The Rise of Industrial Capitalism

AP US History· difficulty 3/5

"This, then, is held to be the duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance... and after doing so to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer... to produce the most beneficial results for the community." — Andrew Carnegie, "The Gospel of Wealth," 1889

Carnegie's essay was written in the context of which late-nineteenth-century development?

  • A

    Rapid industrial concentration that produced unprecedented private fortunes

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  • B

    The collapse of railroads following the Panic of 1893

  • C

    The federal income tax authorized by the Sixteenth Amendment

  • D

    The breakup of Standard Oil under the Sherman Antitrust Act

Explanation

By 1889, vertical and horizontal integration in steel, oil, and railroads had concentrated wealth in a small number of industrialists. The income tax (1913) and Standard Oil breakup (1911) postdate the essay; the Panic of 1893 came later.

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