La Belle poque or Gilded Age La Belle
La Belle Époque or Gilded Age? ?
La Belle Époque n French for Beautiful Era n Ends with the start of WWI n Named after WWI in retrospect n Described the years of peace and prosperity of the middle class before WWI changed everything
n. New dress, art, engineering feats, technological progress
n. Poor ignored n. Women began to believe they deserved the same rights as men
Gilded Age n. U. S. Term n. Time of economic growth n. Mark Twain – period was glittering on the surface but corrupt underneath
n Growth of industry wave of immigrants n Production of iron and steel increased n Railroad boomed n Business men were rich (Rockefeller, Carnegie. . ) n 1900 -1917 Progressive Era
Why Big Business n Legacy of Colonial America – B. E. I. C. , M. B. C. , L. C. n Abundant Natural Resources n Rise in Entrepreneurs n Laissez-Faire Government n Large Labor Pool
Age of Big Business n. Oil found in Pennsylvania n 1850 researchers found uses for oil
n. Many businesses wanted to expand but needed capital ($) –Needed to buy material equipment to pay workers and cover shipping and advertising costs
n. Corporation: A company that sold shares/stock of its business to the public n. Stock: shares of ownership in a company n. Shareholders: people who bought stock
n Stock exchange: where selling and buying of shares occurred n When corporations made $$ shareholders earned dividends n Dividend: a portion of the profits made by the corporation
n Tieback in history – British Merchant-capitalist would finance colonies in an attempt to gain profits from investments – Joint-stock Companies were founded by merchants and landlords who financed expeditions and colonies with the desire of Conquest and riches
n Tieback in history – Who had Companies? Mostly Northern European Countries- Why? The 1 st I. R. § British Crown § Dutch/Netherlands § English Crown § France § Germany § Portugal § Scandinavians § Russia § Scotland
n. A few examples of early Companies – World § British South Africa Company § English Royal Africa Company § British Honourable East India Company § Dutch Verenigde Oostindische Compangie – North America § East India Company § Virginia Company § Massachusetts Bay Company § Hudson Bay Company
n. Railroad corporations first to borrow money from banks n. Banks made a profit on the loans and started loaning out more money to businesses
Oil Business n. John D. Rockefeller –Standard Oil Company –Used Horizontal integration (Combined competing forms into one corporation)
n 1882 formed a trust: a group of companies managed by the same board of directors n Gave board of directors ownership of the other companies stock and the right to manage them = created a monopoly in oil
Steel Business n Steel is iron treated with carbon – ideal for railroads tracks, bridges…. . n Prior to 1860 too expensive to produce n 2 methods to produce – Bessemer process – Open hearth process
n. Mills emerge in Pennsylvania and Ohio (iron ore) n. Pittsburgh becomes the steel capital of US
Andrew Carnegie n 1890 dominated steel industry n. Vertical integration (acquiring companies that provided the equipments and services he needed)
n 1900 Carnegie Steel Company n. Produced 1/3 of all steel in US n 1901 sold to JP Morgan for 450 million to create United States Steel Corporation (1 st billion dollar corporation)
U. S. Politics n Grant Administration 1869 -1877 – 18 th President Republican – President was weak in comparison to congress – Laissez faire economics – Built railroads – Scandals – Credit Mobilier and Whiskey Ring – Panic of 1873
n Hayes Administration (1877 -1881) – Compromise of 1877 – Ends reconstruction – Does not accomplish much due to the compromise with the presidency
n Populists Movement – Mostly farmers – Wanted government control of transportation – Form National Grange, Farmer alliances and eventually the Populist Party – Wanted to allow silver in addition to gold backed currency
n Election of 1896 – Mckinley – Republican wins against William Jennings Bryan (Democrat – Populists)
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