The Gilded Age Time period in which society

The “Gilded Age” • Time period in which society looked good on the outside, but experienced many problems • The Good • There was high growth in industry, technology, business, the economy, and population.

The Gilded Age • The Bad: Conflict occurred between the factory owners and workers, Americans and immigrants. • Society was full of corruption, especially in politics and business

The Gilded Age • Causes of Rapid Industrialization: • 1. Pro-Business Government Policies • Laissez-faire—government “hands off” policy with little regulation

Natural Resources • 2. Natural Resources • U. S. had abundant natural resources—coal, iron ore, timber, oil, etc. • “Bessemer Process”- Easier, cheaper process to convert iron into steel

Rising Population • 3. Population Growth: • The population tripled, largely due to immigration, providing a large labor force

New Technology • 4. New technology • New inventions and innovations made production better and faster and improved trade

New Technology • Alexander Graham Bell • Invention/Innovation: Telephone • Impact: Communication between businesses, factories, and customers increased

The “Wizard of Menlo Park” • Thomas Edison • Invention/Innovation: Light bulb, Electricity distribution • By 1890, electricity ran numerous machines and was available in homes and factories

Model T Automobile • Henry Ford produced first car in 1896 • Began to reshape American cultural and social life • Importance of the Assembly Line

New Forms of Business Organization • Business & industry transformed: – Massive corporations – Managers hired to make factories run more efficiently – New business models (trusts) integrated various businesses under 1 board of directors

New Business Culture • Entrepreneurs – Fuel industrialization by investing in products or ideas to make a profit – Invested in factories, railroads, & mines – Corporations: form of group ownership by a number of different people

Vertical & Horizontal Integration

Monopolies – Companies that control nearly all of a particular industry – Since most monopolies were run by boards of trustees, monopolies also known as “trusts”

Captain of Industry vs Robber Baron Captains of Industry- Positive Term Robber Barons- Negative Term Business leaders served their nation in a positive way. Business leaders built their fortunes by stealing from the public. Increased the supply of goods by building factories. Drained the country of its natural resources. Raised productivity and expanded markets. Persuaded public officials to interpret laws in their favor. Created jobs that enabled many Americans to buy new goods and raise their standard of living. Ruthlessly drove their competitors to ruin. Created museums, libraries, and universities, many of which still serve the public today. Paid their workers meager wages and forced them to toil under dangerous and unhealthful conditions

The Monopolists • Andrew Carnegie-Carnegie Steel Company: – “Rags to Riches” story – Mastered vertical integration to out -produce his competition, offer better quality steel at lower prices

Carnegie did not pay his employees very much & did not allow unions in his factories… …but he was also a philanthropist who gave money to New York City libraries, colleges, & performing arts institutions

The Monopolists • John Rockefeller : Standard Oil –Used horizontal integration to monopolize the oil industry

…he also gave away $500 million to charities, created the Rockefeller Foundation, & founded the University of Chicago Rockefeller was labeled a “robber baron” who took advantage of immigrant workers, driving competition out of business, & influenced the national gov’t…

The Monopolists • Monopolists justified their wealth: – “Gospel of Wealth”-argued that it is God's will that Wealth some men attained great wealth, and they should share with “deserving poor” – Social Darwinism- natural competition weeds out the weak & the strong survive