Describe the changing role of government in economic

Describe the changing role of government in economic and political affairs Week 5 Day 4

Political Paralysis and the Gilded Age Time period in the United States from about 1870 to 1910 Time was marked by the end of the Civil War Small numbers of people became enormously wealthy and built industries in railroads, steel and finance.

Ulysses S. Grant U. S. Grant became president in 1870 following the controversial term of Andrew Johnson who was nearly removed by impeachment. Grant had been a Union general who was well respected. He was not considered very political smart. He was basically in “retirement mode” during the presidency and wanted to reap rewards of his military success. His administration suffered many scandals and was guilty of corruption.

Jubilee Jim Fisk and Jay Gould and Fisk were railroad tycoons who were able to take advantage of optimistic investors by scheming the gold and bond markets. Their scheme swindled investors out of millions of dollars and caused gold prices to plunge causing a financial panic in 1869. Neither Fisk or Gould suffered much financially from the economic collapse

Boss Tweed The most notorious political party boss in U. S. History. Ran New York City’s Tammany Hall Democratic Political Machine His power was derived from his ability to provide jobs for loyal supporters [Patronage]. The elected officials he helped gain power in turn did favors for him. He accepted bribes from rich businessmen in exchange for political influence [Graft]. He was eventually jailed for corruption and swindling New York state out of over $1 million for the construction of court house. He escaped and fled to Spain. He later returned and died nearly broke.

Credit Mobilier Scandal The powerful Union Pacific railroad wanted to expand their railway system The owners also wanted to get rich The owners concocted a scheme to create a construction company they owned a paid them 4 times what the job was worth and pocketed the money Since the railroads were heavily government regulated corruption was suspected because the scheme worked. Grant’s administration was criticized and several congressmen were punished.

Horace Greeley n Even though President Grant had been criticized for being a poor politician… n Even though the Grant Administration had been plagued by scandals and corruption. . . n President was re-elected because the opposition candidate was considered very weak and was not respected. n Horace Greeley, a republican, was considered “geeky” [my words], very over dramatic and dogmatic [high onesided in a negative way].

Financial Panics of 1869 and 1873 n Too much financial risk taking on the part of banks lead to drastic plunges in the value of gold and American money during ’ 69 and especially ’ 73. n The law of gravity applies in the financial world too! n What goes up [too quickly] must come down. n These problems were mostly caused too much speculation in railroads, mining and excessive production of crops

Election of 1876 and the Compromise of 1877 n U. S. citizens were mostly fed up with the ineptitude of President Grant and the depressed economy. n The alleged corruption and suspected scandals committed by Grant’s administration had soured American voters. n New York Governor Samuel E. Tilden the democratic candidate opposed former General and Southerner Rutherford B. Hayes. n Tilden actually won the popular vote but due to Southern violence and pressure from railroad companies a deal was struck to give the presidency to Hayes in exchange for White House patronage [jobs]. Hayes lasted one term

Newspaper assignment n n Options You are to write a full page news article explaining to your readers criticisms or praise you have for any of people or events from among the list we’ve discussed from Chapter 23. You may exaggerate, accuse, heavily criticize or inflate the event or person. You are to create a political cartoon parodying or exalting one of the people or events from among the list we’ve discussed from Chapter 23. You may use humor, sarcasm or irony in the cartoon. It should be a single scene/page [don’t use separate panels] see your local newspaper or textbook for examples [ex. P. 506 -507].

Sources n n n http: //research. surnames. com/images/civil_war_soldiers. jpg http: //farm 3. static. flickr. com/2462/3560914909_a 5 aab 936 e 0. jpg http: //www. d 11. org/grant/images/us-grant. jpg http: //www. clangrant-us. org/images/Grant 1. jpg http: //upload. wikimedia. org/wikipedia/commons/4/40/Jay_Gould_cro p. jpg http: //4. bp. blogspot. com/_RHk 5 f. P 6 i. A 9 w/TAFAPrg. GLu. I/AAAA Acw/eu. GKmkn 2 Pto/s 320/Jubilee-jim-fisk. jpg n http: //explorepahistory. com/images/Explore. PAHi story-a 0 b 9 d 5 -a_349. jpg n http: //graphics 8. nytimes. com/images/2008/10/13/nyregion/13 panicci tyroom 190. jpg