments, speculators borrowed as much as they could from “wildcat” bank that sprang up to cater to this demand (Mansel and Kerr, 17-26). Jackson’s presidential term ended in 1836. Popular with the people to the end, his immediate economic legacy was fiscal instability for the country, which resulted in the Panic of 1837 during his successor, Martin Van Buren’s, presidency.

His unshakable opinion remained, however, that over the long term an immensely powerful national bank held in private hands was a danger to democracy.4. What was the difference between a tariff for revenue only and a protective tariff? Who were there supporters and opponents? Revenue Tariff for revenue pays interest on debts and funds within the government while Protective tariff Import duties on manufactured goods. In other words, a revenue tariff is simply to make money while a protective tariff is to protect a nations citizens market.5. What two factors stand out as important for the development of American business institutions?

There are several key reasons why the American economy has dominated the world. This includes; the abundance of natural resources in America, the relatively low population density of America, the development of a strong domestic market in America, the possession of the majority of the world’s gold (by the 1930s America possessed 75% to 80% of all the mined gold in the world due to gold deposits in America), American investment in foreign countries higher than foreign investment in the US, and the adoption of the US dollar as the international reserve currency6.

What three hallmarks of modern business management are illustrated by steps taken by railroad executives? The three hallmarks of modern business management on railroads are Agriculture, manufactures and commerce which of butter trade and the prevailing technology.7. What dramatic changes occurred in the marketing of manufactured goods after the Civil War? The economic and social changes after the Civil War were reflected in, and overshadowed, the political and administrative developments. The coming of the railroad and the increase of business and manufacturing activities stimulated the expansion of agricultural pursuits in the county.

Forces beyond the control of the local farming group, however, arose after the World War which tied the county to the cycles of prosperity and depression and resulted in the economic and social dislocation of many of its inhabitants (Mansel and Kerr, 39-45).8. What strategies were used by small businesses to survive with the larger companies? They executed an influence of managing layoffs with dignity. In addition, they ensured that vision statement, priorities and business strategy was taken into account.9. What three factors were stressed by Frederick Taylor in the Physical layout and flow of work in the factories?

The most important of the changes that brought about the Industrial Revolution were the invention of machines to do the work of hand tools, the use of steam, and later of other kinds of power, in place of the muscles of human beings and of animals and the adoption of the factory system.10. Write a paragraph about each of the following: John D. Rockefeller and Andrew CarnegieJohn D. Rockefeller Was the founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust.

Rockefeller revolutionized the petroleum industry and as a philanthropist, he modernized the art of giving. In 1870, he established Standard Oil, which by the early 1880s controlled some 90 percent of U.S. refineries and pipelines. Critics accused Rockefeller of engaging in unethical practices, such as predatory pricing and colluding with railroads to eliminate his competitors, in order to gain a monopoly in the industry. In 1911, the U.S. Supreme Court found Standard Oil in violation of anti-trust laws and ordered it to dissolve.

During his life Rockefeller donated more than $500 million to various philanthropic causes.Andrew Carnegie Scottish-born Andrew Carnegie (1835-1919) was an American industrialist who amassed a fortune in the steel industry then became a major philanthropist. Carnegie worked in a Pittsburgh cotton factory as a boy before rising to the position of division superintendent of the Pennsylvania Railroad in 1859. While working for the railroad, he invested in various ventures, including iron and oil companies, and made his first fortune by the time he was in his early 30s.

In the early 1870s, he entered the steel business, and over the next two decades became a dominant force in the industry. In 1901, he sold the Carnegie Steel Company to banker John Pierpont Morgan for $480 million. Carnegie then devoted himself to philanthropy, eventually giving away more than $350 million (Mansel and Kerr, 23-31).Work CitedMansel, Blackford and Kerr, Austin. Business Enterprise in American History. New York: Houghton Miffin Company, 1994, 3rd edition. ISBN# 0-395-66849-2