Introduction
The period of the 1890s-1910s in the USA was marked by considerable changes in the economy. The main reason for such modifications was the establishment of the consumerism epoch, which was induced by the elevated level of goods production and the enhancement of people’s level of life. During the stated period, several major forms of entrepreneurship dominated, including individual and partnership companies, retail markets, and corporations. The former had more advantageous investment opportunities due to a lower risk of liability. A whole new culture evolved because of the dominance of consumerism in society. Corporations were the winners of retail wars in the USA at the beginning of the 20th century because they managed to alter not only the country’s economy but also its social system.
The Culture Born of Consumerism
The end of the 19th and the start of the 20th century was the period marked by a colossal development of commercialism. A large number of companies and economic groups emerged, giving American citizens an opportunity to choose from a vast number of goods. Department stores, hotel chains, mass consumption firms, and many other types of businesses developed in the 1900s, altering the previous ideas of Americans about the market and products they could possess (Leach 15). Retail houses, which were popular at the end of the 1800s, rapidly lost their popularity at the beginning of the 1900s. Large department stores, which opened all over the country, replaced small merchants’ shops. The major weapon in this war was the ability of department stores to provide a variety of goods in one place (Leach 16). Thus, instead of wasting time looking for several items, one could simply go to a place where it was possible to find all of them under one roof.
Small businesses did not give up easily, trying to retain their profit by all means. As a result of such resistance, department store owners initiated “retail wars” (Leach 16). The means employed by competitors were rather harsh, including new approaches to merchandising, such as advertising, decoration, service, and other enticements. The core element in the new economic system was a “revolution in the production” of goods and the emergence of the profit-driven corporation (Leach 16). The revolution became the main reason for the creation of a new institutional system in the USA. Also, the production revolution promoted the appearance of brokers and the increase in product delivery and consumption. For instance, in the 1910s, there was a growth in food output by about 40% (Leach 16). The production of ready-made clothes and artificial jewelry doubled in the last decade of the 19th century. The manufacturing of lamps and glassware, which was 84,000 tons in 1890, escalated to 250 563 tons in 1900 (Leach 16). These and other changes marked the beginning of the epoch of consumerism in the USA.
The period of an extensive increase in product variety was promoted by several factors. First of all, there was a considerable increase in the labor force. Many immigrants and unemployed workers from rural areas were eager to work and receive regular payment for their efforts (Leach 17). Secondly, the movement of products became much easier due to the evolution of telegraph and telephone connections, as well as the development of railroads. It became easier and faster to exchange information on goods and transport them throughout the country. Thirdly, such vital institutions as insurance companies and banks evolved, which gave way to convenient money operations (Leach 17). All in all, Americans obtained diversified access to a variety of goods and services. Newspaper advertisements of the time described the benefits of department stores and offered different ways of payment (“The Bridgeport Evening Farmer,” “The Ocala Banner,” “The Teton Peak”). Consumerism was gaining more and more popularity, which inevitably affected the country’s economic and social life.
Corporations and Their Advantages over Partnerships
A crucial change in the ways of the leading business in the 1910s was the shift from firms to large corporations. Firms of the mid-1800s were characterized by small scale and low productivity. In most cases, the success of such companies relied either on manufacturing one product in a comparatively noncompetitive niche or on differentiating products (Leach 17). In contrast, newly-formed corporations did not pay much attention to differentiation, concentrating on ending competition that had increased suddenly. Corporations emerged as a response to adverse outcomes of high competition, such as an unstable market, increased labor costs, and price fall (Leach 17). Corporations strived to have full freedom and did not want anyone’s control. Contrary to small companies, which were in possession of individuals or partners, corporations had limited liability, which made it possible to continue ownership “beyond the lifetime of the original owners” (Leach 18). Although corporations were social entities, they contained administrative hierarchies that operated labor, tools, and machines. However, their predominant function was the economic one since they were expected to create capital by means of different types of ownership and to seize the market through mergers.
Due to the development of corporations, the economic system of the USA gradually altered its vector from producing goods to making profits. According to Mead, there were several reasons for the popularity of corporations and their advantage over partnerships (25). First of all, partnerships were formed by individuals, whereas corporations were authorized by the state. Thus, the identity of partners was not a crucial component of partnerships. Meanwhile, corporations were closely related to “a life, a personality, a will, and a reputation” of their own as well as of each of their members (Mead 25). Hence, the responsibilities and social connections within the two types of business agencies were different. In case a partnership went bankrupt, each of its members might have to pay debts from their own pocket. On the contrary, corporations’ debts would entangle only the corporation’s money, which made this form of enterprise less risky and more reliable to join (Mead 26). Hence, it was easier for corporations to find investors than it was for partnerships. It is no wonder, then, that corporations became the most formidable economic entities at the beginning of the 20th century.
