Post on 18-Jan-2016
American History (Honors)Ms. CostasNovember, 2015
The Gilded Age
Essential Questions:1. What factors contributed to the Post-Civil-War
Industrial Boom?
2. What was the relationship between big business and government? How did this impact the rest of society?
3. What were the consequences of rapid industrialization?
4. How is the Gilded Age a period of duality?
5. What reforms were made (both social and legislative) to combat the problems of the Gilded Age?
Unit Overview:I. Second Industrial Revolution
II. Consequences of IndustrializationI. Revolution
II. Unchecked Capitalism
III. Urbanization
IV. Immigration
V. Politics of the Gilded Age
III. Mini-Research Project
The Gilded AgeTerm coined by Mark Twain & Charles Dudley
WarneroMocks the greed and self-indulgence of people of the
timeoDepicts the problems with urbanization▪ political corruption▪ Gap between the rich and the poor
“Not all that glitters is gold”
Industrialization OverviewAn industrial revolution can be described
as…
oA dramatic change in society in which most people live on farms to one where most people live in towns or cities
▪ In 200 years farming goes from 90% 3%
Factors for IndustrializationNatural resources
Abundant labor supply
Growing pop’n & transportation
Capital was plentiful
Technological advancements
Lenient gov’t policies
Entrepreneurs
Business of RailroadsFirst “big” business of the U.S.
Impact…o Modern stockholder corporations
o Complex business/finance/management structures
Trunk Lineso Major route between large cities; smaller branch lines connect small
towns▪ East vs. West
Paid for with land subsidieso Negative consequences▪ Poor construction
▪ Widespread gov’t corruption– Credit Mobilier
Business of RailroadsCompetition led tooSpeculation▪ Jay Gould
oWatered stocksoRebates & KickbacksoPools
Panic of 1893 bankruptcy of RRoBankers consolidate =monopoliesoLittle means for legislative control
Industrial EmpiresSteel
Bessemer Process=makes mass production possible
Andrew Carnegieo Pittsburgh steel hub
o Used vertical integration
U.S. Steel Corporationo Sold to JP Morgan
o First billion-dollar company
Oil Edwin L. Drake – 1858 Rock Oil
Co.
John D. Rockefellero Steam powered drill
o Standard Oil Trust 90% of oil refineries
o Used horizontal integration
o $900 mil profit
o Kept prices low
Antitrust MovementSherman Antitrust Act (1890)oProhibited any “contract, combination, in the
form of trust or otherwise, or conspiracy in restraint of trade or commerce”
United States v. E.C. Knight Co. (1895)oSAA only applies to commerce, not
manufacturing
Laissez-Faire CapitalismBusiness should be regulated by the invisible hand of
supply and demando “Leave it alone”
Monopolies/Trusts justified their practices with LFCo Social Darwinism▪ Survival of the fittest
o Gospel of Wealth▪ Protestant work ethic
▪ Everyone has the duty to become rich
▪ AC gave $350 mil to libraries, universities, and public institution
Technology & InnovationsInventions
o Improvements in communication
o Consumer goods grew vastly
Edison & Westinghouseo First modern research laboratory (E)▪ Team mechanics vs. individual
o Transformers for high-voltage alternating current (W)
Marketing Consumer Goodso Department/chain stores
o Catalogues ▪ Sears Roebuck & Montgomery Ward
Growth of Big BusinessSocial Darwinism/Laissez-Faire Capitalism
New Market Structureso Oligopoly = an industry dominated by only a few large,
profitable firms
o Monopoly = complete control of a product or service
o Cartel = loose association of businesses that make the same product
o Horizontal Consolidation = “merger” – when one corporation bought out the stock of another (ex: Standard Oil Co.)
o Vertical Consolidation = “trusts” – when one corporation controls every aspect of production (ex: Carnegie Steel Co.)
Robber Barons vs. Captains of Industry
Robber Barons Captains of Industry• Built their fortunes by
stealing from public• Drained country of
natural resources• Persuade public officials
to interpret laws in their favor
• Drove out competitors• Poor treatment of workers
• Served nation in a positive way
• Increased supply of goods w/ factories
• Raised productivity and expanded markets
• Create jobs raises standard of living for employees
• Created museums, libraries, and universities
Impact of IndustrializationConcentration of Wealth
o Horatio Alger myth of upward mobility
Expanding Middle Classo Administrative opportunities – “White Collar Workers”
Wage Earners regulated by supply and demand
Working Womeno 1:5 women worked by 1900
Labor Discontent
Changes in Working LifeOnly a few entrepreneurs became rich
Machines replaced skilled labor
Industrial jobsoHighly repetitive tasksoLittle pride in workoPoor conditions▪ Unhealthy▪ Dangerous
Time for ChangeNeed to organize = union
Goals:oImprove working conditionsoBetter hoursoBetter wages
Opposition to UnionsProblems organizingoNo laws to protectoCourts favored businessoFaced jail/fines
Early unions = highly skilled workers
Corporate owners were opposed to:o Industrial Unions▪ United all craft workers and common laborers in a
particular industry
Struggle to OrganizeGrowth of industry = less success
Preventative tacticsoScabsoLockout oBlacklistoYellow-dog contractoInjunctions
National UnionsNational Labor Union (1866)
o United all workers – skilled & unskilled▪ Success = 8 hour workday
Knights of Labor (1869)o Public in 1881 – includes all members▪ Pushed for reform
o Arbitration vs. strikes
American Federation of Labor (1886)o Samuel Gompers
o Practical economic goals
o Collective bargaining
Great StrikesGreat Railroad Strike of 1877
Haymarket Strike (1886)
Homestead Strike (1892)
Pullman Strike (1894)
A Nation of ImmigrantsU.S. population triples in 50 years
o 1850 pop’n = 23.3 mil
o 1900 pop’n = 76.2 mil
Push factors:o Poverty
o Overcrowding/joblessness
o Religious persecution
Pull factors:o Reputation of political and religious freedom
o Economic opportunities
o Inexpensive travel
“Old” vs. “New” Immigrants
“Old” Immigrants “New” Immigrants• Western/northern
Europe• Majority Protestant• Mostly English
Speaking• High literacy• High occupational skills• Blended into rural areas
• Southern/eastern Europe
• Poor/illiterate• Autocratic society vs.
