American Entrepreneurship Since 1900 Assignment: Growth in the Postbellum Economy

 California underwent rapid development in the later part of the 19^th-century. There would be several factors that influenced this such as the Gold Rush, immigration, westward expansion, employment opportunities, industry, and railroads. By evaluating census reports and labor statistics by sectors, a narrative reveals itself of growth and decreases. By researching into historical events that coincide with those decades, an explanation behind those numbers makes sense. A coherent understanding of the economic rise for the state can be made.

The latter part of the 19^th-century was a time of economic progress in California, a land incredibly rich in resources. Ceded to the United States in 1848 with the Treaty of Guadalupe Hidalgo, the land underwent rapid settlement with the Gold Rush of 1849. The thirst for gold brought in miners, followed by businessmen and development. The population continued to grow by the thousands. The first census that included California recorded a population of about 92,600 people but the next census, in 1860, showed significant increase, around 300% with nearly 380,000 people. In response to the need of organized governing, California was granted statehood in 1850. This hotly contested inclusion added to the larger issues boiling in the country over free and slave states that would eventually culminate in the Civil War. During the war, Californians were mainly pro-Union and the military took steps to secure ports, military posts, and government resources. For the most part, California was not strongly impacted by the hostilities that raged in the eastern and southern parts of the country.

            The Gold Rush was already drying up by the time war arrived. The mining labor would continue its precipitous drop in labor force into the new century. However, coming out of the Civil War, California continued to prosper in other ways. Farming had become a large commercial venture and labor statistics show a strong agriculture percentage through 1900, but then it would begin a slow decline. What were Californians doing for work if not farming, ranching, and mining? They were involved in businesses like trade, services, manufacturing, and producing commodities. This would be the new boon for the economy.

The 1860’s brought the railroads. The far western part of the country was now connected with the east taking only seven days to travel instead of four-to-six months. This technology would be the catalyst that continued to build a strong economy in the Golden State. California could export! There were markets for lumber, wine, and canned food. Produce such as fruits, vegetables, nuts, and grain could be shipped anywhere, especially with the invention of the refrigerated rail car. The availability of jobs, commerce, and tourism would continue to bring even more people out west, usually because of the railroad.

Americans could now travel to see the land they had heard incredible stories about. The railroad was more than happy to provide affordable fares to bring people to California. With visitors showing up, hotels, restaurants, and shops began to spring up around the train stops. Towns continued to grow and the service industry with it, according to labor statistics from the period. In 1890, nearly 19% of the labor force in California was within the Professional, Domestic and Personal service industries. These are the butlers, waiters, maids, cooks, gardeners, chauffeurs, and nannies. They were not just in the local businesses, though. Wealthy businessmen and other high class of American society were creating expansive homes in the flourishing new cities, which required domestic help. This is a simple economics principle of supply and demand in regards to a labor force and available jobs.

When things were already going well in California, another boost arrives with the focused drilling of oil. In 1876, the Pico Canyon oil field near Los Angeles was the first gusher in the state. Oil mining created the businesses of refineries that produced kerosine, candle wax, wheel lubricants, and gasoline (which was not a valuable product yet). Improving the cities, roads were being paved with asphalt. The new rush of the black gold led to numerous drilling operations, mainly in the San Joaquin Valley. With their success, even more products were being exported from the state, mainly by rail. This industry would continue, making California one of the leading oil-producing states, far into the 20^th century.

California’s economy would continue to expand as the progress and technological advancements opened jobs by the thousands. Westward expansion was continuing to bring more Americans out west who were finding employment in California. Immigrants from Asia were arriving to work in the land of opportunity. A strong and healthy labor force with a diverse composition of sectors is illustrated by census reports and labor statistics. The growth seemed unwavering through 1900, but then it stalls a little bit.

On April 18, 1906 an extremely powerful event shook California. The 7.9 magnitude earthquake could be felt as far north as Oregon and as far east as Nevada. It ripped open the San Andreas fault for nearly 300 miles. The quake and following fires would destroy San Francisco, most of the Bay Area cities, and causalities are estimated at over 3,000 deaths. Although economic growth in California would slow during the following years, areas not seriously affected by the earthquake would have higher population increases. As a result, increased labor and production would be higher than in the impacted locations. This led to the larger development of other cities which would have a role in economics, government, and culture for the next century, such as Los Angeles.

California has a rich history that was intimately influenced by several encompassing historical events that affected the entire country. By looking at census and labor reports a story develops on how that state became a powerhouse of business and exports in the late 19^th-century.

 

 

 

 

 

 

 

 

Bibliography

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U.S. Census Bureau. 1860 Census Records, “Population of the United States in 1860: California.” https://www2.census.gov/library/publications/decennial/1860/population/1860a-06.pdf. Accessed July 2, 2025.

U.S. Census Bureau. 1870 Census Records, “Population, with Race, 1870: Alabama through California.” https://www2.census.gov/library/publications/decennial/1870/compendium/1870e-07.pdf. Accessed July 2, 2025.

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