37 pages • 1 hour read
Harold C. LivesayAndrew Carnegie And The Rise Of Big Business
Nonfiction | Biography | Adult | Published in 1975A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
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The Old World Versus the New World
Throughout his biography, Livesay often uses Andrew Carnegie’s life to discuss larger societal shifts in the 19th century, particularly those surrounding the Industrial Revolution. Livesay describes how the Industrial Revolution not only altered traditional forms of labor, but in the process saw “customary social patterns shattered as traditional trades collapsed” (12). From the outset of the book, Carnegie’s life is deeply impacted by the new technology of steam power: the new textile factories make Carnegie’s father’s work obsolete, and the family is forced to immigrate to America. In Chapter 2, Livesay compares Carnegie and his father, Will, to emphasize the importance of adaptability in the face of changing circumstances. Though Livesay sympathizes with the difficulties caused by the Industrial Revolution, he ultimately passes harsh judgements on Will, who resigns himself to not working, instead of learning the tools of the Industrial Revolution’s new trades. Livesay describes Will as a “beaten man” in America, before noting that his work as an “itinerant peddler […] was the final confirmation of the shipwreck of his life” (18).
Whereas Will refuses to change, Carnegie is portrayed as ambitious, self-reliant, and adaptable. Throughout his life, Carnegie continually enters a new industry and learns everything about it, working long hours and devoting himself fully to his job. It is this willingness to adapt to changes and newness that allow Carnegie to be so successful, whether working in telegraph lines, railroads, investing, or steel manufacturing. As such, Livesay uses the differences between Will and Carnegie as a means of illustrating the shifts in society in the 19th century, and the varying ways that individuals could choose to respond to those changes. Yet, even though Livesay describes Carnegie as an enthusiastic participant in new industry, Livesay also argues that Carnegie never fully left behind the “old world”: “his attitudes towards politics, society, culture, and, curiously enough, even the ownership structure of his business exhibited the old world ideas he had absorbed as a boy in Scotland” (13).
Ethical Dilemmas in 19th-Century American Capitalism
A recurring theme throughout Livesay’s biography is the ethics of American capitalist practices in the late 19th-century. Carnegie initially earns a fortune through investing and speculative deals. Though Livesay describes Carnegie as clever and adept at speculation, he also emphasizes the questionable means by which Carnegie earns his money. Carnegie is often described as manipulative, and he frequently lies and misrepresents situations in order to secure better deals for himself. Speculation is portrayed by Livesay as a means of transforming money into more money, with little concrete good achieved for the general populace. Ultimately, Carnegie grows to doubt the ethics of such moneymaking schemes, and devotes himself to the steel industry. The book will continue to develop its interest in the ethics of capitalist practices in Chapter 9, when it discusses the Homestead Strike of 1892. Though Livesay often describes Carnegie’s riches as a force for social good—especially in the context of the “Gospel of Wealth”—he also underlines the ways a desire for maximizing profits can lead to the exploitation of workers. Livesay emphasizes Carnegie as a complex and paradoxical figure—often an ally of the workers, but sometimes a less-than-ethical businessman.
Low Costs and High Outputs
As Livesay describes Carnegie’s work in numerous industries, he continually emphasizes a single business philosophy that would lead to his success: low costs and high outputs. Carnegie learns the importance of such a policy on the railroad, where “profitability in the long run hinges on the management’s ability to optimize traffic flow and minimize unit cost” (35). In the case of the railroad, the company earns the most money when trains are run at maximum capacity with the lowest costs. Livesay argues that Carnegie’s business genius is to recognize the relevance of this policy to other industries, and apply it to the manufacturing industry. In his iron and steel industries, Carnegie implements a system of cost tracking and analysis, almost obsessively searching for areas where costs can be reduced. Carnegie’s attention to cutting costs and running his plants at the maximum capacity allows his business to flourish, becoming one of the most profitable industries of its time.