democratic society• Roman Catholic,
Greek/Russian Orthodox, Jewish
• Stayed in cities• “Birds of Passage”
The Immigrant ProblemBy 1886 Congress passed laws restricting immigration
o Chinese Exclusion Act (1882)
o Restriction on “undesirable” immigrants”
o Prohibited Contract Labor (1885)
o Ellis Island = Immigration Center (1892)▪ Stricter entrance procedures
Supporters of strict immigration lawso Labor Unions
o Nativists
o Social Darwinists
Statue of Liberty Remained a beacon of hope for immigrants
Growth of CitiesUrbanization = the increase in city size
and population
Urbanization and industrialization developed simultaneouslyoBy 1900 almost 40% of people live in citiesoMix of immigrants and native-born Americans
Many left farms for factory jobsoIncreased urbanization from African Americans
Changing CitiesStreetcar citiesoGrowth of cities due to urban transit▪ Creates suburbs
oNew means of transportation▪ Electric trolleys▪ Elevated RR▪ Subways▪ Steel suspension bridges
oLeads to “streetcar suburbs”
Changing CitiesSkyscraperso10 stories or taller w/ steel framesoElisha Otis = safety elevatoroAmerican Institute of Architecture (1857)▪ Required education and licensing to be an
architect▪ Built schools, libraries, train stations, residences,
and office buildings
Changing CitiesEthnic neighborhoodsoTenements = low cost multi family housing
designed to fit in as many families as possible▪ Unclean, little windows, poor ventilation, led to
diseaseoDistinct ethnic neighborhoods▪ Sometimes called “ghettos”▪ Designed to achieve the American Dream
Changing CitiesResidential SuburbsoAdverse pattern to EuropeoSuburban growth promoted by:▪ Abundance of low-cost land▪ Inexpensive transportation▪ Low-cost construction methods▪ Ethnic and racial prejudice▪ Fondness for grass, privacy, and individualism
Changing CitiesPrivate vs. Public citiesoMunicipal gov’t could not keep up with growth▪ Leads to tremendous problems–Waste– Pollution– Disease– Crime
oReform to fix problems▪ Zoning▪ Landscape architecture– Frederick Law Olmstead
Attempt at ReformSettlement houses = provided social services
for people in the neighborhoodoJane Addams – Hull House
Social GospeloSalvation Army
National Women’s Suffrage Association (NWSA)
Temperance MovementoComstock Law = “cleans up society”
Political MachinesAn organized group that controlled the
activities of a political party in a city
Bosses controlled jobs in municipal officesoGave support for support
Many city bosses are 1st generation immigrants
Municipal GraftIncreased power led to political
corruptionoLoyalty was basis for machine power▪ When not enough, turned to fraud
Graft – illegal use of political influence for personal gainoStrengthened power of political machines
Tweed and Tammany HallBoss Tweed – most corrupt boss; head
of Tammany Hall
Tammany Hall – NYC’s powerful Democratic political machine
Extorted millions from NY taxpayersoTweed Ring
Arrest for fraud and extortionoThomas Nast cartoon led to downfall
Politics of the Gilded Age
After 1877 gov’t enters stalemate and inactivity
Social shift from politics to economic changeoDevelopment of Westo IndustrializationoLabor Movement
Era of “No Name Presidents”oNone serve 2 consecutive termso Ignore problems of industry and citiesoWon’t take stand on controversial issues
Causes of Stalemate
Belief in limited governmento“Do-little gov’t”
Campaign strategiesoClose races deterred controversial issues
Party PatronageoPatronage = giving gov’t jobs to people who
help candidates get elected
“No Name” Presidents
Rutherford B. Hayes
James Garfield Chester A. Arthur• Ends
Reconstruction• Attempts reform• Supports
temperance
• Promises 1 term• Appoints
halfbreeds• Assassinated
• Proves closer to halfbreed
• Pendleton Civil Service Act (1833)
• Tries to lower tariff
• Stopped by Congress
Grover Cleveland
Billion Dollar CongressHarrison wins election funded by business
owners
Billion Dollar Congress = (R) control of presidency and congressoMcKinley Tariff (1890)▪ Raise tariff to 48%
oSherman Antitrust ActoSilver Purchase Act (1890)▪ Increased coinage of silver
Cleveland McKinley
Duality of the AgeTremendous Economic Growth vs. Tremendous Economic
Exploitation
Industrial giants that will revolutionize business vs. Destroying the free market
Huge fortunes made vs. Fortunes given away
Record voting, but age of No Name presidents vs. Political Stalemate where politicians ignored public interest
Corrupt politicians used their offices for personal gain vs. Took care of working families and immigrants