The Way to an Economic Giant

【Abstract】How America turns into a economic giant from an agricultural to an industrial society is far more arduous and burdensome than how it turns into a world superpower. This paper holds that the second Industrial Revolution is the key period in shaping America evolved from a small agrarian country to an economic giant.

【Key Words】industrial revolution； railoads； productivity

【作者簡介】张逸闻，华东师范大学。

World WarⅡpulled America out of economic trouble， letting America transform into a superpower in 4 four years， leaving war-ruined European and Asian countries far behind. However， the war is just a booster. In 1894， America was already the worlds top economic power. Therefore， developments during 1870-1900 play a critical role in shaping America into a world power.

I. Railroads and Steel

The Second Industrial Revolution was characterized by the build out of railroads， large-scale iron and steel production. From 1860s， Americans vigorously built railroads to connect the West with the East， among them were the famous Pacific Railroad. Railroads finally reached Texas and trains ran across the continent. By the end of the 19th century， America had 200， 000 miles of railroad track. On one hand， it linked the local markets and created a national economy. Resources from the Midwest fed the countrys growing industries in the East. Over the next 40 years， the amount of freight carried by rail shot from 55 to 700 million tons. America overtook Britain as the largest manufacturer on earth， soon producing 30% of the worlds goods.

On the other hand， the large demand for steel promoted the rise and brisk development of industrial areas in the Midwest， like steel industry in Chicago. Manufacturing expanded from New England to the West and heavy industries gradually played the major role. Therefore， this period witnessed the structural change of economy. In 1859， in the output value of industry and agriculture， agriculture occupied 63.8%， while in 1889， the figure fell to 22.5%.

The railroads laid the basis for the creation of the single largest market in world economy. This made it possible for the US to become the global economic power by the end of the 19th century.

II. Growing Porductivity

Besides， during the revolution， the productivity took a giant leap. Firstly， we should attributed it to those discoveries and inventions. Thomas Edisons inventions ran through this period. His 2， 000 inventions deeply affected almost every aspect of human life. Light was invented by Thomas Edison in 1879. In just two years， Edison built more than 5， 000 power plants， bring electricity to major cities. By1902， sports， entertainment， factories， stores all could operate at night. As electricity came to cities， more and more people arrived with it.

The revolution witnessed the widespread use of machinery in manufacturing， the beginning of electrification， widespread use of the telegraph and use of petroleum. The invention of internal-combustion engines stimulated the exploitation oil. The discovery of oil in Texas heralded the beginning of Oil Age. Then cars were produced and under the influence of Fordism， cars were more affordable and popular. They transformed the lives of millions and greatly expanded their scope of activities. Cities exploded outward. Brand-new highways were built. Thats how America turned into a modern country in the 19th century.

Secondly， the centralization of production and capital breed monopolies. New industries like electrical， chemical and oil industries asked for centralized production. The world-leading oil company Mobil is a good example. Monopolies were the inevitable outcome of the development of productive forces， and in turn， they further promoted production. The industrial revolution gave rise to plenty of new inventions. How to apply new technology into production was an urgent problem facing the country. In view of high risks and the lack of money， small or medium-sized companies were not able to make investments. Therefore， monopolies were the key in applying technological achievements to production process. Advanced machines were largely put into practice， which made possible the advent of standardized and mass production. If America let its market go with the flow， it may take far more time to get the same result. Plus the high tariffs， industry and commerce then enjoyed a period of prosperity， which laid the solid foundation for it to become the great arsenal during the World WarⅠand the worlds biggest creditor nation later. Cars， oil and skyscrapers played major roles in the prosperous nation.

References：

[1]Nick.G.&Andrew; C.（Producer），2010.America：The Story of US[Documentary].United States：Twentieth Century Fox.