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