Conclusion: Sustainability

Throughout history, and particularly since World War II, American business has held a real and symbolic role in the world economy. The conclusion looks at the reasons behind this: an intermittently regulated business environment; a focus on innovation and regeneration and a comparative lack of stigma attached to failure; and the “American Dream” of democratic entrepreneurship, which has attracted new people and perspectives throughout history. While social and economic freedom is inaccessible to many, the idea of it has been a powerful incentive to encourage risk-taking people, from both America and around the world, to pursue opportunities in America—and enough have succeeded there to encourage others.

8. Corporate America, 1945–1980

America’s infrastructure emerged largely unscathed from World War II. “Corporate America, 1945–1980” defines the decades after the war as a golden age for American business. Postwar business norms influenced the “organization type” or executive, characterized by friendliness and loyalty. High-tech companies invested in aviation and aerospace, while low-tech companies dealing in food, lumber, tobacco, and brewing turned to marketing rather than price competition to sell their products. The postwar years saw the growth of services and franchises and bolstered America’s presence in overseas markets. Later in the century, it became clear that America needed new strategies to regain lost shares of global markets.

5. An industrial country, 1880–1910

“An industrial country, 1880–1910” looks at America’s first captains of industry: Rockefeller, at one time the world’s richest man, who made his fortune in oil; Scotland-born Carnegie, who pioneered new processes in steel; and Duke, Kellogg, and Heinz, who packaged and marketed agricultural products in the form of cigarettes, cereal, and soup. Journalists colloquially known as muckrakers began to criticize the dominance of big business. Companies who monopolized or divided markets were punished for violating antitrust laws. This did not stamp out corruption, but was a meaningful development in business–government relations. In the 1910s, companies began to think increasingly about public relations, using public relations to tell their corporate stories.

2. Commerce in the new nation, 1780–1820

During a period of dramatic population growth and geographical expansion, farming and agriculture were central to the American economy. “Commerce in the new nation, 1780–1820” looks at the growth of new industries. The new American economy stumbled into a recession nearly as severe as the Great Depression of the 1930s. Alexander Hamilton, first secretary of the Treasury, made significant contributions to stabilizing the economy, advocating for the buying of war debts and the foundation of a central bank. New roads, canals, and the invention of the steamboat aided the distribution of goods within America. General merchants found themselves in competition with specialized dealers.

3. Early manufacturers, 1820–1850

By 1850, America’s gross domestic product was two-thirds that of the United Kingdom and one-fifth that of China. “Early manufacturers, 1820–1850” looks at the development and significance of textiles, firearms, and clocks to the new economy. The establishment of mills and factories allowed the workforce to be united in one place and for working hours to be standardized, though initial long hours led to unrest. Colt firearms and parlor clocks became part of the American identity, while some of the first marketing and sales strategies confirmed them as desirable status symbols. International exhibitions showcased the best of American manufacturing, setting a precedent for future multinationals seeking success abroad.

Introduction: A business civilization

The Introduction outlines the narrative presented in this VSI. It starts from the premise that the idea of the United States becoming the world’s largest economy would have been unimaginable at the country’s founding. So how did this happen? The growth of business in the United States was neither automatic nor predictable. This makes it even more of a mystery. The chapters look to answer a number of questions in the quest to solve the conundrum which is the exceptional growth of the United States economy in the 20th and the 21st centuries. How did it get to the position we see it in now?

9. Entrepreneurs and the global economy, 1980–2020

“Entrepreneurs and the global economy, 1980–2020” charts important shifts in corporate culture from managerial capitalism to shareholder capitalism. Other upheavals were brought about by deregulation, free-market economics, and increasing financial complexity. Silicon Valley was emblematic of the changing business landscape, creating small, nimble companies and cult figures such as Steve Jobs. The personal computer, eventually taking the form of the smartphone, was one of the most disruptive inventions of the time. The early 2000s were characterized by financial innovation and scandal, culminating in a recession that lasted through 2010. Recently, business leaders have been criticized for political lobbying, environmental recklessness, monopolistic behavior, and creating wealth inequality.

4. Railroads and mass distribution, 1850 –1880

“Railroads and mass distribution, 1850–1880” focuses on unprecedented economic and technological innovations in the decades after the Civil War. Coal, telegraph communication, and the railroad network revolutionized distribution and manufacture while creating a new management class. Corporations developed from small beginnings into mail-order companies supported by a new postal network, followed by department stores. Unions such as the American Federation of Labor were developed to regulate the workforce. Railroads and telegraph communication led to increased farming, facilitated the movements of traveling salespeople, and enabled the founding and management of the large industrial concerns that dominated the American economy over the next half-century and beyond.

7. Crisis and war, 1930–1945

Herbert Hoover, the first self-described “businessman” to assume the presidency, inherited a troubled economy. “Crisis and war, 1930–1945” outlines his successor Roosevelt’s “New Deal” and his successful attempts to stabilize the economy and re-establish capitalism. After a sluggish period for metals and manufacturing after World War I, America received overwhelming demand for military equipment from Allied forces during World War II. This led to the creation of a new munitions infrastructure, with more women entering the workforce and, in the words of physicist Niels Bohr, the whole of America becoming a “factory,” particularly for the three sites dedicated to building the atomic bomb.

6. Modern companies, 1910–1930

“Modern companies, 1910–1930” explores the “second industrial revolution” brought about by electricity and the internal combustion engine. New products included automobiles and soft drinks, with Henry Ford and General Motors splitting the market and Coca-Cola swiftly followed by its rival, Pepsi. Electricity had a transformative effect on manufacturing, allowing factories to run twenty-four hours a day and enabling washing machines, vacuum cleaners, and refrigerators. This period also saw the emergence of a modern financial system on Wall Street and the rise of door-to-door selling, insurance, and management as a professional science. While these years were volatile and ended with a stock market crash, industries still looked to managers for solutions.