US history: industry, immigration, and the Progressive Era (grade 11)
After the Civil War, railroads, giant companies, and millions of immigrants transformed the US. Reformers then fought to fix the problems industry created.
Railroads and big business
💡 Railroads built a national market, and companies that controlled whole markets or supply chains gained huge power over prices.
The transcontinental railroad, finished in 1869, linked the coasts. Goods, people, and raw materials could cross the country in days instead of months. Farmers and factories could reach faraway buyers.
A monopoly is one company controlling almost all of a market. With no rivals, it can raise prices because buyers have nowhere else to go.
Andrew Carnegie bought iron mines, coal fields, and railroads that supplied his own steel mills. Owning every step, from raw materials to finished goods, is called vertical integration. It let him control his supplies and costs, so he could sell steel cheaper than rivals.
- Ask what keeps prices low in a normal market: rivals competing for buyers.
- monopoly
- one company controlling almost all of a market
- vertical integration
- owning every step of making a product
- trust
- a group of companies combined to control a market