Commercial Imperialism in the USA
While American imperialism in the geographical dimension has gained much attention from historians and politicians, there also exists the notion of commercial imperialism, which, according to some scholars, has not received proper attention. Domosh argues that American commercial imperialism played a subtle but rather important role in the formation of the country’s leading position in some economic aspects at a global rate (453). In the 20th century, the USA’s economy was focused no so much on establishing formal colonies as on expanding its markets. As Domosh notes, the U.S. government was much more interested in finding markets for mass-produced goods than in establishing new territories (456). In the 19th century, American enterprises devoted much effort to establishing international marketing connections, creating shipping networks, and harvesting the benefits of an expanded consumer market that stretched from Japan to Canada (Domosh 456). At the same time, however, the USA was also involved in formal imperialism, establishing colonies and initiating military actions.
While the formal and informal imperialism in the USA was interconnected, it is still possible to differentiate between them. Specifically, the country’s commercial imperialism was grounded in the creation and distribution of mass-market goods (Domosh 456). With the help of innovative advertising and marketing techniques, American companies sold their goods in different parts of the world. Thus, it is possible to relate geographic imperialism to a commercial one. Even though the two types had their own goals and strategies, they both worked toward the attainment of the same purpose: strengthening the position of the USA in the world.
Social Change Brought by the Progress of Commercialism
Increased shopping opportunities led to considerable changes in Americans’ lives at the beginning of the 20th century. Discretionary expenditures grew from 20% to 35% in the 1900s-1930s (Cross 17). People spent more money on things that were considered luxuries in contemporary Europe, such as telephones, cars, and fashionable clothes. What is more, the U.S. citizens had much free time to relish their possessions since the number of work hours dropped almost by ten between 1910 and 1926 (Cross 18). Therefore, the social life of Americans altered to a great extent.
In the 19th century, the majority of people’s idea of personal identity was related to land ownership, business, and job skills. However, those “markers of self-worth” lost their importance by 1900 (Cross 18). Instead, people started engaging in service and industrial jobs, which did not offer much autonomy but gave higher incomes. Due to the rapid development of corporations, Americans became reduced to “economic subjects” (Cross 18). A rapid change in work preferences led to the institution of new social class divisions in the country. For instance, the increase of white-collar employment from 17.6% in 1900 to 29.4% in 1930 allowed such employees to view themselves as middle class. Industrial workers’ social position also changed with the expansion of commercialism. Although these employees did not earn as much as English laborers, their distinct feature was not in salary. American industry workers were able to lead the same level of life as white-collar employees in the USA or industrial workers in England (Cross 19). Therefore, the social identity of the U.S. people was enhanced due to the development of commercialism in the country.
The Effect of Commercialism on Gender and Generations
At the beginning of the 1900s, numerous disputes between generations evolved, specifically in immigrant families. Young people wanted to obtain an education and judged their parents because of their poor knowledge of the English language. Meanwhile, older individuals criticized youngsters’ eagerness to absorb the new culture and forget one of their ancestors (Cross 38). However, mass consumption often helped to alleviate tensions between generations. Many immigrants, who did not want to return to their previous places of living for fear of being prosecuted or die in poverty, endeavored to “forge” a new identity through consumer goods (Cross 38). Along with accommodating to the American lifestyle, immigrants did not necessarily have to give up their ethnic heritage or traditions. Because consumer goods were viewed as superficial, they did not interfere with the deeper values.
Commercialism also made some changes to the gender identities of Americans. Access to cosmetics and fashionable clothes allowed young women to become more independent and distant from their families (Cross 41). New appliances had the potential to emancipate women from tedious manual work on the house (Domosh 458). Even though men’s involvement in generating positive change in civilization was considered to be more profound, women could relish the outcomes of such improvements (Bederman 125). Thus, people’s intergeneration and gender relations also evolved as a result of commercial development.
Conclusion
The establishment and evolvement of commercialism and consumerism in the early-20th-century USA had a profound effect both on people’s lives and the country’s image in world relations. What started as retail wars became one of the most powerful change forces in the USA’s history. Moreover, many other countries’ economic and social environments were touched upon America’s development. An increase in advertising and other important market-related spheres enabled corporations to become the most powerful players in the economic field. Apart from making alterations to people’s financial abilities, corporations made it possible to raise social relationships to a new level. Immigrants and previously unemployed native citizens could find workplaces easily and provide for their families. Females had less manual labor to do due to the opportunities granted by new appliances generated by technological progress. Due to these achievements, it is viable to conclude that the evident winner of retail wars at the beginning of the 20th century was a corporation as a business entity.
Works Cited
Bederman, Gail. Manliness and Civilization: A Cultural History of Gender and Race in the United States, 1880-1917. The University of Chicago Press, 1995.
“The Bridgeport Evening Farmer.”Library of Congress. 1912, Web.
Cross, Gary. An All-Consuming Century: Why Commercialism Won in Modern America. Columbia University Press, 2000.
Domosh, Mana. “Selling Civilization: Toward a Cultural Analysis of America’s Economic Empire in the Late Nineteenth and Early Twentieth Centuries.” Transactions of the Institute of British Geographers, vol. 29, no. 4, 2004, pp. 453-467.
Leach, William. Land of Desire: Merchants, Power, and the Rise of a New American Culture. Vintage Books, 1994.
Mead, Edward Sherwood. Corporation Finance. D. Appleton and Company, 1920.
“The Ocala Banner.”Library of Congress. 1901, Web.
“The Teton Peak.”Library of Congress, 1903, Web.