Six features dominated the world of large-scale manufacturing after the Civil War: 1. the exploitation of immense coal deposits as a source of cheap energy; 2. 3. 4. 5. 6. the rapid spread of technological innovation in transportation, communication, and factory systems; the demand for workers who could be driven and controlled; the constant pressure on firms to compete tooth-and-nail by cutting costs, eliminating rivals, and creating monopolies; the relentless drop in prices (a stark contrast to the inflation of other eras); and the failure of the money supply to keep pace with productivity, a development that drove up interest rates and restricted the availability of credit. All six factors were closely related. The great coal deposits in Pennsylvania, West Virginia, and Kentucky provided cheap energy to fuel railroad and factory growth. New technologies stimulated productivity and catalyzed breathtaking industrial expansion. Technological innovation enabled manufacturers to cut costs and hire unskilled labor. Cost cutting enabled firms to undersell one another, destroy weaker competitors, and consolidate themselves into more efficient and more ruthless firms. At least until the mid-1890s, cheap energy, immigrant labor, new technology, and fierce competition forced down overall price levels.

Six features dominated the world of large-scale manufacturing after the Civil War: 1. the exploitation of immense coal deposits as a source of cheap energy; 2. 3. 4. 5. 6. the rapid spread of technological innovation in transportation, communication, and factory systems; the demand for workers who could be driven and controlled; the constant pressure on firms to compete tooth-and-nail by cutting costs, eliminating rivals, and creating monopolies; the relentless drop in prices (a stark contrast to the inflation of other eras); and the failure of the money supply to keep pace with productivity, a development that drove up interest rates and restricted the availability of credit. All six factors were closely related. The great coal deposits in Pennsylvania, West Virginia, and Kentucky provided cheap energy to fuel railroad and factory growth. New technologies stimulated productivity and catalyzed breathtaking industrial expansion. Technological innovation enabled manufacturers to cut costs and hire unskilled labor. Cost cutting enabled firms to undersell one another, destroy weaker competitors, and consolidate themselves into more efficient and more ruthless firms. At least until the mid-1890s, cheap energy, immigrant labor, new technology, and fierce competition forced down overall price levels.