Gilded Age n n A term coined by
Gilded Age n n A term coined by Mark Twain Refers to substantial growth in population in the United States and extravagant displays of wealth and excess of America's upper-class during the post-Civil and post-Reconstruction era, in the late 19 th Century (1865 -1901). An era of seemingly endless prosperity with excessive examples of corruption and poverty “The man in the moon held his nose when he passed over the U. S. ”
Factors of growth #1: Wealth of Natural Resources n n n n Timber from great lakes California Gold OH, WY, CO, PA = Coal OK, TX, CA, AK = Oil NV, CA, UK = Silver MI, MT, UT, AZ = Copper All funded by capital investments (JP Morgan, Andrew Carnegie, etc) back in East Coast cities
Factors of Growth #2: Agricultural Base n n n Homestead Act 1862 – Encouraged development of West Pacific Railway Act 1862: Gave 10 acres of land to RR for each mile of track laid Corn production increased 264%, Wheat up 252%, Cotton up 300% New fertilizers New machines: Mc. Cormick Reaper, barbed wire
Factors of Growth #3: Capable Workforce n n n Irish and Italian Immigrants come in record numbers By 1910 50% of America was immigrant Willing to work for cheap labor
Philosophy of the Industrialists
Adam Smith n n n Individual self-interest works to the benefit of all of society Increases efficiency, cheaper goods over the long run Government intervention should be avoided n n Absolute minimum of duties, tariffs, quotas Free markets are the solution Adam Smith 1723 -1790
Herbert Spencer n n n English philosopher Survival of the fittest Bright and Able contribute the most, should be rewarded Poor, weak, handicapped demand more than they produce, should be allowed to die a natural death Charities, handouts are well-intentioned but really destructive to society Origins of Social Darwinism Herbert Spencer 1820 -1903
John D. Rockefeller n n n Growth of a large business is merely survival of the fittest “The American beauty rose can be produced in the splendor and fragrance which bring cheer…only by sacrificing the early buds…” Nature and God’s laws mean that monopolies are OK John D. Rockefeller 1839 -1937
Andrew Carnegie n n n Rich have social obligation to set an example of living modestly, use profits to establish trust funds that benefit the community Provide opportunity for the poor to better themselves Known as the “Gospel of Wealth” Andrew Carnegie 1835 -1919
Corruption under Ulysses S. Grant n n Ulysses S. Grant took a check from NYC for $105 k for “saving the Union” when he became president Boss Tweed Ring: Tammany Hall = political machine in control of NYC Kickbacks, bribery the only way to do business “An honest senator was one who when bought, stayed bought”
Scandal n n Credit Mobilier Scandal: Union Pacific RR earns dividends of 340% - gives stock to senate Whiskey Ring: Whiskey distillers bribe IRS to “go away” – Grants own sec in on it Belknap Scandal: Sec War took bribes to “cheat Indian reservations” RR: Stalled in the rain until people met their demands
Labor Unions Knights of Labor n Eventually included women, blacks, professionals, laborers, skilled workers, socialists, anarchists, farmers n Wanted to get rid of capitalism by creating worker-owned businesses n Would use violence American Federation of Labor n Only skilled workers in craft unions n Wanted higher wages, shorter hours, improved conditions n Public suspicious, but found them less threatening than the anticapitalist K of L
Key Figures Knights of Labor: Terence V. Powderly n K of L becomes more like a union, less like a fraternal organization n Growth of K of L to close to 1 million members by 1886 n Disliked strikes n Influenced by producerism, not socialism n n Supported Chinese Exclusion Act Knights die out by 1900 n Socialists, craft unionists, Haymarket Riot, unsuccessful strikes cause downfall AF of L: Samuel Gompers n Gompers is a socialist n Founds AF of L in 1886, leads it until his death in 1924 n Discriminated against blacks and women n Also supported Chinese Exclusion Act n Supported political action, generally w/Democrats n Wanted to partner w/business —saw unions as the labor component n Supported collective bargaining
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